Part of the move is mechanical: index funds tracking the S&P 500 will need to buy RDDT ahead of its August 18 inclusion. That creates a temporary wave of demand, but it doesn’t automatically mean the business suddenly became more valuable overnight.
For me, the bigger lesson is actually the S&P 500 itself.
Instead of spending all your time guessing which company will become the next Reddit, you can simply DCA into the index and let the index committee do the stock-picking for you. Winners naturally grow into larger positions, while weaker companies eventually get replaced.
Sure, picking the next RDDT could generate much bigger returns—but it also comes with much bigger risks.
Chasing the next 10% pop is exciting. Owning the index for 10+ years is boring. But in investing, boring can be a very powerful strategy. 📈
@WallStreet_Tiger [龇牙]
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