4 ms·
> just isn't worth the effort for the average ownership span. There's no rule that says you need to hold stocks for the same average period that the rest of t
by WJW 5y ago
> just isn't worth the effort for the average ownership span.
There's no rule that says you need to hold stocks for the same average period that the rest of the market does. Analyzing securities and purchasing those that are undervalued is still an extremely profitable activity at many hedge funds and prop trading desks. The fact that the average investor is more FOMO-driven these days only makes sound analysis more valuable, just like playing poker with a drunk newbie will have higher variability but better expected value.
- pinewurst 5y agoI don't disagree - just want to note a difference between sufficient analysis and overthinking the problem (IMHO).
- alasdair_ 5y agoThis is true up until the point where your logically sound short of GME comes up against “apes together stronk”
- WJW 5y agoThat's why I wrote: > higher variability but better expected value. If you put all your money into shorting GME then yes, you will have a bad time when WSB gets excited again. If you have a widely spread portfolio of shorts in overhyped companies with weak fundamentals and longs in underhyped companies with strong fundamentals, having a few trades go against you is not the end of the world.