Active Investing Versus Passive Investing

Passive investing beats most active investors over the long term. Shutterstock

The “go get ’em” attitude suits many people. Some want to be actively involved in everything, including investing. Others may just be happy with their lives and don’t need to invest actively. They are content with being passive investors.

Both investing strategies have their place and can be successful. But which strategy is most sound for both the long term and the short term, and which one would suit your needs and goals?

What Is Active Investing?

Active investing is just what it sounds like. Investors spend hours combing through stocks, prospectuses, and reports, looking for the best return.