Ndubuisi 'Andy' Egwim contrasts two broad investment approaches: passive investing via broad, diversified index funds (e.g., S&P 500, FTSE/global index) and active/sector/company selection that requires research. He recommends index funds for most people who lack time or training, and describes his own active-research practices (reading company reports, listening to investor calls, attending shareholder meetings) when selecting specific companies or niche sectors (anecdote: well-defended funeral-home businesses).
Chapters
We went through two different things and someone has just written it in the comment. Asset classes. Okay, you can actually decide to invest in broad based, well diversified index fund. Like if you buy the S&P 500, it's going to include all the top companies, including the semiconductors. That's one way. Or you can decide, oh, I want to buy S&P 500, but I also want more exposure to companies that actually trade in. I'll give you a funny one. Companies that do funeral homes at some point. There's all the great funeral homes because they have a defendable moat. Okay? So if you decide that you want to go into that area, then it's now some research for you to do. That's where you get to stand down, start reading some materials. In my own personal case, I'll read company reports, then investment calls. And in some cases, like Berkshire Hathaway, I actually fly in and attend the shareholders meetings. So these are things I've done for years. That's why most people don't have the time or training to do that. So they want to just keep things simple. You buy a broad index fund if you buy S P500 or if you decide to buy an FTSC, a global index fund. That way you don't really need to identify anything.
