How to Kick SpaceX Out of Your 401(k)
It is impossible to beat the stock market. But if you want to divest your retirement of Elon Musk-related companies, here is the best way to do so.
The "Hiding Victims" Problem: Averages ignore the variance of outcomes. If 4% of stocks generate all the returns, that means 96% of stocks are essentially "losers" or break-evens.
For an individual retiree, the probability of holding that 4% vs. the 96% is a massive gamble, not a guaranteed "10% return as the author claims.
There are people who have had secure financial positions ruined in time stretches that averages ignore. A retiree drawing down funds in the late 1970s (a period of stagflation) had a vastly different experience than someone retiring in 2010.
New York Times propaganda.