The Heavy Price Of Index Investing (Palantir Example)

In this video, I show how traders are taking advantage of passive investors by frontrunning stocks before they are included in the S&P 500 index.
(Additionally, the $5 membership level will get you access to stock analyses beyond those in the S&P 500 and a big discount to the annual price of my Investing Group on Seeking Alpha, should you ever choose to join there.)
As always, I do not provide individual investing advice. I share the methods I personally use to value stocks and other investments, which may lose money.

#investing #stocks

[letsdanceonhere]

Cory, another great video and exactly the reason why I'm a fan and proud member of the Cyclical Investor's Club.

[syproful]

Passive investing is because it's passive. You agree for less and in return you get to spend that time on other activities. However you are right of course.

[smackjack]

This exact thesis is why I've always picked indivual stocks. I think a regular Joe could select underperformers from the S&P 500, and by only removing say the worst 10 stocks, you'd beat the market every year.

Not really how it works in practice, but if you actually tried this, you'd almost always beat the market I think. Great content

[Marv]

Nice and interesting video. I'm actually PLTR holder, sort of looking for exit point but I have in the money CC on it and also bit complicate tax situation around it so I will wait a bit longer, I guess. I know I'm risking sudden price collapse...

For the whole index vs stock picking idea, I get what you are saying, but in my example it kind of didn't work so far. As a performance comparison I used "paper" portfolio where I'm buying index (accumulative sp500 ETF) every time money was deposited to broker. I do underperform it by quite a lot. And I don't feel like I suck at stock picking, I did some fine decisions, my largest holding is LMT (over 20% annualize gains), I did score Pfizer before covid (pure luck) and was able to sell before total collapse, fished total bottom at MSFT in 2022 etc.. I did step on some looser of course but not that many. So, question would be, can/should I pick better or index was just too generous in last 4-5 years

[marinikc]

CEG was a spin-off from EXC - I remember holding EXC then and being affected by it;
but it would be a good buy (nuclear energy) if it would drop under 150 (for me);
yes, I've learned the hard way that Valuation matters! ;) (in 2022)

[mohamadsaleh]

I liked the video but I'll watch it later 😃

[ThHecksher]

I would like to know your opinion on SWBI (Smith & Wesson) - is it a cyclical buy now?

[geethanarayanan]

what a revealing video. amazing. but wouldnt you say that dumping monehy int he S&P 500 is justified anyway - 15% returns arent bad for something that carries zero effort or expertise other than pressing a button?