Passive Investing, The Evidence… Part 3 – A Better Alternative

Passive Investing, The Evidence the Fund Management Industry Would Prefer You Not to See

A Better Alternative

Part 3 of 8 (8:05)

Passive investing costs less, but produces a higher than average return after costs in the long term. Here’s how it works.

Nobel Prize-winning economist William Sharpe describes his Capital Asset Pricing Model, the mathematical foundation of passive investing. Also included is an  explanation of the Efficient Market Theory from Ken French, who developed the theory with Eugene Fama.

Additional comments are from Dan Goldie (The Investment Answer), Weston Wellington, Laurence Gosling (Investment Week), Ben Johnson (Morningstar), Tim Hale and Prof. Stephen Thomas.

Watch Passive Investing, The Evidence the Fund Management Industry Would Prefer You Not to See, in 8 parts:  or watch the full movie here.

1. The Outperformance Myth (7:15)
2. The Cost of Investing (6:18)
3. A Better Alternative (8:05)
4. Ultimate Diversification (8:44)
5. A Healthier Way to Invest (7:04)
6. Hooked On Active (6:02)
7. The Tide Is Turning (6:48)
8. The Rational Choice (8:08)