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coderaptor | 3 years ago

When everyone’s settled on maximizing the diversity of their investments, I wonder if the strategy loses viability as an effective hedge.

discuss

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throw0101a|3 years ago

There will never be a point of time when "everyone" will do it, viz /r/wallstreetbets.

It's been known that trying to pick individual stocks is generally a sucker's bet since (at least) 1973, but people still try to do it:

* https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street

medvezhenok|3 years ago

Same with gambling.

You will never get really rich (100M+) without stock picking but you’re going to be better off in the average case by sticking to the index.

Similar to working for a startup vs working for a large corporation - working at a startup is like stock picking:)