Hacker News new | past | comments | ask | show | jobs | submit login

Dude I used to work at a hedge fund, the whole efficient market hypothesis isn’t what you think, and it’s insane to think it means you need to buy every single stock. You’re just going to lose a bunch of money investing this way



>Dude I used to work at a hedge fund, the whole efficient market hypothesis isn’t what you think

Oh? Please elaborate.

>and it’s insane to think it means you need to buy every single stock.

US "total market" only have about 2000-3000 stocks.

>You’re just going to lose a bunch of money investing this way

How? By buying losers? By wasting money on transaction fees?


Only 2000–3000 but they're so strongly correlated you could practically diversify just as much with less than 20–30, for 1/100 of the transaction costs.




Join us for AI Startup School this June 16-17 in San Francisco!

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: