Activist Investors Play An Important Role

Simply put, the main difference between an active and passive investor is that although both strive to identify hidden value in a stock, an active investor will take part in unlocking that value whereas a passive investor leaves that job to the current management.

Warren Buffett is one of the world’s most famous and successful “value investors” who coined a rather famous line many years ago:

“Price is what you pay, and value is what you get”

Although this statement may seem overly simplistic for someone whose net worth exceeds several billion dollars, the Investment Committee would highly recommend that every investor memorize this sentence (perhaps even print out a copy and hang it on a wall).

 

Read the full article HERE from our friends at Global Financial Private Capital.

Posted on June 4, 2014 .