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0 pointsgreatpostman4y ago0 comments

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

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gruez4y ago

>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?

kqr4y ago

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.

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