Love that you're talking about this. Most people (and I include myself) are oblivious to how investment works. I've learned through crypto, which I see you're not very fond off for investment purposes, but it's been very interesting for me to learn about investing through it.
Would love to learn more of the traditional way with your knowledge!
Well, even though I wrote "I decided that the alpha portion of my personal portfolio should be nearly 0%", I haven't been able to stop myself from buying Bitcoin (in 2014), Ethereum, and others. So my alpha is definitely not 0%.
It definitely feels like gambling.
And it feels like a case where part of my brain says "I know a lot about technology, and I know that the world in general has been underappreciating what has been invented here in crypto, so if I hold a diversified basket of crypto tokens, it will eventually appreciate in value."
(And it's the only gambling I've done. I haven't even been participating in pools about March Madness or other sports.)
But the more rational part of my brain writes this article and says "Don't be overconfident. Institutions with much smarter people and better resources will beat you in the long run (like the 'house' in a casino)."
What a great read! I watched a few lectures back in the day about investing (one from that dude who wrote the simple path to wealth) and the key takeaways were identical to yours. I.e. just do an index fund and leave the money tf alone. I'm fortunate that I have a good personality when it comes to this stuff. When I invest money, it's gone. I never even bother to look at anything. I don't care if it goes up, down, or sideways.
Which is good cuz I heard that research shows that dead people performed the best since they actually leave money tf alone so that's what I do too. Once it's invested, it doesn't exist anymore to me.
But since I'm still fairly young, much gets reinvested into the biz.
Never understood the gambling though. Which is why I struggle to relate to people who're jumping from trend to trend, bitcoin, shitcoin, nft, ai. Not that there couldn't be fair use cases here but to me, it all comes across as way to biz opp seeking / get rich quik.
Thanks! Yeah, I love those points about dead people's portfolios outperforming the actively managed ones run by the average financial firm (charging high fees).
It's sad that not just some but MOST firms actually cause their clients' portfolios to perform worse than if they'd left them alone.
It’s incredible how MUCH money there is to be made by introducing complexity.
Add some impenetrable lexicon, a few highly sophisticated mathematical equations, some software and buzzwords like “big data”, and of course the facade of fancy suits, gray hair, and a nice building, and tada… you can legally scam people.
But when I look at the comments on a video about homeopathy, astrology, or the law of attraction, it quickly becomes clear that many people WANT to be scammed.
Watched a conversation with a phd nutrition scientist and the comments were blasting him because he disagreed with their ideology about seed oils or sugar.
Truth takes a back seat to what people wish were true.
Ofc the scientific method is only like 200/300 yrs old because it’s so hard to not fool ourselves.
Love that you're talking about this. Most people (and I include myself) are oblivious to how investment works. I've learned through crypto, which I see you're not very fond off for investment purposes, but it's been very interesting for me to learn about investing through it.
Would love to learn more of the traditional way with your knowledge!
Thanks for reading!
Well, even though I wrote "I decided that the alpha portion of my personal portfolio should be nearly 0%", I haven't been able to stop myself from buying Bitcoin (in 2014), Ethereum, and others. So my alpha is definitely not 0%.
It definitely feels like gambling.
And it feels like a case where part of my brain says "I know a lot about technology, and I know that the world in general has been underappreciating what has been invented here in crypto, so if I hold a diversified basket of crypto tokens, it will eventually appreciate in value."
(And it's the only gambling I've done. I haven't even been participating in pools about March Madness or other sports.)
But the more rational part of my brain writes this article and says "Don't be overconfident. Institutions with much smarter people and better resources will beat you in the long run (like the 'house' in a casino)."
Definitely! And I agree. It's a gamble and you also need to know what you're doing in order to not get wrecked. So your advice is on point!!
What a headline. Can’t wait to read buddy
What a great read! I watched a few lectures back in the day about investing (one from that dude who wrote the simple path to wealth) and the key takeaways were identical to yours. I.e. just do an index fund and leave the money tf alone. I'm fortunate that I have a good personality when it comes to this stuff. When I invest money, it's gone. I never even bother to look at anything. I don't care if it goes up, down, or sideways.
Which is good cuz I heard that research shows that dead people performed the best since they actually leave money tf alone so that's what I do too. Once it's invested, it doesn't exist anymore to me.
But since I'm still fairly young, much gets reinvested into the biz.
Never understood the gambling though. Which is why I struggle to relate to people who're jumping from trend to trend, bitcoin, shitcoin, nft, ai. Not that there couldn't be fair use cases here but to me, it all comes across as way to biz opp seeking / get rich quik.
Thanks! Yeah, I love those points about dead people's portfolios outperforming the actively managed ones run by the average financial firm (charging high fees).
It's sad that not just some but MOST firms actually cause their clients' portfolios to perform worse than if they'd left them alone.
It’s incredible how MUCH money there is to be made by introducing complexity.
Add some impenetrable lexicon, a few highly sophisticated mathematical equations, some software and buzzwords like “big data”, and of course the facade of fancy suits, gray hair, and a nice building, and tada… you can legally scam people.
But when I look at the comments on a video about homeopathy, astrology, or the law of attraction, it quickly becomes clear that many people WANT to be scammed.
Watched a conversation with a phd nutrition scientist and the comments were blasting him because he disagreed with their ideology about seed oils or sugar.
Truth takes a back seat to what people wish were true.
Ofc the scientific method is only like 200/300 yrs old because it’s so hard to not fool ourselves.