Nevada’s public employee pension fund invests passively and beats peers (2016)

Post by throwaway2037 » Mon, Jul 15, 2024, 7:05 AM UTC

Maxatar wrote: post #288

kjellsbells wrote: post #276

Earlier quoted context omitted.

I dont have a dog in this hunt but that seems like a strangely aggressive response. Perhaps the comment meant nothing more than that plaintext HN is a difficult place to start having a discussion that really requires some mathematical machinery, and therefore, since we cant throw around sigmas and integral signs here, we will make some assumptions. Attacking the comment with sarcasm isn't in the spirit of HN even if…

>I dont have a dog in this hunt but that seems like a strangely aggressive response. Well I do and as someone who has seen his other posts on this subject as well, he has a tendency to try to dismiss differing points of views on the basis that he has 20 years of experience and knows better than everyone else but can't be bothered to explain it. Someone who has experience and wants to flaunt that experience should do…

    > decades of experience working at a quant firm

Post by IneffablePigeon » Mon, Jul 15, 2024, 7:16 AM UTC

gamepsys wrote: post #297

Terr_ wrote: post #292

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> Don't discount the knowledge you have from being deep into an industry. [...] diverse portfolio It's worth emphasizing that investing in the same sector that you are employed-in is actually a kind of anti-diversification, and it won't usually show up using "rate my portfolio" tools. The archetypal example that comes to mind--unusually extreme but illustrative--would be all those Enron employees who invested their 4…

1. It's normal in the tech industry to own a lot of stock in the company you work for. Investing in a vendor (in Nvidia's case) or another adjacent company is lower risk. You cannot avoid risk in investing, it's a natural part of the situation. 2. You can avoid the sell low situation by having 3-6 months of expenses saved in an emergency savings account. With all the layoffs in the last few years everyone should have…

Post by throwaway2037 » Mon, Jul 15, 2024, 7:29 AM UTC

dukeyukey wrote: post #246

bityard wrote: post #207

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Index funds are not some clever hack, they are just tracking the combined productivity of the publicly traded companies that make them up. Whole market, or the top 500 as a representative slice, whatever. When you buy the whole US market for example you are saying, "I strongly believe that the overwhelming majority of companies in the US want to make shitloads of money and pass it down to themselves and their shareho…

Something I've wondered is how index funds effect companies entering the index for the first time. Like, let's say there's a company (TryerCo) that is the 501st biggest in the US. Big, but still one step away from being in the S&P 500. Then, one of the S&P 500s collapse. They exit the index, and TryerCo enters the index at position 500, despite no material change since the day before. Doesn't this mean a whole _heap_…

Post by mkerrigan » Mon, Jul 15, 2024, 7:33 AM UTC

throwaway2037 wrote: post #320

gamepsys wrote: post #297

Earlier quoted context omitted.

1. It's normal in the tech industry to own a lot of stock in the company you work for. Investing in a vendor (in Nvidia's case) or another adjacent company is lower risk. You cannot avoid risk in investing, it's a natural part of the situation. 2. You can avoid the sell low situation by having 3-6 months of expenses saved in an emergency savings account. With all the layoffs in the last few years everyone should have…

> You can avoid the sell low situation by having 3-6 months of expenses saved in an emergency savings account. I see this (3-6 mos savings) constantly quoted in basic personal mgmt blog posts, but it seems unrealistic for most. Seriously, what percentage of people in OECD can do this? Surely, less than 5%. I am not sure it is great advice because it is discouragingly unrealistic for most. The average person has out o…

Post by [deleted] » Mon, Jul 15, 2024, 7:36 AM UTC

wingworks wrote: post #267

Cthulhu_ wrote: post #182

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Anecdotally I can confirm there's been a few 40% years in the past decade, but it really is a gamble, and because of survivorship bias it's easy to only hear about the ones that gained and not the ones that lost.

I started my investing journey about 5 years ago, started with stock picking, and my average yearly return is... 4.5% p.a. I would've 100% been better of investing in a low fee index fund, like S&P500 (VOO), or even just a world ETF like VT. I picked some winners, like Microsoft / Google, both up 150%, but they're tiny fraction of my total portfolio, so hardly returned anything all counted up. I did 170% at one point…