I'm wondering, why not invest all together in the stock market with a single account?

Even if capital gain is a linear function of capital, having a huge collective capital would mean great buying power, so transaction costs would be negligible and extremely expensive assets would be within reach. Trading frequency could also be increased while keeping risk relatively low.

We would all be rich.

What is wrong with this communistic capitalism utopia?

  • 2
    #1 Who exactly is the we that would all get rich? #2 How would you track each person's contributions and withdrawals? #3 What if you and I have different goals?
    – RonJohn
    Nov 30, 2019 at 22:09
  • Transaction costs are already zero/negligible for the everyday investor, via commission-free index funds. Extremely expensive assets and frequent trading do not guarantee above-average returns.
    – Craig W
    Nov 30, 2019 at 22:11
  • 2
    What makes you think that this enormous fund would be able to accomplish anything that large corporations and mutual funds aren't accomplishing today? Dec 1, 2019 at 2:48
  • 1
    Aren't you basically describing the US 401k/IRA system?
    – jamesqf
    Dec 1, 2019 at 3:49
  • Lower transaction costs; higher administration costs to keep the pool working (what if a quarter of the people don't agree?). And these companies already exist.
    – user253751
    Dec 1, 2019 at 17:35

3 Answers 3


This is what sovereign wealth funds do. How the wealth is shared becomes a political question, for example:

Alaska Permanent Fund eliminate state tax and give an annual dividend to residents

Temasek Holdings advance industrial and diplomatic policy of Singapore. Now less so, but in the beginning, industrial policy = jobs.

Government Pension Fund of Norway invest oil wealth for the future and implement monetary policy.

It is worth noting these can sometimes be mismanaged and fail like the Nauru one.


I'm wondering, why not invest all together in the stock market with a single account?

Mutual funds already enable individuals to interact with the market collectively, so many people are already essentially doing what you propose.

We would all be rich.

Well, those that have significant excess funds after paying for essentials can earn a decent return. Lack of buying power and transaction fees are not the things prohibiting most people from getting rich.

  • You can also look into ETFs for a cheaper means of doing this. They bundle stocks in smaller groups, just try to match the market, and can largely be automated. Many can have expense ratios in the thousandths of a percent, making them very attractive. Dec 13, 2019 at 21:08

If in the US, major discount brokers have eliminated commissions.

Pooling money doesn't make you rich.

Pooling money doesn't increase gains.

Pooling money doesn't reduce risk.

Pooling money is a headache.

  • Agree, pooling is like communism.
    – Raj
    Dec 2, 2019 at 14:04
  • @Raj I laughed.
    – user253751
    Dec 2, 2019 at 14:10

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