Comments by "JP 72" (@739jep) on "The Problem With Small Cap Stocks" video.

  1. There’s no such thing as passive investing. Even the most basic ‘passive’ strategy involves significant capital allocation decisions which will vary over an investors lifespan. Even if investing in market cap weighted funds , on the index level there is significant active mgmt. You just don’t see it. Take any S&P 500 index for example - a group of people decide what gets to be in that index , and the size of the business are not the only factors that go into the decision. While it’s true that investing in small caps by removing the junk is more active than simply holding market cap weighted funds - it is still rules based , simple , low cost and can be done while remaining highly diversified and the strategy is based on both empirical data and sound financial theory. There is no need for market timing or individual stock picking either.
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