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This is a great analysis. I'm not sure why you're being downvoted. Warren Buffet is known for an investment strategy that diminished diversification and instea

This is a great analysis. I'm not sure why you're being downvoted. Warren Buffet is known for an investment strategy that diminished diversification and instead encouraged investing in businesses that you actually understand. The argument is essentially that diversification is an investment tool for the ignorant who lack the time or inclination to research what it is they are actually investing in. Combining that investment strategy with your argument: selective and informed investing is not only the safe bet but also the ethical one.

cryptica 6y ago
Essentially all of my comments get downvoted on HN these days. It is a form of incentivized censorship which actually illustrates my point very well since I'm probably upper-middle class and the current trend has mostly benefited me. Opportunities for free speech seem to be running out so I'm trying to make the most of it. The scary thing is that diversification is done on auto-pilot these days. Superannuation funds, 401K funds and other pension funds take a share of each person's income and diversify it into a number of large corporate monopolies/stocks by default without their knowledge. So the system is turning people's own money against them.
- meekmind 6y ago
  I'm probably preaching to the choir here but personally I find the act of downvoting a legitimate argument as opposed to providing a counter-argument distasteful. Downvoting ought to be limited to a particular subset of comments that does not include simply ones you disagree with. It honestly does smell like censorship. I read some of your other comments, and I don't even agree with all of them, but they didn't strike me as worthy of minimization. Back on topic, the institutional investors having a diversification default also occurred to me when I read your comments. It raised a lot of questions in my mind that I don't have the answers to. What percentage of the market is represented by institutional investment versus non-institutional investment where at least the investors have the option of selective investment over diversification? Can institutional investors break from the diversification strategy without being seen as picking winners, anti-competitive, or gambling with the money? More fundamentally, how do you take a system which operates on 0% information and transform it into something that has at least 1% or 2% information? Anyway, I don't expect you to answer those questions. Thanks for the food for thought.

cryptica 6y ago

Essentially all of my comments get downvoted on HN these days. It is a form of incentivized censorship which actually illustrates my point very well since I'm probably upper-middle class and the current trend has mostly benefited me. Opportunities for free speech seem to be running out so I'm trying to make the most of it. The scary thing is that diversification is done on auto-pilot these days. Superannuation funds, 401K funds and other pension funds take a share of each person's income and diversify it into a number of large corporate monopolies/stocks by default without their knowledge. So the system is turning people's own money against them.

meekmind 6y ago
I'm probably preaching to the choir here but personally I find the act of downvoting a legitimate argument as opposed to providing a counter-argument distasteful. Downvoting ought to be limited to a particular subset of comments that does not include simply ones you disagree with. It honestly does smell like censorship. I read some of your other comments, and I don't even agree with all of them, but they didn't strike me as worthy of minimization. Back on topic, the institutional investors having a diversification default also occurred to me when I read your comments. It raised a lot of questions in my mind that I don't have the answers to. What percentage of the market is represented by institutional investment versus non-institutional investment where at least the investors have the option of selective investment over diversification? Can institutional investors break from the diversification strategy without being seen as picking winners, anti-competitive, or gambling with the money? More fundamentally, how do you take a system which operates on 0% information and transform it into something that has at least 1% or 2% information? Anyway, I don't expect you to answer those questions. Thanks for the food for thought.