To everyone trying to pursue the “VTI/VOO & chill” strategies do you ever worry about not generating any alpha (an investment strategies ability to beat the market)? With the recent democratization of finance and amount of investing education being pushed through social media, it feels like everyone will be pegged to these returns. Can you really get ahead if everyone is making the same return and at what point does this become an inflationary-like pressure?

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I've never viewed investing as a competition with other investors. I'm just trying to save enough to support myself and my family. Most Americans still live paycheck to paycheck, so I'm not worried about it.

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The bulk of the delta between the haves and the have nots is not higher returns on amounts invested, but rather increases in the amounts invested.

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I have no worries at all. Professional Mutual Fund managers more often than not underperform the entire market. My guessing on the next great stock or trying to join a previous winner is always going to be a losing strategy.

This is why as a CFP I recommend good broad based Index Funds that you do not need to pay me for.

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Bruh have you seen NVDA

I’m not sure I understand. The whole point of index investing is to match the mkt, not beat it. And, as others said, not trying to get ahead of others. I’ll leave that to the money managers trying to prove their worth. I’m happy with historical mkt returns on my money.

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How old are you, op? This is a pretty naive way of thinking about markets.

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29…I think my wording may have lost the message here. I’m not suggesting people have to throw darts at individual stocks in order to be successful but more so how important is it to go beyond public markets or stocks in general to generate returns. (I.e. stocks, vc, private credit, etc etc…)

Have never been concerned about that

I do not

Most of the “alpha” that retail investors generate is negative. And many others don’t save enough at all. If you can save over 15% of income, invest most of that, and avoid negative alpha, you are already ahead of 97% of your peers.

Just came across this article, albeit promotional. Interesting concept to generate a more tax efficient return based on an index.

https://www.execsum.co/p/sunday-deep-dive-frec-edition?fbclid=PAAaa-iDG6DxdaTNKlj0Ay3gRtp45WeG02baB4_4YrDycKP0Wuyuv8zqepWr0_aem_AVKihFHDO1QEbdoitEghK_TBXqccP4EU-3UZ-myCn8PeFnOhZ7IfBMhhaUMtI744N_E

I personally put all my money on S&P and chill, however I have no issue with others going for passive investment. Most active mutual funds don't beat the market, but you don't need most mutual funds: only the funds that do. There's also the issue that index funds remove human judgement and skew values of high-cap companies.

The present advantage of index funds (and the reason I don't choose an active fund) is that I don't expose myself to advisor risk, which means I don't have to worry about if I'm beating or losing the market, because the point is to match the market. Plus, none of the mutual funds in Vanguard (which is what I personally use) are beating the S&P over ten years atm.

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Happy to work with startups as an advisor and even help raise funds if I find that your business’ current state matches the investment criteria of the VCs I am in touch with.

Former Private Equity Analyst and Venture Fellow with a Masters geared towards Entrepreneurship and Technology from a top tech school in NA, currently working with portcos and startups, and have an extensive network in NA and APAC.

Primary focus would be tech-based startups but am sector agnostic in general.

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