Comment by herval
6 months ago
You might have learned the wrong lesson there, if your goal is to build wealth. But it’s a good idea to prevent losses
6 months ago
You might have learned the wrong lesson there, if your goal is to build wealth. But it’s a good idea to prevent losses
Not really, indexing beats hedge fund managers over something like a 12 year stretch.
hedge funds are not the same thing as picking individual stocks. Not even close. Index funds are an averaging mechanism to reduce risk, not to maximize return (you can easily beat the average by allocating on the p75 instead for instance)
I'd be interested in something a little (but not a lot) higher risk reward than index, so I'd appreciate if you expand on this. What is the p75?
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The problem isn't allocating, it's reallocating correctly. That problem space is much more complex for an entrenched account.
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