Re: Earn 6% in the next 5 months (merger arbitrage)
I just love how Shoe is giving this recommendation but passing on it b/c he is sure he can do better than 6% in 5 months. How he still is convinced that with no prior investing experience he can beat the market without luck is amazing to me. I have overall beaten the market over a 4 year period, but over that time, half of my money was in index funds and the many losses I had in individual investments were outweighed by a few good (probably just lucky) picks. When you put 10% of your portfolio in AAPL at $36, it helps a ton.
I believe Shoe will never beat the market over an extended period unless Nintendo or some other stock that he heavily invests in goes on a multiyear run. So if he ran a "mutual fund" with a couple of 100 stocks instead of 25% in Nintendo or something he would never be able to.
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