Rick Ferri says to put aside something for "Bingo Money"

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Topic Author
boglehooligan
Posts: 21
Joined: Mon Mar 23, 2020 11:38 am

Rick Ferri says to put aside something for "Bingo Money"

Post by boglehooligan »

Curious to know what stocks (or Bingo money) you currently hold? :beer
HomeStretch
Posts: 5383
Joined: Thu Dec 27, 2018 3:06 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by HomeStretch »

What is “Bingo money”?

ETA: Thanks, Wiggums! OP, sorry I have nothing for you. I’m a boring “3-funder”. :happy
Last edited by HomeStretch on Wed Mar 25, 2020 1:46 pm, edited 1 time in total.
User avatar
Wiggums
Posts: 3121
Joined: Thu Jan 31, 2019 8:02 am

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Wiggums »

This maybe the reference:

Appendix #2
Stock Picking as a Hobby

This book has taken all the fun out of investing in the stock market, so now let’s put some back in. Appendix #2 refers to stock picking as a hobby, which I believe it should be. To make stock picking a hobby, you need a small brokerage account funded with money that will not make or break you. It is just as exciting and more fun playing the market with a little bit of money than with a large portion of your savings.

I have a small account that I call “bingo money” in memory of my late Grandma Ferri. While washing clothes, she frequently found spare change in my grandfather’s pants. That money went into a special jar labeled BINGO MONEY. Every Monday night she took the jar to the local church to play bingo. She never won a lot, she never lost a lot, but she had a great time.
Your BINGO account should be funded specifically for the purpose of choosing stocks. And playing the market should be limited to the small amount of money in the account. I suggest opening an account with a witty stockbroker, someone who is pleasant to talk to and will pick up the phone when you call. Don’t worry about paying regular commissions rates. The cost of commission is your least worry in this account. You will have a hard enough time trying to pick a few winners. Inform your broker you have no interest in buying packaged products or insurance. That way you will not be approached with the latest limited partnership or other investment gimmick.

When you are ready to invest there are thousands of stock strategies to try. You can buy growth, value, small-cap, momentum, it really does not matter, and chances are you will flip from one strategy to another over time. Of course it is always better to stick with one strategy. That is how truly gifted stock investors become wealthy. But 99.9% of stock investors are not gifted, and their chance of success in any strategy is slim. Therefore, I recommend trying different ideas until you find a style you enjoy and understand. I do not recommend trading futures or options since the money can disappear quickly.
Sidney
Posts: 6751
Joined: Thu Mar 08, 2007 6:06 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Sidney »

I don't play games with money.
I always wanted to be a procrastinator.
rockonhumblepie
Posts: 148
Joined: Fri Jan 04, 2013 1:51 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by rockonhumblepie »

For some that is now eats or treats around the house money.

When we are huckered down got to have heathy snacks.

Pay for Costco 2day delivery service that takes 10 days.

I know what Mr Rick is saying there will be bargins to be had.

Sticking to my plan till the cows come home.



Be safe and keep the home front happy as possible. 8-) Music feeds the soul
new2bogle
Posts: 1627
Joined: Fri Sep 11, 2009 2:05 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by new2bogle »

Was thinking about BA, but missed that boat. I believe it has a lot further down to go though, even after today's rise.
michaeljc70
Posts: 7383
Joined: Thu Oct 15, 2015 3:53 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by michaeljc70 »

new2bogle wrote: Wed Mar 25, 2020 2:03 pm Was thinking about BA, but missed that boat. I believe it has a lot further down to go though, even after today's rise.
I seriously contemplated buying BA last week when it was close to 90 :oops:. Could have made 80% in less than a week. I guess I stayed the course and stuck with my 3 funds. :annoyed
GibsonL6s
Posts: 372
Joined: Tue Aug 29, 2017 12:17 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by GibsonL6s »

I had my Bingo money in a leverage mortgage ETF paying a 22% yield until it lost 99% of its value and evaporated. I think I agree with the don't play games with money posted above. :(
User avatar
22twain
Posts: 2647
Joined: Thu May 10, 2012 5:42 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by 22twain »

boglehooligan wrote: Wed Mar 25, 2020 1:32 pm Curious to know what stocks (or Bingo money) you currently hold? :beer
Around here it's usually called "play money" or "fun money". Plug those into the search box at top right and see what you get. We often have threads about it.

I don't do it myself. I have other hobbies.
Help save endangered words! When you write "princiPLE", make sure you don't really mean "princiPAL"!
Dottie57
Posts: 9543
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Dottie57 »

My allotment of bingo money goes to an occasional (1 per month) lottery ticket. Not willing to spend more than $2 a month.
jeff1949
Posts: 822
Joined: Mon Mar 05, 2007 10:43 am
Location: Salem, OR

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by jeff1949 »

We haven't bought any single company stocks since about year 2001 when we lost a big chunk with ENRON. That is until the wife (who has never shown any interest in investing whatsoever) said we should buy some Carnival Cruise Lines stock because she happened to see it was tanking. I had just opened a Chase Sapphire account to get the $1000 bonus and we therefore had access to their "You Invest" brokerage. Long story short and just for fun we purchased 100 shares of CCL at a limit order of $8.00 (52 week high was something like $56) and today it is worth $15.55. Yee haw...I must be a genius! LOLOL
jdb
Posts: 1698
Joined: Wed Dec 05, 2012 8:21 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by jdb »

I move my Vanguard settlement funds when accumulate into the Prime Money Market Account to keep me from impulsive individual stock purchases. If want to buy individual stocks have to first transfer monies to settlement account, takes a day. By that time I have changed my mind. Will stay on the sideline, just a passive observer, any tax loss harvest and rebalancing back to my 50-50 allocation would be in mid December. Good luck.
EnjoyIt
Posts: 5319
Joined: Sun Dec 29, 2013 8:06 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by EnjoyIt »

How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
A time to EVALUATE your jitters: | https://www.bogleheads.org/forum/viewtopic.php?f=10&t=79939&start=400#p5275418
User avatar
anon_investor
Posts: 4341
Joined: Mon Jun 03, 2019 1:43 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by anon_investor »

My bingo money went into VGT (Vanguard Info Tech Sector Index ETF)...
User avatar
Sandtrap
Posts: 12367
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona
Contact:

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Sandtrap »

Having grown up "dirt poor", I have a curious attitude toward money and what it represents.
Thus, I will pick up a penny on the ground, etc, etc. . . and never gamble a dime.

j :happy
Wiki Bogleheads Wiki: Everything You Need to Know
User avatar
celia
Posts: 11826
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by celia »

jeff1949 wrote: Wed Mar 25, 2020 4:24 pm Long story short and just for fun we purchased 100 shares of CCL at a limit order of $8.00 (52 week high was something like $56) and today it is worth $15.55. Yee haw...I must be a genius! LOLOL
You may have caught a good purchase price for the moment, but what really matters is how much you sell it for in the future (if it is still in business then).
roka
Posts: 52
Joined: Mon Jan 27, 2014 11:06 am

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by roka »

Mostly for fun I took a small amount of our cash holdings and bought some dividend paying stocks. Of course I happened to invest about 2 weeks before the crash started. If it wasn’t for bad timing I wouldn't have any timing at all. :|
as9
Posts: 206
Joined: Mon Jan 27, 2020 9:26 am

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by as9 »

Honestly would rather gamble on sports.

The only individual stocks I own are in Robinhood and WeBull from their free stock promotions (combined value ~$100).
User avatar
Phineas J. Whoopee
Posts: 9675
Joined: Sun Dec 18, 2011 6:18 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Phineas J. Whoopee »

Sometimes Rick's advice is good. Sometimes it's terrible.
PJW
ARoseByAnyOtherName
Posts: 1000
Joined: Wed Apr 26, 2017 12:03 am

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by ARoseByAnyOtherName »

Phineas J. Whoopee wrote: Wed Mar 25, 2020 6:33 pm Sometimes Rick's advice is good. Sometimes it's terrible.
PJW
Sometimes Phineas J. Whoopee’s advice is good. Sometimes it’s terrible.
User avatar
Phineas J. Whoopee
Posts: 9675
Joined: Sun Dec 18, 2011 6:18 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Phineas J. Whoopee »

ARoseByAnyOtherName wrote: Wed Mar 25, 2020 7:04 pm
Phineas J. Whoopee wrote: Wed Mar 25, 2020 6:33 pm Sometimes Rick's advice is good. Sometimes it's terrible.
PJW
Sometimes Phineas J. Whoopee’s advice is good. Sometimes it’s terrible.
Agreed.

PJW
User avatar
arcticpineapplecorp.
Posts: 7013
Joined: Tue Mar 06, 2012 9:22 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by arcticpineapplecorp. »

That's odd coming from a guy who wrote a book called "Serious Money". But I guess there's your serious money, and then there's your bingo money.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
spae
Posts: 134
Joined: Tue Oct 08, 2019 9:29 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by spae »

.....
Last edited by spae on Wed Jul 15, 2020 2:22 am, edited 2 times in total.
AK_Kiter
Posts: 9
Joined: Mon Dec 28, 2015 6:12 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by AK_Kiter »

As a very young investor I had almost my entire portfolio in some "trendy" individual stocks. As a novice, I thought the solar industry was going to take the world by storm and I invested my entire savings from a summer internship into a basket of solar energy stocks. Several (ENER, ESLR) went bankrupt. Some (FSLR) lost over 90% of their value over time. When I realized I didn't know what I was doing (Nov-2008) I found Bogleheads and sold everything. I still think about how much all that would be worth if I had it in SPY in March 2009..

Anyway, I wouldn't allow any more "bingo money" until I had a sizable emergency fund, written an IPS and built up a stout BH portfolio. I set up a separate account for bingo money that is about 0.5% of my total investments, because I find it interesting, I wouldn't be devastated if it went to 0, and it allows me to avoid temptation to tweak any of the rest of my portfolio.

Right now that bingo money is almost all in CVX, XOM, and COP which I purchased over the past week (I sold my RDS.A shares today for a tidy profit). I don't believe that oil at $20's is sustainable, and someone (Russia or other) will eventually blink. As smaller oil firms inevitably go bankrupt, the supermajors will be able to pick up the pieces for pennies on the dollar. Some of these firms are trading at early 1990's prices, and could cut their dividend in half and still be yielding 5%.. I feel pretty good about their chances.
User avatar
whodidntante
Posts: 9580
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by whodidntante »

Sandtrap wrote: Wed Mar 25, 2020 5:42 pm Having grown up "dirt poor", I have a curious attitude toward money and what it represents.
Thus, I will pick up a penny on the ground, etc, etc. . . and never gamble a dime.

j :happy
It's better to gamble 10k instead of a dime. That way you give appropriate thought to your decisions. :wink:
User avatar
JonnyDVM
Posts: 2338
Joined: Wed Feb 12, 2014 6:51 pm
Location: Atlanta, GA

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by JonnyDVM »

My bingo money is currently in RC
I’d trade it all for a little more | -C Montgomery Burns
GoldenFinch
Posts: 2329
Joined: Mon Nov 10, 2014 11:34 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by GoldenFinch »

Sandtrap wrote: Wed Mar 25, 2020 5:42 pm Having grown up "dirt poor", I have a curious attitude toward money and what it represents.
Thus, I will pick up a penny on the ground, etc, etc. . . and never gamble a dime.

j :happy
This sounds familiar. Literally.

Wise too.
User avatar
JaneyLH
Posts: 528
Joined: Wed Oct 16, 2013 7:16 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by JaneyLH »

new2bogle wrote: Wed Mar 25, 2020 2:03 pm Was thinking about BA, but missed that boat. I believe it has a lot further down to go though, even after today's rise.
Mine was CCL (Carnival Cruises). Was $8 when I thought I should invest maybe $50-100K. Now $15.5. :oops: :oops: :oops:

But I was unsure and didn't want to be a market timer. Yea Bogleheads! :beer I'm still happy. :D
User avatar
Sandtrap
Posts: 12367
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona
Contact:

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Sandtrap »

GoldenFinch wrote: Wed Mar 25, 2020 8:05 pm
Sandtrap wrote: Wed Mar 25, 2020 5:42 pm Having grown up "dirt poor", I have a curious attitude toward money and what it represents.
Thus, I will pick up a penny on the ground, etc, etc. . . and never gamble a dime.

j :happy
This sounds familiar. Literally.

Wise too.
A story:
I didn't get paid working on the family farm. But, I did manage to collect refundable bottles from under the homes of distant neighbors and relatives, and in the weeds around old abandoned homes as I could find them. 5-10 cents a bottle at the grocery store when refunded. That's a lot of bottles over a very long time. That and any birthday or Christmas money went into an old wooden cigar box under my bed.

One day, a lot of relatives came over, a rare occasion as we lived out in the sticks. The "grown ups" were playing cards on the patio table and I looked on. They invited me into the game and asked if I had any loose change. I eagerly went into my cigar box and pulled out what I had, maybe 4-5 bucks worth at most. So, the grownups were playing for dimes and quarters. You can imagine how I, a little kid, pretended I was having a great time learning how to play poker with the grownups. The bitter taste of losing my hard earned coins on that grown up poker table never left my memory.

Actionably: while folks may casually discuss assets, portfolio size and allocations and emergency funds and watches and a "fun money allocation", its good to keep in mind that every dollar represents; a hard earned tip working as a waitress, the last hour of a double shift working as a dishwasher, and the efforts of life. (told to me by my depression era grandmother).

Now. . .. how much for a "bingo card"???
B5 . . . . I win!!!!

j :happy
Wiki Bogleheads Wiki: Everything You Need to Know
User avatar
abuss368
Posts: 23043
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by abuss368 »

Sandtrap wrote: Wed Mar 25, 2020 5:42 pm Having grown up "dirt poor", I have a curious attitude toward money and what it represents.
Thus, I will pick up a penny on the ground, etc, etc. . . and never gamble a dime.

j :happy
Very well said. I have not speculated with individual stocks in over 12 years and never plan to again. I would rather own the haystack with Total Stock and keep buying it.
John C. Bogle: “Simplicity is the master key to financial success."
User avatar
abuss368
Posts: 23043
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by abuss368 »

Jack Bogle in the excellent book "The Little Book of Common Sense Investing" advised that if investors really wanted a "funny money account" that it should represent no more than 5% of the portfolio. However, he also advised to compare it to your index fund portfolio of Total Stock and Total Bond.
John C. Bogle: “Simplicity is the master key to financial success."
User avatar
abuss368
Posts: 23043
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by abuss368 »

I have actually never heard Rick Ferri call it "Bingo Money".
John C. Bogle: “Simplicity is the master key to financial success."
michoco911
Posts: 136
Joined: Sun Jul 14, 2019 4:13 am

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by michoco911 »

abuss368 wrote: Wed Mar 25, 2020 8:58 pm Jack Bogle in the excellent book "The Little Book of Common Sense Investing" advised that if investors really wanted a "funny money account" that it should represent no more than 5% of the portfolio. However, he also advised to compare it to your index fund portfolio of Total Stock and Total Bond.
Thats my approach and it actually helps you stay the course because you will systematically apply your IPS for the rest of your portfolio and only consider yourself smart with that 5% or fixed amount.

I hold CSCO, VMW and XOM.
30% VWRD 30% VUSD 40% AGGG until further notice
jello_nailer
Posts: 343
Joined: Sun Apr 07, 2019 10:20 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by jello_nailer »

Sold deep ITM puts on LVS about 10 days ago. (in my play account)

:mrgreen:
tesuzuki2002
Posts: 1156
Joined: Fri Dec 11, 2015 12:40 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by tesuzuki2002 »

SPCE and BA Both are up Big since last Wednesday! :sharebeer
User avatar
birdog
Posts: 896
Joined: Fri Apr 07, 2017 1:35 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by birdog »

That’s great if you are able to do that and not be tempted to let it grow to a larger part of your portfolio. My IPS says, that due to past performance, I’m no longer allowed to buy an individual stock. I think my IPS is so mean but it says it’s just being strict because it loves me.
User avatar
Johnsson
Posts: 357
Joined: Mon Jul 17, 2017 2:28 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Johnsson »

EnjoyIt wrote: Wed Mar 25, 2020 5:09 pm How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
Bought 200 shares of RCL at 23 to get onboard credit during cruises. After some thought I rebalanced (with 2%) into it at 32.5.

Little to lose, much to gain. :greedy
'In theory there is no difference between theory and practice. In practice there is.' Yogi Berra
User avatar
JonnyDVM
Posts: 2338
Joined: Wed Feb 12, 2014 6:51 pm
Location: Atlanta, GA

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by JonnyDVM »

Johnsson wrote: Thu Mar 26, 2020 6:19 am
EnjoyIt wrote: Wed Mar 25, 2020 5:09 pm How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
Bought 200 shares of RCL at 23 to get onboard credit during cruises. After some thought I rebalanced (with 2%) into it at 32.5.

Little to lose, much to gain. :greedy
To be fair bankruptcy is certainly a possibility. But I’ll take my chances. We’re playing bingo remember.
I’d trade it all for a little more | -C Montgomery Burns
student
Posts: 5308
Joined: Fri Apr 03, 2015 6:58 am

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by student »

One potential benefit of having bingo/play/fun money is that many will find out that they are not one of the talented investors and abandon stock picking.
User avatar
birdog
Posts: 896
Joined: Fri Apr 07, 2017 1:35 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by birdog »

student wrote: Thu Mar 26, 2020 6:35 am One potential benefit of having bingo/play/fun money is that many will find out that they are not one of the talented investors and abandon stock picking.
Good point. I think it's important for stock pickers to accurately track their results and compare (over the long term) to indexing.
retiringwhen
Posts: 1978
Joined: Sat Jul 08, 2017 10:09 am
Location: New Jersey, USA

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by retiringwhen »

student wrote: Thu Mar 26, 2020 6:35 am One potential benefit of having bingo/play/fun money is that many will find out that they are not one of the talented investors and abandon stock picking.
That's what happened to me in the day-trading mania of the late '90s. (mine was just a relatively small amount, but underperformance of my lack of brilliance hurt double bad....) :oops:
User avatar
Johnsson
Posts: 357
Joined: Mon Jul 17, 2017 2:28 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Johnsson »

JonnyDVM wrote: Thu Mar 26, 2020 6:26 am
Johnsson wrote: Thu Mar 26, 2020 6:19 am
EnjoyIt wrote: Wed Mar 25, 2020 5:09 pm How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
Bought 200 shares of RCL at 23 to get onboard credit during cruises. After some thought I rebalanced (with 2%) into it at 32.5.

Little to lose, much to gain. :greedy
To be fair bankruptcy is certainly a possibility. But I’ll take my chances. We’re playing bingo remember.
I thought about Ford in 2009 when it was around a dollar and couldn't do it. I think RCL will get back to where they were (~130). Someone gave them a credit line of $2.2B. If someone with that kind of money thought they were worthy, who am I to disagree?
'In theory there is no difference between theory and practice. In practice there is.' Yogi Berra
3funder
Posts: 1513
Joined: Sun Oct 15, 2017 9:35 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by 3funder »

EnjoyIt wrote: Wed Mar 25, 2020 5:09 pm How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
I don't invest in individual stocks (outside the context of an index fund), but I can't stand the thought of anything so cyclical and dependent on the economy. I'm not saying you're necessarily wrong, though.
Global stocks, US bonds, and time.
michaeljc70
Posts: 7383
Joined: Thu Oct 15, 2015 3:53 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by michaeljc70 »

JonnyDVM wrote: Thu Mar 26, 2020 6:26 am
Johnsson wrote: Thu Mar 26, 2020 6:19 am
EnjoyIt wrote: Wed Mar 25, 2020 5:09 pm How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
Bought 200 shares of RCL at 23 to get onboard credit during cruises. After some thought I rebalanced (with 2%) into it at 32.5.

Little to lose, much to gain. :greedy
To be fair bankruptcy is certainly a possibility. But I’ll take my chances. We’re playing bingo remember.
I haven't even looked at it now as I really stick to my 3 fund portfolio, but in the financial crisis I made good $$$ on bonds of GM and Ford. I bought for pennies on the dollar. You have more protection than the stock (which garners no protection really) if they file for bankruptcy protection (which GM did). I still made good money on the GM bonds.
MnD
Posts: 4617
Joined: Mon Jan 14, 2008 12:41 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by MnD »

michaeljc70 wrote: Thu Mar 26, 2020 8:08 am
JonnyDVM wrote: Thu Mar 26, 2020 6:26 am
Johnsson wrote: Thu Mar 26, 2020 6:19 am
EnjoyIt wrote: Wed Mar 25, 2020 5:09 pm How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
Bought 200 shares of RCL at 23 to get onboard credit during cruises. After some thought I rebalanced (with 2%) into it at 32.5.

Little to lose, much to gain. :greedy
To be fair bankruptcy is certainly a possibility. But I’ll take my chances. We’re playing bingo remember.
I haven't even looked at it now as I really stick to my 3 fund portfolio, but in the financial crisis I made good $$$ on bonds of GM and Ford. I bought for pennies on the dollar. You have more protection than the stock (which garners no protection really) if they file for bankruptcy protection (which GM did). I still made good money on the GM bonds.
By the time of 08/09 my individual stock fund was a few percent of portfolio and i ascribed to the bingo money mentality.
I did the same on GM bonds but given that it took years to get the money back with all the warrants and other bondholder recovery steps that wound through bankruptcy court I calculated that by the time I "made" that good money, my overall returns were roughly the same as having those funds in an index fund. My other bingo play was buying Wachovia for next to nothing on a bet that they would be taken over retaining some shareholder value. Again that happened and I ended up with shares of Wells Fargo which recovered and I calculated that by the time I sold Wells I would have made _more_ money having put the initial investment in a stock index fund.

So that was the end to bingo money and this time there will be no bingo. I consider myself a good investor and my "plan" worked out in terms of the fundamentals (bondholder recovery for GM and retention of some shareholder value for Wachovia) unlike many other bingo players. But at the end of the day overall that money would have made more money in a stock index fund.
70/30 AA for life, Global market cap equity. Rebalance if fixed income <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.
michaeljc70
Posts: 7383
Joined: Thu Oct 15, 2015 3:53 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by michaeljc70 »

MnD wrote: Thu Mar 26, 2020 8:32 am
michaeljc70 wrote: Thu Mar 26, 2020 8:08 am
JonnyDVM wrote: Thu Mar 26, 2020 6:26 am
Johnsson wrote: Thu Mar 26, 2020 6:19 am
EnjoyIt wrote: Wed Mar 25, 2020 5:09 pm How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
Bought 200 shares of RCL at 23 to get onboard credit during cruises. After some thought I rebalanced (with 2%) into it at 32.5.

Little to lose, much to gain. :greedy
To be fair bankruptcy is certainly a possibility. But I’ll take my chances. We’re playing bingo remember.
I haven't even looked at it now as I really stick to my 3 fund portfolio, but in the financial crisis I made good $$$ on bonds of GM and Ford. I bought for pennies on the dollar. You have more protection than the stock (which garners no protection really) if they file for bankruptcy protection (which GM did). I still made good money on the GM bonds.
By the time of 08/09 my individual stock fund was a few percent of portfolio and i ascribed to the bingo money mentality.
I did the same on GM bonds but given that it took years to get the money back with all the warrants and other bondholder recovery steps that wound through bankruptcy court I calculated that by the time I "made" that good money, my overall returns were roughly the same as having those funds in an index fund. My other bingo play was buying Wachovia for next to nothing on a bet that they would be taken over retaining some shareholder value. Again that happened and I ended up with shares of Wells Fargo which recovered and I calculated that by the time I sold Wells I would have made _more_ money having put the initial investment in a stock index fund.

So that was the end to bingo money and this time there will be no bingo. I consider myself a good investor and my "plan" worked out in terms of the fundamentals (bondholder recovery for GM and retention of some shareholder value for Wachovia) unlike many other bingo players. But at the end of the day overall that money would have made more money in a stock index fund.
I sold the bonds at multiple of what I paid on the open market. I didn't wait for any warrants or any of that. I only owned the bonds a few months.
MnD
Posts: 4617
Joined: Mon Jan 14, 2008 12:41 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by MnD »

michaeljc70 wrote: Thu Mar 26, 2020 8:40 am
MnD wrote: Thu Mar 26, 2020 8:32 am
michaeljc70 wrote: Thu Mar 26, 2020 8:08 am
JonnyDVM wrote: Thu Mar 26, 2020 6:26 am
Johnsson wrote: Thu Mar 26, 2020 6:19 am

Bought 200 shares of RCL at 23 to get onboard credit during cruises. After some thought I rebalanced (with 2%) into it at 32.5.

Little to lose, much to gain. :greedy
To be fair bankruptcy is certainly a possibility. But I’ll take my chances. We’re playing bingo remember.
I haven't even looked at it now as I really stick to my 3 fund portfolio, but in the financial crisis I made good $$$ on bonds of GM and Ford. I bought for pennies on the dollar. You have more protection than the stock (which garners no protection really) if they file for bankruptcy protection (which GM did). I still made good money on the GM bonds.
By the time of 08/09 my individual stock fund was a few percent of portfolio and i ascribed to the bingo money mentality.
I did the same on GM bonds but given that it took years to get the money back with all the warrants and other bondholder recovery steps that wound through bankruptcy court I calculated that by the time I "made" that good money, my overall returns were roughly the same as having those funds in an index fund. My other bingo play was buying Wachovia for next to nothing on a bet that they would be taken over retaining some shareholder value. Again that happened and I ended up with shares of Wells Fargo which recovered and I calculated that by the time I sold Wells I would have made _more_ money having put the initial investment in a stock index fund.

So that was the end to bingo money and this time there will be no bingo. I consider myself a good investor and my "plan" worked out in terms of the fundamentals (bondholder recovery for GM and retention of some shareholder value for Wachovia) unlike many other bingo players. But at the end of the day overall that money would have made more money in a stock index fund.
I sold the bonds at multiple of what I paid on the open market. I didn't wait for any warrants or any of that. I only owned the bonds a few months.
I'd be curious what your cost and sale dates and prices were.
In my recollection the bonds went more or less straight down until bankruptcy and then stayed down and then not long after that stopped trading.
It's good you had a sales window but I would have been all over that. Was not looking to be a long-term holder of old GM! :mrgreen:
70/30 AA for life, Global market cap equity. Rebalance if fixed income <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.
soundwave
Posts: 49
Joined: Thu Jun 28, 2018 10:13 am
Location: USA

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by soundwave »

Sandtrap wrote: Wed Mar 25, 2020 5:42 pm Having grown up "dirt poor", I have a curious attitude toward money and what it represents.
Thus, I will pick up a penny on the ground, etc, etc. . . and never gamble a dime.

j :happy
Same here. Many pennies add up to dollars :moneybag
"Go placidly amid the noise and the haste..." Max Ehrmann
michaeljc70
Posts: 7383
Joined: Thu Oct 15, 2015 3:53 pm

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by michaeljc70 »

MnD wrote: Thu Mar 26, 2020 8:52 am
michaeljc70 wrote: Thu Mar 26, 2020 8:40 am
MnD wrote: Thu Mar 26, 2020 8:32 am
michaeljc70 wrote: Thu Mar 26, 2020 8:08 am
JonnyDVM wrote: Thu Mar 26, 2020 6:26 am

To be fair bankruptcy is certainly a possibility. But I’ll take my chances. We’re playing bingo remember.
I haven't even looked at it now as I really stick to my 3 fund portfolio, but in the financial crisis I made good $$$ on bonds of GM and Ford. I bought for pennies on the dollar. You have more protection than the stock (which garners no protection really) if they file for bankruptcy protection (which GM did). I still made good money on the GM bonds.
By the time of 08/09 my individual stock fund was a few percent of portfolio and i ascribed to the bingo money mentality.
I did the same on GM bonds but given that it took years to get the money back with all the warrants and other bondholder recovery steps that wound through bankruptcy court I calculated that by the time I "made" that good money, my overall returns were roughly the same as having those funds in an index fund. My other bingo play was buying Wachovia for next to nothing on a bet that they would be taken over retaining some shareholder value. Again that happened and I ended up with shares of Wells Fargo which recovered and I calculated that by the time I sold Wells I would have made _more_ money having put the initial investment in a stock index fund.

So that was the end to bingo money and this time there will be no bingo. I consider myself a good investor and my "plan" worked out in terms of the fundamentals (bondholder recovery for GM and retention of some shareholder value for Wachovia) unlike many other bingo players. But at the end of the day overall that money would have made more money in a stock index fund.
I sold the bonds at multiple of what I paid on the open market. I didn't wait for any warrants or any of that. I only owned the bonds a few months.
I'd be curious what your cost and sale dates and prices were.
In my recollection the bonds went more or less straight down until bankruptcy and then stayed down and then not long after that stopped trading.
It's good you had a sales window but I would have been all over that. Was not looking to be a long-term holder of old GM! :mrgreen:
Here are some of them (there were many trades):

Image

The gains do not include the interest paid to me (outside of a sale).
soundwave
Posts: 49
Joined: Thu Jun 28, 2018 10:13 am
Location: USA

Re: Rick Ferri says to put aside something for "Bingo Money"

Post by soundwave »

birdog wrote: Thu Mar 26, 2020 3:54 am That’s great if you are able to do that and not be tempted to let it grow to a larger part of your portfolio. My IPS says, that due to past performance, I’m no longer allowed to buy an individual stock. I think my IPS is so mean but it says it’s just being strict because it loves me.
I laughed out loud when I read this. Thanks for starting my day in such a great way :D
"Go placidly amid the noise and the haste..." Max Ehrmann
Post Reply