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> If (deliberately) picking losers is easy, you should buy an index fund and do some careful shorting on the side. This doesnt make sense. The "losers" in this
by ac29 3y ago
> If (deliberately) picking losers is easy, you should buy an index fund and do some careful shorting on the side.
This doesnt make sense. The "losers" in this case don't necessarily go down in price, they just go up in price less than the overall market. Shorting these losers would still lose you money.
Its easy to pick a stock that goes up less than the market, its hard to pick a stock that goes down (at least one that goes down by more than the cost to borrow and short it).
- eru 3y agoBuy the index fund to get the market return, then pick out and short the 'losers' that either don't grow or grow slower than the index. Either way, you will have increased your returns.