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An extended family member is a software engineer who has worked in wireless networking for decades and decades, including being personally involved in the devel
by UncleMeat 2y ago
An extended family member is a software engineer who has worked in wireless networking for decades and decades, including being personally involved in the development of key parts of 5g.
In the 00s there was some company that had great tech. Surely useful for the future. He put a shitload of money in there. On each paycheck he put in more and more. But although the company had great tech, it didn't end up being the market winner for whatever reason. As the stock dropped and dropped he bought more and more. After all, it was the best tech.
He lost a fortune.
It is probably easy to look back and say "well, I knew that CUDA was easier to use than OpenMPI ages ago, it was obvious that nvidia would blow up."
- mrb 2y agoYou extended family member's story is a classic error of "putting all your eggs in one basket."
- UncleMeat 2y agoOf course. But it is still relevant when discussing why one should not discount the knowledge you have by being deep in an industry. Yes, he would have lost less money if he hadn't gone so deep here. But he still would have lost his investment had he put 5% in or whatever. The point is that even deep knowledge about an industry isn't going to ensure winning picks.
- gamepsys 2y agoI clearly said "up to 5%". If I lose 5% of my stock portfolio on a single stock in a year, but the rest of my portfolio goes up the expected annual return of 8%, I still made money that year.