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Let's be honest... research shows that even if you are a trained professional making a career of picking stocks, you STILL probably won't out-perform the market
by dbatten 9y ago
Let's be honest... research shows that even if you are a trained professional making a career of picking stocks, you STILL probably won't out-perform the market.
- nojvek 9y agoI've heard that a lot. Put it on S&P 500. No hedge fund will be able to beat that. Consider the fact that S&P 500 is made up of 500 companies, there will be a top 100 and a bottom 400. There are some sectors that grow better than others. e.g For the past couple of years the entire Tech sector has done phenomenally well. I like picking stocks, learning about companies, their products, competition, reading financial statements, P/E ratios and speculating. Its fun! It does feel like a gamble at times so I do a 50%/50% split. Half goes to a wide index, and the other 50% is split into smaller chunks that goes to stocks I have picked after a lot of reading and thought. For the past 3 years I've beat the market but 3 years is a very small sample so I may as well very much lying to myself. In anycase I enjoy it.
- thatwebdude 9y agoIndividual stocks, to me, is like gambling. With enough knowledge and foresight and luck you can really make a pretty penny. I like the idea of also investing in funds. AI and professionals are already watching and picking these for you; it feels like investing as well, may have lower returns but typically much safer. A mix of both seems very healthy and what a lot of able-bodies are doing right now.