Nvidia stock split 10:1 after the market closed on Friday. That means if you held 100 shares on Friday worth about $1,200 each (for a total value of $120,000) on Monday you’ll own 1,000 shares worth about $120 each (for a total value of $120,000).

Stock splits don’t directly make investors any money or change anything about the company. It’s just a way to keep the price per share more manageable for convenience of trading.

Yet, even though it’s a somewhat meaningless bookkeeping thing, it seems to excite retail investors. I’ve been getting a lot of questions about whether people should buy Nvidia before or after the split. My answer is the same as with all stock picking or market timing questions: I don’t do those things. I buy and hold index funds. Buy low, buy high, buy, buy, buy. I don’t guess at stocks. I don’t guess at timing. I don’t jump in and out of the market. I don’t chase past performance. I keep twisting the crank on the compound growth by acquiring more and more shares over time and leave the speculative gambling to the broke day traders sitting in front of 17 screens in their parents basements.

These Nvidia questions reminded me a lot of the Tesla hype we heard a lot a couple years ago. Tesla also had a stock split after a big run up in share price and a lot of retail investors jumped in around the split. How did that turn out? They’ve burned 40% of their money. (My US stock market index fund is +25% over that same period).

So should you buy Nvidia? The answer is the same if you ask me if you should bet on black on craps. And the answer is I don’t gamble. I guarantee my fair share of all market growth at minimal cost by buying and holding index funds. I’ve been doing it for many years and plan to for the rest of my life.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy