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> If (deliberately) picking losers is easy, you should buy an index fund and do some careful shorting on the side. "Lose" also includes stalling such that as t
by throw0101d 3y ago
> If (deliberately) picking losers is easy, you should buy an index fund and do some careful shorting on the side.
"Lose" also includes stalling such that as the rest of the market goes up, your portfolio does not do anything. It can even mean when the market goes up 5% your portfolio only goes up 3%.
Now compound this lack of performance over a few decades, both pre-retirement when accumulating, and post-retirement during decumulation.
- eru 3y agoBoth of your alternative definitions of 'lose' are fine. Buy 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.