SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : DRIPs -- Dividend reinvestment plans
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Michael W. Brom who wrote (7)11/1/1996 2:03:00 PM
From: Jacob S. Rosenberg   of 263
 
No, mutual funds do not provide diversification "free of charge".
I read somewhere that the Guccied, Rolexed and otherwise overpaid
losers who run the mutual funds got an average of 50 percent higher
pay although I can assure you that these raises are not justified
by their performance. In addition, I have to agree their 12b-1
fees which is just for advertising at the investor's expense, are
certainly not productive. Nevertheless, if you do not do your
own investing, a mutual fund, as opposed to a DRP might be better.

Example: I know a mathematician from India who is now over 70
years of age. Unfortunately, because of his advanced age, he
cannot do any more math and retired some years ago. He was
very sharp when he was young. But no more. It is doubtful that
this person should do his own investing DRP or no DRP! But a
good mutual fund (Investor's Business Daily rating B+ or better)
might do him just fine. Because of its impersonality it also
insulates him, to some extent, from charlatans.

There is an excellent NON mathematical reason to stay away from
DRPs. You can become "emotionally attached" to your investments.
This is not as ridiculous as it sounds. The mechanism that holds
you is the fact that the the shares may have accumulated over a
long time.

Regards,

Jacob Rosenberg
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News