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by TrapLord_Rhodo 1384 days ago
Yes - Because we are talking over 20-50+ year timeframes (Well, some of the big firms are thinking in 200-400 yr timeframes like rothchilds.

What if in 10 years the government decides that apple is too powerful? A new CEO comes in and destroys what has been built? A new competitor comes up with a product that is vastly supperior? A total stock market crash happens and your portfolio didn't have any bonds/ shorts/ hedges.

You might be able to go into financial ruin and no one would blink an eye. If large, multigenerational funds go down its a very big deal indeed.

that's why

"Boss, I'm just going to park it all on hedged and leveraged AAPL derivatives for the next half decade and sit on a beach." Isn't really going to fly.

isn't going to fly because the risk delta on that is very high indeed.