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If I inherit a billion dollars tomorrow, I will have zero additional information and be no more sophisticated than I am today. But I will have deeper pockets th
by compiler-guy 3mo ago
If I inherit a billion dollars tomorrow, I will have zero additional information and be no more sophisticated than I am today. But I will have deeper pockets than any retail investor and will be able to withstand market irrationality longer than them.
- binyu 3mo agoIf you are completely ignorant about markets, deep pocketed and inclined to risk, chances are you are going to lose it all.
- compiler-guy 3mo agoIndeed. But that doesn't invalidate the point that deeper-pockets is not equivalent to a more sophisticated or better investor.
- binyu 3mo agoSomeone who inherits a fortune and trades it on the stock market is an extremely unlikely circumstance.
- compiler-guy 3mo agoBut we aren’t talking probability. Your claim was that deeper pockets means you are more sophisticated. That simply isn’t true. The inheritance argument is just one example to show why it isn’t. People make large amounts of money all the time in one field or another, but that doesn’t make them sophisticated investors.
- binyu 3mo ago> Your claim was that deeper pockets means you are more sophisticated. Completely wrong, my claim is that people who have deeper pockets they do so for a reason.
- compiler-guy 3mo agoAnd I gave a reason why that isn't true. There are many, many others.