You're looking at Less Wrong's discussion board. This includes all posts, including those that haven't been promoted to the front page yet. For more information, see About Less Wrong.

pcm comments on Simple investing for a complete beginner? (Just… developing world index funds?) - Less Wrong Discussion

-5 Post author: Owen_Richardson 22 August 2013 07:15AM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (65)

You are viewing a single comment's thread. Show more comments above.

Comment author: pcm 22 August 2013 05:37:42PM 1 point [-]

A basic principle in all investing is higher risk equates with higher return.

This rule is usually false. Low beta stocks tend to perform as well as or better than high beta stocks.

(See the book Finding Alpha by Eric Falkenstein for evidence).