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I think the issue is, we're all thinking they're stupid for not realizing the risk of their investments, but maybe they do! Or maybe they recognize half or a qu
by rconti 9y ago
I think the issue is, we're all thinking they're stupid for not realizing the risk of their investments, but maybe they do! Or maybe they recognize half or a quarter of the risk. But they don't understand the alternatives. Nobody is on the "other" side saying "invest in mutual funds!"
They probably get "exciting business opportunities" and "help your friends and family" and "spend it all on hookers and blow!" and the "exciting business opportunity" might sound like the best way to keep their fortune going compared to the other options.
- richardw 9y agoI suspect that you're right and possibly because of the following reason: they've had a lifetime of outsize results. They were always the fastest, strongest, got the girl. Now comes along either a normal ETF with average returns, or the promise of outsized ones sold as insider tips between experts. It'd be tempting and in-character to swing for the fences.