It's worse than that. It's not even "the stocks that will win." It is "avoiding the stocks of near-scam companies like Enochian Bioscience."I feel like the thesis is that passive index investing earns less than you'd earn if you could magically pick only the stocks that will win.
And, well, yes, but...?
The stock market is about $50,000 billion.
If there are a thousand worthless microcaps like Enochian Bioscience, with $250 million market caps--obtained by gaming the system--that's a total of $250 billion or 0.5% of the market. If they all go to zero on the same day, I will lose -0.5%. The stock market moves twice that much in an average day.
They are not "costing you big-time." Even if you could magically cull all the bad ones and none of the good ones, with 100% infallibility, at zero cost, the potential gains are not life-changing.
Statistics: Posted by nisiprius — Fri Jul 26, 2024 1:56 pm — Replies 50 — Views 3469