5 ms·
If you're middle class, being hurt by a stupid investment could mean losing your house & retirement savings and yes, the state globally won't benefit from that.
by john_moscow 9y ago
If you're middle class, being hurt by a stupid investment could mean losing your house & retirement savings and yes, the state globally won't benefit from that.
Besides, historic numbers [1] show that passive ETFs outperform actively managed funds as a trend, so the original idea behind accredited investors was "if you want to play the high-risk game, at least don't put your last chip on the table".
[1] http://www.investopedia.com/articles/investing/030916/buffetts-bet-hedge-funds-year-eight-brka-brkb.asp http://www.investopedia.com/articles/investing/030916/buffet...
- whataretensors 9y agoThe rich can be destroyed by investing more than they can afford as well. Index funds beating managed hedge funds has nothing to do with inability to invest disposable income in startups.
- _pmf_ 9y ago> The rich can be destroyed by investing more than they can afford as well. They have shell companies that protect them from this.
- john_moscow 9y agoShell companies are used to optimize taxes and cap liabilities (note the recent legislation on passive foreign investment companies), they don't have much to do with protecting against investment risks.