They are far better than we blindly do research. The main issue is asset allocation for us.
They buy every day small amount. During my time, they bought TSLA many days , but they also sold TSLA many times which will confuse us. In some cases they will sell to release some money to buy another one. We may not know why they buy and why they sell suddenly?
The best way is to subscribe to them, do a research on those stocks and buy/sell depending on own decision.
If you’re going to highly diversify, why not just to SPY or QQQ and not even think about it? You don’t see highly diversified people getting really high returns. Even the biggest hedge fund mangers usually have one big trade that put them on the map. After that, they are too big and have to diversify and produce mediocre returns.
I slightly differ here. If some companies create cancer drug, we can not undergo cancer treatment - for sure, right.
There are ways to do research.
Easiest: The better valuation of drug companies, go through plenty of long youtube valuation provided by the notorious “Martin Shkreli”.
He is perfect in valuating drug companies, but now in jail (IIRC)…
Hard way: The other way is to follow reading company sites about their drug research and where they stand. When they are very near to 3rd level of testing (just before FDA application), buy them (risk is there) depending on their return on drug market/circulation.
For this we need to know drug development process which I linked here (Book name is also there) just 29 pages to read. Download before it is gone out of link.
I know someone who worked at Google put all his savings & options down put 7 figures down in March bought Tsla. Well he just retired with a 9X gain. Travelling now…
No point talking about the past. Can it perform in the future? Early indications is no. Careful of the bubble bursting! Those stocks she owns are likely the ones that decline as per the Dotcom bubble burst.
You buy always options, this is not for it. If you see long term, they exceed S&P way high at 39% YOY returns. These are just buy and hold for next few years.
Beating S&P is not a feat in a bull market. As far I am concerned, is not a track record! Yes, is not. We knew bull market started since 2009 until now so who don’t make money except those who didn’t invest. In order to qualify as track record, I want to see one cycle (one bear, one bull market). Her etf is only 5 years old. Don’t suffer from recency bias. From your graph, her etf didn’t perform well in the first 4 years!!! After 2020 incredible return, the next 4-5 years may be the same
39% annualized is not great, IIRC BRK/B which is a hedge fund in essence has 60+% in the first few years (to be verified). Remember Bill Miller? His return for the first 10 years is splendid. Now… haha.
More broadly, if our forecasts for the five innovation platforms are near the mark, nominal GDP growth in the US is likely to slow from 4.1% at an annual rate during the past five years to 2-3%, regaining momentum only after new technologies and solutions gain enough critical mass to move the economic needle. Both volume growth and inflation are likely to surprise on the low side of expectations as market share shifts to the mismeasured digital world and as the “good” deflation associated with technology takes hold. We believe the winners will win in a big way but losers, particularly those that have levered balance sheets to satisfy certain stakeholders, will unwind. While risk-free interest rates are likely to remain low, credit spreads could respond dramatically as disruptive innovation – the likes of which we have not seen since the telephone, electricity, and the automobile burst on the scene in the “Roaring Twenties” – causes significant dislocations.
Apparently there are more star fund managers Jerry Tsai, Peter Lynch, Ken Heebner… Full cycle or is not a track record Also, just like is not prudent to jump into stocks such as MRNA, ahem…, that have outperformed so much recently (recency biased!), ditto for ETFs. One more thing, don’t increase exposure before Jan 20 (guess you know what day that is )
Apple is the best company in the world Well said. Capital gain, dividends, dividend growth… What not to like.
He has pretty good dividend paying stocks. I have two of those, AAPL and COST (a puny amount just for laughter).