Snakes & Ladders

In its very simplest form, investing can be described as the allocation of capital to either entrepreneurs or company management requiring funds to seed an opportunity to generate profits. By that description, it is the active manager’s responsibility to evaluate each of those opportunities – its potential along with its corresponding risks – against the price paid to participate in the opportunity. The difference between good and bad active management is simply the capability and depth of the research in evaluating the opportunity set.

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