Knowing the difference between active, and passive investing will play a tremendous role in building wealth, as it will save you thousands of dollars over a long-term horizon. Active investing refers to a methodology whereby time is spent researching individual stocks that will makeup your investment portfolio, over time these individual stocks will be churned in hopes of finding better investment opportunities. One of the issues with active investing is the cost, transaction fees, or expense ratios if you are invested in a mutual fund.
