Low Cost Active Alpha is the “democratization of Wall Street”
I put Wikiflolio in the Low Cost Active Alpha category. This is different from Robo Advisers, which is Low Cost Passive Beta. Put in more exciting terms, Low Cost Active Alpha is the “democratization of Wall Street”. The more accurate term might be “democratization of Asset Management”. My theory is that many people have the ability to invest well if they invest in what they know. It is the old fashioned Peter Lynch principle. They just lack the tools that institutional traders have enjoyed. Since trading data went digital (early 1980s), technology support for traders became very sophisticated; that was the market I operated in for many years. Now that sophistication is coming to the public.