/biz/ - Business & Finance

>>16751564
Yeah but you dont get nasty rich over night which is something people on this board look for.

I invest in index funds and real estate and make ~15% p.a. but zoomers dont want to hear about this.

degrees help but won't matter that much

personally trading is mostly betting on simple probabilities and keeping your cool, as opposed to doing complex math stuff

99% fail because most have a wrong idea of what it entails

>>16751606
15% a year is dogshit if your portfolio is less than ~ 3 years of savings

>>16751564
The stonk market is a computer simulation run by the Fed, you dumb nigger

>>16751730
>repo is not QE goys, economy is doing just fine goys, just take one more loan and buy properties goys, gov subsidies on stocks buyback are totally fines goys

I've been thinking about this. I have a bunch of american funds and I'm debating selling them and buying vanguard. But if I do, I'm not sure if I should sell now while I'm up, or wait until the market crashes so I can claim a capital loss before re-investing.

this is why i keep 99% of my wealth in indexes

>>16751564
>economics
Generally, math and physics degrees are more useful for this than economics.
See pic related, which heavily recruited econ PhDs, profs, and even soon to be Nobel laureates (Scholes & Merton), vs Renaissance Technologies, which only recruits math and physics types.

>>16751564
>economics
Generally, math and physics degrees are more useful for this than economics.
See pic related, which heavily recruited econ PhDs, profs, and even soon to be Nobel laureates (Scholes & Merton) and imploded within five years, vs Renaissance Technologies, which only recruits math and physics types, and has had phenomenal market-beating success for decades.

>>16751564
Also, you do understand that trading and investing are two different things, right?
Jesse Livermore is the Warren Buffett of trading.

>>16751926
very important point.
if I remember correctly Jim Simmons said that the reason Renaissance hire people like Astrophysicists is because they can't run experiments (like, say, chemists can) and so they have to build accurate models from observing data alone.
Carl Ichan was a doctorate in philosophy and wrote his thesis on the 'explication of meaning'.
George Soros got his bachelor and masters in philosophy and was a student of Karl Popper.
Peter Theil studied philosophy too, and got his Doctor of Jurisprudence
Kirk Kerkorian didn't have a degree of any sorts yet when he died was worth 4bn.
Successful financiers generally aren't economists.

>>16752045
Econ is the most popular degree among billionaires.

>>16752225
can you name 5 self-made billionaires who studied econ before they made their fortunes?

>>16752427
Steve Cohen, Ken Griffin, Warren Buffett (bus admin, econ), Meg Whitman, Bob Kraft, Steve Ballamer.

The list goes on...

Everyone will buy VTSAX until the music stops. Once that happens, sell offs will be incredible. VTI has gained about 1% in the last calendar year. Now look at Starbucks or Visa. Buy individual or get rekt

>>16751926
Reneissance is a hft company, they make money front running not your traditional trading

>>16752225
That's because people who are interested in finance and investing to there, for example among engineers less than 5% of students have any kind of investments nor they are interested in stock markets at all typically. Econ degree is not some kind of 'trading degree' kid op thinks it

>>16752031
The guy that won big, lost even bigger, then suicided? What an inspiration

>>16752907
Which is why you should prefer investing over trading.
Great traders do really well--until they don't.

>>16753001
For example, see LTCM >>16751926

>>16751564
Because index funds don't invest in Bitcoin, and bitcoin is the best investment of this century

>>16751647
this.
>>16753039
but also this.

>>16753001
this too. Index funds are safe, low reward. Trading is unsafe, higher reward. Pick one.

>>16752427
Self made is such a supid meme. The longer your timeframe, the easier investing is. Multigenerational time-frame mindsets would do a lot to reduce the wealth distribution disparity

>>16753084
>Index funds are safe, low reward. Trading is unsafe, higher reward. Pick one
Trading is not the only alternative to passive (index) investing; you can also pursue active investing.
For example, I have a portfolio of 10-20 individual stocks along side my passive investments.
I don't trade them; I mostly just buy and hold, and I try to buy when they're selling for cheap.

>>16751564
I have read Principle of Corporate Finance and understand market better than 99% of you.

>>16751564
Index funds are like boundaries of a marching army. The army on average would march forward with gains. The day trader is like single army man who is more likely to lag behind.

>>16751647
Post your last 10 years performance.

>>16752849
> VTI has gained about 1% over the last calendar year
U wot m8

>>16753809
Sept 2018 - Oct 2019 look up that one

>>16753393

I've always done this because it makes sense when 90% of the growth from the s&p is from the top ten companies

>>16753941
> Look up my arbitrary dates as I shift the goalposts
No.

>>16753992
Continue your cuck investing then. Index investing doesn’t make people rich

>>16753094
I hope you convince everyone in your family of this and build a legacy. I hope to do the same. I hope more and more people realize that there is another way.

>>16754363
It does but by that time it serves to buy yourself a fancy funeral

>>16751564
I allocate a good portion of my portfolio to index funds, but the idea that you shouldn't bother investing in single companies at all is rather silly. These companies typically do well, and can give you the pull-up necessary to beat the market. Also, it allows you to move money in and out of certain stocks. When the market dips, I can sell my low-beta stocks and buy the S&P 500; then when the market recovers, I cash out, and return my money to the original low-beta stock.

The problem is that most people don't understand economics, and they also don't have good judgment to analyze individual companies. A lot of these people with finance degrees just get their news from the Wall Street Journal, and thus, they follow a herd mentality. I've talked with these people, as well as finance professors at colleges, and it is incredible how dumb they are. They repeat the same sort of memes you find on 4chan. At the end of 2018, Bank of America suggested shorting the S&P 500... The S&P 500 went on to have one of the most successful years in history.

The funny thing is that a lot of people on 4chan have a natural gift for finding out obscure truths. The ones who are able to counter mainstream narratives intellectually, in spite of fierce resistance, and while also being skeptical enough to disregard nonsense, are prime candidates for being able to beat the market. Ivy league MBA, top job at a Hedge Fund, 30 year trader at Goldman-Sachs - it all means nothing. Mindset is what matters.