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Of course you can invest at random and it will sometimes work. But it does not explain the realities of the industry. Even just one of the top funds has an infi
by bidirectional 5y ago
Of course you can invest at random and it will sometimes work. But it does not explain the realities of the industry. Even just one of the top funds has an infinitesimally small chance of existing randomly, let alone a glut of them.
- kennywinker 5y agoThe impeccable track record of index funds suggests that "Even just one of the top funds has an infinitesimally small chance of existing randomly" is not actually correct.
- bidirectional 5y agoWell index funds aren't 'the top funds', they're the benchmark against which the alpha of the top funds is measured. If we change the framing to over/underperforming the S&P500 I don't see how the argument changes. RenTec is up 66% per year since 1988, how could that possibly be random?