Investment Strategies: Active vs. Passive

As simply defined by one of the most successful investors of all time, Warren Buffet, “investing is laying out money now to get more money back in the future.” Investors may hire financial professionals who possess the analytical skills, expertise and knowledge of the market and securities to assist them in attaining returns on their investments. One such professional is a portfolio manager. The portfolio manager develops and implements investment strategies aligned to their client’s objectives, risk tolerance, liquidity needs, etc. as outlined in their client’s Investment Policy Statement. This week’s article discusses the difference between two types of investment strategies which the portfolio manager may utilise in the management of a client’s portfolio of securities.

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