The Wall Street Journal recently discussed The Dying Business of Picking Stocks and how passive investing in index funds has become common. Despite this trend there are folks who make a lot of money on specific stocks. When is stock picking likely to be successful and when should you stick with an index fund?
Pension funds, endowments, 401(k) retirement plans and retail investors are flooding into passive investment funds, which run on autopilot by tracking an index. Stock pickers, archetypes of 20th century Wall Street, are being pushed to the margins.
Over the three years ended Aug. 31, investors added nearly $1.3 […]