STL comments on The Rational Investor, Part I - Less Wrong
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Comments (29)
Warren Buffett's name is spelled with two Ts.
You're skipping over a few important things (cash, savings accounts, CDs - which are too conservative for almost everyone, even retirees) and terrible ideas like speculation (e.g. gold). You're also skipping over inflation, which is important to understand long-term returns.
Oh, you do mention "letting money sit there" in passing, but this essentially assumes that the reader understands what "sit there" refers to.
The bit about stocks is simply incorrect. Brokerage accounts allow you to purchase individual shares, so unless you're investing in Berkshire Hathaway's class A shares, you can buy anything.
(The one time I invested in an individual stock, other than employer stock awards, I lost over $9000 before I came to my senses. Now I'm fully invested in two mutual funds, but when I held that stock, my shares weren't a multiple of 100.)
Not quite - you'd start a fund, and earn fees in addition to the returns on your own money. Then you'd eventually have to close the fund to new investors to prevent it from becoming too big.
"Basis" is incomprehensible to newbies.