3 ms·
“if a lot of other people make the same prediction, the stock price will already reflect it, and there's no room to make money“ This is wrong. You make money
by vasilipupkin 6y ago
“if a lot of other people make the same prediction, the stock price will already reflect it, and there's no room to make money“
This is wrong. You make money when you invest in public stocks as compensation for the risk you take. You don’t need to be better than others at predicting to make money. You do if you want to make excess money, money above the level that compensates for risk.
- cactus2093 6y agoI think this is implied because he's talking about people that trade stocks for a living. Leaving money in a an index that tracks the overall market doesn't really count as a full-time trader job.
- vasilipupkin 6y agoI don’t think it’s implied because it’s not even true for professional public market investors. They can make money by giving customers ways to take risk, not necessarily through superior predictions.
- deleted 6y ago[deleted]