Meme Investing? Try Human Ingenuity Instead
April 12, 2022 Author: David Booth, Executive Chairman and Founder, Dimensional
We’ve all been conditioned to see meme investors and Wall Street in opposition, but it seems to me that they have a lot in common. Both believe in picking stocks and think they can beat the market. In my mind, the important distinction is that Wall Street stands to make a lot of money off meme investors, simply from trading costs. For those who say apps don’t charge for trading, think about it: When was the last time Wall Street gave away anything for free?
I think the best long-term investing strategy has little to do with prediction or stock picking, and everything to do with investing in human ingenuity.