anyone buying individual stocks or sector ETF's?

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boglechu
Posts: 129
Joined: Sat Jan 30, 2016 3:19 am

anyone buying individual stocks or sector ETF's?

Post by boglechu » Sun Nov 18, 2018 9:14 pm

37 yo. Married. income 500k/year.

In my taxable (since 2018) [241k]
vtsax: 95k (@ 66.56)
vti: 83k (@ 137.12)
apple: 46k (@ 201.50)
nvda: 16k ($63.72)
amazon: 16k ($1618.69)

roth IRA (since 2017) [10.9k]
qqq: 10.9k

401k (since 2016 + rollover) [106k]
schwab s&p: $83.3k (future each payroll is 70%)
dfa international core: 4.7k (future each payroll is 14%)
dfa emerging markets core equity 1: 1.8k (future each payroll is 6%)
janus henderson triton i: $2.5k (future each payroll is 6%)
vanguard mid cap: $5.5k (future each payroll is 4%)
dfa small cap: $8.2k (future each payroll is 0%)

I have 1 year of emergency funds saved in bank/money market up to 2.2%.

anyone buy individual stocks of sector etf now? I feel I haven't made much from the stock market. Bought into apple when it dropped but it dropped further. Just bought into nvda and amazon last week. I have another 50k to invest. Will probably just keep it in money market. Bonds haven't done so well.

averagedude
Posts: 360
Joined: Sun May 13, 2018 3:41 pm

Re: anyone buying individual stocks or sector ETF's?

Post by averagedude » Sun Nov 18, 2018 9:42 pm

No, i dont do individual stocks or sector funds because i know that im not smarter than the collective wisdom of the efficient markets. Im just an "averagedude" that just accepts average market returns with low fees, knowing i will more than likely outperform the majority of investors with this strategy. I would encourage you to do the same, but you could be way smarter than the college educated analysts that spend 2000 hours per year crunching numbers, studying charts, talking to management, and analyzing the up to the minute recent information.

mikeyzito22
Posts: 96
Joined: Sat Dec 02, 2017 5:42 pm

Re: anyone buying individual stocks or sector ETF's?

Post by mikeyzito22 » Sun Nov 18, 2018 10:01 pm

averagedude wrote:
Sun Nov 18, 2018 9:42 pm
No, i dont do individual stocks or sector funds because i know that im not smarter than the collective wisdom of the efficient markets. Im just an "averagedude" that just accepts average market returns with low fees, knowing i will more than likely outperform the majority of investors with this strategy. I would encourage you to do the same, but you could be way smarter than the college educated analysts that spend 2000 hours per year crunching numbers, studying charts, talking to management, and analyzing the up to the minute recent information.
+1

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arcticpineapplecorp.
Posts: 3483
Joined: Tue Mar 06, 2012 9:22 pm

Re: anyone buying individual stocks or sector ETF's?

Post by arcticpineapplecorp. » Sun Nov 18, 2018 10:43 pm

boglechu wrote:
Sun Nov 18, 2018 9:14 pm
anyone buy individual stocks of sector etf now?
no and no.

Even if I was, does that mean you should too?
boglechu wrote:
Sun Nov 18, 2018 9:14 pm
I feel I haven't made much from the stock market.
feel or know? what are you basing your conclusion on? Evidence or feelings?
over what time frame? Since 2016? That seems to be the earliest date you mention.
How much do/did you expect to earn in two years time exactly? Why?
boglechu wrote:
Sun Nov 18, 2018 9:14 pm
Bought into apple when it dropped but it dropped further. Just bought into nvda and amazon last week. I have another 50k to invest. Will probably just keep it in money market.
because stocks drop after you buy them?

let's see if I have this right. you bought stock and it went down. You have more money to invest. While you were happy to buy shares of stock when it was more expensive you don't want to buy more stock now that the price is lower? Do I have that right?

If you don't buy stock now after it's gone down, when would you buy it? After it goes up?
boglechu wrote:
Sun Nov 18, 2018 9:14 pm
Bonds haven't done so well.
How well are they supposed to do? How well should they have done? over what time period, 2 years?

Maybe bonds haven't done well. But have stocks done better?

What are you trying to achieve? Do you have an investment policy statement?

https://www.bogleheads.org/wiki/Investm ... _statement

by the way, since Jan 1, 2016 (the earliest date you mention) the total u.s. stock market index fund is up 41.31% and the total international stock market index fund is up 19.90%. If that isn't good for two years, I don't know what more you expect.
source: https://quotes.morningstar.com/chart/fu ... A%5B%5D%7D

In fact just last year alone (all of 2017) the total u.s. stock market index fund went up 21% and total international went up 27.5%
source: https://quotes.morningstar.com/chart/fu ... A%5B%5D%7D
"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

justsomeguy2018
Posts: 144
Joined: Wed Oct 03, 2018 8:11 pm

Re: anyone buying individual stocks or sector ETF's?

Post by justsomeguy2018 » Sun Nov 18, 2018 11:03 pm

boglechu wrote:
Sun Nov 18, 2018 9:14 pm
37 yo. Married. income 500k/year.

In my taxable (since 2018) [241k]
vtsax: 95k (@ 66.56)
vti: 83k (@ 137.12)
apple: 46k (@ 201.50)
nvda: 16k ($63.72)
amazon: 16k ($1618.69)

roth IRA (since 2017) [10.9k]
qqq: 10.9k

401k (since 2016 + rollover) [106k]
schwab s&p: $83.3k (future each payroll is 70%)
dfa international core: 4.7k (future each payroll is 14%)
dfa emerging markets core equity 1: 1.8k (future each payroll is 6%)
janus henderson triton i: $2.5k (future each payroll is 6%)
vanguard mid cap: $5.5k (future each payroll is 4%)
dfa small cap: $8.2k (future each payroll is 0%)

I have 1 year of emergency funds saved in bank/money market up to 2.2%.

anyone buy individual stocks of sector etf now? I feel I haven't made much from the stock market. Bought into apple when it dropped but it dropped further. Just bought into nvda and amazon last week. I have another 50k to invest. Will probably just keep it in money market. Bonds haven't done so well.
As usual I will be in small minority on this board, but I bought some very small portions of Consumer Staples & Utilities ETFs as the market started to drop in October, as a hedge against further drops. Also bc those 2 sectors are pretty underrepresented vs. tech in the main market indices. So thought, what the hell, will increase a small portion of my position in them.

NS_Bane
Posts: 8
Joined: Sat Mar 17, 2018 12:27 pm

Re: anyone buying individual stocks or sector ETF's?

Post by NS_Bane » Sun Nov 18, 2018 11:07 pm

boglechu wrote:
Sun Nov 18, 2018 9:14 pm
37 yo. Married. income 500k/year.

In my taxable (since 2018) [241k]
vtsax: 95k (@ 66.56)
vti: 83k (@ 137.12)
apple: 46k (@ 201.50)
nvda: 16k ($63.72)
amazon: 16k ($1618.69)

roth IRA (since 2017) [10.9k]
qqq: 10.9k

401k (since 2016 + rollover) [106k]
schwab s&p: $83.3k (future each payroll is 70%)
dfa international core: 4.7k (future each payroll is 14%)
dfa emerging markets core equity 1: 1.8k (future each payroll is 6%)
janus henderson triton i: $2.5k (future each payroll is 6%)
vanguard mid cap: $5.5k (future each payroll is 4%)
dfa small cap: $8.2k (future each payroll is 0%)

I have 1 year of emergency funds saved in bank/money market up to 2.2%.

anyone buy individual stocks of sector etf now? I feel I haven't made much from the stock market. Bought into apple when it dropped but it dropped further. Just bought into nvda and amazon last week. I have another 50k to invest. Will probably just keep it in money market. Bonds haven't done so well.
I am not trying to be mean or rude. But I’m just wondering how you landed on this board if you’re thinking about timing the market and picking stocks when your investments are flat. I thought the alpha and omega of Bogleheads was to always buy index funds, rain or shine.

traveler901
Posts: 21
Joined: Wed Aug 02, 2017 3:50 am

Re: anyone buying individual stocks or sector ETF's?

Post by traveler901 » Mon Nov 19, 2018 4:45 am

I own a handful of individual stocks (6 total), roughly 3% of total portfolio value. I think it can be a good way to learn about the market and how individual stocks work. I like to think of it as educational if that makes sense. So far I am up on 3 and down on 3 but again none are very large bets.

If you are trying to beat the market with an individual stock long term, history would show that buying the largest company in the US isn't a very good play. I own 1 large cap but my other individual stocks are mid/small caps. I very likely won't buy any more individual stocks for quite some time. Lately I have been dumping all additional money for my taxable account into VTI.

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William Million
Posts: 560
Joined: Wed May 05, 2010 4:41 am
Location: A Deep Mountain

Re: anyone buying individual stocks or sector ETF's?

Post by William Million » Mon Nov 19, 2018 6:10 am

I engage in select market timing and stock picking. For instance, I'm buying foreign rather than US stocks (due to more attractive valuations), and I'll occasionally invest in a company that I believe will flourish over the next decade (such as a medical technology company).

However, mostly I'm in indexes.

UpperNwGuy
Posts: 1243
Joined: Sun Oct 08, 2017 7:16 pm

Re: anyone buying individual stocks or sector ETF's?

Post by UpperNwGuy » Mon Nov 19, 2018 7:29 am

Nope. I don't try to beat the market. I just buy the whole market without any slicing, dicing, or tilting. I use a three-fund portfolio.

Monster99
Posts: 114
Joined: Tue Aug 29, 2017 10:28 am

Re: anyone buying individual stocks or sector ETF's?

Post by Monster99 » Mon Nov 19, 2018 9:49 am

No. I have in the past when I was young and dumb. Now I invest in low cost, diverse index funds to reduce single stock risk. Pick a suitable stock/bond ratio, plow monies into tax deferred accounts and savor the magic of compounding....

Jack FFR1846
Posts: 8094
Joined: Tue Dec 31, 2013 7:05 am

Re: anyone buying individual stocks or sector ETF's?

Post by Jack FFR1846 » Mon Nov 19, 2018 9:53 am

You're stock picking. Stop it.
Bogle: Smart Beta is stupid

xenochrony
Posts: 53
Joined: Mon Mar 26, 2018 11:24 pm
Location: California

Re: anyone buying individual stocks or sector ETF's?

Post by xenochrony » Mon Nov 19, 2018 2:21 pm

Yes, a small % of total assets in 2 sector ETFs:

VDC (consumer staples) in a non-retirement, taxable account
VHT (health care) in IRA

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nisiprius
Advisory Board
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Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: anyone buying individual stocks or sector ETF's?

Post by nisiprius » Mon Nov 19, 2018 3:52 pm

In 'The Quest for Alpha,' p. 156, Larry Swedroe wrote:#17: Owning individual stocks and sector funds is more akin to speculating, not investing. The market compensates investors for risks that cannot be diversified away, like the risk of investing in stocks versus bonds. Investors shouldn't expect compensation for diversifiable risk--the unique risks related to owning one stock or sector or country fund. Prudent investors only accept risk for which they will be compensated with higher expected returns.
In the past, on about twelve occasions in my life, I've bought individual stocks. I also bought QQQ back in the dot-bomb era. Made money, too. I was stupid. I was lucky.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

hdas
Posts: 403
Joined: Thu Jun 11, 2015 8:24 am

Re: anyone buying individual stocks or sector ETF's?

Post by hdas » Mon Nov 19, 2018 4:01 pm

the only one I would consider buying (albeit lower), and hold a consistent alocation in taxable account is Biotech (XBI). However, I haven't done the homework about it. On the surface looks like a good play, low cost, broad exposure to very volatile sector but right tail friendly. H
Stay the course and buy some more.

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