Thanks for writing this, James. I think your experience is what’s missing in a lot of passive vs actice investing debates. Putting aside for the moment the probability of beating the market, there is a psychological toll from active investing that is not shared with passive investing.
I rarely look at the day to day fluctuations of my portfolio. Because my investment horizon is 20+ years out, and because I know that stocks average 6%-7% annually over the long run, my portfolio could cut in half tomorrow and I would barely care (if anything, I’d be happy because it’d mean there’s a fire sale)
Another psychological disadvantage of active investing is that you end up spending a lot of time looking at your portfolio and researching stocks--time you could use for othet things.
I’d like to persuade you to return to passive investing but it seems you’ve made up your mind. So, instead I wish you immense luck. I hope your time and effort pays off.
Again, great read. Thanks for your honesty.