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I mean today it is very easy to hold the whole market, so why take on idiosyncratic risk that doesn't have a positive expected return when you can just the whol
by xorfish 7y ago
I mean today it is very easy to hold the whole market, so why take on idiosyncratic risk that doesn't have a positive expected return when you can just the whole market and maybe some factor premiums?
The price you bought it is irrelevant, all that matters is the current value of the security. If you have capital, it is always the best decision to put it in the market as soon as possible.
- whatshisface 7y agoStill, whole-market investing should not be regarded as riskless. It takes ten to thirty years before it goes from "usually a good idea" to "virtually always a good idea."
- breck 7y agoFor passive investing that’s the Way to go. But I am an active investor And put time into helping my companies whether big or small. I like to have a thesis And invest on that. I also would be willing to underperform a Certain percentage if it Was in service of companies that I think are building a better world. Though FWIW have beaten vfinx easily past 5 years.