NFL Teams Discussion | Other Teams News | Other Teams Draft Chat

[captaind]

Ouch...never put all yer eggs in one basket...DIVERSIFY, DIVERSIFY, DIVERSIFY...

Nah, diversification only limits your returns, and in the end can cost you millions by the time you retire.

I've found paying attention is the key.

[captaind]

Lately i been investing in the coming electric car era. I mean hec when the big three announce they won't be making any combustion cars any longer after certain years, I see some long term profits so hitting those on the cheap lol.

I don't have any Tesla.

So far I have Lucid, NIO, Lithium Americas and Chargepoint. In a few years all should be doing good unless a huge about face occurs.
Have had some bumps with the covid causing chip shortages and such but these are longer term stocks.

I own a little LCID as well. But largely sitting in cash these days, waiting on the bottom before I load up. Have nibbled on a few starter positions last two big dips, though. My list is ready, just waiting.

[Topcat]

Nah, diversification only limits your returns, and in the end can cost you millions by the time you retire.

I've found paying attention AND DIVERSIFYING is the key.

There...fixed it for 'ya!

[captaind]

There...fixed it for 'ya!

Lol....we've been conditioned into believing that 6% is a great annual return. It's awful. And compounded, it can cost you millions.

I fell for it, too. You put your 401k into several different mutual funds to diversify, because that's what you're always told to do. And those mutual funds are further spread across companies. It's diversification on top of diversification. And all it does is put a lower ceiling on your potential return on investment.

Educate yourself. Take control of your own investments. And pay attention to what is going on in the world. It's the difference between barely surviving on a fixed income when you retire and retiring a multi-millionaire. I found this out too late. Not sure there's time to turn it around for me. But if you're younger, take control now.

[21&500]

Lol....we've been conditioned into believing that 6% is a great annual return. It's awful. And compounded, it can cost you millions.

I fell for it, too. You put your 401k into several different mutual funds to diversify, because that's what you're always told to do. And those mutual funds are further spread across companies. It's diversification on top of diversification. And all it does is put a lower ceiling on your potential return on investment.

Educate yourself. Take control of your own investments. And pay attention to what is going on in the world. It's the difference between barely surviving on a fixed income when you retire and retiring a multi-millionaire. I found this out too late. Not sure there's time to turn it around for me. But if you're younger, take control now.

Thanks for the advice, I'm pretty far behind the 8ball myself
but will do better. Eligible for 401 in August with my new company
Damn student dept is killing me though.

[Xenos]

Lol....we've been conditioned into believing that 6% is a great annual return. It's awful. And compounded, it can cost you millions.

I fell for it, too. You put your 401k into several different mutual funds to diversify, because that's what you're always told to do. And those mutual funds are further spread across companies. It's diversification on top of diversification. And all it does is put a lower ceiling on your potential return on investment.

Educate yourself. Take control of your own investments. And pay attention to what is going on in the world. It's the difference between barely surviving on a fixed income when you retire and retiring a multi-millionaire. I found this out too late. Not sure there's time to turn it around for me. But if you're younger, take control now.

I’m going to somewhat disagree with this. The best option is investing in a low cost index fund. Because it’s hard to beat the market, and also because expenses are what screws you in the end since they compound also. You basically only need to pay attention each decade you get older, and balance more towards the bond side. I’m currently in my 30s, and doing a 80% stock/20% bonds setup.

[Topcat]

Lol....we've been conditioned into believing that 6% is a great annual return. It's awful. And compounded, it can cost you millions.

I fell for it, too. You put your 401k into several different mutual funds to diversify, because that's what you're always told to do. And those mutual funds are further spread across companies. It's diversification on top of diversification. And all it does is put a lower ceiling on your potential return on investment.

Educate yourself. Take control of your own investments. And pay attention to what is going on in the world. It's the difference between barely surviving on a fixed income when you retire and retiring a multi-millionaire. I found this out too late. Not sure there's time to turn it around for me. But if you're younger, take control now.

A lot of people fell for mutual fund investments because they're still hoping for some of that crazy high ROI people were getting, like 30-40% annually, just before the dot com bubble burst...then after 2000, that ROI went negative...oops...

[Topcat]

I’m going to somewhat disagree with this. The best option is investing in a low cost index fund. Because it’s hard to beat the market, and also because expenses are what screws you in the end since they compound also. You basically only need to pay attention each decade you get older, and balance more towards the bond side. I’m currently in my 30s, and doing a 80% stock/20% bonds setup.

In a "normal" economy, I would agree with u...however, all the red flags indicate this is not a normal economy...when you have inflation as bad as it is, compounded by supply chain disruptions, shortages, war, increasing interest rates, etc., I'm afraid we're still a long way from rock bottom...buckle yer seat belt...gonna be a rough ride in the months ahead...

[Xenos]

In a "normal" economy, I would agree with u...however, all the red flags indicate this is not a normal economy...when you have inflation as bad as it is, compounded by supply chain disruptions, shortages, war, increasing interest rates, etc., I'm afraid we're still a long way from rock bottom...buckle yer seat belt...gonna be a rough ride in the months ahead...

Investing is a long term commitment unless you’re on the verge of retirement. Even with things the way they are, it all resets eventually. Remember that we’ve had World Wars and Great Depressions before.

[sonorajim]

It sucks to be retired on SSI, a small pension & some savings that were adequate to our needs. At age 70+, we just have to cut back.

[chargeroo]

Investing is a long term commitment unless you’re on the verge of retirement. Even with things the way they are, it all resets eventually. Remember that we’ve had World Wars and Great Depressions before.

looking back over the years I realize that I would have been better off not to trade as often as I did. If I had simply invested in stocks of companies that I thought were strong, and held them all this time, I'd be well off.

Reminder - it took WW2 to get us out of the great depression.

[Riverwalk]

I retired from the corporate world at 52 and became a full time stock and bond investor which I’ve now been doing for 21 years.

I treated it like a job, arising at 4:30am PST and watching the market closely until a couple hours past the closing bell.

I’ve got as much experience as any. My first stock purchase was when I was 20 and you had to call a broker. Trades cost 100’s of dollars and you could only check stock prices daily in the business section of the morning paper.

When automation, computers and discount brokers came along, I got a 1200 baud modem and started reading and posting on CompuServe's first stock message board. I was one of the first to sign up for eTrade and thought $8 commissions were great.

So I’m loathe to give any specific stock advice but here’s some generalities that helped me.

1. Stick with ETF’s unless you have a LOT of time to devout to studying individual stocks or fixed income investments.
2. If you want to be a serious investor and not lose your shirt, read some investment books. I suggest a book on Technical investing so you get a handle on moving averages and how to read charts and just as importantly books about value investing so you understand how to read balance sheets and can compare companies to their peers.
3. Stay away from penny stocks
4. Stay away from momentum stocks.
5. Concentrate on a particular sector or two and get familiar with its key drivers. For example, I concentrated in mortgage reits for a decade. I got to know every company, what kind of loans they specialized in and how interest rate trends affected them. My son-in-law loves to follow the casino industry. So I suggested concentrating on that for investing and he’s done very well understanding the trading ranges so he can buy low, and sell high…rinse and repeat.
6. Understand how options work. Stay away from buying calls and puts as 80% of options expire worthless, But writing calls and puts is a very good way to enhance your returns.

I’ll just reiterate for emphasis, invest via ETF’s unless you have a LOT of time to research, pick, and watch your holdings. Even then it’s incredibly challenging. I’ve experienced 6 figure gains in a day and 6 figure losses in a day. Black swans happen and they sink all boats.

Lastly, the chap who said concentrate for wealth creation and diversify to hold onto it is right, except concentration is inherently more risky and it can just as easily lead to bankruptcy.

Good luck