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The article mentions that a problem of investing _that_ much money is the scale. Is assume you'd have non-negligeable effects on what you invested in/effects i
by cobertos 4y ago
The article mentions that a problem of investing _that_ much money is the scale.
Is assume you'd have non-negligeable effects on what you invested in/effects in the intermediate levels (like putting too much money through the order book)? S&P 500 market cap is 32 trillion. 100 billion is 0.3% of that.
- philipov 4y agoThe fact that that much money would move a stock price a lot is an indication that it should not be used to try to chase alpha by trading securities. That amount of money should be used to create value by building new things that haven't gone public yet, where the impact on stock price would not be an issue.
- Eddy_Viscosity2 4y agoMarket cap is the total volume of all outstanding shares, but the price at any moment is defined by the last price sold. Only the shares currently being traded affect the price. 100 billion is plenty enough to affect price of 'traded shares' even if its only a small percentage of 'all shares'.