I've been noticing that some people get genuinely upset whenever anyone mentions picking individual stocks. What's up with that?
Most active investors underperform over the long run. Sure. Risk-adjusted, most underperform too. Also sure. But why does that make stock picking itself something people get hostile about?
I feel like if this sub had its way, people like Buffett, Peter Lynch, or Jim Simons would've been told to stop wasting their time and just buy VOO. Obviously they're outliers. But they’re also part of the sample. They exist, and more will exist. And the point is that stock picking isn't some inherently irrational activity that deserves ridicule.
You can recommend index investing while still accepting that some people enjoy researching businesses, think they have an edge, or simply want to try. If they underperform, that's on them. I just don't understand why people act like buying an individual stock is some kind of moral failing.
This is r/investing. Index funds only work because someone else is doing the work of valuing businesses and setting prices. That's investing.