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What I meant was, the returns will not have a material impact on your retirement. You may retire a year or five early. But if you just targeted your investments

What I meant was, the returns will not have a material impact on your retirement. You may retire a year or five early. But if you just targeted your investments a bit more, you actually have a chance at making real money. Why are people working their whole lives? Pumping all their hard earned money into a security that wont do any better than their peers and thus gets them no further ahead? Its brainwashing sold to the masses.

jmalicki 6y ago
Picking stocks is work. It's just another part-time job you can do, so you have to consider what it pays (usually negative), and how much you like the job. If you like picking stocks and are demonstrably good at it, why are you messing around with doing it on your own instead of starting a hedge fund and having other people pay you for the privilege?
- logicslave 6y ago
  Investing advice that is ingested by the public from professional investors is the advice that applies to managing billions of dollars of capital. Its an insane situation that the public listens to people whos objectives, risk tolerances, benchmarks, and professional goals are completely different. Active investors, who are professionals, that manage less than 50 million see extremely high returns. Commonly over 100%. When you get into the billions, you cannot make the same trades, and your clients DO NOT want you to loose their money. It is more so about simple wealth preservation. Raising capital to start your own fund is extremely difficult, expensive, has extensive legal bookkeeping, and requires an immaculate pedigree. I work for FAANG and aggressively invest my money, will be retired before 40. Source is I used to work at a hedge fund
  - Jommi 6y ago
    So what advice should we listen to?
  - someguydave 6y ago
    Can you point to one example of an active investor who earns more that 100% per year over say 5 years?
    - deleted 6y ago
      [deleted]
dlp211 6y ago
Because the data shows that those who invest in that boring ETF outperform their active investor peers?
- logicslave 6y ago
  Both of you guys are missing something. Investing advice that is ingested by the public from professional investors is the advice that applies to managing billions of dollars of capital. Its an insane situation that the public listens to people whos objectives, risk tolerances, benchmarks, and professional goals are completely different. Active investors, who are professionals, that manage less than 50 million see extremely high returns. When you get into the billions, you cannot make the same trades, and your clients DO NOT want you to loose their money. It is more so about simple wealth preservation. I could go on and on. But I'm busy. Source is I used to work at a hedge fund
  - ryandrake 6y ago
    So, basically, the usual answer from active investor proponents: There's a secret system! I can produce outsized returns, trust me, it's possible! I'm just don't have time to tell you what it is, but pinky swear there's totally a way!
loco5niner 6y ago
> But if you just targeted your investments a bit more, you actually have a chance at making real money 1. I prefer passive investing. I already have one job. 2. More risk = more reward. I've purposely chosen this as my risk level. 3. Regardless of whether I'm smart or not, I'm not going to consistently beat the guy who eats-sleeps-and-drinks investing. Oh, and there are millions of him. 4. I believe it WILL allow me to retire earlier (given the power of compound interest and time).

jmalicki 6y ago

Picking stocks is work. It's just another part-time job you can do, so you have to consider what it pays (usually negative), and how much you like the job. If you like picking stocks and are demonstrably good at it, why are you messing around with doing it on your own instead of starting a hedge fund and having other people pay you for the privilege?

logicslave 6y ago
Investing advice that is ingested by the public from professional investors is the advice that applies to managing billions of dollars of capital. Its an insane situation that the public listens to people whos objectives, risk tolerances, benchmarks, and professional goals are completely different. Active investors, who are professionals, that manage less than 50 million see extremely high returns. Commonly over 100%. When you get into the billions, you cannot make the same trades, and your clients DO NOT want you to loose their money. It is more so about simple wealth preservation. Raising capital to start your own fund is extremely difficult, expensive, has extensive legal bookkeeping, and requires an immaculate pedigree. I work for FAANG and aggressively invest my money, will be retired before 40. Source is I used to work at a hedge fund
- Jommi 6y ago
  So what advice should we listen to?
- someguydave 6y ago
  Can you point to one example of an active investor who earns more that 100% per year over say 5 years?
  - deleted 6y ago
    [deleted]

dlp211 6y ago

Because the data shows that those who invest in that boring ETF outperform their active investor peers?

logicslave 6y ago
Both of you guys are missing something. Investing advice that is ingested by the public from professional investors is the advice that applies to managing billions of dollars of capital. Its an insane situation that the public listens to people whos objectives, risk tolerances, benchmarks, and professional goals are completely different. Active investors, who are professionals, that manage less than 50 million see extremely high returns. When you get into the billions, you cannot make the same trades, and your clients DO NOT want you to loose their money. It is more so about simple wealth preservation. I could go on and on. But I'm busy. Source is I used to work at a hedge fund
- ryandrake 6y ago
  So, basically, the usual answer from active investor proponents: There's a secret system! I can produce outsized returns, trust me, it's possible! I'm just don't have time to tell you what it is, but pinky swear there's totally a way!

loco5niner 6y ago

> But if you just targeted your investments a bit more, you actually have a chance at making real money 1. I prefer passive investing. I already have one job. 2. More risk = more reward. I've purposely chosen this as my risk level. 3. Regardless of whether I'm smart or not, I'm not going to consistently beat the guy who eats-sleeps-and-drinks investing. Oh, and there are millions of him. 4. I believe it WILL allow me to retire earlier (given the power of compound interest and time).