I shouldn't be surprised at this point that Jacob seems to be so damn right all the time. But I still have some fear about choosing individual securities instead of diversified funds. Epistemologically, I have know way of knowing which quadrant I'm in:
It was arguments from Index Fund Enthusiasts that convinced me to start managing my own money to begin with, instead of punting to "advisors." Since then, I've learned a lot, but I still see a lot more risk in owning 20 stocks than in owning damn near all of them. If you want to own income-producing assets, risk of ruin likelihood goes 1)personally held business, 2)handful of carefully picked securities 3)almost all publicly traded securities. I don't see any way around this.1) Those who know that they can beat the market.
2) Those who know that they can't beat the market.
3) Those who don't know yet that they can beat the market.
4) Those who don't know yet that they can't beat the market.