Published a brief for the CFA Institute Research Foundation!

This piece is but one chapter of a larger body of work, to be published soon, by Brian Singer and me. In it, we will lay out our framework for investing and dig deep into its fundamental underpinnings, both economic and philosophical.

This brief deals with how to reason around passive versus active investing. While our framework focuses on investment horizons, it offers vital implications for passive versus active investing through the lens of degree of entrepreneurialism.

Abstract: “This brief argues that active and passive investing both have a role in financial markets, contributing to overall market growth and stability. It also corrects some misconceptions about the meaning of active and passive investing.

The authors discuss the parallels between entrepreneurship in the economy and active investing in financial markets. They emphasize that just as entrepreneurs drive progress and innovation by creating new products or services, active investors play a similar role in finance by making decisions that allocate capital, guided by their insights into market opportunities.”

Also check out the conversation Brian and I had with Anthony DeChellis on the topic of the brief.