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I don't mean to lecture or suggest your decision is unsound, but note that the expected opportunity cost of investing in any given stock vs. an index ETF over 9
by steelframe 7y ago
I don't mean to lecture or suggest your decision is unsound, but note that the expected opportunity cost of investing in any given stock vs. an index ETF over 9 years is about an 85% return.
- appleiigs 7y agowhy did you pick 9 years? When you use an arbitrary number like that, it looks like cherry picking.
- thebruce87m 7y agoThe OP mentioned 9 years.
- deleted 7y ago[deleted]
- grumpy8 7y agoimho was still a fair question, no need to downvote. Not arguing with the index argument, but I've had finance "experts" trying to pull similar tricks on me by using weird years, etc.
- reitzensteinm 7y agoThere's a big difference between "these specific 9 years" and "the average 9 year span". It's a lot harder to make cherry picking arguments with the latter. Flip the bozo bit xor conman bit on anyone using the former.
- deleted 7y ago[deleted]
- a13n 7y agoHow is this calculated? Simply by taking the average of every stock you could possibly invest in? On NASDAQ + NYSE?
- paulpauper 7y agomost individual stocks lag the index . the odds of choosing a stock that beats or meets the index are low.
- xkjkls 7y agoBasically the median stock is worse than the index. Diversification is good.