Active investors like to do their homework. They’re looking for stocks they can keep for the next 5-10 years. These investors know that failing to do the homework can result in a volatile portfolio with significant value losses.
Passive investors are focused on returns over the long term instead of timing the market for short-term profits. Many enjoy dollar-cost averaging in index funds, ETFs, and mutual funds.
This investor is similar to the passive investor but they take a slightly more active approach. Most like value companies that offer dividends.
Growth investors like growth. They’re focused on companies and types of investments that are expected to deliver an above-average rate of return in their industry or market.
Value investors actively seek out stocks that they believe the market is underestimating. They’re not distracted by short-term trends or the latest meme stock.