Comments by "Magic Beans" (@Magic_beans_) on "Investment Analyst Reacts to Investing TikToks PART 2" video.

  1. Re: “If you’d invested back then you’d have this much now” - there’s also this thing called reversion to the mean, also illustrated by phenomena like ARKK Innovation or the Madden Curse. Someone has a great year, better than anybody would have expected, so they suddenly get loads of press coverage, endorsement deals, new investors, or whatever. Before jumping on the bandwagon, remember that their great performance was noteworthy because it was unusual. True, it may represent a turning point in the player’s career or the emergence of a brilliant fund manager, but often they just had one good year. After that they go right back to being average, sometimes worse.
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  2. Richard kind of misspoke there. When he said “positive return” I’m pretty sure he meant “excess return.” Earning average returns is easy, you just spread your bets around.
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