Search found 328 matches

by GoldenGoose
Mon Oct 12, 2020 1:33 pm
Forum: Investing - Theory, News & General
Topic: Individual Stocks - 5-10% of Portfolio "Play Money" - YES or NO?
Replies: 91
Views: 5059

Re: Individual Stocks - 5-10% of Portfolio "Play Money" - YES or NO?

The problem is when the play money grows faster than the rest of your portfolio. I put 5% into AMZN. It's now 9% of my portfolio. I put 5% into TQQQ. It's now 7% of my portfolio. The challenge is when to sell these. rockstar, You need a trading rule to play this kind of game. In my case, when it tr...
by GoldenGoose
Mon Oct 12, 2020 1:28 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10706
Views: 842748

Re: U.S. stocks continue to soar!

Wow. S and P up 2%. Sure would hate to be sitting on the sidelines today. Nobody on this BH forum is sitting on the sideline. They are all invested in some kind of funds. It is just a matter whether or not they are beating the SP500 index. What happens if your chosen non SP500 funds are not beating...
by GoldenGoose
Mon Oct 12, 2020 11:24 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

It seems that what the OP is considering is investing the way a quant fund would: selecting stocks from a defined universe. I haven't looked for any lately but for example Vanguard now has the Strategic Equity funds, and didn't they previously have a large-cap "Quantitative Equity" fund (...
by GoldenGoose
Mon Oct 12, 2020 11:22 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10706
Views: 842748

Re: U.S. stocks continue to soar!

Wait until we have a vaccine announced. It's already been announced about 50 times I think. Even when one is actually introduced by a trusted producer, the market will likely be skeptical. A vaccine won't change the economic situation until/if it is administered to a very large swath of the populac...
by GoldenGoose
Mon Oct 12, 2020 11:19 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10706
Views: 842748

Re: U.S. stocks continue to soar!

Pigeye Brewster wrote: Mon Oct 12, 2020 11:18 am
GoldenGoose wrote: Mon Oct 12, 2020 11:10 am
Stinky wrote: Mon Oct 12, 2020 10:30 am The market is just powering up and up and up so far today.

Amazingly, new all time highs are in sight.
Not really, I think we are just getting back to the pre-virus level, right?
Pre-virus all-time high was 3,386.15 on 2/19/2020.
I was looking at the Dow 30 and the Nasdaq
by GoldenGoose
Mon Oct 12, 2020 11:17 am
Forum: Investing - Theory, News & General
Topic: Individual Stocks - 5-10% of Portfolio "Play Money" - YES or NO?
Replies: 91
Views: 5059

Re: Individual Stocks - 5-10% of Portfolio "Play Money" - YES or NO?

I see your point, but I am currently 100% stocks, and the idea of leverage on index funds or small cap tilts doesn’t interest me as much as holding onto a small group of stocks that are very high risk/ high reward plays If you know what you are doing and be careful about what you are going to do, t...
by GoldenGoose
Mon Oct 12, 2020 11:11 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10706
Views: 842748

Re: U.S. stocks continue to soar!

rocketsrule wrote: Mon Oct 12, 2020 10:39 am
atdharris wrote: Mon Oct 12, 2020 10:37 am Why are we soaring so much today?
Who knows.. but I'm predicting a down day tomorrow after the last few being way up.
You have 50% of being right.
by GoldenGoose
Mon Oct 12, 2020 11:10 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10706
Views: 842748

Re: U.S. stocks continue to soar!

Stinky wrote: Mon Oct 12, 2020 10:30 am The market is just powering up and up and up so far today.

Amazingly, new all time highs are in sight.
Not really, I think we are just getting back to the pre-virus level, right?
by GoldenGoose
Mon Oct 12, 2020 11:09 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10706
Views: 842748

Re: U.S. stocks continue to soar!

Wait until we have a vaccine announced. It's already been announced about 50 times I think. Even when one is actually introduced by a trusted producer, the market will likely be skeptical. A vaccine won't change the economic situation until/if it is administered to a very large swath of the populac...
by GoldenGoose
Mon Oct 12, 2020 10:19 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10706
Views: 842748

Re: U.S. stocks continue to soar!

HomerJ wrote: Mon Oct 12, 2020 10:10 am
GoldenGoose wrote: Mon Oct 12, 2020 9:59 am Wait until we have a vaccine announced.
It's already been announced about 50 times I think.
I'm sorry, I should be more clear. When a vaccine is available for the general public and not still in some trial phase.
by GoldenGoose
Mon Oct 12, 2020 10:16 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

What I am looking for is not short term return. I am looking for that long term return everyone here on BH is looking for. What is the best investment or investments to achieve this standard return.
by GoldenGoose
Mon Oct 12, 2020 10:14 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 3265
Views: 559993

Re: What are you up YTD? [Year To Date]

100% stocks, 50/50 QQQ/SPY. up around 60% YTD Huh?? Per Morningstar total return of: Invesco QQQ Trust (QQQ) is up 35.10% Year to Date; and SPDR® S&P 500 ETF Trust (SPY) is up 9.35% Year to Date. So total return of a 50/50 portfolio is up 22.23%. i market timed it in Jan 20 / Mar 20. i'm also r...
by GoldenGoose
Mon Oct 12, 2020 10:08 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

I should also clarify, I assume you have a long time horizon to invest and not someone who is close to retiring and needs to be cautious with their money.
by GoldenGoose
Mon Oct 12, 2020 10:05 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 3265
Views: 559993

Re: What are you up YTD? [Year To Date]

rockstar wrote: Sun Aug 30, 2020 8:52 pm 20%+. This is mind boggling.
So what is your return now after a dismal September?
by GoldenGoose
Mon Oct 12, 2020 10:02 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 I want to keep up with the standard "bench-mark" return of index investing, where should I park my money? Since you've been referring to stocks so far, I'm assuming that's the asset class you're referring to. There are two main possibilities: the U.S. total stock market and the global ...
by GoldenGoose
Mon Oct 12, 2020 10:02 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 I want to keep up with the standard "bench-mark" return of index investing, where should I park my money? Since you've been referring to stocks so far, I'm assuming that's the asset class you're referring to. There are two main possibilities: the U.S. total stock market and the global ...
by GoldenGoose
Mon Oct 12, 2020 9:59 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10706
Views: 842748

Re: U.S. stocks continue to soar!

Wait until we have a vaccine announced.
by GoldenGoose
Mon Oct 12, 2020 9:55 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

BTW I changed the title to "Active Index Investing vs Passive Index Investing" to closely reflect what I proposed.
by GoldenGoose
Mon Oct 12, 2020 9:49 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Whoa, there are too many posts since the last time I posted that it is not possible for me to address all the comments. Over the weekend, I have spent a lot of time thinking about what was said and the more I thought about them, the more curious I got. I have a lot of questions to ask but for a mome...
by GoldenGoose
Sat Oct 10, 2020 9:15 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Unlike @cinghiale insinuation, I do have a life to live (my family) and it is just waking up now. So I will have to stop "trolling". I am passionate about investing but will have to sign off for now.
by GoldenGoose
Sat Oct 10, 2020 9:11 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

You're moving the goal posts. First you come in here positing an approach, then you claim that you have knowledge and abilities that allow you to identify stronger companies to invest in, then people challenge that approach with pretty well thought out challenges, then you say that we're all basica...
by GoldenGoose
Sat Oct 10, 2020 9:04 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Again, that's my entire point, which you don't seem to be answering. Yes, crashes to zero happen, and you lose 100% of your holding. But those losses are capped at 100%. On the flip side, you can gain way more than 100% when a company booms. Your approach posits that you can beat the index by tryin...
by GoldenGoose
Sat Oct 10, 2020 8:54 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Of course he has to do DD on the companies he was going to buy right? Buying a bad company is just like buying a bad stock. Given his current position I agree. He has more advantages than we have. So unfair. But not to say he didnt make big mistakes or that he did not speculate at one time like we ...
by GoldenGoose
Sat Oct 10, 2020 8:45 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Just because things have been done for so long around here doesn't mean they can't change. I recall someone posted that in the beginning of this forum a 50/50 allocation was the norm. Look where we are now. I might be the next generation of the board's evolution. :)
by GoldenGoose
Sat Oct 10, 2020 8:39 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

This thread is a stumper. As I write this, the OP has almost 250 posts over close to three years. Yet, s/he sounds like a troll. Every available stock out there is part of an “index.” I simply fail to see what is being proposed here that differs from stock picking. This has been patiently pointed o...
by GoldenGoose
Sat Oct 10, 2020 8:35 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Not sure I understand. What do you not understand? I am happy to expand. Are we talking about risk? The fact that such a person has a low ability to take risk? In the given scenario, this person has to have good risk tolerance. If not then just gamble with the index's return in hope that they will ...
by GoldenGoose
Sat Oct 10, 2020 8:32 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

I wonder how Buffett does it that makes him rich. Buffett’s full time job (with a team!) is evaluating and investing in companies. He has outperformed over the long term. He has underperformed recently. All in all, one of the greatest factors in his success is the stubborn duration of it. He starte...
by GoldenGoose
Sat Oct 10, 2020 8:28 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

I wonder how Buffett does it that makes him rich. There is no comparison., Buffet is not a small investor buying stocks. Buffet is the CEO of a large company with a staff of analysts to do his research. He doesn't buy stocks, he buys controlling interest in entire companies and large stakes in even...
by GoldenGoose
Sat Oct 10, 2020 8:22 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

RJC wrote: Sat Oct 10, 2020 8:04 am Yes (S&P 500 or TSM). The chances of either underperforming or stagnating for a long period of time is not impossible but is least risky compared to other stock options.
Ah, risk vs reward.
by GoldenGoose
Sat Oct 10, 2020 8:21 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

All BH-ers invest in the SP500 and nothing else? Yes? No? What happens if your chosen funds severely underperform for a long time comparing to another fund/index? Do you stay the course and hope for a better day? When you pick a total market fund, which is most commonly recommended here, you can't ...
by GoldenGoose
Sat Oct 10, 2020 8:19 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Oh! Just monitor companies to make sure they're not in trouble? I wonder why so many professional investors go bust when it's that easy??? It's not like that industry is filled with some of the most terrifyingly brilliant and ruthless people in existence... Sarcasm aside, that's like saying the sec...
by GoldenGoose
Sat Oct 10, 2020 8:11 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Again, this is a thought excercise. Nothing more. I am not out to prove me right or you wrong. Just food for thought. If you agree with the proposition, you can consider it. If not, stay the BH course. You've been pushing back pretty aggressively on the comments that disagree with you. That tells m...
by GoldenGoose
Sat Oct 10, 2020 8:07 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

I wonder how Buffett does it that makes him rich. There is no comparison., Buffet is not a small investor buying stocks. Buffet is the CEO of a large company with a staff of analysts to do his research. He doesn't buy stocks, he buys controlling interest in entire companies and large stakes in even...
by GoldenGoose
Sat Oct 10, 2020 8:02 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

I wonder how Buffett does it that makes him rich. Buffett’s full time job (with a team!) is evaluating and investing in companies. He has outperformed over the long term. He has underperformed recently. All in all, one of the greatest factors in his success is the stubborn duration of it. He starte...
by GoldenGoose
Sat Oct 10, 2020 7:58 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Oh! Just monitor companies to make sure they're not in trouble? I wonder why so many professional investors go bust when it's that easy??? It's not like that industry is filled with some of the most terrifyingly brilliant and ruthless people in existence... Sarcasm aside, that's like saying the sec...
by GoldenGoose
Sat Oct 10, 2020 7:52 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Oh! Just monitor companies to make sure they're not in trouble? I wonder why so many professional investors go bust when it's that easy??? It's not like that industry is filled with some of the most terrifyingly brilliant and ruthless people in existence... Sarcasm aside, that's like saying the sec...
by GoldenGoose
Sat Oct 10, 2020 7:46 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

What I find interesting in this thought excercise is the risk adverse nature of this board. Everyone who chimed in always has the specter of failure. If picking individual companies is impossible, then how has Buffett been doing it? No one on this board has answered this question. If he was a nobody...
by GoldenGoose
Sat Oct 10, 2020 7:34 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

It seems too many people are so conditioned to failure so the only question asked is what if the return is lower than the index. What about what if the return is higher than the index? Isn't that a potentiality? Has anyone done this before to definitively say it doesn't work? Despite your assertion...
by GoldenGoose
Sat Oct 10, 2020 7:31 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

It seems too many people are so conditioned to failure so the only question asked is what if the return is lower than the index. What about what if the return is higher than the index? Isn't that a potentiality? Has anyone done this before to definitively say it doesn't work? Despite your assertion...
by GoldenGoose
Sat Oct 10, 2020 7:23 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 index does not contain all the companies out there. Rather it contains companies representing the market and having certain qualifications. Tsla has huge market cap but it is not in an index ... Yet. (I have a feeling it will but that's another story). So my thought of picking from the index is...
by GoldenGoose
Sat Oct 10, 2020 7:20 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Why limit your choices to stocks that comprise the index? If you want to try and pick the "best" ones, then pick from the entire universe of available stocks. This is already answered above. Frankly you can't research all the companies out there. Narrow it down to what in the index then n...
by GoldenGoose
Sat Oct 10, 2020 7:16 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

It seems too many people are so conditioned to failure so the only question asked is what if the return is lower than the index. What about what if the return is higher than the index? Isn't that a potentiality? Has anyone done this before to definitively say it doesn't work? Despite your assertion...
by GoldenGoose
Sat Oct 10, 2020 7:09 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

...With active investing, it is YOUR job to recognize these few outperformed in the index and select them. If I need to explain "how do you know which ones?", then this approach is not for you. Recognizing these few performing stocks in the index takes time, effort, intuition and know-how...
by GoldenGoose
Sat Oct 10, 2020 7:05 am
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
Sat Oct 10, 2020 6:34 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

OP, I'm a person who was pretty much like you described. Didn't settle down into a "serious" job until I was into my 40s, although I had managed to sock a few thousand away in retirement vehicles in the previous half decade. I didn't know anything about active versus passive investing at ...
by GoldenGoose
Sat Oct 10, 2020 6:25 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Selling stocks solely on price movement is wrong. You end up losing your shirt that way. It has to be fundamental reasons for you to consider selling a stock. Like what? On the paper everyone says the same thing. Have you ever lost 90+% on a stock and hold on to that 20 years? Do you know of anyone...
by GoldenGoose
Sat Oct 10, 2020 6:18 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Oh! Just monitor companies to make sure they're not in trouble? I wonder why so many professional investors go bust when it's that easy??? It's not like that industry is filled with some of the most terrifyingly brilliant and ruthless people in existence... Sarcasm aside, that's like saying the sec...
by GoldenGoose
Sat Oct 10, 2020 6:13 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Sounds like "momentum investing" to me. Buy the stocks that have provided the best returns. It works until it doesn't. bill No, this is not my suggestion. Momentum investing is to chase after high flyers. This requires active trading. Here you buy stocks from an index that are of high qua...
by GoldenGoose
Sat Oct 10, 2020 6:08 am
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
Sat Oct 10, 2020 5:49 am
Forum: Investing - Theory, News & General
Topic: "Active" Index investing vs. "Passive" Index investing
Replies: 197
Views: 7907

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

Not sure I understand. What do you not understand? I am happy to expand. Are we talking about risk? The fact that such a person has a low ability to take risk? Are we talking about that being "aggressive" and "active" are on two separate dimensions. That one can be passive and a...