/biz/ - Business & Finance

>>14293940
> The "Average Stock Fund Investor" has a return of about 5% per year, or in other words, about 55% the annual return of the index fund. Where did the other 45% of the returns go?
that's not what that chart says.
the stock investor doesn't necessarily use the S&P as their benchmark. if it did "Average" would refer to"Average Joe" as opposed to average as in mean. otherwise the average(mean) investor would perform the same as the benchmark which is the average. the money goes mostly to whoever took the other side of their trade.
>The "Average Investor" is either systematically making poor investments, which we can avoid by systematically making investments of at least mediocre prudence
you don't know that. those investors could very well be making trades with the same ability and knowledge as you but all be getting undercut by someone else with a bigger edge. you could theoretically have a institutional investor that somehow knows the exact value of a stock and be happy to buy or sell to anybody who erroneously thinks they know better and keeping the price virtually flat. that doesn't necessarily make an opportunity for other retail traders.
like in pic related where you have one expert poker player taking money from the rest of the amateurs exchanging money back and forwards.

>>10875575
poker then. even if you take out the house's cut, the majority of people lose money. in terms of beating the market, it's a zero sum game; someone's win is someone else's loss.

>>9203889
since crypto isn't a business and doesn't get it's money from non investors, any money you make is someone else's loss and vise versa
aside from what the exchanges make, money is mostly going from the unlucky to the lucky. while the average profit across everybody involved is basically zero

>>8657081
you're chances are at best 50/50, less if the exchanges are doing something shady.
the end result will might look similar to pic related

Ultimately, the average earnings across all crypto investors is $0.
What makes you think you're on the winning side of the equation?