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"Pick a diverse basket of unhyped, sane stocks" sounds like "my trading strategy" because it's not at all specific or repeatable. It also just sounds like a hom
by smt88 3y ago
"Pick a diverse basket of unhyped, sane stocks" sounds like "my trading strategy" because it's not at all specific or repeatable. It also just sounds like a homemade index fund that never rebalances.
If it were really that easy, individual investors and professional fund managers wouldn't lose to hedge funds in the long run for all of the history of index funds. You'd also see at least some evidence of skilled stock pickers at, say, hedge funds, and you don't.
In gambling, a few people beat the house. That's a guarantee of probability. In aggregate, the house always wins.
- TheAlchemist 3y agoYou have a point, but by that reasoning it's pretty much impossible to prove the contrary. Long term investing in good companies, that are 'cheap' works. Not easy to prove though. 2 of my favorites on this topic: Warren Buffet's "The superinvestors of Graham-and-Doddsville" - https://www8.gsb.columbia.edu/sites/valueinvesting/files/files/Buffett1984.pdf https://www8.gsb.columbia.edu/sites/valueinvesting/files/fil... Joel Greenblatt "Little book that beats the Market" - https://www.magicformulainvesting.com/Home/AboutTheBook https://www.magicformulainvesting.com/Home/AboutTheBook