Comments on: Charts of the day, equity volume edition http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: donna cerca uomo Roma http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-54681 Sun, 12 Oct 2014 21:09:19 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-54681 Pretty element of content. I just stumbled upon your blog and in accession capital to assert that I get in fact loved account your blog posts. Any way I will be subscribing in your augment or even I fulfillment you get admission to consistently fast.

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By: buy fifa 15 coins http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-52634 Thu, 25 Sep 2014 22:47:23 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-52634 easy, stylish and restrained-to-wear collection for classy women.This year, discover an ultra-functional tote plus a small messenger travelling bag inside a new mocha colorway.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-44875 Thu, 29 Nov 2012 21:33:47 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-44875 Just checked — three-year total transaction fees of 0.4% *and* most of that trading pushing around a fraction of the total to see if more active trading can beat buy-and-hold based on a similar philosophy. (It doesn’t seem to make much of a difference.)

That’s cheaper than VFINX.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-44874 Thu, 29 Nov 2012 21:11:12 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-44874 @CalConfidence, each trade costs $7-$8 these days. If I sell $16k of one stock and buy $16k of a different stock, then I’ve spent $16 on trading. That is a tenth of one percent of the invested capital, and assumes that you trade every position every year (which is obviously excessive).

VFINX has a management fee of 0.14% annually and net expenses of 0.17% annually, at least according to Morningstar. If you have a few hundred thousand to invest, then you can build a sensible portfolio (and trade occasionally) more cheaply than an index fund.

PS: This is grade school math, and I included the assumptions in the earlier post. Do you really need it spelled out for you in that kind of detail?

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By: Matthew_Saroff http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-44841 Wed, 28 Nov 2012 17:44:40 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-44841 So basically, you are saying that Wall Street is running out of rubes and suckers.

Well, no resource is infinite.

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By: CalConfidence http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-44833 Wed, 28 Nov 2012 13:03:36 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-44833 @TFF Feel free to post data supporting your claim, I would be interested to see evidence supporting this very interesting claim of yours. PS, the real cost of trading far exceeds the cost of an index fund.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-44822 Wed, 28 Nov 2012 03:22:04 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-44822 I continue to be puzzled by your massive blind spot when it comes to individual investing. The goal isn’t to beat the market returns — the goal is to manage risk and individualize the asset balance.

If the markets are efficient, then any reasonably sized random sample of stocks will offer similar long-term returns. A little effort put towards sector diversification will practically guarantee that.

Yet different stocks occupy different positions along the risk/return spectrum. Buy an index and you get a jumble of everything. Buy specific stocks and you can select your own comfort level of risk/return, your own balance of growth/income.

Moreover, the cost of buying and selling individual stocks is on par with the cost of an index fund, a small fraction of a percent. Trade positions in $15k increments once a year, and you have a cost ratio of 0.1%. And of course there is no need to trade that frequently.

Finally, it is easier to sleep at night if you know what you own than if your money is invested in some nebulous fund. I strongly suspect that those who pick their own stocks did a better job of sticking with the market in 2008-2009 (and profiting from the rebound) than those investing indirectly.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-44821 Wed, 28 Nov 2012 03:06:01 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-44821 Some 5 billion shares daily, at $20/share, would be $100B traded daily, or $25T a year. And Buffett disciples will only trade a fraction of their portfolio value each year. How much wealth do you think us small fry manage, anyways?!? There is NO WAY that individual investors such as you describe make up more than a single-digit percentage of the trading volume.

If you notice the water level dropping in the swimming pool, do you conclude that fewer kids are peeing in it?

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By: CalConfidence http://blogs.reuters.com/felix-salmon/2012/11/27/charts-of-the-day-equity-volume-edition/comment-page-1/#comment-44819 Wed, 28 Nov 2012 02:27:49 +0000 https://blogs.reuters.com/felix-salmon/?p=19593#comment-44819 quality work

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