Do you believe in a diversified portfolios ?

A lot of wonderful companies were destroyed by CoVid. Nobody saw that coming.

Also, a lot of wonderful companies may have fatal, hidden problems. Are you old enough to remember Ma Bell ? Or, Kodak ? They both had profitable monopolies. Until they didn’t.

Bingo and yet another reason to keep under 5 stocks

I mean with 10, 20 or 40 stocks who could keep up with all the incoming news and adjustments

At that point your best of investing into an index and forgetting about it just join that under 10% return

But 5 or less you can manage and adjustment if needed

You can stay on top of the industry and see those issue coming that might take down your castle and thus call an audible

Go for it juicy even better idea for you get a winning lottery number I can sell you a number generator, then you don’t need any stocks just a winner How’s that sound to you bro

The point of diversification is to manage uncertainty and information gap. If you have that much of an information advantage compared to rest of the market participants, then yes there’s an argument against diversification. By definition most market participants are not in that position.

And of course, way too many think they are better investors than the rest of the market. Analogous to 80% of people think they are above-average drivers. That said, there are indeed brilliant stock pickers. Maybe we do have one among us in Juice.

100% believe in index/passive investing and diversification, including at least 20% international exposure.

I do often go against my beliefs cause if you haven't noticed, planet Earth (not just America) is treating American stocks like a casino (more than usual). Hard not to throw some $$ at stock lotto tickets

I am all for diversification. I think clubs should have Asian, AA, Latina, blonde, redhead and brunette.

Gob lol now that is some diversification I can get behind lol

Yes as Warren buffet says the average invester is best off just investing in an index its like betting on America at that point.

But if one nows how to understand the intrinsics value's of a company and valuate it properly then you can buy wonderful companies with strong moat's and outstanding fundamentally with powerful management at a massive discount you can get rich

But something needs to drop these prices like a market crash or something that doesn't badly damage the company

So this takes lots of patients and studying

^ good job juice

I bet somebody hacked Juice's account and is running a pump and dump from a boiler room. It doesn't even sound like him anymore.

I miss Juice's old version of pump-n-dump.

Lol

I can't be a simple country boy fuvking Hooke's plus a genus inverter ?

Such closed minded thoughts

Ladies and gentlemen,

The Genus Inverter, brought to you by JuiceBox69

https://www.amazon.in/Genus-Proton-1150-…

Lmfao fucker

I'm not one to study the science of investing, nor do I wanna spend my free-time on it (I have more important things to do like posting on TUSCL).

Up to the middle of 2019, I had never bought an individual stock - I felt individual stocks were too-risky and my main reason for investing is more of a savings vehicle for retirement vs trying to make a killing in the present (not that there's anything wrong with the latter, no risk no reward, I'm just not a risk-taker w.r.t. most things including $$$).

In the middle of 2019 I decided to buy some FANG stocks (Amazon, Microsoft, FaceBook, Google) - I invested an amount in each one I was comfortable losing if some catastrophe happened with any one of those particular companies - but those companies were mostly outperforming the market so I added more than my initial comfortable amount, and kept adding to it periodically thru the 2nd-half of 2019 to early 2020 - when the lockdown happened, I sold part of my ETF and put into mostly Amazon; my rationale was that Amazon was the leader by far in E-Commerce and E-Commerce would increase with the lockdown (duh) - I also figured Amazon would get even stronger via the lockdown as their smaller/weaker competitors would probably struggle w/ the bad-economy - so Amazon is my biggest holding in terms of individual stocks, but I've also added to my other individual stocks (Msft, FB, Goog) since I'm not comfortable having almost all my egg$ in the Amazon basket even if it turns out to be a good-move.

If I'm reading the charts correctly, this is what's happened w.r.t. overall market vs some individual FANG stocks:

YTD Returns:
-------------
S&P: -3%
Amaz: +50%
Msft: +29%
Apple +25%
FB +18%
Goog +10%

So - in the current unconventional market/economy, there has been a significant difference b/w the overall market (an S&P EFT) vs some of the FANG stars (if I'm reading things right).

There is nothing linear about market trends. Just because something went up over the last year doesn’t mean it will continue to outperform. In fact, just the opposite. As companies get to be the size of industrial countries, they become targets of government action. They also have difficulty maintaining the culture of their past success. Companies get arrogant, bureaucratic, corrupt, complacent.

Which stocks will perform best over the next 5 years ? Probably not the FANGs. Probably some start ups with a fresh idea and a hungry management team.

Little seen video of Juice on vacation:

https://www.nbcphiladelphia.com/news/loc…

Can't go wrong going balls deep into FAGMAN

Facebook Apple Google Microsoft Amazon Netflix

@mark

Point taken - obviously no one can predict the future and which companies are gonna be leaders - as a non-technically knowledgeable person w.r.t. the markets,, the reason I've gone with Amazon, MicroSoft, Facebook, and Google, is more of a bet on who's running those companies vs the companies themselves - i.e. I believe in Amazon and Facebook mainly b/c I assume Bezos and Zuckerberg will keep their companies at the top as long as they are running them (this is just a personal assumption vs a foolproof prediction) - I also believe in what Nadella has done at Microsoft - as long as these folks are running these companies I am a believer (although no one knows what will happen in the future and I am def open to adjusting my positions) - w.r.t. Google, I feel the 2 founders are also really sharp guys and thus my initial investment in Google although the 2 founders have currently stepped down from their roles of running the company (and thus partly why I have not invested in Google nearly as much as is my smallest individual stock investment).

Kind of crazy how nearly everyone with a phd that studies years worth of news stories and market performance says you can't beat the market but ordinary chums think you can beat the market.

Totally agree Pappas chillies all amazing companies just one down side all but FB is overpriced

Once they come down I for sure will hold these amazing companies as well

The most in keep in my portfolio would be 10 but I try and tghten up as a personal choice so usually I'm more comfortable around 3 to 5

Easier to keep up with and such

Now my watch list has around 25 solid campiness that I watch for prices to change and so on

^ I think Amazon has been considered overpriced since it went public

Very possible

Tesla seems to be like that as well

Once I get home I will evaluation Amazon and let you know my strike price

Oh lawd he trading options

My first stock purchase was Amazon in 1999 for $14/share. Bought 100 shares. Sold for $16/share thinking I was a genius. "It's just a book website how high can it get?"

I went high risk for twenty years, put 300k of my money and turned it in to 550 k plus, may of 2019 I took it all out and put it in a C.D. I turn 55 next week and can get out with a 70 percent pention. That plus 24 k a year from the C.D will have me out at 13 k more before taxes than working 40 hours gets me.

Sorry Juice. I disagree.

I’ve held positions in several stocks since the late 1990’s, and they have done well. However, I’m liquidating those positions due to company specific risk.

I also began index investing in the 1990’s - to offset the company specific risk - and to have a broad based portfolio. My index investing has far outpaced my small set of stocks.

However, my positions are long, and I’m not moving positions quickly. Sadly, my concern now is dealing with capital gains from 25 years of holdings.

I diversify my portfolio constantly, I usually keep an opening for tall thin brunettes, redheads and blondes any race that’s diversification