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Comment by lukas099 | Hacker News Reader

>Let them over analyze, over trade, and underperform.

There was an interesting discussion on HN a week ago about how passive investors rely on active investors to keep prices in the market in line with their true value.

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If you look at the long term (10 years) and just bought and held a common consumer company, the gains are impressive.

  10 Years
  Amazon - 1,367%
  Apple - 907%
  Google - 265%
  Microsoft - 126%
  Intel - 71%
  Coke - 65%
  Ford - 42%

There were a lot of other common consumer companies 10 years ago, too, like Sears. It's always easier in hindsight. I've been struggling with this problem in terms of picking my "blue chip" stocks to backtest -- my gains are impressive, but I doubt it was so obvious that these were blue chip stocks 10 years ago, or that these same blue chip stocks would be considered blue chips in 10 years.

You've just cherry-picked companies that have performed well, you could easily have MySpace instead of GOOG.

Or General Motors instead of Ford, and you'd have lost the entire investment in 2009.

Myspace was never public. Go back into your bunker with gold bars.

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