Newbie question about my stock in Amazon...

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Sat Jun 24, 2017 7:01 pm

Hi there everyone, I just started reading Bogleheads guide to investing which lead me here because quite frankly I'm very new and I have no idea where to go online to seek help. My question is I got my feet weet a few weeks ago buying Amazon stock at a high price (unfortunately) thinking it would go up but then it went lower (bought more) and now that it is pretty high again I was contemplating selling due to what I've learned from when I bought it until now. Essentially I feel the stock is overvalued and is due for another drop post hype. I know they say don't time the market but what I'm trying to do is basically recover and hold off until I can buy again at a lower price. Would this be wise? I'm not even sure how much I would have to pay in taxes. Thank you for any advice.

User avatar
prudent
Moderator
Posts: 4738
Joined: Fri May 20, 2011 2:50 pm

Re: Newbie question about my stock in Amazon...

Post by prudent » Sat Jun 24, 2017 7:28 pm

Could you help us understand why you felt it was a good value a few weeks ago but today you believe it is overvalued?

alex_686
Posts: 2467
Joined: Mon Feb 09, 2015 2:39 pm

Re: Newbie question about my stock in Amazon...

Post by alex_686 » Sat Jun 24, 2017 8:29 pm

You will find that most Bogleheads favor holding of broad market passive index funds. They are simple to execute. They are cheap. Getting thhe big picture done correctly is 80% of the job. I can explain the major points behind indexing in about 10 hours.

Investing in individual stocks is a different ball of wax. In about 300 hours you could learn thhe basic of investing in individual stocks - whereupon you would invest in index funds. Too much time and work for too little return and too much risk. Factor in another 1,000 hours before you get to be average.

So, on to Amazon. It is nether overpriced or underpriced. It is priced at what thhe market says it is. One would need to do a fair amount of work to figure out if the market - who contains many smart people - is wrong. I will say this about Amazon's price. A stock price is based on future cash flows. Amazon's stock price is not based on the cash flows for the next 7 years - it is based on projections on return of profits after that. This makes modeling the price very hard. For most companies you start with their current earnings and project a nice simple slope upwards. As a newbie, pleaser realize that this is going to be a very hard stock to evaluate.

AgentHoopla
Posts: 30
Joined: Fri Apr 14, 2017 5:31 am

Re: Newbie question about my stock in Amazon...

Post by AgentHoopla » Sun Jun 25, 2017 6:37 am

I personally invest most of my money into mutual funds like VTSAX and SWTSX and VINIX to hold true to the boglehead way of life. However I have about 12% of my portfolio in a few individual stocks I have a particular conviction in (Amazon being one of them) I personally feel that Amazon might do well in the next 10-15 years and contribute additional market gains into my overall portfolio. Since Amazon is a top holder in all of my funds. Amazon is just one stock I chose, and even if Amazon tanks and I lose 50% of my position, I still wont sell. With the recent news of purchasing Whole Foods amazon has the possibility of changing the game, Walmart, Target, Korger and Costco stocks tanked when news broke that Amazon is purchasing whole foods and the only contender to even try to offer them a better deal would be Wal-Mart, but I highly doubt they would engage in a bidding war with Whole Foods.

dbr
Posts: 23282
Joined: Sun Mar 04, 2007 9:50 am

Re: Newbie question about my stock in Amazon...

Post by dbr » Sun Jun 25, 2017 8:32 am

A better place to discuss individual stock moves would be here: http://socialize.morningstar.com/NewSoc ... F100000005

This board is pretty well limited to people who are convinced you can't figure out how a stock is going to move in price over time and who accept the result that individual stocks are more risky for the expected return they promise than are funds that hold a lot of stocks.

Therefore the advice here is sell Amazon now and buy a fund instead. You will have to learn how gains and losses in stock sales are taxed.

PS That certainly does not mean that a person who chooses to hold individual stocks is not allowed to post here or that the results might not be of interest.

User avatar
Taylor Larimore
Advisory Board
Posts: 25953
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Market Timing and Individual Stocks

Post by Taylor Larimore » Sun Jun 25, 2017 9:57 am

Zeusy Zeus wrote:Hi there everyone, I just started reading Bogleheads guide to investing which lead me here because quite frankly I'm very new and I have no idea where to go online to seek help. My question is I got my feet weet a few weeks ago buying Amazon stock at a high price (unfortunately) thinking it would go up but then it went lower (bought more) and now that it is pretty high again I was contemplating selling due to what I've learned from when I bought it until now. Essentially I feel the stock is overvalued and is due for another drop post hype. I know they say don't time the market but what I'm trying to do is basically recover and hold off until I can buy again at a lower price. Would this be wise? I'm not even sure how much I would have to pay in taxes. Thank you for any advice.
Zeusy Zeus:

Welcome to the Bogleheads Forum!

When you finish reading our Bogleheads' Guide to Investing I think you will realize that market timing and speculating in individual stocks are losing strategies. Use these links for confirmation:

viewtopic.php?f=10&t=157391

viewtopic.php?f=10&t=156499

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Valuethinker
Posts: 32898
Joined: Fri May 11, 2007 11:07 am

Re: Newbie question about my stock in Amazon...

Post by Valuethinker » Sun Jun 25, 2017 10:21 am

Zeusy Zeus wrote:Hi there everyone, I just started reading Bogleheads guide to investing which lead me here because quite frankly I'm very new and I have no idea where to go online to seek help. My question is I got my feet weet a few weeks ago buying Amazon stock at a high price (unfortunately) thinking it would go up but then it went lower (bought more) and now that it is pretty high again I was contemplating selling due to what I've learned from when I bought it until now. Essentially I feel the stock is overvalued and is due for another drop post hype. I know they say don't time the market but what I'm trying to do is basically recover and hold off until I can buy again at a lower price. Would this be wise? I'm not even sure how much I would have to pay in taxes. Thank you for any advice.

Sunk cost.

What you paid for it is irrelevant, except for the taxable capital gain when you sell, and whether you can use a capital loss to offset other taxable gains when realized.

All that matters is what you think of future returns.

It's a quite natural mistake, and a rookie mistake (which most of us have made), to invest in a company you know well, and whose products and service you like, that seems to be dominating everywhere.

Such decisions got some of us investing in DEC (unless you are a certain age, you won't know they were the world's 2nd largest computer company after IBM, and they were sold for not very much money, eventually, to Compaq, and Compaq was eventually merged with HP, and it's not been a happy story), Nortel (bankrupt), Lucent (probably lost 80-90% of value from peak), Dell (eventually taken private for a low price), Enron (exaggerating, but it was the world's most admired company at one point, before bankruptcy)... I could go on (and mention Bre-X, which went bust due to fraud, Dome Petroleum (was nearly the world's largest corporate insolvency in the 1980s) etc.

You can't predict the future, and your guess is no better than the market, which is the aggregate of all the informed and uninformed guesses out there.

Therefore we buy index funds, sure that we can't do better than the market, and no individual, even a "hot hands" fund manager, will beat the market forever. (that kicks off a debate about Warren Buffett, and I happen to believe he is special, but he's also over 80, and has himself admitted he now has too much money to outperform as he has previously, he warns investors of that very clearly).

Also I can tell you in 2000 the apparent winners; Microsoft, Cisco (once the world's largest company by market cap), Ebay, Yahoo, Dell, HP... if you invested in a basket of those "winner" tech stocks, you didn't do too well compared to Apple/ Google (which was private then)/ Facebook (which didn't exist). Amazon you have made money, but it was a tough sled down.

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Market Timing and Individual Stocks

Post by Zeusy Zeus » Mon Jun 26, 2017 1:40 pm

Taylor Larimore wrote:
Zeusy Zeus wrote:Hi there everyone, I just started reading Bogleheads guide to investing which lead me here because quite frankly I'm very new and I have no idea where to go online to seek help. My question is I got my feet weet a few weeks ago buying Amazon stock at a high price (unfortunately) thinking it would go up but then it went lower (bought more) and now that it is pretty high again I was contemplating selling due to what I've learned from when I bought it until now. Essentially I feel the stock is overvalued and is due for another drop post hype. I know they say don't time the market but what I'm trying to do is basically recover and hold off until I can buy again at a lower price. Would this be wise? I'm not even sure how much I would have to pay in taxes. Thank you for any advice.
Zeusy Zeus:

Welcome to the Bogleheads Forum!

When you finish reading our Bogleheads' Guide to Investing I think you will realize that market timing and speculating in individual stocks are losing strategies. Use these links for confirmation:

viewtopic.php?f=10&t=157391

viewtopic.php?f=10&t=156499

Best wishes.
Taylor
Whoa that's quite the number of confirmations. Thank you Taylor, I'm not one that's going to be timing the market but just having that feeling like I bought in too high and was curious as to whether to pull out now or not. This isn't going to be something I practice at all.

User avatar
Pajamas
Posts: 2519
Joined: Sun Jun 03, 2012 6:32 pm

Re: Newbie question about my stock in Amazon...

Post by Pajamas » Mon Jun 26, 2017 1:49 pm

When you make an investment, generally it should be for the long term. A few weeks is much too short of a time to judge most investments.

Amazon's all time high is $1,017 and right now it is $995 so you could only possibly be down a little over 2% at the most. That is a normal intraday fluctuation for Amazon. On the other hand, Amazon has returned about 42% over one year, about 348% over five years, and about 1,345% over ten years.

Based on your reaction to a 2% fluctuation in Amazon, you might want to stick to a conservative investment plan until you feel more comfortable having money in the markets. This would be a good place to start if you haven't read it already:

https://www.bogleheads.org/wiki/Getting_started

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Mon Jun 26, 2017 1:50 pm

Valuethinker wrote:
Zeusy Zeus wrote:Hi there everyone, I just started reading Bogleheads guide to investing which lead me here because quite frankly I'm very new and I have no idea where to go online to seek help. My question is I got my feet weet a few weeks ago buying Amazon stock at a high price (unfortunately) thinking it would go up but then it went lower (bought more) and now that it is pretty high again I was contemplating selling due to what I've learned from when I bought it until now. Essentially I feel the stock is overvalued and is due for another drop post hype. I know they say don't time the market but what I'm trying to do is basically recover and hold off until I can buy again at a lower price. Would this be wise? I'm not even sure how much I would have to pay in taxes. Thank you for any advice.

Sunk cost.

What you paid for it is irrelevant, except for the taxable capital gain when you sell, and whether you can use a capital loss to offset other taxable gains when realized.

All that matters is what you think of future returns.

It's a quite natural mistake, and a rookie mistake (which most of us have made), to invest in a company you know well, and whose products and service you like, that seems to be dominating everywhere.

Such decisions got some of us investing in DEC (unless you are a certain age, you won't know they were the world's 2nd largest computer company after IBM, and they were sold for not very much money, eventually, to Compaq, and Compaq was eventually merged with HP, and it's not been a happy story), Nortel (bankrupt), Lucent (probably lost 80-90% of value from peak), Dell (eventually taken private for a low price), Enron (exaggerating, but it was the world's most admired company at one point, before bankruptcy)... I could go on (and mention Bre-X, which went bust due to fraud, Dome Petroleum (was nearly the world's largest corporate insolvency in the 1980s) etc.

You can't predict the future, and your guess is no better than the market, which is the aggregate of all the informed and uninformed guesses out there.

Therefore we buy index funds, sure that we can't do better than the market, and no individual, even a "hot hands" fund manager, will beat the market forever. (that kicks off a debate about Warren Buffett, and I happen to believe he is special, but he's also over 80, and has himself admitted he now has too much money to outperform as he has previously, he warns investors of that very clearly).

Also I can tell you in 2000 the apparent winners; Microsoft, Cisco (once the world's largest company by market cap), Ebay, Yahoo, Dell, HP... if you invested in a basket of those "winner" tech stocks, you didn't do too well compared to Apple/ Google (which was private then)/ Facebook (which didn't exist). Amazon you have made money, but it was a tough sled down.
Thank you for your response I can agree it was a rookie mistake. I had been holding in order to dive into the market and I didn't want to wait any longer as I saw the S&P constantly rising. Literally the next day after I bought the stock lost 10%. I also hold shares in Apple which I have taken a big loss for since I bought high on them as well (wish I could rewind that). The computer companies you listed I recognize the latter ones but definitely never heard of DEC or Nortel so that was quite the history lesson I appreciate that. So yeah I literally dove into ETF's the day before I bought stocks I purchased VTI, BND, and VXUS on the more aggressive side for VTI. Needless to say I bought high for those as well and I'm in the negative now. But I remember what one person told me, it's never too early or too late to start investing I'm hoping that will be the right call for years ahead.

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Mon Jun 26, 2017 1:54 pm

Pajamas wrote:When you make an investment, generally it should be for the long term. A few weeks is much too short of a time to judge most investments.

Amazon's all time high is $1,017 and right now it is $995 so you could only possibly be down a little over 2% at the most. That is a normal intraday fluctuation for Amazon. On the other hand, Amazon has returned about 42% over one year, about 348% over five years, and about 1,345% over ten years.

Based on your reaction to a 2% fluctuation in Amazon, you might want to stick to a conservative investment plan until you feel more comfortable having money in the markets. This would be a good place to start if you haven't read it already:

https://www.bogleheads.org/wiki/Getting_started
Thank you pajamas... yeah I suppose I'm too new to understand those fluctuations which can explain why I'm so concerned. I figured the only way to really learn was to just buy in and go from there. Had I sold at the $1003 on Friday I could have made some good profit and then bought back in at that $995 you speak of today which was my intention and what I was expecting to happen. I don't even know how much I'm going to be paying on taxes for these stocks, pretty sad huh?

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Mon Jun 26, 2017 1:59 pm

prudent wrote:Could you help us understand why you felt it was a good value a few weeks ago but today you believe it is overvalued?
When I bought it the stock was on the incline, I believe in the company I was buying. Next day the stock tanked 10% and just now with news of the Whole Foods acquisition the stock rose above what I purchased it for. It was my first exposure to stocks so I was under the impression these fluctuations would happen more often and I would be more inclined to buy at a much lower price but wanted to capitalize on the small gains it accumulated short term. Yes I guess you could call this "timing the market" but it was more of a pull out move due to my realization of how the stock market works.

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Mon Jun 26, 2017 2:02 pm

AgentHoopla wrote:I personally invest most of my money into mutual funds like VTSAX and SWTSX and VINIX to hold true to the boglehead way of life. However I have about 12% of my portfolio in a few individual stocks I have a particular conviction in (Amazon being one of them) I personally feel that Amazon might do well in the next 10-15 years and contribute additional market gains into my overall portfolio. Since Amazon is a top holder in all of my funds. Amazon is just one stock I chose, and even if Amazon tanks and I lose 50% of my position, I still wont sell. With the recent news of purchasing Whole Foods amazon has the possibility of changing the game, Walmart, Target, Korger and Costco stocks tanked when news broke that Amazon is purchasing whole foods and the only contender to even try to offer them a better deal would be Wal-Mart, but I highly doubt they would engage in a bidding war with Whole Foods.
Exactly, we can only hope anyway. To the person who gave me the morningstar link thank you I'm browsing that right now some really great inputs better than the stuff I'm getting on the SeekingAlpha app.

User avatar
Pajamas
Posts: 2519
Joined: Sun Jun 03, 2012 6:32 pm

Re: Newbie question about my stock in Amazon...

Post by Pajamas » Mon Jun 26, 2017 2:08 pm

Zeusy Zeus wrote:
Thank you pajamas... yeah I suppose I'm too new to understand those fluctuations which can explain why I'm so concerned. I figured the only way to really learn was to just buy in and go from there. Had I sold at the $1003 on Friday I could have made some good profit and then bought back in at that $995 you speak of today which was my intention and what I was expecting to happen. I don't even know how much I'm going to be paying on taxes for these stocks, pretty sad huh?
It's really not a good idea to trade a $1,000 stock for profits of $8 if you are not very experienced at short-term trading, and maybe not even then. You are taking outsized risks for a comparatively tiny profit of 0.8%, and that's before the cost of buying and selling the stock.

If anything, you have learned some good lessons very quickly and inexpensively. Many posters here will tell you that the same lessons cost them significantly more money and lost time.
Last edited by Pajamas on Mon Jun 26, 2017 2:10 pm, edited 1 time in total.

alex_686
Posts: 2467
Joined: Mon Feb 09, 2015 2:39 pm

Re: Newbie question about my stock in Amazon...

Post by alex_686 » Mon Jun 26, 2017 2:09 pm

Zeusy Zeus wrote:When I bought it the stock was on the incline, I believe in the company I was buying. Next day the stock tanked 10% and just now with news of the Whole Foods acquisition the stock rose above what I purchased it for. It was my first exposure to stocks so I was under the impression these fluctuations would happen more often and I would be more inclined to buy at a much lower price but wanted to capitalize on the small gains it accumulated short term. Yes I guess you could call this "timing the market" but it was more of a pull out move due to my realization of how the stock market works.
I might suggest reading up on Behavioral Economics. Many of the decision making processes we do for investing are irrational. For example, thinking Amazon was a good stock one day and not so good the next. My gut feeling is that you put too much weight on the Whole Foods announcement. It's impact on Amazon is probably going to be modest but it dominated the news cycle. Instead of focusing on the long term prospects you got blinded by the shinny lights.

I would suggest "Thinking, Fast and Slow" by Daniel Kahneman. He help invent the field and got a Nobel in economics for this work. This is his popular introduction to the lay people book.

aristotelian
Posts: 2794
Joined: Wed Jan 11, 2017 8:05 pm

Re: Newbie question about my stock in Amazon...

Post by aristotelian » Mon Jun 26, 2017 2:13 pm

Read the wiki and Bogleheads Guide book. The approach here is to avoid these questions by buying the entire stock market using low cost index funds. Then you do not get into questions about which stocks are overvalued or when to buy. You simply buy the stock market and the bond market in an allocation that suits your risk tolerance.

User avatar
Taylor Larimore
Advisory Board
Posts: 25953
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Three Suggestion

Post by Taylor Larimore » Mon Jun 26, 2017 2:27 pm

Zeusy Zeus wrote:
I suppose I'm too new to understand those fluctuations which can explain why I'm so concerned. I figured the only way to really learn was to just buy in and go from there. Had I sold at the $1003 on Friday I could have made some good profit and then bought back in at that $995 you speak of today which was my intention and what I was expecting to happen.
Zeusy Zeus:

I started investing in 1950 when the S&P 500 stocks were under 20. Today they are over 2,000 ( not including dividends). The point is this:

It made no difference whether stocks were up and down the day I started investing.

Suggestion:

1. Structure a suitable stock/bond allocation
2. Invest in low-cost, very diversified, total market index funds
3. Stay-the-course.

The Three-Fund Portfolio

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

MutualEdge
Posts: 43
Joined: Sun May 28, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by MutualEdge » Mon Jun 26, 2017 3:00 pm

Op,

I don't know how much money you have to invest, but it's very difficult to pick single stock winners that beat the market consistently. You'll likely sleep better at night, second guess yourself less, and won't need to worry as much about "buying high" if you instead invest that money into a total stock fund or fund that mirrors the S&P. That way you can still own a percentage of Amazon and Apple, but own many other stocks too. If Amazon alone were to tank in your fund, you would have some protection because your holdings are well diversified. You also have less risk with more eggs in the basket (fund). Vanguard, fidelity, and TD ameritrade offer good, low cost index funds.

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Tue Jun 27, 2017 7:02 pm

All great responses thank you very much I'm definitely going to be reading up on your suggestions. I would like to note if no one read my post above I am invested into VTI, BND, and VXUS I'm maxed out for the year (roth) so I wanted to play around with the market which is what lead me to rushing in.

User avatar
Pajamas
Posts: 2519
Joined: Sun Jun 03, 2012 6:32 pm

Re: Newbie question about my stock in Amazon...

Post by Pajamas » Tue Jun 27, 2017 7:05 pm

Well, if it is just play money thrown into the markets as an educational experience, sit tight and watch what happens next. You have already learned a great deal and you have only been investing in individual stocks for a few weeks.

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Tue Jun 27, 2017 8:52 pm

Pajamas wrote:Well, if it is just play money thrown into the markets as an educational experience, sit tight and watch what happens next. You have already learned a great deal and you have only been investing in individual stocks for a few weeks.
You're absolutely right there PJ, thanks for the input!

alex_686
Posts: 2467
Joined: Mon Feb 09, 2015 2:39 pm

Re: Newbie question about my stock in Amazon...

Post by alex_686 » Wed Jun 28, 2017 9:49 am

Zeusy Zeus wrote:All great responses thank you very much I'm definitely going to be reading up on your suggestions. I would like to note if no one read my post above I am invested into VTI, BND, and VXUS I'm maxed out for the year (roth) so I wanted to play around with the market which is what lead me to rushing in.
Before you dip back into individual stocks come up with a investment thesis. The market thinks AMZN is worth $1,000. Before I invest I want a safety margin of 20% (or some other number.) I think AMZN is work $1,200 because of X, Y, and Z. Ergo I will buy. I will review my holdings of AMZN on such and such a date - usually at least annually.

Getting your thoughts down on paper should hopefully crystallize what you are doing and why you are doing it.

Another good stop would be the book "The Intelligent Investor" by Benjamin Graham. It is a classic of securities analysis.

SEAworld9
Posts: 33
Joined: Fri Jun 23, 2017 10:13 am

Re: Newbie question about my stock in Amazon...

Post by SEAworld9 » Wed Jun 28, 2017 11:59 am

great advice being given. your money is your money so ultimately it's up to you to do what you want with it, however as everyone else has suggested, educate yourself and have a plan or some convictions before you do anything. also, if you're wanting to get into individual stocks - or the market overall for that matter - and are overly concerned about +/- 2% swings, you might be better putting your money in investments with lower beta.

that said, IMO amazon is great stock, i own a lot of it, and believe it will be higher in the future than it is today for many reasons.

User avatar
Pajamas
Posts: 2519
Joined: Sun Jun 03, 2012 6:32 pm

Re: Newbie question about my stock in Amazon...

Post by Pajamas » Wed Jun 28, 2017 12:33 pm

I think owning a few shares of Amazon will provide Zeusy Zeus a lot of benefits beyond an incentive to learn about stocks and stock markets.

Almost all investors have to learn to be okay with the value of their investments fluctuating over time and watching Amazon will provide that experience in a way that an index fund with one daily price quote will not.

Owning a stock is also more appealing and interesting to most new investors than simply owning index funds and Amazon certainly is an interesting company. Nothing wrong with putting a little play money into a stock after maxing out retirement accounts for the year. It's like the whipped cream on top of a dessert.
Last edited by Pajamas on Wed Jun 28, 2017 12:34 pm, edited 2 times in total.

mhalley
Posts: 5060
Joined: Tue Nov 20, 2007 6:02 am

Re: Newbie question about my stock in Amazon...

Post by mhalley » Wed Jun 28, 2017 12:33 pm

I am not a stock trader, but if you do buy a stock you should either have an exit plan or plan on holding it for many years. Whether you should keep the stock or sell it is unclear to everyone without a crystal ball. Trump just started a twitter war with Bezos, who knows whether that means anything. Many bogleheads have a smattering of individual stocks, either as a legacy position or they have some desire to use a small part of their portfolio to play with. If you look at analysts, only one has a sell, but if analysts are so smart, why aren't they all rich?
Cramer says stocks need an hour of homework each every week. Do your homework and make your decision.

https://www.thestreet.com/static/rules6.html

CnC
Posts: 152
Joined: Thu May 11, 2017 12:41 pm

Re: Newbie question about my stock in Amazon...

Post by CnC » Wed Jun 28, 2017 1:32 pm

I am kind of in the same boat as you op.

But I am more watching the red and green of my stocks as a form of entertainment for the money I invested.


I am not nessissarly a full believer in the boggel heads approach just because of the human element and the enjoyment of personal attachment to some investing.

That being said, your own personal stock choices should be your show horse. The lionshare of your portfolio should be the workhorse of index funds. They are boring and bland but they do their job.

Two stocks I bought this year are Amazon and Ruger which have had wonderful returs. But I would never put all my eggs in a basket that small.

I personally say 80-90% should be in index funds and 10-20% should be in stocks you feel good about simply because it makes investing more fun.

User avatar
arcticpineapplecorp.
Posts: 2183
Joined: Tue Mar 06, 2012 9:22 pm

Re: Newbie question about my stock in Amazon...

Post by arcticpineapplecorp. » Wed Jun 28, 2017 5:33 pm

Zeusy Zeus wrote:Hi there everyone, I just started reading Bogleheads guide to investing which lead me here because quite frankly I'm very new and I have no idea where to go online to seek help. My question is I got my feet weet a few weeks ago buying Amazon stock at a high price (unfortunately) thinking it would go up but then it went lower (bought more) and now that it is pretty high again I was contemplating selling due to what I've learned from when I bought it until now. Essentially I feel the stock is overvalued and is due for another drop post hype. I know they say don't time the market but what I'm trying to do is basically recover and hold off until I can buy again at a lower price. Would this be wise? I'm not even sure how much I would have to pay in taxes. Thank you for any advice.
Welcome to the forum

Do you currently max out your retirement accounts? If not, then why are you buying stocks in a taxable account? You say you maxed out your Roth. Do you have access to a 401k?

Have you read the annual reports for Amazon (have you studied their financial statements) or are you just shooting from the hip?

You "feel the stock is overvalued". Do you invest based on feelings? Do you think that's wise?

You think it's "due for another drop post hype." Isn't that market timing? Do you think that's wise?

You're not sure how much you "would have to pay in taxes." Don't you think you should know since you have to have enough money to pay them?

Since you're not holding your stock for longer than a year, do you realize you're paying a higher capital gains tax rate than you would if you held the stock for at least a year?"
I would like to note if no one read my post above I am invested into VTI, BND, and VXUS I'm maxed out for the year (roth) so I wanted to play around with the market which is what lead me to rushing in.
Playing around with the market is what you've been doing. And it hasn't been going well. I suggest you stop playing with your money and start investing. Please start here (read "getting started"):

https://www.bogleheads.org/wiki/Main_Page
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Wed Jun 28, 2017 10:48 pm

arcticpineapplecorp. wrote:
Zeusy Zeus wrote:Hi there everyone, I just started reading Bogleheads guide to investing which lead me here because quite frankly I'm very new and I have no idea where to go online to seek help. My question is I got my feet weet a few weeks ago buying Amazon stock at a high price (unfortunately) thinking it would go up but then it went lower (bought more) and now that it is pretty high again I was contemplating selling due to what I've learned from when I bought it until now. Essentially I feel the stock is overvalued and is due for another drop post hype. I know they say don't time the market but what I'm trying to do is basically recover and hold off until I can buy again at a lower price. Would this be wise? I'm not even sure how much I would have to pay in taxes. Thank you for any advice.
Welcome to the forum

Hi and thank you.

Do you currently max out your retirement accounts? If not, then why are you buying stocks in a taxable account? You say you maxed out your Roth. Do you have access to a 401k?
Yes I invest the maximum I can monthly. Is there any other account I can invest into stocks and not get taxed?

Have you read the annual reports for Amazon (have you studied their financial statements) or are you just shooting from the hip? I follow the news articles on seeking alpha and yahoo finance about amazon and I read every single one of them as they appear, but to answer your question I have not looked at a single annual report.

You "feel the stock is overvalued". Do you invest based on feelings? Do you think that's wise?
Not wise at all honestly going along with what 90% of people are writing on forums and articles.

You think it's "due for another drop post hype." Isn't that market timing? Do you think that's wise?
Definitely not which is what makes me nervous.

You're not sure how much you "would have to pay in taxes." Don't you think you should know since you have to have enough money to pay them?
I need to find out you're right about that. About to look into that now.

Since you're not holding your stock for longer than a year, do you realize you're paying a higher capital gains tax rate than you would if you held the stock for at least a year?"
I was not aware of that one bit, what would one have to google in order to learn more about that exactly? I'll do some searching and see if I find something.
I would like to note if no one read my post above I am invested into VTI, BND, and VXUS I'm maxed out for the year (roth) so I wanted to play around with the market which is what lead me to rushing in.
Playing around with the market is what you've been doing. And it hasn't been going well. I suggest you stop playing with your money and start investing. Please start here (read "getting started"):

https://www.bogleheads.org/wiki/Main_Page
Thank you for your honest response.

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Wed Jun 28, 2017 10:51 pm

I can't believe the amount of people who have responded here, I had a feeling I would get flamed for being a newbie (and in some ways I did), but the great advice I've gotten from the majority of you has helped me greatly words cannot explain. I appreciate the words of encouragement and the words of wisdom as I venture into this journey we call investing. Buying that Bogleheads book has been a blessing nonetheless.

User avatar
Pajamas
Posts: 2519
Joined: Sun Jun 03, 2012 6:32 pm

Re: Newbie question about my stock in Amazon...

Post by Pajamas » Thu Jul 27, 2017 10:34 am

Just curious about how you are feeling about your Amazon stock right now. :?:

Jeff Bezos became the richest man in the world today. Maybe that won't be true tomorrow, but it is today!

Grt2bOutdoors
Posts: 16958
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Newbie question about my stock in Amazon...

Post by Grt2bOutdoors » Thu Jul 27, 2017 10:46 am

Pajamas wrote:Just curious about how you are feeling about your Amazon stock right now. :?:

Jeff Bezos became the richest man in the world today. Maybe that won't be true tomorrow, but it is today!
Here's an interesting read on what to make of Amazon and others -- https://www.oaktreecapital.com/docs/def ... -again.pdf
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

bayview
Posts: 1280
Joined: Thu Aug 02, 2012 7:05 pm
Location: WNC

Re: Newbie question about my stock in Amazon...

Post by bayview » Thu Jul 27, 2017 5:25 pm

Zeusy Zeus wrote:
prudent wrote:Could you help us understand why you felt it was a good value a few weeks ago but today you believe it is overvalued?
When I bought it the stock was on the incline, I believe in the company I was buying. Next day the stock tanked 10% and just now with news of the Whole Foods acquisition the stock rose above what I purchased it for. It was my first exposure to stocks so I was under the impression these fluctuations would happen more often and I would be more inclined to buy at a much lower price but wanted to capitalize on the small gains it accumulated short term. Yes I guess you could call this "timing the market" but it was more of a pull out move due to my realization of how the stock market works.
Sorry, I know this post is appearing five weeks after yours, but a gentle lol at "tanked." :D

Equity indexes are often volatile. Individual stocks, even more so. I can't keep track of the euphemisms, but I think 10% falls into "correction" territory. "Tanked" is 2007-2009, with a 50% average drop in stock prices, and let's don't look at single stocks.

And now, of course, you're seeing how the pendulum swings yet again.

My former husband was a pilot, and one of his favorite sayings was "there are bold pilots, and there are old pilots, but there aren't a lot of bold, old pilots." The same might be said of individual investors trying to take on Mr. Market. There's a lot to be said for index fund investing, which can blunt the swings of individual stocks, and even more for having an AA (asset allocation) combining equities and fixed income, which can somewhat mute the nosebleed swings in prices.

Glad you're still here!
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Sun Jul 30, 2017 7:34 pm

Haha yeah... I ended up selling half the stock I owned at $1020 for a profit and of course it got all the way up to $1080 so that sucked I sold early (who knew). However looks like it was short lived because as I'm sure you all know the stock kept tumbling down after Q2 earnings. Either way it was a good lesson learned and I do believe many stocks are overvalued so I'm staying away and I hope to buy at dips now instead of impulsive buying bases on how much I personally like a company. Really appreciate the help from you all I'm 32 and still very new to this.

Zeusy Zeus
Posts: 18
Joined: Sat Jun 24, 2017 6:46 pm

Re: Newbie question about my stock in Amazon...

Post by Zeusy Zeus » Sun Jul 30, 2017 7:45 pm

Grt2bOutdoors wrote:
Pajamas wrote:Just curious about how you are feeling about your Amazon stock right now. :?:

Jeff Bezos became the richest man in the world today. Maybe that won't be true tomorrow, but it is today!
Here's an interesting read on what to make of Amazon and others -- https://www.oaktreecapital.com/docs/def ... -again.pdf
Great article just curious how did you hear about it are you working with them? Thanks for sharing!

Grt2bOutdoors
Posts: 16958
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Newbie question about my stock in Amazon...

Post by Grt2bOutdoors » Sun Jul 30, 2017 9:35 pm

No, i dont work for Oaktree or with anyone, but Howard Marks is a well known and respected value investor. He has a following ( i read his writeups from time to time).
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Avo
Posts: 1097
Joined: Wed Jun 11, 2008 2:21 am
Location: California

Re: Newbie question about my stock in Amazon...

Post by Avo » Sun Jul 30, 2017 10:59 pm

Zeusy Zeus wrote:Great article
To me it seems like financial porn whose only goal is to convince you that (1) you don't know enough to do this yourself, and so (2) you'd better give your money to us.

Here's an excerpt from near the end (emphasis in original):
Where are we today? As I said earlier, risk is high and prospective return is low, and the low prospective returns on safe investments are pushing people into taking risk – which they’re willing to do – at a time when the reward for doing so is low.

Given my view of the environment, the only reason to be aggressive today is because defensive investing implies low prospective returns. But the question is whether pursuing high expected returns through aggressiveness can be counted on to be rewarded. If the answer is no, as I believe, then this is a time for caution.

That doesn’t mean you have to be content with a low-return portfolio. If you need returns higher than those available in the beta markets at the low-risk end of the spectrum, it is reasonable to move into riskier asset classes. But for every asset class, there are high-risk and low-risk approaches. When the market is rational, low-risk investments will always appear to offer prospective returns lower than those on high-risk ones. But in tough times, the former are less likely to bring losses than the latter. In my opinion that makes them right for today.
Can anyone make any sense of this? I sure can't.

MotoTrojan
Posts: 699
Joined: Wed Feb 01, 2017 8:39 pm

Re: Newbie question about my stock in Amazon...

Post by MotoTrojan » Sun Jul 30, 2017 11:44 pm

Zeusy Zeus wrote:Haha yeah... I ended up selling half the stock I owned at $1020 for a profit and of course it got all the way up to $1080 so that sucked I sold early (who knew). However looks like it was short lived because as I'm sure you all know the stock kept tumbling down after Q2 earnings. Either way it was a good lesson learned and I do believe many stocks are overvalued so I'm staying away and I hope to buy at dips now instead of impulsive buying bases on how much I personally like a company. Really appreciate the help from you all I'm 32 and still very new to this.
I'll be more blunt than the rest of people replying. You're doing it wrong. You're buying a household name stock, and day-trading it purely on emotion with minimal understanding of normal market behavior. I hope you're at least doing free trades, but even so, this isn't even worth the tax-time trouble.

Buy companies or funds you plan to hold for 10 years or more. I'd recommend you invest in a fund of funds, like Target Retirement, or Lifestrategy, until you understand more.

wbrianwhite
Posts: 38
Joined: Fri Dec 19, 2014 9:44 am

Re: Newbie question about my stock in Amazon...

Post by wbrianwhite » Mon Jul 31, 2017 12:14 am

Pajamas wrote:I think owning a few shares of Amazon will provide Zeusy Zeus a lot of benefits beyond an incentive to learn about stocks and stock markets.

Almost all investors have to learn to be okay with the value of their investments fluctuating over time and watching Amazon will provide that experience in a way that an index fund with one daily price quote will not.

Owning a stock is also more appealing and interesting to most new investors than simply owning index funds and Amazon certainly is an interesting company. Nothing wrong with putting a little play money into a stock after maxing out retirement accounts for the year. It's like the whipped cream on top of a dessert.
Sure, but being maxed out on roth doesn't mean you need to buy individual stocks in your brokerage account. All the same funds he invested in for roth can be purchased in his brokerage account. The only individual stock I've ever owned is from my company giving me stock.

wbrianwhite
Posts: 38
Joined: Fri Dec 19, 2014 9:44 am

Re: Newbie question about my stock in Amazon...

Post by wbrianwhite » Mon Jul 31, 2017 12:31 am

Zeusy Zeus wrote:I can't believe the amount of people who have responded here, I had a feeling I would get flamed for being a newbie (and in some ways I did), but the great advice I've gotten from the majority of you has helped me greatly words cannot explain. I appreciate the words of encouragement and the words of wisdom as I venture into this journey we call investing. Buying that Bogleheads book has been a blessing nonetheless.
This site has some of the smartest and kindest people I've found on the internet.

You should definitely check out the links provided. The 3 fund portfolio link in particular. The linked articles and wikis here are better than 99% of investing books. I use that approach myself, except even simpler in my brokerage account: the LifeStrategy funds give you that balance in one fund with automatic rebalancing. Some people don't like the international weight, particularly in bond, but I'm fine with it with my long investing timeline. https://investor.vanguard.com/mutual-fu ... dings/0122 US stock, US bond, international stock, international bond all in one. Very suitable for long-term holding in a brokerage account - very tax efficient, and covers every major investment asset type, all for 0.15%. People who go full 3 fund get the even lower rates available for individual funds, but if they rebalance by selling then you're exposed to taxes.

If you want a "meaty" discussion of index funds vs individual stocks or active funds to back up the practical/tactical advice here, Jack Bogle's Common Sense on Mutual Funds is great: https://www.amazon.com/Common-Sense-Mut ... 8&qid=&sr=. I didn't get "investing" until I read that. I read it the first time by checking it out from my library. I've since bought it multiple times, one for me, and copies for friends and relatives

wbrianwhite
Posts: 38
Joined: Fri Dec 19, 2014 9:44 am

Re: Newbie question about my stock in Amazon...

Post by wbrianwhite » Mon Jul 31, 2017 12:34 am

Zeusy Zeus wrote:Haha yeah... I ended up selling half the stock I owned at $1020 for a profit and of course it got all the way up to $1080 so that sucked I sold early (who knew). However looks like it was short lived because as I'm sure you all know the stock kept tumbling down after Q2 earnings. Either way it was a good lesson learned and I do believe many stocks are overvalued so I'm staying away and I hope to buy at dips now instead of impulsive buying bases on how much I personally like a company. Really appreciate the help from you all I'm 32 and still very new to this.
Who knew? Not you, and not even the market. Nobody can reliably predict if an individual stock will go up or down short term. If people in the market knew it would go to 1080 they'd quickly bid it up to that with purchasing. The fact that it was at 1020 just shows that nobody knew, and nobody can know. Anyone who says different is selling something :moneybag, and it's not something you want to buy

sociologydude76
Posts: 11
Joined: Tue Jul 18, 2017 10:36 am

Re: Newbie question about my stock in Amazon...

Post by sociologydude76 » Mon Jul 31, 2017 10:02 am

I just want to echo the awesome advice in this thread so far. And as mentioned above, I'm encouraged by the pleasant responses by a newbie question. That's a rarity on the internet!

Anyway, I also like Amazon, but like others said, it depends how long you want to hold it. I like it for the long term so I have a small position of Amazon in my portfolio. Some other individual stocks I like for the long term are Google, MecardoLibre, and Visa. But the rest of my portfolio is index funds! (except for a few very small positions in random stocks).

Early on in my investing career, I would buy and sell too many stocks. I'd try to make some money "swing trading" where I'd hold a stock for a few days/weeks and sell when it goes up. But now I realize I can make about the same just holding index funds and it's much less work and much less taxes.

User avatar
Pajamas
Posts: 2519
Joined: Sun Jun 03, 2012 6:32 pm

Re: Newbie question about my stock in Amazon...

Post by Pajamas » Mon Jul 31, 2017 10:54 am

wbrianwhite wrote: Sure, but being maxed out on roth doesn't mean you need to buy individual stocks in your brokerage account. All the same funds he invested in for roth can be purchased in his brokerage account. The only individual stock I've ever owned is from my company giving me stock.
I think it is good for even index investors to own a few shares of stock to learn about stocks, the markets, read annual reports, pay attention to news about the company, watch the share price fluctuate, vote their shares, maybe even receive dividends. It's very different from owning a mutual fund.

User avatar
arcticpineapplecorp.
Posts: 2183
Joined: Tue Mar 06, 2012 9:22 pm

Re: Newbie question about my stock in Amazon...

Post by arcticpineapplecorp. » Mon Jul 31, 2017 12:27 pm

Zeusy Zeus wrote:Haha yeah... I ended up selling half the stock I owned at $1020 for a profit and of course it got all the way up to $1080 so that sucked I sold early (who knew). However looks like it was short lived because as I'm sure you all know the stock kept tumbling down after Q2 earnings. Either way it was a good lesson learned and I do believe many stocks are overvalued so I'm staying away and I hope to buy at dips now instead of impulsive buying bases on how much I personally like a company. Really appreciate the help from you all I'm 32 and still very new to this.
Few questions:
1. how do you know if a company is over or undervalued?
2. if you can figure out if a company is over or undervalued, then hasn't everyone else drawn the same conclusion?
3. If you plan to "buy on the dips" does this include if Amazon does a stock split?
Let's say the company is now worth $1000 a share but they do a 20:1 stock split because they want the share price to be at $50 and not $1000. Would you be more excited to buy Amazon at $50 in this scenario than $1000 right now? If you answered "yes" you probably should avoid investing in stocks because you are looking at share price in isolation. You're in effect saying you wouldn't buy Berkshire Hathaway because the price is too high without looking at the fundamentals of the company. That's pretty good reason to stop buying individual stocks. There are many other reasons for you to stop. Like market timing. You'll have to be watching the stock all the time waiting to "buy at dips".

Once final question. Now that you read the bogleheads guide, can I ask you what you actually learned from reading this book? I honestly haven't read the book myself, but based on the recommendations of Taylor and Mel on this board, I sincerely doubt they advocated buying individual stocks, market timing, etc...the very behaviors you're engaging in. So what did you learn from the Bogleheads guide and when and how do you begin to implement their ideas and become a real investor, rather than a speculator/gambler?
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

Nowizard
Posts: 1169
Joined: Tue Oct 23, 2007 5:33 pm

Re: Newbie question about my stock in Amazon...

Post by Nowizard » Mon Jul 31, 2017 12:32 pm

If you are thinking of selling at 1003 and buying back in at 995, that is really equivalent to day-trading, an extreme form of market timing that is a sure way to lose money over time. More like a slot machine than investing. The comment is not meant to be snarky. You apparently have some doubt about the purchase are new to investing, and you have found a great forum very early on in your investing career! Consider taking your profits and joining he discussions, do some reading and reach a point where you can engage in investing more confidently? You have made the conceptual decision regarding the need to invest, now spend a little time learning to invest wisely. It will pay off.

Tim

Grt2bOutdoors
Posts: 16958
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Newbie question about my stock in Amazon...

Post by Grt2bOutdoors » Mon Jul 31, 2017 3:34 pm

Avo wrote:
Zeusy Zeus wrote:Great article
To me it seems like financial porn whose only goal is to convince you that (1) you don't know enough to do this yourself, and so (2) you'd better give your money to us.

Here's an excerpt from near the end (emphasis in original):
Where are we today? As I said earlier, risk is high and prospective return is low, and the low prospective returns on safe investments are pushing people into taking risk – which they’re willing to do – at a time when the reward for doing so is low.

Given my view of the environment, the only reason to be aggressive today is because defensive investing implies low prospective returns. But the question is whether pursuing high expected returns through aggressiveness can be counted on to be rewarded. If the answer is no, as I believe, then this is a time for caution.

That doesn’t mean you have to be content with a low-return portfolio. If you need returns higher than those available in the beta markets at the low-risk end of the spectrum, it is reasonable to move into riskier asset classes. But for every asset class, there are high-risk and low-risk approaches. When the market is rational, low-risk investments will always appear to offer prospective returns lower than those on high-risk ones. But in tough times, the former are less likely to bring losses than the latter. In my opinion that makes them right for today.
Can anyone make any sense of this? I sure can't.
It's common sense, when all the lemmings are running full speed into the markets without restraint when the signs of a overheated market abound, the froth is turning in the water, no one will invest in low returning bonds because the yields are unacceptable. Even though the returns are low, the risk of loss is low, the risk of permanent capital loss is high in an overheating market and yet, many willingly dive in for a chance of a higher return blindly ignoring the waiting peril at hand. Common sense tells you not to run blindly over the cliff but many continually do because its too safe to avoid it or take a safer route that will get you to the same destination albeit, 2 days later, they want it now.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Avo
Posts: 1097
Joined: Wed Jun 11, 2008 2:21 am
Location: California

Re: Newbie question about my stock in Amazon...

Post by Avo » Mon Jul 31, 2017 5:17 pm

Sorry, but I don't understand that either.

To be concrete, let's say I'm running a pension fund that's supposed to last forever, and my default allocation is 60/40 TSM/TBM. What should I do in light of "common sense"? :confused

Grt2bOutdoors
Posts: 16958
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Newbie question about my stock in Amazon...

Post by Grt2bOutdoors » Mon Jul 31, 2017 5:38 pm

Avo wrote:Sorry, but I don't understand that either.

To be concrete, let's say I'm running a pension fund that's supposed to last forever, and my default allocation is 60/40 TSM/TBM. What should I do in light of "common sense"? :confused
Stick to your knitting and rebalance as required. We know many fail to do that in the first instance.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Avo
Posts: 1097
Joined: Wed Jun 11, 2008 2:21 am
Location: California

Re: Newbie question about my stock in Amazon...

Post by Avo » Mon Jul 31, 2017 5:41 pm

Yeah, well I didn't need to read 23 pages of blather from Howard Marks to figure that out.

Ragnoth
Posts: 45
Joined: Sat Sep 17, 2016 8:10 am

Re: Newbie question about my stock in Amazon...

Post by Ragnoth » Mon Jul 31, 2017 5:46 pm

Zeusy Zeus wrote:Great article just curious how did you hear about it are you working with them? Thanks for sharing!
Oaktree is a pretty well known shop. Before you give their advice too much weight, I suggest you compare the returns of their stock (OAK) with the S&P 500 overall.

A lot of companies can talk a pretty big game, but you have to consider very carefully whether or not that will translate into returns for investors in the long run.

SimplicityNow
Posts: 210
Joined: Fri Aug 05, 2016 10:31 am

Re: Newbie question about my stock in Amazon...

Post by SimplicityNow » Mon Jul 31, 2017 8:21 pm

I think you need to take a step back for a moment and stop.

Unless you are using money you are prepared to loses, individual stocks in not the way to learn how to invest.

Take the time to educate yourself. Read the books recommended and the Boglehead wiki. Take your time and digest it. The come back here and ask questions.

Spend the days or weeks to do this right. We are talking about your future financial independence.

Buying on dips, trying to assign value to businesses based on what you read or see on television is a losers game.

Post Reply