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/biz/ - Business & Finance


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19360042 No.19360042 [Reply] [Original]

In 2011 if you bought Vanguard S&P 500 ETF at $120, it's now worth $275 without dividends reinvested. Imagine doubling your money in 10 years instead of actually buying good businesses that have skyrocketed since 2011. Index investors are the biggest cucks in finance and pay fees to do it

>> No.19360379

Always buy big tech and businesses that innovate, leave indexing to the normies

>> No.19360454

>>19360042
Indexes are good for a retirement fund. You buy individual stocks with post tax accounts

>> No.19360472

>>19360042
but wheres the fun wheres the thrill

safety does not appeal to biz

>> No.19360502
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19360502

>>19360042
>VANGUARD ETFS

>> No.19360603

>>19360454
I don't see why you'd buy indexes vs. AAPL, AMZN, TSLA in a retirement account. People don't understand that most companies in these indexes are debt zombies and don't have a prayer in the 2030's.

>>19360502
Yes, this exactly

>> No.19360648

>>19360603
why not both

>> No.19360673

>>19360603
Etf does offer more security than individual stocks. And it beats putting your money in a bank or in bonds. So yea they are good for conservative investors

>> No.19360710

>>19360673
majority of index returns come from less than 5% of all index participants

index diversity is a myth since majority of companies underperform.

would you rather have a bucket of shit with a gold nugget in it or just look for the gold nugget yourself? etfs force you to buy pure shit.

>> No.19360729

>>19360710
Because company 401k don’t have individual stock options. Are you a moron or what?

>> No.19360747

>>19360729
>i buy shit because my company forces me too

holy shit what cuck. okay sweetie, have fun with that. i will make triple your return in my taxable margin than your garbage 401k even with your pathetic company match.

>> No.19360764
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19360764

>>19360042
Why not buy 3x S&P ETFs?

>> No.19360774

>>19360648
Because you are counting on past results for a S&P500 fund, and sorry since when was a 2x in 10 years /biz/ material?

>>19360673
It does offer security, but look at what happened in March, those ETF's crashed just as hard as everything else. I wouldn't buy index funds unless I was playing with half a million

>> No.19360932
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19360932

these index ETF memes are funny

80-90% of active managers can't beat the index . yet /biz/ can lol

>> No.19361025
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19361025

https://www.bloomberg.com/news/articles/2019-09-04/michael-burry-explains-why-index-funds-are-like-subprime-cdos
>This is very much like the bubble in synthetic asset-backed CDOs before the Great Financial Crisis in that price-setting in that market was not done by fundamental security-level analysis, but by massive capital flows based on Nobel-approved models of risk that proved to be untrue.

>> No.19361226
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19361226

>>19361025
>In the Russell 2000 Index, for instance, the vast majority of stocks are lower volume, lower value-traded stocks. Today I counted 1,049 stocks that traded less than $5 million in value during the day. That is over half, and almost half of those -- 456 stocks -- traded less than $1 million during the day. Yet through indexation and passive investing, hundreds of billions are linked to stocks like this. The S&P 500 is no different -- the index contains the world’s largest stocks, but still, 266 stocks -- over half -- traded under $150 million today. That sounds like a lot, but trillions of dollars in assets globally are indexed to these stocks. The theater keeps getting more crowded, but the exit door is the same as it always was. All this gets worse as you get into even less liquid equity and bond markets globally.”
what did he mean by this?

>> No.19361531

>>19361226
Means normies will get fucked once the boomers start selling, see 2008 and March 2020

>>19360932
Hedge funds are faggy. Look up those who bought AMZN in 2011, or AAPL. Look up those who bought TSLA at IPO. You are a sheep

>> No.19361604

>>19361531
>Look up those who bought AMZN in 2011, or AAPL
Lots of people did. Fuck I had AAPL back then, if you're trying to say that's particularly edgy or something. That's run of the mill. Your point?

>> No.19361897

>>19361604
His point is probably that indexing doesn’t get you those gains. Indexing is for small minded sheep

>> No.19361962
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19361962

>>19360764
>holding leveraged funds in your retirement account

the balls on this fuckin guy

>> No.19361969

>>19361226
>>19361025
Why does this want make me want to buy ETF’s

>> No.19361980

>>19361962
He doesn’t look 5’8

>> No.19362002

>>19361969
It’s a veiled advertisement. Forbes and CNBC are marketing and consensus generating machines to keep the upper middle class compliant. You are now “in the know” about index funds so now you buy ETFs because you are smarter than everyone else.

>> No.19362015

>>19362002
Lol fuck etf’s they can be manipulated by day traders. I’ll stick with mutual funds

>> No.19362087

>>19362015
It works both ways. The article is supposed to elicit an emotion and further entrench your thinking in sticking to index funds, etfs, managed funds or just holding individual funds. Like I said the goal is to create consensus among the middle class to prop up the stock market.

>> No.19362105
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19362105

>> No.19362425

>>19360379
>>19360454
>>19360502
>>19360603
>>19360710
>>19360747
>>19361531
>>19362105

LOL imagine being so delusional to think you can beat the stock market
show your all time graph anons, let's see your amazing returns that beat the s&p 500

>> No.19362443

>>19362425
cope or obvious trolling kek

>> No.19362508

>>19361980
Spotted the manlet.

>> No.19362597

>>19360042
Index investors are the reddit posters of finance.

>> No.19362609

ITT: Survivor bias

>> No.19362715

I do both :^)

>> No.19362723

>>19362425
You can beat the market, just not by actively trading it - that's why 99% of fund managers fail and occasionally people like Buffett and Finch come along and get amazing returns. In fact Buffett has said he could guarantee 50% returns if he was working with only a few million or less. He has to buy giant chunks of large cap companies or outright buy entire small and mid-sized businesses for average returns because that's the only way to make money while managing hundreds of billions.

If you look at the research - small cap value stocks regularly beat the index over time. You could just put 100% your money in Vanguard's small cap value index and regularly beat the S&P 500.

>> No.19362777

>>19362723
Comparing fund managers to joe retail is fallacious. Scaling is a thing and there are tons of guys who “‘make it” off muh fifty dollar trade.

>> No.19362788

>>19360710
>would you rather have a bucket of shit with a gold nugget in it or just look for the gold nugget yourself? etfs force you to buy pure shit.

What makes you think you can pick the gold nuggets tho lol? 90%+ of PROFESSIONAL hedge fund managers underperform the index fund they track. 98% of PROFESSIONAL hedge funds don't survive 5 years in the market. You're delusional.

>> No.19362794

>>19362777
That's what I'm saying. If you actually research these small and micro cap stocks you can do way better with your $1000 every month than dumping it in VOO

>> No.19362824

>>19361531
>Hedge funds are faggy. Look up those who bought AMZN in 2011, or AAPL. Look up those who bought TSLA at IPO. You are a sheep

Look at those who didn't. 99% of people who bought any other individual stock (bar those 4 you mentioned) at that time lost money or underperformed the index fund. Try to pick 4 out of 1000+ stocks. There's much higher chance you'll pick losing stock than winning stock. Your view is skewed by survivorship bias.

>> No.19362834

>>19362723
>If you look at the research - small cap value stocks regularly beat the index over time. You could just put 100% your money in Vanguard's small cap value index and regularly beat the S&P 500.

That's true. Small cap value stocks have been heavily underperforming lately tho, so you'd be losing money if you were in them. Their time will come again but the question is how long will you be losing money and underperforming the big indexes before that happens.

>> No.19362916

>>19360379
you do realize you can buy etfs that track highly customized indexes.
For example, qqq tracks nasdaq-100, ie. large cap tech stocks

>> No.19362963
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19362963

>>19360042
the key is proper asset allocation rather than simply buying SPY

>> No.19363311

>>19360042
Index funds are for guaranteed stable slow returns you dumb nigger. You put 5% -10% in indexes and whatever you like in stocks and crypto after that. I reccommend 50% large cap, 10% mid cap, 30% total bond market, 10% small cap or international.

>> No.19363352

>>19362824

Shhh just let them go broke

>> No.19363382

I never got the stock meme when I make pound for pound greater returns flipping antiques and collectibles on eBay. It’s a good deal if you’re already rich and making 10% on millions is a big deal but if you’re a working-class stiff the path to independent wealth requires more of a hustle.

>> No.19363491

>>19360603
>AAPL, AMZN, TSLA in a retirement account

Lol enjoy seeing your entire retirement disappear because a tech crash.

You're a fucking retard mate. Don't you think there are people like saying the exact same thing before the dotcom bubble or 2008 who lost everything they had.

>> No.19363633

>>19363382
good job, you found a profitable niche

>> No.19363841

>>19360042
the most exciting thing in there lives is there wifes strapon

>> No.19364470

>>19361897
What is the alternative then genius? What is your master plan to increase ROI without taking on added risk?