Search found 328 matches

by GoldenGoose
Sat Oct 10, 2020 5:37 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

"The best stocks" Sounds easy but extremely hard. Especially when the lion's share of stocks have not historically done better than T-bills. Virtually all of stocks' historic returns have come from a very small proportion of stocks. If you pick the ten stocks that you think are the 'best'...
by GoldenGoose
Sat Oct 10, 2020 5:25 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

If you think your active investing is going to return more than an index, I’d say “it’s a no brainer”. Are you certain your active picks are going to beat the market or at least closely track it? There is a chance that it will. There is also a chance that it won't. And there is also a chance that i...
by GoldenGoose
Fri Oct 09, 2020 11:12 pm
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

What OP is describing is plain old stock selection. Millions of millions of investors try to do it and fail, including highly paid professionals. If you think you're different and can succeed where others can't, go ahead. The gains of the SP 500 are often due to the gains of just a handful of stock...
by GoldenGoose
Fri Oct 09, 2020 10:57 pm
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

Just to clarify, an index fund doesn’t select quality stocks. It selects stocks to represent the benchmark, whether those companies are quality or garbage. The problem is that it’s only in retrospect that you can sort out which is which. No offense intended, but your due diligence is about as usefu...
by GoldenGoose
Fri Oct 09, 2020 10:52 pm
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

:sharebeer What are your thoughts? If you hold $1000 dollars and it's not enough to satisfy your basic needs, you can always gamble. With margin, options and derivatives, you can with some thought set up a system where you either end up with $1990 or $0. The system that you are proposing is much inf...
by GoldenGoose
Fri Oct 09, 2020 10:49 pm
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

taking a look at the individual stocks in that index and then pick a smaller group of best ones based on the individual's DD. Since the index fund already selects quality stocks, you just need to focus on the top quality group in the sectors that you like and know. Buy those stocks and then let the...
by GoldenGoose
Fri Oct 09, 2020 8:59 pm
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

There are 2 flawed assumptions. Risk can be broken down into 1. willingness 2. necessity and 3. ability. They have a low ability to take risk. Suggesting a aggressive risky strategy is probably wrong. That a aggressive active strategy is better than a aggressive passive strategy. This assumes the p...
by GoldenGoose
Fri Oct 09, 2020 8:58 pm
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

OP The problem with hand picking a list of top companies in the index is the following. You have 20 years and on average assume 2 recessions. Now assume your initial list have AAPL and MSFT. Think of them started going down the list to the 8th and 10th by market cap and replaced by something else. ...
by GoldenGoose
Fri Oct 09, 2020 8:55 pm
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

Re: "Active" investing vs. "Passive" investing

Well you could buy lottery tickets too, and hope for the best. What is DD? I assume not anyone's daughter. I actually held GE stock once upon a time as an employee, so your "Monitor those companies and adjust quickly and accordingly if they exhibit any kind of failures (like GE for example)&qu...
by GoldenGoose
Fri Oct 09, 2020 4:15 pm
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

"Active" Index investing vs. "Passive" Index investing

First thing first, I fully understand the power of compounding and the benefits of passive investing (set it and forget it). However I would like to question that style of investing for certain individual situation due to the average return of index fund investing. I would like to do a thought proce...
by GoldenGoose
Fri Oct 09, 2020 3:51 pm
Forum: Personal Investments
Topic: Wash Sale Rules
Replies: 12
Views: 895

Re: Wash Sale Rules

Thanks guys/gals for taking time to explain this to me. I never had wash sales before. I fully understood @grabiner's explanation. In my situation, all the activities happened this year. So this is my understanding, with example: March 1st 2020 - Bought 1 share of X for $100. Let's call this (3/1 X)...
by GoldenGoose
Fri Oct 09, 2020 7:15 am
Forum: Personal Investments
Topic: Wash Sale Rules
Replies: 12
Views: 895

Re: Wash Sale Rules

Sorry. I plan to sell that stock by yearend so the WS rule will be irrelevant to me when I file tax next year. I will be able to claim any cap loss from it just like any normal, non WS cap loss. If I were not going to sell the stock at all before yearend, then I can't claim any cap loss I incurred w...
by GoldenGoose
Thu Oct 08, 2020 9:11 pm
Forum: Personal Investments
Topic: Wash Sale Rules
Replies: 12
Views: 895

Re: Wash Sale Rules

Ok thanks. The WS ruke only applies if you still own the stock past the end of the tax filing year. If you get rid of it before that then it is just a regular transaction. Thanks.
by GoldenGoose
Thu Oct 08, 2020 4:18 pm
Forum: Personal Investments
Topic: Wash Sale Rules
Replies: 12
Views: 895

Re: Wash Sale Rules

Etrade. In my portfolio, they do indicate that the stock I currently own is WS (wash sale) and display the adjusted cost basis accordingly. That's fine. However, if I sell that stock before end of this year and end up with a loss overall for this WS stock, can I claim that loss against other stock's...
by GoldenGoose
Thu Oct 08, 2020 3:03 pm
Forum: Personal Investments
Topic: Wash Sale Rules
Replies: 12
Views: 895

Wash Sale Rules

So I bought a stock this year. Then it dropped. Within 30 days I sold and bought the same stock again so I have a capital loss on that stock. Now I have a wash sale situation on hand. If I sell all of that stock off before end of this year and if I end up with a capital loss, when I file taxes can I...
by GoldenGoose
Wed Oct 07, 2020 9:56 pm
Forum: Personal Investments
Topic: E-Trade Lending Program
Replies: 12
Views: 858

Re: E-Trade Lending Program

Not sure why but when it comes to stocks you go with the broker with the lowest commission fees. Vanguard is good for funds but not necessarily better for stocks.
by GoldenGoose
Wed Oct 07, 2020 4:52 pm
Forum: Personal Investments
Topic: All in S&P 500 & Ride the tide
Replies: 52
Views: 7238

Re: All in S&P 500 & Ride the tide

So the SPY fund was created in 1993 with a starting price of $43/share. Right now it is $343/share. I did a crude calculation of the scenario that you bought 1 share of SPY at the start and let it ride until now. The annual compound return rate is 8%. 7x gains in 27 years.
by GoldenGoose
Wed Oct 07, 2020 4:38 pm
Forum: Personal Investments
Topic: All in S&P 500 & Ride the tide
Replies: 52
Views: 7238

Re: All in S&P 500 & Ride the tide

gubernaculum wrote: Sun Jun 07, 2020 12:43 pm I am 100% in equities and dont plan to change. 50% in VTSAX and 50% in VITAX. I am bullish on tech.
It's rare to see someone who is not the typical overly conservative BH-er in this forum not afraid to speak their mind.
by GoldenGoose
Wed Oct 07, 2020 4:27 pm
Forum: Personal Investments
Topic: E-Trade Lending Program
Replies: 12
Views: 858

Re: E-Trade Lending Program

You can still sell the stock while it is loaned. E-Trade will match the shares loaned with a cash value of the stock into your account so your real risk is that the stock goes way up while it is loaned, but if you sell it all you would get is the cash value at loan time. But this would only happen ...
by GoldenGoose
Tue Oct 06, 2020 7:57 am
Forum: Personal Investments
Topic: need a reality check
Replies: 25
Views: 2826

Re: need a reality check

LittleGreenSoldiers wrote: Mon Oct 05, 2020 11:36 pm "Stay the course!"

https://www.youtube.com/watch?v=wWmPDmBTBDM
And the course is the one you've chosen for yourself and not from someone on the internet. Be the one who control your destiny.
by GoldenGoose
Tue Oct 06, 2020 7:55 am
Forum: Personal Investments
Topic: need a reality check
Replies: 25
Views: 2826

Re: need a reality check

Honestly, if someone offered me guaranteed FIXED 6% returns for next 20 years; I would take that in a heart beat and throw everything I made into that fund I'm not as greedy as you may think :) Well then stick to the index funds. Not sure why you even think about buying stocks if you are happy with...
by GoldenGoose
Mon Oct 05, 2020 9:51 pm
Forum: Personal Investments
Topic: need a reality check
Replies: 25
Views: 2826

Re: need a reality check

It's just personal expectation, right? if 8% is fine for you then that's fine. But if OP wants 15% then he can't follow your lead, correct? Not saying your 8% is subpar, but it might not be enough for someone else. OP never said he wanted 15%. In my opinion chasing 15% is a great way to wind up wit...
by GoldenGoose
Mon Oct 05, 2020 2:57 pm
Forum: Personal Investments
Topic: need a reality check
Replies: 25
Views: 2826

Re: need a reality check

It's just personal expectation, right? if 8% is fine for you then that's fine. But if OP wants 15% then he can't follow your lead, correct? Not saying your 8% is subpar, but it might not be enough for someone else.
by GoldenGoose
Mon Oct 05, 2020 11:20 am
Forum: Personal Investments
Topic: need a reality check
Replies: 25
Views: 2826

Re: need a reality check

Over the long-run, the vast majority of individual investors fail to beat a simple S&P 500 index fund. I think the reason for this is quite simple. If you truly understand how an index fund works, you won't feel as much temptation to sell. That's the beauty of the strategy. If you load up on ex...
by GoldenGoose
Mon Oct 05, 2020 8:55 am
Forum: Personal Investments
Topic: need a reality check
Replies: 25
Views: 2826

Re: need a reality check

I buy some individual stocks once in a while. I don't even consider it investing. Rather an expense. I don't take money from my assets to fund these purchases. I just take it out of my salary after my funding goals have been completed. My investments are in index funds. This is more of a hobby and ...
by GoldenGoose
Mon Oct 05, 2020 7:07 am
Forum: Personal Investments
Topic: need a reality check
Replies: 25
Views: 2826

Re: need a reality check

I hear you, OP. And there is nothing to be ashamed of in reg to how you feel. You have come to the wrong forum to ask. Let me lay it out for you and for those other members thinking the same but afraid to ask. what is your one and only goal when you invest? To growth your wealth, right? While I resp...
by GoldenGoose
Fri Oct 02, 2020 7:24 am
Forum: Investing - Theory, News & General
Topic: [President tests positive for COVID-19 - market impacts]
Replies: 157
Views: 15930

[President tests positive for COVID-19]

[Title was "Interesting day today for the market" --admin LadyGeek] With the POTUS and FLOTUS both tested positive for covid 19, I wonder how it is going to affect the markets? I hope it is going to turn into a good opportunity for me to pick up sone good stocks on the cheap. I love oppor...
by GoldenGoose
Fri Oct 02, 2020 7:20 am
Forum: Personal Investments
Topic: Thoughts on investing in Pre-IPO Companies?
Replies: 35
Views: 3261

Re: Thoughts on investing in Pre-IPO Companies?

@ericcohen nice! Just wanted to give you a shout-out for making a right bet. My son 12 yo yesterday asked if palantir was a good stock. Ever since I opened a stock account for my 2 kids my son seems to turn into an investment "consultant", telling his 12 yo friends about stocks. Which is a...
by GoldenGoose
Thu Oct 01, 2020 8:57 am
Forum: Personal Investments
Topic: Share lending
Replies: 6
Views: 566

Re: Share lending

From what I read, the return is based on the demand level of the stocks the broker borrows from you. So the return would vary. From what I read, recommendation is to lend shares from your IRA account, not your taxable account. Not sure why that is.
by GoldenGoose
Wed Sep 30, 2020 11:32 am
Forum: Personal Investments
Topic: Share lending
Replies: 6
Views: 566

Re: Share lending

Thank you. That explains my question nicely. The program says I can sell the lent-out shares at any time. So from a risk perspective, it is not really much. I am of the the buy and hold type so with my shares sitting there doing nothing, this would be nice to get some cash in return. Just wonder if ...
by GoldenGoose
Wed Sep 30, 2020 11:02 am
Forum: Personal Investments
Topic: Share lending
Replies: 6
Views: 566

Share lending

I just happened to see a link for Share Lending (SL) popped up in my broker's screen. This intrigued me. Trying to find out more about the risks. I read some of the posts but still not 100%. Anyone here does SL? 2 risks mentioned from my reading. 1 is the dividends' treatment for taxes. I don't own ...
by GoldenGoose
Wed Sep 23, 2020 11:50 am
Forum: Personal Investments
Topic: Why is this portfolio wrong?
Replies: 55
Views: 3755

Re: Why is this portfolio wrong?

The reason I'm thinking this way is that even if we have a market crash, stocks roar back eventually and 5 years timespan should cover the cycle. Not sure why one should be extremely risk adverse in their retirement. Is it not a good practice to continuing growing your wealth once you're retired? U...
by GoldenGoose
Wed Sep 23, 2020 11:43 am
Forum: Personal Investments
Topic: Why is this portfolio wrong?
Replies: 55
Views: 3755

Re: Why is this portfolio wrong?

Here is my thinking, right or wrong. In retirement, one should have 5 years worth of stable source of liquid assets. The rest can go to sensible high risk/high income investments, i.e. mutual funds/stocks whatever. For that 5 years-worth liquid asset, 1 year worth in cash, 1 year worth for emergency...
by GoldenGoose
Mon Sep 21, 2020 9:51 am
Forum: Personal Finance (Not Investing)
Topic: How to get over finance envy
Replies: 377
Views: 51717

Re: How to get over finance envy

I'm trying to wrap my head around this thread. I'm most happy when I'm sleeping in a tent in the woods and camping with friends. You and I are similar. I used an 8 week sabbatical some time ago to thru hike the Colorado Trail, which took me six weeks. All-in cost was ~2.7 K, including quite a bit o...
by GoldenGoose
Mon Sep 21, 2020 9:48 am
Forum: Personal Finance (Not Investing)
Topic: How to get over finance envy
Replies: 377
Views: 51717

Re: How to get over finance envy

What is the point of having 2 millions in the bank while being sickly and old? The assisted living / retirement community your kids stuck you in won't throw you out in the street (yet) to live under the railroad bridge? :wink: There are many elderlies who don't have as much money and yet they live ...
by GoldenGoose
Wed Sep 16, 2020 3:53 pm
Forum: Personal Investments
Topic: Huge loss on FDX single stock
Replies: 94
Views: 7222

Re: Huge loss on FDX single stock

But that would be market timing and you know, that's a fatal sin around here.
by GoldenGoose
Wed Sep 16, 2020 2:42 pm
Forum: Personal Investments
Topic: Huge loss on FDX single stock
Replies: 94
Views: 7222

Re: Huge loss on FDX single stock

I've been burned. I came back from a $33k GE loss as I mentioned above. I expect 1-3 bad stocks/trades. But I did hundreds this past year and the gains are always greater. Just out of curiousity I went to my broker page and counted. Turns out I traded my favorite stock 30 times this year. 60 buys a...
by GoldenGoose
Wed Sep 16, 2020 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: How to get over finance envy
Replies: 377
Views: 51717

Re: "What are we doing wrong and what are "THEY" doing right!?"

I would rather be your neighbor, living in hock up to my eyeballs, enjoying every day of my life in a frivolous fashion, than to be some misery Scrooge leaving millions unspent on their demise. While you don't want to spend every dollar you take in as fast as it comes, you don't really want to over...
by GoldenGoose
Wed Sep 16, 2020 9:52 am
Forum: Personal Investments
Topic: Huge loss on FDX single stock
Replies: 94
Views: 7222

Re: Huge loss on FDX single stock

OP, what made you get into FDX in the first place?
by GoldenGoose
Wed Sep 16, 2020 9:44 am
Forum: Personal Investments
Topic: Huge loss on FDX single stock
Replies: 94
Views: 7222

Re: Huge loss on FDX single stock

Did you sell yet? If not then hear me out. It seems like the chorus of "sell" is loud. However before you rush into selling a loser stock, ask yourself these questions: 1. Do you need the money now or in the very near future? 2. How does the outlook of the company look? 3. If the company ...
by GoldenGoose
Wed Sep 16, 2020 9:27 am
Forum: Personal Investments
Topic: Huge loss on FDX single stock
Replies: 94
Views: 7222

Re: Huge loss on FDX single stock

Did you sell yet? If not then hear me out. It seems like the chorus of "sell" is loud. However before you rush into selling a loser stock, ask yourself these questions: 1. Do you need the money now or in the very near future? 2. How does the outlook of the company look? 3. If the company ...
by GoldenGoose
Tue Sep 15, 2020 10:23 pm
Forum: Personal Investments
Topic: Huge loss on FDX single stock
Replies: 94
Views: 7222

Re: Huge loss on FDX single stock

Did you sell yet? If not then hear me out. It seems like the chorus of "sell" is loud. However before you rush into selling a loser stock, ask yourself these questions: 1. Do you need the money now or in the very near future? 2. How does the outlook of the company look? 3. If the company ...
by GoldenGoose
Tue Sep 15, 2020 3:48 pm
Forum: Personal Investments
Topic: Huge loss on FDX single stock
Replies: 94
Views: 7222

Re: Huge loss on FDX single stock

Did you sell yet? If not then hear me out. It seems like the chorus of "sell" is loud. However before you rush into selling a loser stock, ask yourself these questions: 1. Do you need the money now or in the very near future? 2. How does the outlook of the company look? 3. If the company g...
by GoldenGoose
Tue Sep 15, 2020 3:30 pm
Forum: Personal Investments
Topic: Family member has one million in one stock , doesn't want to cash out
Replies: 296
Views: 34594

Re: Family member has one million in one stock , doesn't want to cash out

It looks like your dad might be timing it right. TSLA is going back up again. If it works for him, then that's great!!! High risk, high return. Definitely not a boglehead for sure. He could have put his money into boring bonds or money-losing CDs, you know.
by GoldenGoose
Thu Sep 10, 2020 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: What % of income to spend on car?
Replies: 122
Views: 8588

Re: What % of income to spend on car?

After reading an article about Lamborghini selling the 10,000th Avantador, I am thinking about maybe I should buy a super car too to enjoy life. I would pay it with cash. I just have to watch my spending more if I get the car but it's very doable. If I can do it, so can you.
by GoldenGoose
Thu Sep 10, 2020 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Old friend joined Northwestern Mutual -- how to politely explain they're awful
Replies: 87
Views: 6954

Re: Old friend joined Northwestern Mutual -- how to politiely explain they're awful

Maybe ask him to buy some shares from you in a make-believe Ponzi business in return for you to buy his business. If he declines and give you a reason, you could say you feel the same about what he's selling. That way you let him know indirectly.
by GoldenGoose
Thu Sep 10, 2020 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: How to stop judging how other people spend/invest
Replies: 76
Views: 5009

Re: How to stop judging how other people spend/invest

This is a variation on a similar thread that comes up often. These topics almost never come up among my family and friends. I did have one colleague when I was working who always liked to note his latest expensive car purchase. My usual response was to ask him where he parked it so I could park nex...
by GoldenGoose
Thu Sep 10, 2020 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: How to stop judging how other people spend/invest
Replies: 76
Views: 5009

Re: How to stop judging how other people spend/invest

Whenever someone tells me what they do with their money, I'm not going to say "wow, that's bad" because I don't know their financial situation. I would just assume the best of people. For example, if you tell me you just bought a brand new Merc/BMW/Lambo/Ferrari whatever, I would marvel at...
by GoldenGoose
Wed Sep 09, 2020 9:24 am
Forum: Personal Finance (Not Investing)
Topic: What % of income to spend on car?
Replies: 122
Views: 8588

Re: What % of income to spend on car?

OMG, aren't we taking this to the extreme? I mean being responsible financially is one thing but asking this very question with your financial state like that is a bit ridiculous. Can't you even make your own decision instead of asking a bunch of people on this board who have various background and ...