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Only four people lost money but in a year the s&p is up 18% losing money is abysmal and on a risk adjusted basis even underperforming the s&p is pretty bad
Comparing results to mutual funds/indexes is a false equivalence. You can pick data points to say whatever you want. Not every stock is going to be a winner and neither is every year. You can be up in down markets and down in up markets. People want to find any way possible to convince themselves to buy a mutual fund for whatever reason (afraid to fail, maybe). So OK. Buy a mutual fund or index.
Comparing results to mutual funds/indexes is a false equivalence. You can pick data points to say whatever you want. Not every stock is going to be a winner and neither is every year. You can be up in down markets and down in up markets. People want to find any way possible to convince themselves to buy a mutual fund for whatever reason (afraid to fail, maybe). So OK. Buy a mutual fund or index.
It's not a false equivalency, it's an accurate and true baseline for performance. It's not a matter of convincing anyone or anything it's a reference point. Underperforming an index, especially by 20%+ is abysmal and again underperforming the s&p straight up is one thing but then on a risk adjusted basis well is a fail. Maybe next year is better but that wouldn't change the current situation.
Is this why people say when they are trying to excuse a poor year's performance?
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Originally Posted by Free-R
You will never create generational wealth by buying an index.
Because most people who try and stock pick/trade their way to generational wealth fail
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Not in real life .
Seems to be the case here and in the context of the conversion about performance it would seem to apply in the real world because performance is commonly measured vs indexes
you can it just takes like 40+ years to do it with index funds if you're continuously adding money.
??? and they can spend it all on your death bed, so much for generational wealth
someone can literally buy a lump of dirt and pass it through the generations, and if it somehow becomes worth something, that would be generational wealth
Only four people lost money but in a year the s&p is up 18% losing money is abysmal and on a risk adjusted basis even underperforming the s&p is pretty bad
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Originally Posted by 1insider
11 beat the average of the 19 individual stock pickers but only five beat the S&P 500.
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Originally Posted by Free-R
Huh? I am not sure what the portfolio average has to do with anything. 11 of 19 beat "the average" anyway. Only four people even lost money. I think people did pretty well for what would amount to pressing a buy button on their home computer.
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Originally Posted by MLSFan
even tossing out the top/bottom three as outliers, the portfolio average doesn't do much/if any better than the s&p/index funds... going by the small sample size, at least we know stock pickers aren't that good at stock picking if doing it from home
Keep in mind that everyone knows this ain't real money. Read some of the early posts and you'll find some people's "picks" were stocks they'd never throw that kind of real money at. Sheetz and giggles along the way.
Had this been a pool, in which every participant threw in a grand with winner take all, the picks would have been mighty different. Than Ranredd would be rolling in it! (Congratulations on the fantasy football victory.)
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Originally Posted by Ranredd
Totally unrelated, I won my fantasy football championship this year....its been a good 2017
Real money or not using a broad based index to compare performance is a pretty common act. Of course people took risk they might not have with their own money that's how you get some participants outpacing the index by more than 2x
Keep in mind that everyone knows this ain't real money. Read some of the early posts and you'll find some people's "picks" were stocks they'd never throw that kind of real money at. Sheetz and giggles along the way.
Had this been a pool, in which every participant threw in a grand with winner take all, the picks would have been mighty different. Than Ranredd would be rolling in it! (Congratulations on the fantasy football victory.)
You will never create generational wealth by buying an index.
I disagree. The average investor stands a better chance of success with indexes than with individual stocks. The results of the contest seem to confirm that although I know it's a game and a lot of players made wild bets hoping for a win. Investors, average and professional, rarely beat the index consistently.
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