Buying a weighted index fund is in fact picking the largest 30-40 companies in the country/world. It's chasing return.There is no picking at all. For the total stock market you own all the shares. You haven't picked any of them. You haven't tried to decide which ones are good or bad. You own them all. If you want to deviate from the total stock market then you have to pick which ones you think are bad and shouldn't own.Okay. It's picked for you. That doesn't answer my question. Or. . . in fact, it does.
"Picking" implies choosing between good and bad stocks. The only way not to "pick", that is, not to try to sort the good from the bad, is to own them all. That's what the total stock market fund does.
Statistics: Posted by thatbrian — Wed Feb 28, 2024 4:51 pm — Replies 38 — Views 1800