The Mind Money Spectrum Podcast

#11. In the active vs. passive debate, fees and taxes matter more than trying to identify alpha.

February 25, 2020 Aaron Agte and Trishul Patel Season 1 Episode 11
The Mind Money Spectrum Podcast
#11. In the active vs. passive debate, fees and taxes matter more than trying to identify alpha.
Chapters
The Mind Money Spectrum Podcast
#11. In the active vs. passive debate, fees and taxes matter more than trying to identify alpha.
Feb 25, 2020 Season 1 Episode 11
Aaron Agte and Trishul Patel

In this episode, Aaron and Trishul explore the active vs. passive debate. The academic research is pretty clear that US Large Cap active managers don't outperform their benchmarks on average. But what does that even mean? And what about Warren Buffet? And what about different asset classes? And taxes? They go into index and ETF construction to help you understand where the issues may lie. In the end, even if active manager alpha is possible, it might be too impractical to identify the right manager. For instance, you won't know if you made the right call until half a lifetime later.

Episode References

Investing Forever - Passive Is the New Aggressive, Part 4
Investing Forever - Passive Is the New Aggressive, Part 5
Investing Forever - Passive Is the New Aggressive, Part 7
Warren Buffett, More Luck Than Skill?

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Aaron and Trishul explore the active vs. passive debate. The academic research is pretty clear that US Large Cap active managers don't outperform their benchmarks on average. But what does that even mean? And what about Warren Buffet? And what about different asset classes? And taxes? They go into index and ETF construction to help you understand where the issues may lie. In the end, even if active manager alpha is possible, it might be too impractical to identify the right manager. For instance, you won't know if you made the right call until half a lifetime later.

Episode References

Investing Forever - Passive Is the New Aggressive, Part 4
Investing Forever - Passive Is the New Aggressive, Part 5
Investing Forever - Passive Is the New Aggressive, Part 7
Warren Buffett, More Luck Than Skill?

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.