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Beating a stock market index is a zero-sum game, and the large players in this market have hundreds of millions of dollars and huge manpower invested in making
by marvin 12y ago
Beating a stock market index is a zero-sum game, and the large players in this market have hundreds of millions of dollars and huge manpower invested in making money of small players like OP. I suppose it's possible in principle to be smarter than them, but that's the bar.
- repsilat 12y agoIt's zero-sum over the short term, but not over the long term -- "beating the index" is (kinda sorta) another way of saying "dragging the index towards efficiency." It means investing in stocks that are going to perform, which (kinda sorta) like investing in companies that will be successful, which increases the size of the pie. Of course, with the amount of money the OP is likely to be investing, it's completely sensible to ignore market impact.