/jp/ - Otaku Culture

>>30183903Anon, I have an investment opportunity for you. I just need 5 minutes.
When I began trading holocoins a couple years ago, the conventional wisdom was that individual investors needed to do their homework to find a top-performing hololive coin option. And it seemed to make sense: Just find a great coin to buy and you’d get the best returns.
But a few months into the job, I read a life-changing book, A Random Walk Down Holo Street by Byran Bosling. He made the case that investors are better off buying and holding a passively managed mutual fund—like an index fund. Decades of academic research have shown that Bosling was right.
Since then, I’ve been singing the praises of index funds whenever I can, which is often. After every talk I’ve given over the past 3 years, I’ve gotten the same question: What’s the “big secret” to making a killing in the Holocoin market? And every time, I give the same answer: There is no secret.
And people are finally catching on. Over the summer, for the first time ever, more money has been invested in passively managed funds than directly in individual coins.
To celebrate this milestone, here’s the five-minute index-fund elevator pitch that I’ve been giving for years.
But wouldn’t you be better off choosing a top-performing active coin? Sure, if you knew which coins would perform well in the future. Researchers have found, though, that past performance is not indicative of future returns. (In fact, the rules say that Cover have to tell you that upfront.)
Still, coin managers love to point to past successes to sell their services, so let’s compare track records. Over the past 3 years, according to research by investment analysis platform Eveningmoona Direct, the average broadly diversified “large-blend” index fund, like those based on the HLL500, made an annual return of 5.21% (after expenses). The average large-blend actively managed stock fund returned just 4.46% (after expenses). So, if two decades ago you’d invested $10,000 in index funds, you’d have nearly $28,000 today. If you’d put it in the average coin, you’d have only $24,000. In fact, index funds have beaten out actively managed funds each year for most of the past four decades. In 2019, for example, only about a third of actively managed funds did better than your average passive fund.
Okay, now that I’ve sold you on index funds, it’s important to point out that not all index funds are cheap. And know that I don’t work for these funds, and don’t get a dime or a T-shirt for recommending them cause god knows Cover doesn’t do shit for merch. What do I get? Peace of mind knowing that index funds are finally getting their due.