3 ms·
At what risk though? Returns should always be considered by the risk taken to achieve them.
by FundThrowaway 8y ago
At what risk though? Returns should always be considered by the risk taken to achieve them.
- madengr 8y agoI’ll assume they have a higher risk to generate those higher net returns. After recently reading A Random Walk Down a Wall Street, my conclusions are: you are not going to time the market, the managed funds don’t do any better than index funds. 90% percent of the effort goes into squeezing out an additional 10%. So may as well spend 10% of the effort and settle with 90%. Of course fortunes are made on that 10%. Joe Blow slinging garbage cans can retire a multimillionaire by steady, passive investing.
- FundThrowaway 8y agoPerhaps read about market neutral strategies, most quant funds have much higher sharpe ratios than index funds.
- madengr 8y agoHa ha, I’m an EE just passively investing extra income. Nothing more than a side interest. I assume you are talking about using higher volatility stocks with negative correlations; he talks about that in the aforementioned book.