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The reason your index funds return so much is that you're buying a share of ownership in the company. That includes upside but it also includes downside. If the
by brianpgordon 7y ago
The reason your index funds return so much is that you're buying a share of ownership in the company. That includes upside but it also includes downside. If there were no downside you'd be getting exactly money market-like returns.
- mruts 7y agoThe downside of equities is not being sued as a shareholder of a crooked company, it's the risk and long-term exposure you bear from your share of ownership and the future cash flow of the company.