Thought experiment: universe of 100 stocks. One of them returns 1000%, and the other 99 return 1% each. So the average return is 10.99%. Then, portfolios of 10 stocks are created at random. How many will beat the market? Equal to the chance of picking the big winner, only 9.6%.
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If, theoretically, all the winners stayed private, they are still going to eat the losers' lunch in the real world, and public market returns would decline. Doubt that would happen though... too many advantages to being public.
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The silicon valley ecosystem/model is built on IPO at the end but how does money raised by Amazon, Google, or Facebook compare to the private money raising Giants like WeWoek or Uber? Comparable amounts of money?
End of conversation
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