Any stock experts here ?

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Originally Posted By: javacontour
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.


I was once part of a company ESOP (employee stock ownership plan).

I really, really disliked it.

We couldn't cash out until retirement. We took stock in return for a wage cut. We continued to accrue shares based on pay. But it subjected both my paycheck and my portfolio to the competence (or lack thereof) of the management team at UAL.

At one point, I had over 1200 shares of United. And at one point, the stock was trading at $95/share. During bankruptcy, the fiduciary liquidated our shares at 73 CENTS/share. The resulting check, less withheld taxes, was beer money.

Never, ever have your net worth and your paycheck be tied to the fortune of one company.

Never.
 
Anybody who thinks they can pick stocks and reliably pick over their lifetime to even match the market (to say nothing of beating the market) should become a professional because even professional active mutual funds with so called experts picking stocks fail to match the market a vast majority of the time (market here in reference to a relevant appropriate index). Even worse these active funds fail to reliability year after year match the market.
 
Last time I bought an individual stock was BNBN which was Barnes & Noble's online version of amazon. I figured an online bookstore was destined to succeed, so I could not lose. Well they went bankrupt, and I lost. (My theory was correct but I bet on the wrong company. That's a risk I'm not willing to take again.)

You mentioned Boeing, but you could have easily picked an airline company that went bankrupt (like United) and then you too would have lost.
 
Originally Posted By: veryHeavy
Last time I bought an individual stock was BNBN which was Barnes & Noble's online version of amazon. I figured an online bookstore was destined to succeed, so I could not lose. Well they went bankrupt, and I lost. (My theory was correct but I bet on the wrong company. That's a risk I'm not willing to take again.)

You mentioned Boeing, but you could have easily picked an airline company that went bankrupt (like United) and then you too would have lost.



You clearly missed my subsequent post in which I was forced to own an airline stock and lost over $100,000

I wanted aerospace in the portfolio.

Not airlines.
 
Originally Posted By: Nate1979
Anybody who thinks they can pick stocks and reliably pick over their lifetime to even match the market (to say nothing of beating the market) should become a professional because even professional active mutual funds with so called experts picking stocks fail to match the market a vast majority of the time (market here in reference to a relevant appropriate index). Even worse these active funds fail to reliability year after year match the market.


Sounds like a reading from "Common Sense on Mutual Funds" by Jack Bogle of Vanguard.

A well-read copy sits on the financial section of my bookshelf.

Right next to "Stocks for the Long Run" by Jeremy Siegel. And "A Random Walk down Wall Street" by Burton Malkiel, and quite a few others. While not an investing book, if you want a fascinating read, pick up "When Genius Failed" by Roger Lowenstein. Great book.

Back on topic- I don't disagree with anything you're saying, but I've got more than just pure return as an objective. Please see my previous posts. Further, my returns are about market, so the accomplishment of my other objectives haven't had a deleterious effect on returns. And over the last decade, my wife and I have built a good portfolio.
 
Unfortunately, while I like Jack Bogle, he's not the answer to everyone's investment questions if their goals are not long-term and they enjoy "playing" the market with either fun money or a small part of your portfolio set aside for this purpose. I think this board too often admonishes people who want to learn trading and investing but don't necessarily qualify as having a day trader mentality. In this instance, it's almost like saying someone should buy and hold with penny stocks which would be a head scratcher based on their stated goals.

My personal opinion is that individual stocks often make more sense if you have sufficient capital to back them up. That's not to say that people can't make money in a more piecemeal way or call them "market timers" when they've researched and have a specific strategy. If I sell when there's a defined rotation in the market ( as saved me several thousand dollars at the end of 2015 ) that's locking in gains and rebalancing and not "market timing". Sometimes on here it seems people have a hard time with that distinction.

I think that the idea of knowing the stock, fund, or financial product and what you're invested in is the core of good investing. That includes your 401(k) and ESOP programs at work and their structure with fees and covenants that effect you. It even includes passive investments...especially if they're more sector-related.
 
Most people are too busy to follow the stock market and just use index funds.

Some ESOPs are very good. Publix Supermarket (privately held company) has a great ESOP and has made many long term employees very wealthy. Of course the Jenkins family owns majority of the stock.
 
Question.
I'm 70 years old so investing in stocks for the future with only $300 seems useless.
If I have a stock that I'm up $10 or so on my investment do I sell it and use the small profit to buy more stock in hopes it will rise ?
I guess that's day trading.
I have 24 shares of NOG that I'm up $11.85
I have 22 shares of NAK that I'm up $6.94
Both have gone up in the last month or so.
Do I take the small profit and reinvest it or just hang on and see where these stocks go?
I really want to keep this simple, not a lot of money on the line here.
 
Maybe you should research stocks paying consistent good dividends.

Lots of companies pays pretty decent dividends and some retired folks like them for extra income.
 
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