Viewpoint: Investors excessively pursue excess returns, but often fail to outperform the market

TechFlow published an opinion article stating that recently, a picture about Buffett's investment performance failing to outperform the SP 500 has caused heated discussion. The SP 500 brings together the top 500 listed companies in the United States, accounting for about 80% of the total market value of the U.S. stock market, which is the so-called "Beta". Many investment managers have spent their entire lives pursuing Alpha (excess returns), but in the end they found that they could not outperform the market Beta. In the crypto market, there are also many assets and investors whose performance has failed to outperform Bitcoin.

A friend lived frugally in the bear market and finally hoarded enough 3 Bitcoins by the end of 2023, but now he only has 0.5 Bitcoins. He felt that the market value of Bitcoin was too high and it was not an opportunity for ordinary people, so he spent most of his Bitcoin on various inscriptions, but lost Bitcoin and gained a hand full of inscriptions.

The same story happened on Solana. Many investors exchanged their treasured SOL for various local dog Meme coins, and finally found that they could never exchange them back for the same value of SOL. When the bull market is booming, most people are always overly optimistic and think they can capture the super Alpha in this cycle. However, they find that they are just an ordinary person who is constantly wavering between arrogance and inferiority.