> Warren Buffett Blog: Diversified long term investment can beat active trading

Wednesday, March 4, 2015

Diversified long term investment can beat active trading

Investors, of course, can, by their own behavior, make stock ownership highly risky. And many do. 

Active trading, attempts to “time” market movements, inadequate diversification, the payment of high and unnecessary fees to managers and advisers, and the use of borrowed money can destroy the decent returns that a life-long owner of equities would otherwise enjoy.