Any stock experts here ?

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No comment on your picks but unless your acquisition and sale of shares happens to be commission free it will require a large percentage gain just to break even on the scale of your investment.

I know when I started out I waited until my balance reached 10 k before I ventured into individual shares. With a smaller balance I think no load low management fee mutual funds are more efficient.
 
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Originally Posted By: raytseng
if the entertainment helps him become familiar with the concepts and gets it out of his system to check every day then it is still useful education.

it's better than if he learns there in tbe sandbox rather than getting burnt by commissions or margin calls.


I agree. To that effect, I'm not sure if the OP is asking for how to make this into a "foundational" versus entertainment portfolio or this is akin to dollar cost averaging with play money and he wants suggestions on the how to consolidate it or otherwise change the allocation.

Either/or, there's seems to be a day trader-style orientation going on here....
 
Use a no-load mutual fund that tracks the S&P 500 index. Something like Vanguard. No load funds have a history of beating the managed funds which run about 5.5% commission.
 
If you want to make a bit of a hobby out of investing, then you can indeed beat what you'd get from any fund buying individual stocks.
If not, then some sort of fund makes more sense for you.
I usually tell people who ask to put about half their money in US index funds, which may not have great returns but do have very low expense ratios and maybe the balance in Asian funds, since that's where the growth is, or at least it has been for the past few decades.
Debt funds are usually something to avoid, but there are and have been good returns to be had on lower rated debt. Bonds rarely default so the returns on lower rated bonds can more than offset the perceived risk.
I should add that you should be proud to have stepped up and started saving and investing your money. Most never do and so retire with nothing. Remember as well that people often retire at a time dictated by health problems and that may not be the time that they chose.
 
All the VTI recommendations are spot on!

Why own a few stocks when you can own them all? Diversify.


Anyone who says that they can beat the market is either
A) a successful investor like Warren Buffet
B) Full of ____

Why? Well, if you are smart enough to beat the market, why aren't you rich?

Trust me, you're not smarter than the full-time money managers. The smart investors realize this, and buy low-cost index funds. The other people gamble and are not actually "investing". Unless you think going to Vegas is an investment vacation.
 
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Its just play money to have some fun.
But I would like to make a little money.

marine65,

Whether its a brokerage account, IRA or 403B / 401K plan...
Index (ETF or mutual) funds are the way to go.

Sometimes a sector will get beat up such as Energy early last year (oil price tanked). Thats the time to buy an energy ETF like VDE from Vanguard that way your money is not in one stock and spread out in many different companies. Same goes for example: Healthcare sector, Financials, Utilities, etc...

Owning the entire stock market is easier, lower risk and low fees. Sure its boring and less exciting than picking individual stocks.

I sold all my Boeing stock as soon as the 787 had battery problems and before the FAA grounded the entire fleet. I profited on my BA shares but the stock did not take the hit I was expecting. It did the opposite and BA stock really took off (no pun intended) it kept going up, up and up.
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I can send a screenshot showing I invest 90% with a basic index fund. You'll change your thinking about picking individual stocks...
 
A broad market decline or a decline specific to a sector is a buying opportunity.
The mutual funds, whether indexed or managed, are forced to sell off holdings at fire sale prices to meet the demand for redemptions from panicked investors. This, incidentally is the reason that I tell people not to buy any equity investment unless they can stomach the inevitable market declines. People often buy dear and then panic and sell cheap. Fund positions in the market are typically huge so they can neither take positions in stocks that are worthwhile for the amount of money the must invest nor can they liquidate them without moving the market as a whole. Many of these trades aren't done at market but are negotiated, but there aren't too many takers in a down market, so prices suffer further.
As an individual, you can look at the fundamentals of a company and decide whether it makes sense at the current price. You can also buy into the many smaller publicly traded companies that the funds must largely ignore. Smaller companies often lack the market cap to be seriously considered by the big fund players.
Boeing is a good example of a stock on which you could have made a nice return. The optimal time to buy BA was when the 7X7 was but a whisper. The ideal time to sell it would have been when Boeing rolled out what turned out to be a gull scale model, since this first build could never fly. You could then buy the stock back at a depressed price and have done well yet again. The grounding didn't kill the program as I thought it might, so I kept my Boeing stock and have done well out of it. You'd have to know a little bit about the airliner business to have seen all of this, though, which I the reason that I said that you could beat the market if you may a bit of hobby out of research.
A subscription to WSJ is a very good start. Lots of information and also coverage of smaller companies in the back sections.
Incidentally, ever wonder why the equities market has been bid up so high?
Its mainly because there's no money to be made in debt at current yields. Some Euro bonds even trade at negative YTM. There are however opportunities in low rated debt. These bonds offer yields well above market and rarely default. This is one case in which I'd buy into a fund, since the bond market is very thinly traded.
Hmm...
 
Originally Posted By: HosteenJorje
Use a no-load mutual fund that tracks the S&P 500 index. Something like Vanguard. No load funds have a history of beating the managed funds which run about 5.5% commission.



+1, unbeatable over time.
 
On Thursday of last week my total portfolio was down about 10%.
On Friday when the Donald was sworn in I was down 5%.
Today I'm down 3.58 %. Which is a negative $12.58.
I made $10.80 today alone on 24 shares of Northern Oil & Gas. NOG
I made $10.05 today alone on 15 shares of Northern Dynasty Minerals. NAK
I do have a couple of losers.
Not bad for only having a total of $338.42 in stocks.
I'm having fun.
Go Donald !
 
Originally Posted By: gfh77665
What I notice about your investments is its greatly inefficient to buy a spread of stocks with a just small amount of funds, because its terribly inefficient to do so if you pay a commission for each trade. Small amounts should be invested in just one or two stocks, or, better yet, a mutual fund or an index fund to save trading fees. That way you can get great sector diversity at a minimal cost.


Exactly. Also, unless your real name is Warren Buffett, your chances of being a good stock picker across six or seven diversified industries is nil. Your chances of being a good stock picker in one industry is merely low.
 
Originally Posted By: marine65
On Thursday of last week my total portfolio was down about 10%.
On Friday when the Donald was sworn in I was down 5%.
Today I'm down 3.58 %. Which is a negative $12.58.
I made $10.80 today alone on 24 shares of Northern Oil & Gas. NOG
I made $10.05 today alone on 15 shares of Northern Dynasty Minerals. NAK
I do have a couple of losers.
Not bad for only having a total of $338.42 in stocks.
I'm having fun.
Go Donald !


keep it up then! having fun is a big part of it too.
 
Gambling is "fun".

Investing should be BORING.

Seriously.

The fact that you won't get rich quickly or "outperform" other investors, is what turns people away from the tried and true of low-cost index funds.
But in reality, a low-cost index fund is much more likely to outperform active managed funds. Papers have been written to show this, and one of the funny things is that its hard to track all the active funds, as they become losers and people sell out, then change their name, close, etc.

You don't know more than Wall St. You can't. You think that by reading something published online or in a paper that you somehow are smarter or more informed than everyone else? They (the market pros) know all of that info and tons more than you ever will. Its a losing game. Again, if you are good at it, you should be as rich as Buffet.

Want to be successuful with money in the future? Spend less, save more. Put your savings into a Roth IRA. Use a 401k/TSP/457, especially if there is an employer match - that is the only truly free money you'll get. Save as much as you can, invest in low-cost market-wide index funds and slowly, you will accumulate a lot of money. It takes time and discipline. Compounding is your friend. Start early and you have the greatest asset - time - in your favor.

I highly recommend reading the Bogleheads Wiki to get started: https://www.bogleheads.org/wiki/Getting_started
 
I wouldn't buy anything now. We're 8 years into a very mature economic expansion. Expansions typically last 5-7 years, with 10 being the longest ever. In addition, Trump's policies will probably be inflationary, which will require tightening monetary policy.

Look at 80+ years of history. Tightening policy is always followed by a recession, and when there's a recession the market always falls 25-60%. In investing there are few certainties, but these 2 are certainties you can bank on.

But if you think this time will be different, then buy to your heart's content.
 
The only certainty is that the market will go up, down or sideways. You won't know when or by how much.

No one can predict it. Don't you recall all the talk of a "drop" starting back in 2013? "Experts" guaranteed it.
What happened for the next 3 years? Would you be happy if you had been in cash the whole time?

The market goes up 2/3 of the time and down 1/3 of the time. That is the long term averages. Take the house bet, stay invested and you'll come out ahead.
 
Avoid individual stocks because it's too risky. Buy a "spider" stock which follows the S&P 500. If I recall correctly mine is SPY. It has almost-tripled since 2002 while my bank account has only earned a few dollars (0.4% per year... less than the money inflation rate).
 
Originally Posted By: surfstar
Gambling is "fun".

Investing should be BORING.

Seriously.

The fact that you won't get rich quickly or "outperform" other investors, is what turns people away from the tried and true of low-cost index funds.
But in reality, a low-cost index fund is much more likely to outperform active managed funds. Papers have been written to show this, and one of the funny things is that its hard to track all the active funds, as they become losers and people sell out, then change their name, close, etc.

You don't know more than Wall St. You can't. You think that by reading something published online or in a paper that you somehow are smarter or more informed than everyone else? They (the market pros) know all of that info and tons more than you ever will. Its a losing game. Again, if you are good at it, you should be as rich as Buffet.

Want to be successuful with money in the future? Spend less, save more. Put your savings into a Roth IRA. Use a 401k/TSP/457, especially if there is an employer match - that is the only truly free money you'll get. Save as much as you can, invest in low-cost market-wide index funds and slowly, you will accumulate a lot of money. It takes time and discipline. Compounding is your friend. Start early and you have the greatest asset - time - in your favor.

I highly recommend reading the Bogleheads Wiki to get started: https://www.bogleheads.org/wiki/Getting_started


I like speaking to colleagues about investing money and their financial future, some view a 401K plan as gambling their money cause its affected by the ups and downs of the stock market.

I always get a chuckle when they tell me their financial advisor recommends another way to save for the future. We get a nice company match with our 401K and they are missing out on free money.
 
Originally Posted By: WillsYoda
VTI is the way to go. Read the Boglehead's Guide to Investing and go over to Bogleheads.org for the best investment advice. Buying individual stocks is almost always a mistake IMHO. I've made that mistake but now know that index funds are much better.

https://www.bogleheads.org/wiki/Bogleheads®_investment_philosophy


This.

Originally Posted By: Astro14
We stick to a strict rule: no more than 4% of portfolio in any one stock.


And this.

Diversify.
 
Originally Posted By: veryHeavy
Avoid individual stocks because it's too risky. Buy a "spider" stock which follows the S&P 500. If I recall correctly mine is SPY. It has almost-tripled since 2002 while my bank account has only earned a few dollars (0.4% per year... less than the money inflation rate).



I disagree.

Buying individual stocks has a place in investing. You choose shares based on clear objectives and keep the total value of any one stock below 4% of total portfolio to minimize risk.

For example: My wife and I bought 100 shares of Boeing in early 2008 at $83/share. When the market crashed that year, and everyone was running in fear, we doubled our position, buying another 100 shares at $44.

Boeing has done well since then, given our average cost/share (including reinvesting dividends) and we are happy with its performance. It represents aerospace in a mix of 20 stocks we own. Other companies were chosen for specific reasons. They include such companies as AA, AAPL, AMKAF, CAT, DE, FB. V, UAL - each with a particular objective.

And, as I said before, my wife and I enjoy working together on this. I place a greater value on our continued teamwork than on return per se, but the returns have been close to the market. 20 stocks gives you enough diversification to avoid specific company or sector risk. And we live by the 4% rule, as mentioned above.

Index funds are the core of our portfolio. They represent roughly 40%. There are some actively managed funds with specific objectives, and they represent about 15% of the portfolio. The brokerage account in which we hold individual stocks is about 40%.

You can't go picking stocks unless they're part of a decent sized portfolio, or you risk either a lack of diversification or breaking the 4% rule. But once you've reached a certain point, and you have the discipline, and inclination to manage a stock portfolio, then individual stocks have a place.
 
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Originally Posted By: Mr Nice


I like speaking to colleagues about investing money and their financial future, some view a 401K plan as gambling their money cause its affected by the ups and downs of the stock market.

I always get a chuckle when they tell me their financial advisor recommends another way to save for the future. We get a nice company match with our 401K and they are missing out on free money.


Yep, I have my kids putting in enough to get the max company match in their 401(k)

Advised them to pick S&P 500 index funds. One gets his company match in company stock. Better than nothing, but don't put his contributions in one basket. Think Enron employees encouraged to buy Enron stock in their 401(k) instead of other investment vehicles. Only those who put everything in Enron lost it all. Those who only took the match in Enron stock only lost the match portion.

My youngest turned 18 in October, is still in High School and is investing in her 401(k) to get the full match...

The only one who isn't investing is the middle child. She's on a year long project called City Year. They don't pay her much, but paid off some of her student loans. She had to borrow for her last year of school.
 
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