He still thinks he can outperform holding an index fund

Fuck Barren Wuffet

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Yes.
He's also gained a lot of money with Apple. He doesn't have to be right about every single tech company that comes out (specially at his age).
However, human greed never changes, so he's probably very good at spotting it at his age. He's gone through a lot of bubbles and had a front seat.

Those digits are scary. Tesla has a little room to grow

Buffet didn't become wealthy until he was in his late 50s. Make of that what you will.

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Yeah he built a business (Berkshire) and started compounding. But his general principle works.

By definition picking completely randomly would outperform index funds half the time.

>1.4M net worth is not wealthy in 1965
Uhh user?

No, since buying those random stocks would cost you more than to buy the index fund.
If you ignore fees, then yes.

He had 1MM when he was 30 you fucking retard. that's 1960s money, which means its equivalent to about $8.5MM today.

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Wrong. Most of the market’s returns come from a small fraction of the companies. Market cap is nowhere near evenly distributed.

Buying an actively managed fund you will almost certainly lose to an index. They take tons of fees and also when you are managing that much cash you become able to influence the market ie you drive prices up with your buys. There are ways around that problem but it requires professionals, connections, more fees. It’s easier to outperform when you’re playing with small amounts (less than millions of dollars).

i have less than 1 milliom how do i outperform index? I'm looking for 25% return

Zero comission trading is now the standard.

You don't.
In the long term, index beat the vast majority of active managed solutions.
You need decades of data on a manager's performance before you can say with some statistical confidence that they can beat the market. But by that time, they are probably close to retire.

Option 1 is take massive risks on small or micro caps. Option 2 is swing trade ETFs, much less risk and reward. Ultimately you need to settle for long term steady gains. Don’t focus on getting X return just try to score little wins. Sell part of your stack when shit is hugely overvalued but buy back in fast. It’s always wiser to be holding stocks than cash over most timeframes (by stocks I mean owning an index or sector not individual companies unless they’re absolute blue chips)

Do you anons recommend an S&P index or a Total Market index?

Do they get you good trading prices? How about fees?
I would still invest in an index fund since some shares out there (e.g. Berkshire Hathaway) are too expensive to buy (on top of all the ones you want to get for proper diversification). But units of an index fund will contain a portion of them.

In theory, is it possible to become the major shareholder in a company through index funds alone?

option 2 is buy low sell high long only spy rrrright?

noob here
redpill me on spy vs es/mes

No. Read up on the redemption/creation process of ETFs. You don't own shares in those companies when you're holding ETFs.

and me trading index funds instead of holding is up 200% in one month

What about index funds like VTSAX?

i left crypto for stoink because i figured binance robbed me

zero commission is the standard

Yes, Blackrock and Vanguard are sort of in this boat. However they are only custodians of those shares so it’s not quite the same.

You own a representation of the component stocks of the index if you are buying an index fund or ETF. The fund (operated by SPDR, Vanguard, Blackrock, etc) owns the stocks. It’s really no different if you buy share of Berkshire Hathaway or Alphabet (Google) — you don’t own stock in GEICO, nor do you own stock in YouTube. You own stock in the parent company, which happens to own those companies as part of its operations. Index fund is designed to be self-balancing, whereas you would have to do your own buying and selling of the individual stocks you owned if you wanted to keep your portfolio balanced to track the index.

SMB Capital has traders that allegedly consistently crush the returns of the indexes.

...this sounds really sketchy then...

I highly doubt that. They're not very sophisticated at all and their tech is very old-school compared to some of the top-tier trading firms (whose profit margins are tightening up every year).

Talk to me about the benefits of holding long on ETFs like QQQ
I'm talking a good decade looking down the road

Why do anons prefer ETFS over Index Funds? Aren't index funds better since you can buy exact dollar amounts? Also not to mention that the price you get on index funds is the NAV, while on ETFS it's possible to over pay by a bit.

ive learned my lesson. maybe too late. but everything is in index funds since a few years ago