Owen Lucas
$100 Site Donor 2023
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Final investing strategy of the year: tax loss harvesting a few horrible picks and sticking with ETFs in 2023...
Investing Strategies. What is your move?
- Thread starter PimTac
- Start date
In many cases like this the stock share price will overshoot in the other direction as well thus presenting a buying opportunity.
As with any stock the allocation should be no more than 4 to 5% of one’s total portfolio. This is where investors get into trouble as they build large percentage amounts of a single stock to boost their gains.
This calculation is where I get into trouble. By total portfolio do they mean just stock portfolio, or do they include non stock assets like land, rental real estate, annuities, etc.?
If those things are investments then yes. I would not count your normal residence. A vacation home could be considered. This gets blurry.
I would consider these investments. Stocks. Fixed income. Precious metals. Cash if used for investing purposes. Real estate accruing income like rentals for example. Land. Liquid alternatives.
Thanks. That method of calculation sounds reasonable.
That is true for smaller portfolios where a conservative balanced approach protects against an unrecoverable loss.
Tech stocks have made a lotta people rich, but are extremely volatile. Heck, anyone who only has tech is rolling the dice.
But if you are lucky enough, you can have conservative stuff and be overweight in a few single stocks.
People are dissing TSLA, but if I had bought stock instead of the car, I would still be 5x to the good. And you don't get more risky than TSLA, right?
The bulk of my portfolio is in 1 stock, but if it went to zero the conservative stuff would save my rear. The only reason I have it is stock options and grants over a 20 year employment. The real balanced approach, IMO, includes investing in yourself.
Tesla is still a very good company with lots of tech and innovation.
Must start building the Cybertruck immediately and start designing a coupe.…. maybe convertible… ?
The guy in charge has to focus on: Making Tesla Great Again !!!
No silly games and stop trying to win every argument on Twitter.
**** Full Disclosure ****
I once had a nice chunk of Tesla stock and sold everything last year.
I still believe Tesla is a buy next year and will get back on track.
Must start building the Cybertruck immediately and start designing a coupe.…. maybe convertible… ?
The guy in charge has to focus on: Making Tesla Great Again !!!
No silly games and stop trying to win every argument on Twitter.
**** Full Disclosure ****
I once had a nice chunk of Tesla stock and sold everything last year.
I still believe Tesla is a buy next year and will get back on track.
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The same can happen with blue chip conservative stocks as well. Look at what happened to General Electric. You could almost see the tears in the eyes of CNBC reporters because their portfolios had large chunks of GE stock in them.
https://www.cnbc.com/quotes/GE
I need more TSLA, but at this point in my investing career, I just let Schwab's Wealth Advisory manage (protect) my account.
To @PimTac point, letting profits ride forever is overly risky; take some profits off the table and get into a nice no load mutual. Or pay off your house. Just don't buy an expensive car (like a Tesla) because it is gonna take a nose dive.
Many companies have made a lot of people rich when speculating, by no means just tech stocks.
At the same time speculating in stocks have wiped out the life savings of many many people.
When investing in stocks that are highly speculative, meaning a hope and a prayer, it’s best to manage that risk in what you can afford to lose. People only hear about the winners and never the losers. It’s no different than the lottery and should be treated as such.
PimTacs comments are sane advice for building wealth over time.
For me personally I take a little bit more risk but I don’t really see it as too speculative because I buy companies with proven track records and returns for the most part.
I’m comfortable in my lifestyle and my investments will last long after I’m no longer on this planet so I don’t feel the need to over speculate and risk any of it in order to become more wealthy then I need to be. Would I like to be? Sure! LOL
The only thing that bothers me about Tesla I’ve made well known in these threads and I know we don’t agree and that’s OK. You keep mentioning technology companies and I do not in any way see Tesla as a technology company, I see it for what it is an automobile manufacturer, one of a dozen and it’s not even in the top 10. They don’t have a “chip” or product that everyone else in the world doesn’t already have.
A lot of companies have made many people rich when they get in at the ground floor even bitcoin, when they have a unique product.
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The cars do; cars are depreciating assets. Stock only gains or loses paper value until you sell. Short term investors beware; panic sellers as well. I am neither. Do I wish TSLA has continued to run? Of course. Will the drop change my lifestyle in any way? No. In fact, if anything, I see it as an opportunity.
Maybe you might consider buying 1 share. See what is is worth in say, 5 years. Or 10.
Agreed, for the most part. I work with people with education and personal finance is part of it. Putting all your eggs in 1 basket is risky.
That is why realizing some paper gains and reinvesting makes sense to me.
The question I would ask you is, "What is balanced?" For me, it is a portfolio of conservative and risky investments. Overly conservative is too risky for my liking; I've been poor and never wanna go back. In fact, some of the "conservative" stuff, used to balance out my portfolio, has been the most disappointing. On the other hand, the risky stuff, including tech stock and CA real estate, has done extremely well, but only on a long term basis. Had I gotten out during the lean times, I would have missed the boat. Sure glad I didn't cut and run.
Whoda thunk it?
Best of luck in your endeavours. You seem pretty level headed for an "alarm guy".
Real property was my saving grace decades ago, that is my balance, pays out every month like clock work, never mind the appreciation over those decades.
Shorter term 401k and my play account is a Roth.
Owning property to me is the goldmine over time but that’s me, no one size fits all in any investment.
At the same time I would stress to any young person buy real property first and if you need a mortgage to do so, have someone else pay it if you don’t yourself.
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If I were in the position to do so I would bottom fish on TSLA here. That said, I’m not in that position.
Best of luck in your investments and everything else as well.
Gotta live somewhere, right?
Hmmm *LOL*
... not sure if I understand or your joking around!
Real property as an investment, commercial/residential or mixed use but not as your primary residence. Always need a residence to live.
I'm not joking. A home to live in is a critical investment and an important part of my portfolio. Where are you gonna live? And if you are smart enough to live in a great area like Silicon Valley, you just might become a multi millionaire just by paying your mortgage.
A few of my neighbors sold and moved out of the area, fat dumb and happy.
IMO, you are either paying your mortgage or someone else's.
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