Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Amnorix]

Originally Posted by petegz28

Here is a bit of .05 wisdom that I cling too....

Fund Managers spend their entire career trying to beat the SP500....
Most cannot do it consistently...
So an SP500 fund should be the core of any portfolio....

First thing you've ever said about investing that made any damn sense.

[ChiTown]

Originally Posted by petegz28

Here is a bit of .05 wisdom that I cling too....

Fund Managers spend their entire career trying to beat the SP500....
Most cannot do it consistently...
So an SP500 fund should be the core of any portfolio....

[wutamess]

Originally Posted by petegz28

Then just put your money in an SP500 fund and some bond funds and be done with it.

I do that too.

[petegz28]

Originally Posted by wutamess

I do that too.

Well quit buying stocks based on solely analyst ratings. They are nice as a confirmation indicator but I would never buy or sell anything because some nut with a calculator says too. They don't know how to run AAPL. They most likely are working for a firm or have contacts with firms that are looking to dump AAPL so they put a "Buy" rating on it so the poor schleps will fork over their money to the bog boys as the big boys sell.

If you're going to trade or even invest in individual stocks you are going to have to either learn fundamental-based investing or technical-based (chart reading) investing and I would encourage you to do both. Otherwise you are just going with a gut feeling or otherwise a "hot tip". You don't have to have an MBA to trade based on fundamentals and you don't have to spend hours upon hours pouring over charts to trade based on technicals.

What you do need to do is have a plan and some criteria and rules. Understand the more savvy side of things. Perhaps you should have bought a Put when you bought your AAPL as a hedge? Or perhaps you should have sold a long time ago using a Stop-Loss rule of 10% and took your lumps and walked away?

These are the things I am talking about. If you're going to do it, then do it and do it right. Otherwise just $-cost average into mutual funds and call it a day. There is nothing wrong with doing that at all, it's just boring but often works out much better in the long run.

[wutamess]

Originally Posted by petegz28

Well quit buying stocks based on solely analyst ratings. They are nice as a confirmation indicator but I would never buy or sell anything because some nut with a calculator says too. They don't know how to run AAPL. They most likely are working for a firm or have contacts with firms that are looking to dump AAPL so they put a "Buy" rating on it so the poor schleps will fork over their money to the bog boys as the big boys sell.

If you're going to trade or even invest in individual stocks you are going to have to either learn fundamental-based investing or technical-based (chart reading) investing and I would encourage you to do both. Otherwise you are just going with a gut feeling or otherwise a "hot tip". You don't have to have an MBA to trade based on fundamentals and you don't have to spend hours upon hours pouring over charts to trade based on technicals.

What you do need to do is have a plan and some criteria and rules. Understand the more savvy side of things. Perhaps you should have bought a Put when you bought your AAPL as a hedge? Or perhaps you should have sold a long time ago using a Stop-Loss rule of 10% and took your lumps and walked away?

These are the things I am talking about. If you're going to do it, then do it and do it right. Otherwise just $-cost average into mutual funds and call it a day. There is nothing wrong with doing that at all, it's just boring but often works out much better in the long run.

One of the rare times I actually agree with you. I'll be hitting you up for more suggestions later.

[lewdog]

Originally Posted by wutamess

One of the rare times I actually agree with you. I'll be hitting you up for more suggestions later.

Pete is definitely right, and you know what makes up a large percentage of SP500 funds? Apple.

So if a large percentage of your investments in mutual funds are in large caps and broad market index funds, you are already getting plenty of exposure to a big company like Apple. If you decide to take on more Apple as individual stock, fine. But know that it can be more risky as you are leveraging more of your total capital on the gains/losses of one company.

[petegz28]

Originally Posted by wutamess

One of the rare times I actually agree with you. I'll be hitting you up for more suggestions later.

Rare? Now you gotta go and tell flat out lies???

[Demonpenz]

I am grinding through "the intelligent investor"

[wutamess]

Originally Posted by Amnorix

Slum lord is a good way to go.

So is mindlessly investing in very low cost index funds (or ETFs, as you prefer) on a systematic basis. That approach gives you diversification and participation with relatively minimal effort. You're not trying to time the market, and you're not trying to outperform the market in general. Basically, market returns for as little cost as possible.

https://www.amazon.com/Random-Walk-D...1553064&sr=1-1

I got the audio book on audible but it's like watching paint dry. Trying to give it a chance while at work. My ADHD is kicking in BAD though.

[phisherman]

Originally Posted by wutamess

One of the rare times I actually agree with you. I'll be hitting you up for more suggestions later.

I can't believe that you just admitted to agreeing with Pete... whoa

[wutamess]

Originally Posted by phisherman

I can't believe that you just admitted to agreeing with Pete... whoa

Let him tell it, I do it all of the time.

[scho63]

Someone requested an update on my living at the office situation so here it is.

So as of August 15th it was a solid two months. It is getting easier and more comfortable, which is starting to scare me. I have adapted to this as if it was my natural home.

I bumped my 401K from 10% to 20%, 15% regular and 5% catch up. I haven't noticed a thing. I currently have only (4) monthly payments and two of the four are going to be gone in the next 90 days. By December, I will have only my car payment and car insurance to pay. The car payment will then be the next payment I will erase as I am saving money pretty well. I think I can get rid of that completely by Feb.

I'm doing some things pretty well but I need to get to the gym more often as that was one of my combined goals. Lose weight with saving money.

I still eat great and the full kitchen is perfect. My locker and shower photos are attached along with my bedroom.

I thought I would only do this for 4-5 months but I might make this a year project. No issues and the cleaning lady from El Salvador is my friend now because I offer her soda, food, help her to realize when no one is here and tell her not to bother with certain cleaning issues when everyone is telecommuting for the day.

Two weeks ago I had to get a hotel because they were going to stripe and paint the parking lot. I stayed at a Sheraton for 3 nights and I slept better at the office on my air mattress!

The A/C is on all the time and the lights are on a 6:10 am until 10pm then it goes to safety lighting, which is perfect.

I get up everyday at 5:50am, deflate my air bed, move the fan to my desk, put in my contacts, make a cup of coffee, and read the news before I take a shower at 6:15. All my items are put away 30 minutes before anyone comes in.

I use my storage locker to leave the bulk of my clothes, which is only 2 miles away.

I watch Pirates baseball and Chiefs football on large computer monitors in the office and even have a projection screen should I want to use it.

I store some food in the fridge freezer to save money

I go to sleep and blow up my airbed around 9pm each night. I have a lock on the door so I can keep the cleaning lady out when she vacumns and I want to sleep early.

The weekends I keep my bed blown up from Friday night until Mon morning.

That's about all I can think of.

EDIT: NO WHORES OR ESCORTS FOR THE LAST 8-9 MONTHS SO I AM TRULY SACRIFICING!

[lewdog]

This is still so ****ing legit Scho! Can't believe you can do it and how well you seem to have adjusted to living like that.

Awesome stuff.

[scho63]

Originally Posted by lewdog

This is still so ****ing legit Scho! Can't believe you can do it and how well you seem to have adjusted to living like that.

Awesome stuff.

I have lived on both extreme ends of the spectrum: flying first and business class to Hong Kong and Beijing and Tokyo being picked up in limousines. Traveling all over the world to great countries (38) so far, top notch restaurants and sleeping with hundreds of women. Having money falling out of my pockets because I had so much. Mega clubs and drugs and celebrities and athletes as friends.

Then I have also gone through several times of absolute despair of homelessness for 3-4 months, losing a business and several hundred thousand dollars, having some crazy legal issues that cost me dearly, losing my drivers license at least 12 times with 48 points in NJ because I drove like a maniac and sped in my Jaguar or Eldorado.

I have a real problem with moderation and impulse control. I'm balls out and extreme and a big risk taker. It's not for everyone

No one can ever accuse me of not getting my money's worth out of life.....

[Jewish Rabbi]

Originally Posted by scho63

No one can ever accuse me of not getting my money's worth out of life.....

Except you like the Pirates and Chiefs...