> index funds are getting market returns, which could be negative.
... so they're losing money? Isn't this precisely the point I was making? Index funds are losing money in a bear market as is Wood's fund.
Wood's insight is to focus on technology, as these tend to have high returns because of the value they provide and are (potentially) undervalued by the market. Again, isn't YC doing exactly this strategy except for company ownership?
While I appreciate your pushback, I think it's a bit dismissive to compare Wood's strategy with investing in railroads. Wood is investing in a diversified portfolio, the focus of which is technology. At least, it's a strategy that's diversified in specific technology sectors and diversifying the investment in each sector by betting on a few players in that space.
I don't have a lot of historical knowledge but to me, this would be like someone investing in an "industrial revolution" tech sector in the early 1900s. That is, invest in steel, railroads, automobiles, etc.
... so they're losing money? Isn't this precisely the point I was making? Index funds are losing money in a bear market as is Wood's fund.
Wood's insight is to focus on technology, as these tend to have high returns because of the value they provide and are (potentially) undervalued by the market. Again, isn't YC doing exactly this strategy except for company ownership?
While I appreciate your pushback, I think it's a bit dismissive to compare Wood's strategy with investing in railroads. Wood is investing in a diversified portfolio, the focus of which is technology. At least, it's a strategy that's diversified in specific technology sectors and diversifying the investment in each sector by betting on a few players in that space.
I don't have a lot of historical knowledge but to me, this would be like someone investing in an "industrial revolution" tech sector in the early 1900s. That is, invest in steel, railroads, automobiles, etc.