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> Well that is a click baity title From the article: > “People are trying to teach you to come in and trade actively in stocks,” he told his audience. “Well,
by everdev 8y ago
> Well that is a click baity title
From the article:
> “People are trying to teach you to come in and trade actively in stocks,” he told his audience. “Well, I regard that as roughly equivalent to trying to induce a bunch of young people to start off on heroin.”
It's actually a pretty accurate description of the most sensational part of his speech.
- darkerside 8y ago> trade actively The key phrase in the sentence, which I think people are glossing over here
- orojackson 8y agoThere are plenty of comments here that advocate for active trading, so Munger's quip still rings true.
- mandelbrotwurst 8y agoActive trading does make sense for certain participants (e.g. certainly for HFT firms, but arguably for many others, e.g. maybe even for a well-educated individual investing in under-researched small cap), and as the fraction of investment money that is passive increases it starts to make sense for more of them.
- marketgod 8y agoActive trading with options is a great way to make money. I always suggest it's good to park money in something like AAPL and collect dividends from it, as it's the market leader, if it drops, everything will. Alternatively put most of your money in an index fund and just keep adding. Something like 10% of your portfolio in options trading, and 90% in an index fund/powerful stock, preferably a dividend paying one. Then limit your options trade to 3% of your options trading account. This way you can make money from options and grow your account at the same time using the buy and hold methodology.