When it comes to investing there are only two real styles that one can choose from when you begin to purchase assets⁣
⁣
⁣⁣⁣
Active Investing OR Passive Investing⁣⁣⁣
⁣
By default you will either be one or the other. When it comes to your asset portoflio they are defined as follows: ⁣⁣⁣
⁣⁣⁣
Active Investing – constant dipping in and out of the market to buy and sell assets in the hope of creating more profit. ⁣⁣⁣
⁣⁣⁣
Passive Investing – buy and hold strategy where one sets up a “set and forget” portfolio. They buy these assets and hold on indefinitely as they grow ⁣⁣with minimal (if any) maintenance⁣
⁣⁣
After clearing up these definitions we can now get into one of the biggest misconceptions that is out there when it comes to investing… This is the preconception that one needs to be actively investing to obtain the greatest returns. Counterintuitively, the clear majority of the time passive investors beat active investors ⁣⁣⁣
⁣⁣⁣
This style is also way more suited to the busy lifestyle of a dentist given that time is usually scarce for us. Whichever style you choose its helpful to understand the terms of each to make the best choice. ⁣ ⁣⁣⁣
⁣⁣
The majority of the time I’ve seen dentists become successful in investing its with a passive styles. The active style seems alluring however the results dont back it up. Its also worth noting that it takes vastly more of your time to become an active investor. Of course, with great dedication one can beat the market via building the skills necessitated to achieve this.⁣
⁣⁣⁣
HOWEVER in my opinion if someone took that same time and energy and transferred it into the skills that they already possess e,g, their clinical dentistry they would make far more returns on their investment. ⁣⁣
⁣⁣
Whichever you decide to do I hope this article provided some guidance.⁣⁣
⁣⁣
⁣
~ James