4 ms·
I just buy a few companies I like, hold forever, collect the dividends, avoid paying any management fees except for the fifteen-odd-bucks that I pay for every p
by hugh4 11y ago
I just buy a few companies I like, hold forever, collect the dividends, avoid paying any management fees except for the fifteen-odd-bucks that I pay for every purchase.
Will I make more or less than I would under your strategy? I don't know, but averaged over all possible universes it's unlikely to be significantly less, and this way I at least get the fun of being in control, and deciding where to put each new chunk of money.
- stouset 11y agoThat $15/purchase is probably waaaay more than the equivalent amount of Vanguard fees, unless you're buying thousands of dollars in stocks at a time. And those fees add up to a significant amount over the lifetime of your portfolio. Speaking of your portfolio, if you're investing in "a few" companies, your volatility and risk are going to be enormous. Especially if you're not balancing your portfolio between industries, company sizes, and less risky investments. Automatic rebalancing is a fantastic way to obey "buy low, sell high", as you intrinsically buy more of cheaper instruments and less of expensive ones to maintain that balancing.
- hugh4 11y agoWell yes, I do buy thousands of dollars at a time, you're right, it doesn't make sense to buy small amounts at a time. By "a few" I mean more like a dozen.
- blazespin 11y agoYou are a stock picker. You just got lucky.
- hugh4 11y agoHow do you know I didn't get smart?
- comatose_kid 11y agoThe second sentence doesn't necessarily follow from the first. https://en.wikipedia.org/wiki/The_Superinvestors_of_Graham-and-Doddsville https://en.wikipedia.org/wiki/The_Superinvestors_of_Graham-a...