Professor Aswath Damodaran. Should you be an Active or Passive Investor?

With this lecture, Professor Damodaran takes you through the last few decades, during which passive investing has widened its offerings (to include ETFs and other markets) and has taken away market share from active investing. The pace of disruption seems to have quickened in the last decade. The best advertising for passive investing is the performance of active investors, who seem to lag their passive counterparts, across time, style classes and geographies. Professor Damodaran argues that active investing is destined to shrink as a business and that while there are potentially dangerous consequences to the rush to passive investing, the process has its own correction mechanisms. Even in the face of the evidence to the contrary, professor Damodaran explains why he is still an active investor.