"Michael Lewis and Tom Lee held court in a podcast taping in New York City on Tuesday, talking to SoFi's head of investment research Liz Thomas for her show The Important Part. In a wide-ranging conversation that covered, among other things, Lee's thoughts on flash-frozen technology and Michael Lewis' dinner with OpenAI CEO Sam Altman on the subject of Sam Bankman-Fried, the two towering figures in finance debated whether the current sell-off in software stocks was turning into something more serious."
"But the most arresting moment came when Lewis, author of The Big Short, shared a morbid statistic about who actually makes money in these environments. "Did you know Fidelity published a report about the best-performing retail accounts of Fidelity?" Lewis asked the audience. "And it was all customers who died." (Lewis was referring to a famous 2014 study that found, in fact, the best-returning portfolios were left alone, whether due to death or absent-mindedness.)"
""The message is not die," Lewis clarified dryly. "Don't over trade.""
Topics included flash-frozen technology, a dinner involving an AI company CEO, and a debate over whether the recent sell-off in software stocks signals a deeper downturn. The market exhibited extreme volatility, with software shares falling substantially while artificial intelligence presents the potential to displace whole industries. A 2014 Fidelity finding noted that the top-performing retail portfolios belonged to accounts left untouched after owners died or became absent-minded. Research cited that roughly 40,000 stocks that went public or were spun off since 1974 saw 90% fall by more than 50%, with the vast majority effectively going to zero. Passive inaction often outperforms frequent trading.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]