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I think just the opposite is the case. Individuals are better poised to diversify if they can drop investments across a large number of projects with tickets in
by Jd 12y ago
I think just the opposite is the case. Individuals are better poised to diversify if they can drop investments across a large number of projects with tickets in the sub $1K range.
Imagine what would happen if you could really micro-invest, $10/day in 10 different projects. You'd even have kids actually learning to invest from age 10 that could beat the "pros" by the time they are in high school.
- tptacek 12y agoThat might work if you had most of your portfolio dedicated to early-stage companies, but that in itself is a bad investment strategy. Consider: it's the strategy behind venture capital funds, and venture capital as an asset class tends to underperform --- if you're thinking about Microsoft and Facebook but not Murpli and Foozblap, you're a victim of survivorship bias.