The best strategy continues to be what many of you already practice: diversify, focus on the longterm, and allow for a margin of error in all of your investment decisions.
Why wouldn't we want to put that on an electronic medical record that will reduce error rates, reduce our long-term cost of health care, and create jobs right now?
While Iomega has done a good job of building its Zip disk brand over the past several years, it made a critical error when it reduced the prices on the drive and pinned its hopes for a long-term revenue stream on sales of disks.
Although some active managers may experience more short-term volatility and higher tracking error with their benchmarks, this growing trend should lead investors to look to active managers with long-term track records of strong risk-adjusted performance, as I foresee on-going attractive equity returns in the years ahead.