2 ms·
it's not possible to decide if something was a good decision or not by looking at realised performance over a short time scale. having a portfolio that is enti
by shoo 9y ago
it's not possible to decide if something was a good decision or not by looking at realised performance over a short time scale.
having a portfolio that is entirely concentrated in the S&P will have less risk adjusted expected reward than one that allocates a bit in some other buckets as well (e.g. international shares). c.f. the book "random walk down wall street".
- 0xbear 9y agoIt's very hard to outdo index funds. Even Warren Buffet said as much. My personal observation over the last decade confirms it. I also trade individual stocks in industries where I understand the underlying trends, and those do outperform s&p, but I'm very much aware that betting the wrong way could instantly undo those gains. Index funds are much safer.