Do you believe in a diversified portfolios ?
JuiceBox69
Fucking on Young N Dumb Chicken Heads
I do not. Its why ppl are only gaining 10% or worse
Its best in my opinion to have one or two wonderful companies and beat the market
Its best in my opinion to have one or two wonderful companies and beat the market
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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.
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
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 $$ at stock lotto tickets
But if one nows how to understand the intrinsics value's of a company and valuate it properly then you can buy wonderful companies with strong moat's and outstanding fundamentally with powerful management at a massive discount you can get rich
But something needs to drop these prices like a market crash or something that doesn't badly damage the company
So this takes lots of patients and studying
I miss Juice's old version of pump-n-dump.
Such closed minded thoughts
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Up to the middle of 2019, I had never bought an individual stock - I felt individual stocks were too-risky and my main reason for investing is more of a savings vehicle for retirement vs trying to make a killing in the present (not that there's anything wrong with the latter, no risk no reward, I'm just not a risk-taker w.r.t. most things including $$$).
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).
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.
https://www.nbcphiladelphia.com/news/loc…
Facebook Apple Google Microsoft Amazon Netflix
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).
Once they come down I for sure will hold these amazing companies as well
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
Tesla seems to be like that as well
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.