[HN Gopher] Ted Weschler Turned $70k into $264M in a Retirement ...
___________________________________________________________________
Ted Weschler Turned $70k into $264M in a Retirement Account
Author : chollida1
Score : 14 points
Date : 2024-09-27 12:24 UTC (10 hours ago)
(HTM) web link (blog.umd.edu)
(TXT) w3m dump (blog.umd.edu)
| immibis wrote:
| It's called gambling. Sometimes by doing this your money
| increases 1000000% but most of the time it decreases 100%.
| charlie0 wrote:
| It can go beyond the 100% loss if you leverage.
| icedchai wrote:
| Generally, you can't get that leverage in a retirement
| account. They don't let you trade on margin there.
| willcipriano wrote:
| Only if you pay it back.
| datavirtue wrote:
| Gambling? The odds are always in favor of the gambling house.
| You can't do anything about their odds which ensure that you
| lose nearly 100% of the time.
|
| There is a lot that you can do in the market where the odds are
| technically in your favor AND you can adjust the number with
| your own behavior to manage risk, further bettering your odds.
|
| All of this is well known and provable. Spreading FUD about the
| market is a great way to keep people poor, indignant and
| suffering a lack of freedom.
| woooooo wrote:
| If you're making a play with a small chance of huge upside,
| but a big chance of losing, most people colloquially call
| that "gambling".
| superb_dev wrote:
| The stock market requires someone to fail for someone else to
| win, the moneys gotta come from somewhere. People who are
| poor, indignant, and suffering will just be more fodder for
| those who've already won.
| phendrenad2 wrote:
| Hmm time to adjust the old IRA investments.
| bdjsiqoocwk wrote:
| I wish this would shut up the disciples from the church of
| Efficient Market, but I know that it won't.
| whywhywhydude wrote:
| How does this discount efficient market hypothesis? You can
| find plenty of examples of people buying 2$ lottery tickets and
| becoming millionaires.
| bdjsiqoocwk wrote:
| If you believe the EMH you shouldn't compare stocks to
| lottery tickets. It sounds like you just don't want to look
| too closely.
|
| Let's try differently. What evidence would you require to
| conclude "EMH is false"?
|
| Edit: I have to make this edit because someone will point it
| out. YES I realize I didn't actually answer your question but
| the thing is this has been discussed ao thoroughly that I
| don't think i have anything new to add.
| echoangle wrote:
| The only thing I can think of that would disprove EMH would
| be an arbitrage opportunity that doesn't go away by using
| it. If you can arbitrage continuously and without limit and
| the difference you're arbitraging isn't decreasing, that
| would contradict EMH. Since that's pretty much the only
| claim of EMH, multiplying your money by taking high risks
| doesn't really contradict it.
| bdjsiqoocwk wrote:
| In HFT there are loads of arbitrage opportunities that
| don't go away by using it if you're the fastest.
|
| EMH disproven guys.
| echoangle wrote:
| They do go away, that's why you have to be the fastest.
| They also are limited, you can't arbitrage them with an
| arbitrary amount at once because this makes the
| difference disappear.
| bdjsiqoocwk wrote:
| > Weschler says that he used to buy beaten-down bonds of
| companies that were in less dire straits than they seemed to be
|
| Anyone knows how to see and buy publicly traded bonds?
| mikestew wrote:
| https://fixedincome.fidelity.com/ftgw/fi/FILanding?bar=p#tbi...
| silexia wrote:
| I still don't get how he multiplied $70k to $264m... And this
| reporter seems to just take all of Weschler's claims at face
| value... BUT Warren Buffett is famous for great due diligence and
| high levels of ethics... So I guess it probably is legit?
| 486sx33 wrote:
| The more I read about the stock market the more I start to think
| about the negatives of EFTs and index funds. They're like taking
| an antidepressant, the lows aren't as low but the highs aren't
| nearly as high. The market was more volatile when more "retail"
| investors purchased individual stocks.
|
| Lots of people lose big, personally my biggest loss was $WISH wow
| I got hammered there. Had it been an index fund that incorporated
| WISH I would have been more protected... then again my direct
| purchase of NVDA more than paid that back
|
| Obviously 70k into 264M is insane and either is like one in a
| billion luck or the result of insider information
| kjellsbells wrote:
| Weschler makes essentially the same point: if you dont have the
| time or desire to spend 24x7x365 thinking about money, index
| funds are for you. sed s/money/life problems/g.
|
| I think that people forget that these homely-sounding guys like
| Buffett and Weschler have serious, serious time and mental
| investments in thinking about money. Theyre not serious like
| you or I, maybe, who watch a few hours of Bloomberg each week.
| They eat, sleep, and dream about investing. Theyre basically
| money monks. Theyre also (and I think they would admit it too)
| lucky. You can make some of your own luck in investing, by
| studying businesses like these guys do, but you still need to
| be lucky. I observe that many of their investments eschew
| fashionable sectors like tech. I wonder if that is, again,
| making their own luck. I think Buffett would have choice words
| to say about investing in Nvidia for example.
| 486sx33 wrote:
| Further - just remember Jeffrey Epstein got all his wealth
| investing for rich people... how? We still don't know those
| details
___________________________________________________________________
(page generated 2024-09-27 23:02 UTC)