= 27d567bc2d48d9f40e9ccc20ea370b15)
ChristianKl comments on The Rational Investor, Part I - Less Wrong
You are viewing a comment permalink. View the original post to see all comments and the full post content.
= 783df68a0f980790206b9ea87794c5b6)
Loading…= b715d02e85f7b3b4ae65ca3d3e450868)
Subscribe to RSS Feed
Powered by Reddit
= f037147d6e6c911a85753b9abdedda8d)
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (29)
Of course Vanguard endores that investment approach. It makes money with selling those funds. Just because some people besides yourself endorse that approach.
Over the last 5 years the S&P 500 produced a return of 3.5% per year. That's not a lot. Do you believe that it will again produce a higher return? If so, what's your reason for expecting again a higher return?
I don't think that there a good reason to focus all investment capital on the 500 biggest companies the way you do when you buy S&P 500 shares. Angel investments do provide good returns for the average Angel investor: http://techcrunch.com/2012/10/13/angel-investors-make-2-5x-returns-overall/
A lot of the economy consists of small businesses. If you are a smart person you might want to find local investment opportunities that aren't on the radar of the big banks.
Small business are illiquid. They also have capital requirements that might not fit your investment needs. If you have enough money that these two problems aren't an issue, as well as the skill in finding small business that won't fail and that are on the market, and have the time to supervise them/manage them, then they could be a good investment. But that isn't a lot of people.
Isn't angel investing for the relatively wealthy? What do you do around the 10k range? Especially considering that the less capital you have, the better working relative to spending time investing becomes.
Around the 10k range you are right that Angel investing probably isn't optimal. On the other hand 10k doesn't pay for any retirement either.
True, so when I finally have money I guess I will take another look.