How to Beat the Stock Market2012 Feb 14
Investing is good, but the real challenge for every portfolio manager is to beat the stock market, or beat the market. Of course the term ‘market’ is not very exact. In reality to beat the market is to outrun some investment benchmark which depends on the particular investment strategy. Read about it more in investment performance measurement.
Even if you are investing only in stock, there are many stock indexes and you have to know exactly which one you are trying to beat. The risk of the portfolio should be identical to the risk of the index that you are trying to beat.
So how to beat that whimsical stock market? Well, you may beat the stock market in two levels:
If you think that you will not beat the stock market, maybe is better to chose passive investment.
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