Exactly. These are power law economics vs index funds uniform distribution of rewards - but that’s a relevant caveat!
The trope of “should’ve just put your money in the index” is an implicit suggestion that index funds are the best place for it, but it should be noted that perhaps index funds are the best place unless you’re willing to undergo the effort to obtain the premium in returns considering the fact that those market beating returns aren’t uniformly distributed.
The lottery analogy doesn’t map here because there are no lottery firms, there are no lottery syndicates, there is no lottery-playing industry on the buy side because you’ve correctly noted there is no repeatable process to generate profits. There is with venture capital and angel investing because there ARE repeatable strategies to generate profits - and many do.
The trope of “should’ve just put your money in the index” is an implicit suggestion that index funds are the best place for it, but it should be noted that perhaps index funds are the best place unless you’re willing to undergo the effort to obtain the premium in returns considering the fact that those market beating returns aren’t uniformly distributed.
The lottery analogy doesn’t map here because there are no lottery firms, there are no lottery syndicates, there is no lottery-playing industry on the buy side because you’ve correctly noted there is no repeatable process to generate profits. There is with venture capital and angel investing because there ARE repeatable strategies to generate profits - and many do.