Few topics in fund are as hotly disputed since the feud between advocates of passive and active investing. Bloomberg Gadfly’s Nir Kaissar and Bloomberg View’s Barry Ritholtz recently met online to join the discussion. They discussed global equity valuations.
Barry Ritholtz: I have a foot in both camps, although my store runs a largely passive portfolio of cheap worldwide assets. So perhaps I’m not the perfect Boglehead to make the case for passive investing.
But, I think a big chunk of your portfolio — many — ought to be passively indexed. Let’s start our situation by pointing out four of the key reasons: