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It's so frustrating when people don't understand that the market has already priced everything into the price of a stock. When someone buys a stock that person
by bjoernw 17y ago
It's so frustrating when people don't understand that the market has already priced everything into the price of a stock. When someone buys a stock that person thinks he/she knows more about the price of the stock than the rest of the market.
There is plenty of academic research that shows stock picking doesn't work and shows that actively managed mutual funds do as well as passively managed funds. No fund manager can create a positive alpha over the long run.
I cringed when I read the title...
- xsmasher 17y agoThe idea is that the techie may have more insight into the value of a company, because of their insight into technology. A techie may value Google over AOL and Apple over Dell, instead of just seeing "two web companies" or "two computer companies." However, a techie isn't in a good position to judge whether a company is overleveraged, etc. if they can't read a balance sheet.