Investors can approximate the average market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market – but in the process, they risk under-performance. For example, the Qingdao Port International Co., Ltd. (HKG:6198) share price is down 23% in the last year. That’s disappointing when you consider the market declined 14%. On the bright side, the stock is actually up 0.7% in the last three years. In the last ninety days we’ve seen the share price slide 24%. However, one could argue that the price has been influenced by the general market, which is down 9.9% in the same timeframe.
There is no denying that markets are sometimes efficient,