Hacker News new | past | comments | ask | show | jobs | submit login

>Keep saying this and watch your peers assets balloon in value. There’s really nothing to argue about, spreading this “I can’t beat the market mantra” is bad for everyone.

While I don't doubt that you could beat the market given enough effort, I'm skeptical that you can trivially beat the market with a strategy as simple as "buy tech stocks". I'll invoke the efficient market hypothesis here: if tech stocks are expected to grow 20% but non-tech stocks are only expected to grow 10%, why would anyone buy non-tech stocks? Wouldn't everyone bid up the price of tech stocks so that their returns would only be 10%?




Dude I used to work at a hedge fund, the whole efficient market hypothesis isn’t what you think, and it’s insane to think it means you need to buy every single stock. You’re just going to lose a bunch of money investing this way


>Dude I used to work at a hedge fund, the whole efficient market hypothesis isn’t what you think

Oh? Please elaborate.

>and it’s insane to think it means you need to buy every single stock.

US "total market" only have about 2000-3000 stocks.

>You’re just going to lose a bunch of money investing this way

How? By buying losers? By wasting money on transaction fees?


Only 2000–3000 but they're so strongly correlated you could practically diversify just as much with less than 20–30, for 1/100 of the transaction costs.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: