Reddit reviews The Power of Passive Investing: More Wealth with Less Work
We found 3 Reddit comments about The Power of Passive Investing: More Wealth with Less Work. Here are the top ones, ranked by their Reddit score.
If you're an average guy looking to invest, please don't emulate people like this. They're playing a game with money they can probably afford to lose, and like to talk like smart finance people to show off their status. You will lose money trying to chase the market and it will not be fun.
If you want to learn how not to invest, I recommend reading a book like this which presents an accessible introduction to the academic research into why non-experts should not play stock market games. That book costs $12 and may save you thousands in needless fees wasted on active management trying to chase the market.
Okay, different beast.
You work in a niche industry and plan to invest in that. While I do believe you might have insights others have not consider the following: IT is hype based and your now profitable niche from which you draw your livelyhood goes bust.
Not only is your company in trouble, other companies that might value your know-how with good pay are in trouble as well ant it's hard to get a foot in the door.
Since you invested your money in the same place your earning potential is impacted as well as your net worth. This is called a concentration risk.
For me personally it would be too risky to invest my savings into something in which I am already heavily invested (with my human capital).
Another perspective: Everything public you know about the companies you want to invest in is already priced in, the stock price reflects the potential and risks adequately. Everything non-public that might move the needle is considered illegal insider information. It does not matter if your friend or your friends friend gave you that information.
I would advise reading up on the reasoning behind passive investing. There are numerous books. If you want to keep a small part of your money in company / industry stock feel free, but you should at least know the tradeoffs.
I recommend you read up on index investing. This is a good book:
http://www.amazon.ca/dp/0470830069
Also understand the power of passive investing. Another good book:
http://www.amazon.ca/gp/product/0470592206/
At the very least read the first recommended book. I feel that index investing is the best way to go, but you should do your research and decide if you think it is as well.