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I knew that dividends were small enough that I as an individual investor find them more or less meaningless, but I didn't realize that they were literally non-e
by ratelimitsteve 1y ago
I knew that dividends were small enough that I as an individual investor find them more or less meaningless, but I didn't realize that they were literally non-existent in so many cases. Thank you for that little nugget. What good do institutional investors derive from buying stock and holding it for a long time, then? Is it just the assumption that the value of the stock will appreciate at a predictable rate over the course of years?
- jpc0 1y agoIt’s commonly held wisdom that in the long run the market always goes up. There was a Buffet experiment relating to active management vs an ETF tracking the S&P for some amount of time (a decade?), the ETF won as far as I remember. You are usually better off holding, because most active management is indistinguishable from random chance at best and usually is literally worse than doing nothing.
- ratelimitsteve 1y agoI suppose any asset is more inflation-resistant than cash, so at least there's that.