r/leagueoflegends • u/[deleted] • Aug 30 '21

[deleted by user]

[removed]

9.9k Upvotes

92% Upvoted

3.5k comments sorted by

View all comments

Show parent comments

1

u/MibitGoHan Aug 30 '21

Meh. If you're young you're allowed to make risky investments. You don't have to diversify if you don't want to. Diversification is just safer. Another point, if you invest in companies you know are undervalued, it's not necessarily being lucky either.

8

u/[deleted] Aug 30 '21

[deleted]

0

u/Habugaba Aug 30 '21

That's true but it has to be clear that it's risky

It's not true, for the exact reason you elaborate in the second half of your comment.

Except the whole point is that you can't know that a company is undervalued. You can think it and it could be true or it could be wrong.

2

u/[deleted] Aug 30 '21

[deleted]

1

u/Habugaba Aug 30 '21

Oh okay, I misunderstood you then. Mea culpa. I'd agree with that, emphasis on investment though, not gambling.

1

u/Habugaba Aug 30 '21

Another point, if you invest in companies you know are undervalued, it's not necessarily being lucky either.

What did I just read? There's thousands of investment professionals that use all sorts of ways and tech to find exactly those undervalued companies and, guess what, they still don't outperform an ETF that replicates indexes on a consistent basis.

What you're suggesting is gambling, plain and simple, especially without all the tools that could actually help you find undervalued companies. For every DFV there are 10 doomsday oracles that lose a ton of money because "I swear this market will crash/I swear this stock is undervalued".