Because there are 6,000+ stocks that could make you lose money in stocks

investors would traditionally avoid this by putting 60% in stocks and 40% in bonds.

Today, a lot of retail investors still follow that 60/40 rule but does it still make sense?

I don’t think it does.

Benjamin Graham, the father of value investing, believed that passive investors only deserve minimum returns for wanting both safety and freedom from investing concern.

While active investors should be rewarded maximum returns for their passion and enterprising actions in the investing world.

There is a lot of truth in this. And this is why today, it’s all about passive/active investment as described 40+ years ago by the great Benjamin Graham.

Active investment is for pros, investors who have skills and access to massive analysis and market data with the time needed to process all that information and get the maximum returns.

Basically not us, the small retail investors.

I mean who has time or the patience for this?

Our life is too busy with other things and we want simplicity and easy solutions.

So we go for passive investment.

And that means minimum returns.

But I think there is another way.

Instead, we could allocate our money in passive investment with style portfolios, just like this:

25% in Large Cap Value stocks

25% in Large Cap Growth stocks

25% in Mid Cap Value stocks

25% in Mid Cap Growth stocks

Some of these stocks will do a little bit better than the market minimum return of the S&P 500.

And since we can’t predict 100% which style will do better, we invest equally in all 4 of them.

That way we won’t miss the active returns when they happen in any investment style.

You don’t need the 60/40 rule to protect your money, you can do better with style portfolios.

If you are looking to invest in style portfolios for your own asset allocation, try this list here.​