On Tue, Jan 29, 2019 at 09:37:09AM -0600, Lewis Bergman wrote: > Indexes do well. You get the benefit of a pretty well managed fund but > without the high costs. All those indexes add and remove stocks regularly > which keeps their performance generrally marching upward.
Yep. If you get into the math of portfolio management it becomes pretty obvious that a random smattering of diverse stocks performs (on average) at least as good as the market as a whole. While picking stocks has higher volatility -- and thus more risk/reward. If you want to pick stocks rather based on something other than an index, you need to be lucky, or have information few others have. To bring it back into networking, look up some of the HFT folks (Anton Kapella here?). Geting a few millisecond advantage of information can sometimes *BE* that "information few others have" and thus can make/break transactions. -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com
