Index Funds vs Individual Funds

[Thremp]

DC,

I have not read it personally, but the academic research I have read disagrees. Not to mention a good bit of the risk comes from increased exposure to business risk. If you have a major innovation or etc that crushes one of your 2 50% companies... You're effed. When you're young and with discretionary income and taking a shot, I don't mind this idea at all. Another bigger downside is the years spent recouping where you were originally from the misstep.

I ideally would like to keep my retirement money apart from my discretionary stock-picking money as I get older and develop this ability.

Also I think conversely as you become very wealthy then it becomes silly to keep your retirement apart from stock picking monies if you are clearly +EV. Since the difference in lifestyle from 19-20 mil isn't as pronounced. Also I'd imagine your talent level become vastly different unless you lucksack your way into the monies.