Comment by evrydayhustling
14 hours ago
One might ask why the public markets would even offer this liquidity. One important answer is that they are forced to via index inclusion.
So if you know an index buyer who takes satisfaction in staying above fooled-by-randomness active traders, remind them that that they are now the designated unload zone for shares the privates don't want anymore.
I mean Anthropic doesn't have to 5000x to be a decent inclusion in an index fund. It can just go up 10% a year and the index purchasers will be happy.
And yet, active traders still can't beat indexes.
...such as Renaissance Technologies which has only been beating indexes by double digits for 4 decades. Probably just a fluke.
I took the comment to mean "most" active traders, not all. Obviously it's possible to beat the market, it's just very difficult, and many fail trying, especially if it's not their day job.
Agreed, but the issue is that their approach does not scale with more $. There is a reason they do not allow outside investment and it's limited to only employees and early adopters. As a non-profesional (everyone here), it's borderline impossible to find the next Renaissance medallion fund. If it were that obvious who it was, every guy would pile in until their approach no longer works
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"Buy vanguard etf" is a Google search away. Can you show me where I can invest my money in Renaissance Technologies' funds?
Is RenTech more than a rounding error amongst all active traders?
Is it more than a rounding error amongst ALL (active/passive) traders?