Jan 8, 2026
Let's say your friend decides to invest $500,000. They decide to spend all $500,000 on a single tech stock. Does this make them a rational investor or an insane gambler?
Tech workers are smart. They studied hard and got good grades and went to fancy schools. You can even argue their interview questions are proxies for general intelligence tests.
Let's go through this logic with a tech worker:
Q: If you were to invest $500,000 would you buy a single tech stock or a total
market index fund?
TW: A total market index fund.
Q: Shares of public stock are highly liquid. Since you can instantly buy and sell, there is no
difference between being given $100 in stock and $100 in cash, correct?
TW: Yes.
Q: You are receiving $500,000 in stock from the company you rely on for employment. Will you sell
and diversify into other assets?
TW: No.