3 ms·
> Buy-and-hold will almost always lead to returns, provided that a portfolio is diversified enough. Smoking, taking opiates recreationally, etc. almost always l
by __jem 6y ago
> Buy-and-hold will almost always lead to returns, provided that a portfolio is diversified enough. Smoking, taking opiates recreationally, etc. almost always lead to premature death.
This is ignoring the original point, though. Commission fees are practically irrelevant to a buy and hold strategy because of the time scales involved. Commission fees only matter for trading, which does in fact ruin lives.
- krastanov 6y agoWhat about people who put $100 a week in. Paying commissions on this, each week, is definitely unworkable. Was it possible before to do before Robinhood?
- sgerenser 6y agoYes, most platforms had either no-transaction-fee index mutual funds or free etf trades. This generally didn’t apply to individual stocks but someone just putting away $100/week savings should be avoiding individual stocks anyway.
- handmodel 6y agoIn many ways a world where there were some baseline fees and it was annoying to sign up made it so no regulation was needed. Because it was naturally a bit burdensome to get started, there was no need to make law on it. I don't trust anything to be done about it in 2020 - but it is clear if this was a time when regulators had a bit more sway that basic rules would be put in place to make this type of gambling behavior hard.