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I am happy for you that your 2 picks have been good. But most likely you have been lucky (maybe you picked AMZN, TSLA). Modern portfolio theory states that dive
by SCUSKU 5y ago
I am happy for you that your 2 picks have been good. But most likely you have been lucky (maybe you picked AMZN, TSLA). Modern portfolio theory states that diversification gets you closer to better returns on average with lower risk. [1]
https://en.wikipedia.org/wiki/Modern_portfolio_theory#Diversification https://en.wikipedia.org/wiki/Modern_portfolio_theory#Divers...
- SavantIdiot 5y agoMethinks 'johnwheeler' is full of it and probably just discovered reddit, WSB, and stonks
- johnwheeler 5y agoI would say people who picked amzn and Tesla are lucky. The jury is out on amzn. Bezos did something no public company ever did to the extent he did. He put customers before profits in an extreme way. Then, he built another multi billion dollar unit from scratch with AWS. So far, it’s worked out but the PE makes it speculative nonetheless. But the gap is quickly closing making it an investment grade issue. I don’t know so I leave it alone knowing I’ll regret it one day. That’s fine. I stay away unless I’m 95% sure. I would say s&p 500 represents 100% certainty overtime, because if it wasn’t, life as we know it wouldn’t be the same anyway we’d have bigger problems. Tesla is just a dumb gamble. There’s no justification at all for its price and history shows us what can happen with auto stocks.