>>1835328
So if multiply diversification by 2 results in roughly half of the risk being lost, @ 5120 stock you have a .09375% chance of losing money

New investing strategy

>>1835345

Something docent seem right here.

It might be my autism, but it docent click.

>>1835349
I might have fucked up some math somewhere

>>1835349
>>1835350
Nah math is right

Just went through it all

>>1835345
The relationship is exponential. Not linear.

>>1835328
>>1835345
So if I invest in an infinite number of stocks, I have exactly 0% chance of losing money?

New investing strategy

>>1835384
if you own everything, you cant lose ever.

Chance of gaining money chart now pls

>>1835384
>>1835417
I don't think that chart is considering brokerage costs.

If you have 40 individual stocks in a portfolio worth <$10k good luck making money after considering brokerage costs.

time to buy into all the penny stocks

>>1835460

>2017
>Paying brokerage fees

>>1835460
>I don't think that chart is considering brokerage costs.
Aaaaaaaaaaaaaaaaaaaaaand this is why we have index funds and ETFs.

File: magic formula.png (4KB, 481x289px) Image search: [Google]

4KB, 481x289px

>>1835381

120 stocks - 1% chance
196 stocks - .1% chance
264 stocks - .01% chance
336 stocks - .001% chance
408 stocks - .0001% chance
500 stocks - 0.000005% chance

holy shit just buy an etf guys we're gonna be billionaires

>>1835328
This only accounts for idiosyncratic risk and not market risk.

>>1835328
This kind of advice is for Kevin who works at the HR department and is wondering what to do with his savings.

>>1835417
Chance of gaining money follows the same chart.