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by mewse-hn 5 days ago
Something that I don't think is taught enough is that it's very, very difficult to beat the market. If someone is asking you for money and promising that they'll beat the market, alarms should be ringing in your brain. A common ploy is to start up a dozen funds, let them run for five years, then pick the most successful one - look, our fund beats the market! Invest with us! Five years of returns, we're proven! It's a scam. Past performance does not indicate future returns.

This is to say that your idea isn't bad, it's just that if someone had a strategy to beat the market they'd be using it already, and other investors would be looking for a way to screw over that person and leave them holding the bag. That's why passive investments are diverse and fairly low risk - they should ideally track the whole market rather than trying to pick winners and losers. Index funds are good for this.