Active Investing vs. Passive Investing Right Now

When Benjamin Graham was writing “The Intelligent Investor”, the market edge that American investors possessed was information asymmetry. Because there were few sources of comprehensive data–maybe there was a data chart from Moody’s here or there–the buyers and sellers of corporate stock had wildly different amounts of information at their ready access. Ty Cobb could see Coca-Cola stock rolling out across the southeastern United States and use his paychecks from playing baseball for the Detroit Tigers and endorsements from promoting Chesterfield cigarettes to build a million-dollar fortune. His regional access and insight to the product allowed him to see 20% growth in real time in a way that a Texas doctor could never imagine.

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