Re:Money, Money, Money (and Investing) (2015)
by chii on Sunday December 25, 2022 @06:01AM
(#34126152)
> My experience shows that more risk = more reward
you got it the wrong way around. More reward = more risk, but the inverse might not be true.
Imagine you took crazy risk - you jump off a building, and hope that a gust of wind keeps you from dying. What is the reward?
> trying to make an investment in a single asset is for fools. Clearly this is wrong!!!
you've misunderstood the instructions for index investing and EMH. It's not saying you shouldn't concentrate and be active in choosing - it's saying that if you do, you better be someone who is more informed, and capable of pricing an investment than the market. So do you really think the average person is in that position? If not, they're better off following the market index.
you got it the wrong way around. More reward = more risk, but the inverse might not be true.
Imagine you took crazy risk - you jump off a building, and hope that a gust of wind keeps you from dying. What is the reward?
> trying to make an investment in a single asset is for fools. Clearly this is wrong!!!
you've misunderstood the instructions for index investing and EMH. It's not saying you shouldn't concentrate and be active in choosing - it's saying that if you do, you better be someone who is more informed, and capable of pricing an investment than the market. So do you really think the average person is in that position? If not, they're better off following the market index.