Who Really is a Passive Investor?

By Preston McSwain via Iris.xyz

Based on My True Stories, I’ll Let You Decide

While surfing Twitter recently, I noticed another long debate about the difference between passive and active investment management.

When the debate turned to the meaning and use of the words “active” and “passive, I chimed in by sharing a brief tale of time I spent at a firm that had two different investment management divisions on two different floors.

These two divisions had very different internal cultures as well as very different approaches to investing – approaches that today are called passive and active.

I’m not a great Tweeter and a few people asked me tell this story in a little more detail, so here goes.