*Investors Blog*

[SC Maintenance]

Dunno, but if I understand your question, I think you are talking about current AI value (and importance) in the business application.
I am focused on the future importance (and value) of Artificial Intelligence.
IMO, AI will be an increasingly critical part of business. Amazon CEO Andy Jassy has said that the company is positioned to dominate generative AI. Lofty goal, of course.

The question spawned from the discussion of Amazon, and to paraphrase that discussion, how a internet retailer who now has lots of competition, and a mediocre streaming service can justify a 50X multiple.

I guess having 12% of your business being the cloud, and some percentage of that being AI is enough for many. .

 

[99Saturn]

Rounded out the spare change in my account, picked up some more META
View attachment 223408

Fully in following order top to bottom, NVDA, META, WMT (I hate tech stocks, we will see)

View attachment 223409

I could change my mind at any moment ... the only company I trust is WMT

I'm not asking because it's not really my/any of our business but I always wonder with comments like this, is this account 5% or 50% of savings (or 95% lol). Allocation is always funny to me when account specific rather than portfolio.

 

[alarmguy]

I'm not asking because it's not really my/any of our business but I always wonder with comments like this, is this account 5% or 50% of savings (or 95% lol). Allocation is always funny to me when account specific rather than portfolio.

Deleted due to confusion *LOL* Simply, this account which is a Roth account that I use to speculate is 20% of my savings and 100% fully invested as posted.

 

[JeffKeryk]

The question spawned from the discussion of Amazon, and to paraphrase that discussion, how a internet retailer who now has lots of competition, and a mediocre streaming service can justify a 50X multiple.

I guess having 12% of your business being the cloud, and some percentage of that being AI is enough for many. .

Yep. The market thinks so. I subscribe to the, "you grow or you go" business model.
AI has incredible potential in business and in our lives. AI dominates the top market cap companies.

 

[99Saturn]

Its my spec account which happens to be a Roth ... I can afford to lose it all but I would cry doing it. Meaning it's a small amount compared to my worth in real property investment (not related to my home) and our savings. I cant really break it down into percentages but I dont mind trying.
As real property is not liquid funds and not including that. If I had to estimate my spec account is about 20% of funds that could be made liquid in minutes and up to a day or two.

Savings is in banks and other retirement accounts that are invested in S&P and Nasdaq Index funds which I am a STRONG believer in for anyone not looking to speculate but want to be invested in the market.

Very few advisors or firms ever beat the index over the long haul. Sure there are huge winners with individual stocks but also HUGE losers. Individual stocks to me telling someone especially new is very dangerous if you cant afford to lose it.
One can always looks back at the would haves and could haves but steady as she goes and mindful spending of your disposable income is more smart. I never hit it so big like some in here, I always was a bit conservative no regrets but my biggest was not having the guts to hang on to bitcoin that I owned at roughly $7,500, sold at around $11,000 and now its $71,000 *LOL* I have some left over fragments not amounting to much *LOL* but its fun to watch

Im perfectly happy with WMT and for the last 5 years I have beat the market averages. I guess I could have done less work and just put it hands off in the index funds at a cost but still ok. My wife who does her own investing is in index funds and pretty impressive she is doing yet during downturns, like what happened with Covid my WMT held up and continued rising. I think I may use that as a safety if things get dicey.

Again, not at all my business so I am not really asking but the ~20% of overall funds to your Roth makes it sound much different. Ends up being more like 5% NVDA, 6% META, 9% WMT for your breakdown (not including whatever index you are in being potentially heavily weighted to some of these).

Maybe I am stating what everyone else just assumes/already knows reading along, it is just interesting context to me. My Roth is ~10%-15% but if I left my job tomorrow it might be 35% - 40% depending on what I did with my 401k. Then again maybe my Roth is only $10 or $15 and my 401K is only another $20 or $30.

 

[alarmguy]

Again, not at all my business so I am not really asking but the ~20% of overall funds to your Roth makes it sound much different. Ends up being more like 5% NVDA, 6% META, 9% WMT for your breakdown (not including whatever index you are in being potentially heavily weighted to some of these).

Maybe I am stating what everyone else just assumes/already knows reading along, it is just interesting context to me. My Roth is ~10%-15% but if I left my job tomorrow it might be 35% - 40% depending on what I did with my 401k. Then again maybe my Roth is only $10 or $15 and my 401K is only another $20 or $30.

I guess you misunderstood my Roth is 100% invested as posted.

This was your post = "I'm not asking because it's not really my/any of our business but I always wonder with comments like this, is this account 5% or 50% of savings (or 95% lol). Allocation is always funny to me when account specific rather than portfolio."

You asked if "this account" (Roth) is 5 or 50% of my savings, I answered this account (Roth) is 20% of my savings.
Im going to delete that post now, more information then needed and rewrote it this way to make it more clear =

"Deleted due to confusion *LOL* Simply, this account which is a Roth account that I use to speculate is 20% of my savings and 100% fully invested as posted"

 

[99Saturn]

I guess you misunderstood my Roth is 100% invested as posted.

This was your post = "I'm not asking because it's not really my/any of our business but I always wonder with comments like this, is this account 5% or 50% of savings (or 95% lol). Allocation is always funny to me when account specific rather than portfolio."

You asked if "this account" (Roth) is 5 or 50% of my savings, I answered this account (Roth) is 20% of my savings.
Im going to delete that post now, more information then needed and rewrote it this way to make it more clear =

"Deleted due to confusion *LOL* Simply, this account which is a Roth account that I use to speculate is 20% of my savings and 100% fully invested as posted"

I understood, my point was if your Roth is 20% and the breakdown of your Roth was roughly 24%, 31%, 45% NVDA, META, WMT respectively (post #3.980), they make up ~ 5%, 6% and 9% respectively of the whole 100% (without knowing if other $$$s are invented in these three stocks through index funds etc. which I am sure some portion is).

My point was that is different than being invested largely in three stocks. Said sort of differently you're still fairly diversified since your Roth is 20% of the total savings - paints a different picture to me.

 

[alarmguy]

I understood, my point was if your Roth is 20% and the breakdown of your Roth was roughly 24%, 31%, 45% NVDA, META, WMT respectively (post #3.980), they make up ~ 5%, 6% and 9% respectively of the whole 100% (without knowing if other $$$s are invented in these three stocks through index funds etc. which I am sure some portion is).

My point was that is different than being invested largely in three stocks. Said sort of differently you're still fairly diversified since your Roth is 20% of the total savings - paints a different picture to

Thanks for explaining now I understand what you’re saying.
I really don’t know anyone who adds up all their cash and assets, then describes what portion those stocks make up. You certainly can. There’s nothing wrong with that.

You are correct I’m well diversified, however in this forum, I Post based on the account I’m trading from. Through countless posts, I’ve always specified I have a Roth that I use as my speculative trading account and the percentages of that in which stocks I hold.
I do not hold individual Stocks in any other account

 

[Dave Hess]

alarmguy,

What do you have in your brokerage account ?

 

[alarmguy]

alarmguy,

What do you have in your brokerage account ?

Roth as stated above = WMT, NVDA, Meta
401k’s wife and mine all in index funds.
No holdings in a regular brokerage account, almost zero cash too I can’t even remember if I still have it if that is your question.
Cash in high rate savings accounts and last but not least an investment real estate property
Not sure of your question but that’s the whole thing
Dog woke me up at 4:30am and time to go back to sleep (I hope)

 

[Ronin73]

I have a question/opinion for you guys. I have 4 years left until I retire. I work for a college so I am tied to my TIAA-Cref. My 100% make up, which has been doing well, is 50% Equities, 45% Guaranteed, and 5% Multi-Asset.

Should I leave it like this for the final 4 years, or change something? Just looking for some experience feedback. Thanks.

 

[Pablo]

I have a question/opinion for you guys. I have 4 years left until I retire. I work for a college so I am tied to my TIAA-Cref. My 100% make up, which has been doing well, is 50% Equities, 45% Guaranteed, and 5% Multi-Asset.

Should I leave it like this for the final 4 years, or change something? Just looking for some experience feedback. Thanks.

It depends on what other $ savings, your age (life span factor as well), other sources of income and expenses.

Answers will vary, but basically if you have time (ie don't need $ immediately at retirement) leave as is. If you need it, well maybe go 25% equities.

See the theme there?

 

[Ronin73]

It depends on what other $ savings, your age (life span factor as well), other sources of income and expenses.

Answers will vary, but basically if you have time (ie don't need $ immediately at retirement) leave as is. If you need it, well maybe go 25% equities.

See the theme there?

I will be 55 at retirement. I will not need to draw from it as wife works at the same institution and is 4 years younger. She will continue to work until she hits 55 also. At that time, we will both begin to withdraw (have the same mix in our accounts) and our medical insurance is covered by institution until medicare at 65. House is paid for and no debt of any kind. We can live comfortably on her salary until then as the majority of my salary beginning last year after everything was paid off, has been going into an emergency high-yield savings account.

 

[alarmguy]

So what will be the excuse for the market going up or down today?
The fact that the jobs report came in 50% higher than expected.

1. Bad news for those worried about what they think are high interest rates
2. Good news that the economy is still humming along just fine.

Take your pick for market performance today.

 

[Dave Hess]

Roth as stated above = WMT, NVDA, Meta
401k’s wife and mine all in index funds.
No holdings in a regular brokerage account, almost zero cash too I can’t even remember if I still have it if that is your question.
Cash in high rate savings accounts and last but not least an investment real estate property
Not sure of your question but that’s the whole thing
Dog woke me up at 4:30am and time to go back to sleep (I hope)

Good game plan.

 

[alarmguy]

Good game plan.

Your reply made me curious. This is my 401k Im not as wealthy as some of you but I am certainly ok for the rest of my life. Not really sure what I would do with much more except maybe be more comfortable having my wife leave work at age 60 instead of pushing it closer to medicare age or within a couple years of it. Even then if I sold my interest in an investment property that thought might change but no plans to at this time. That in itself is a fairly substantial income and feel safe with it vs stocks or bonds.

If you remember me saying I rarely check or play with my 401k. I just let it sit, currently 50/50 S&P index fund and Nasdaq index fund. I think an important message for some who may let an "advisor" pick out certain stocks instead of index funds. Im only saying this if they are going to invest in individual stocks, I personally believe one day things will go down in a ball of flames maybe but dont listen to me or anyone else.

Anyway, just checked my return on the 401k for last two years and I dont want to give it back *LOL* but I am going to let it ride. My wife manages her own 401 without input from me, she used to ask me and I told her many times she is doing well to better without me and again, she is in index I think but I dont ask nor want to interfere. I only wish a very long time ago I did do index more steady rather then go for the golden goose.
This is my 401 last two year performance just on those two index funds.

 

[ArrestMeRedZ]

Your reply made me curious. This is my 401k Im not as wealthy as some of you but I am certainly ok for the rest of my life. Not really sure what I would do with much more except maybe be more comfortable having my wife leave work at age 60 instead of pushing it closer to medicare age or within a couple years of it. Even then if I sold my interest in an investment property that thought might change but no plans to at this time. That in itself is a fairly substantial income and feel safe with it vs stocks or bonds.

If you remember me saying I rarely check or play with my 401k. I just let it sit, currently 50/50 S&P index fund and Nasdaq index fund. I think an important message for some who may let an "advisor" pick out certain stocks instead of index funds. Im only saying this if they are going to invest in individual stocks, I personally believe one day things will go down in a ball of flames maybe but dont listen to me or anyone else.

Anyway, just checked my return on the 401k for last two years and I dont want to give it back *LOL* but I am going to let it ride. My wife manages her own 401 without input from me, she used to ask me and I told her many times she is doing well to better without me and again, she is in index I think but I dont ask nor want to interfere. I only wish a very long time ago I did do index more steady rather then go for the golden goose.
This is my 401 last two year performance just on those two index funds.

View attachment 224167

Just out of curiosity, is there a reason you keep the 401k instead of rolling those funds into an IRA? I know there are good reasons to do so in certain situations, but for me rolling saved me admin fees, gave ne more investment options and prevented my company from getting away with shenanigans.

 

[Dave Hess]

alarmguy,

Nice gains.

No wonder why you are always on vacation and enjoying the good life.

 

[alarmguy]

Just out of curiosity, is there a reason you keep the 401k instead of rolling those funds into an IRA? I know there are good reasons to do so in certain situations, but for me rolling saved me admin fees, gave ne more investment options and prevented my company from getting away with shenanigans.

Thanks for this post.

The answer to your question is = No
The reason for that may be procrastination and or if I roll it over into anything I would roll it into an existing Roth and the thought of paying taxes at this point led me to procrastinate more.

The other part of the equation is, I have a Roth account right now which I use as a speculative account investing in individual stocks.
In my mind, leaving the 401k alone in index funds is a safety that I can’t screw up.
Meaning, I consider the index funds a safe investment and my Roth IRA can afford to lose, but would be depressing LOL yeah would still have the safety of the 401(k) as a back up that I never touch

Not sure if this makes any sense and it certainly most likely can be improved upon. It’s just right now it’s working for me and whether it’s procrastination or my life is just so occupied with other things right now I haven’t taken the time.

 

[alarmguy]

alarmguy,

Nice gains.

No wonder why you are always on vacation and enjoying the good life.

Well people tell my wife and I that often and we do a lot of things together which is what they comment on. They always ask us what we’re up to. Keep in mind now my wife still works.

But it’s the simpler things we do all the time, we don’t have the budget to feel comfortable traveling the world like others, I have a sibling and in law that I can’t keep track of they’re always on a plane someplace yet we have a good marriage and on a moments notice taking the Road King to the beach, bar or tavern for a quick drink and see the people listen to the band kind of life with a get away what I would say at reasonable cost a couple times a year.

More or less, we’re really enjoying life to the fullest with what we have and have found out you don’t have to be super wealthy to appreciate things in life.
I was caught off guard one time by another sibling who normally isn’t, Well cordial when he said to me that my wife and I have a good life.
Not that it means being super wealthy is a bad thing!!!!!!!!!!! Like you!!

The stock market does concern me and I know you and I’m just going with the flow I think I’ve said it before I’m done fighting the market and hopefully if and when that day comes, I can get out quick enough.