Thinking of selling some SP 500 to buy more Wells Fargo

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HenrysPlan2
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Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Fri May 22, 2020 7:44 pm

Dear all, recently bought about $40k Wells forgo at $25.5 each. Since this stock have been beaten up so much and I am out of funds, I am thinking to sell $50k-$80k vanguard SP 500 on my tax to buy Wells Fargo. Compare to 2009, the bank stocks rised 3 times in 2-3 months just from March low, also Wells Fargo is too big to fail bank. Before I make the decision, I would like to have some inputs to avoid bad decisions. I am still down 15% this year since I moved the funds and sold off the total international and didn’t get back in right away.

dru808
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by dru808 » Fri May 22, 2020 7:49 pm

You aren’t getting any confirmation to go for it here at bogleheads.
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rob
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by rob » Fri May 22, 2020 7:50 pm

What could go wrong....
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

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anon_investor
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by anon_investor » Fri May 22, 2020 7:50 pm

Bad plan. Sell your Wells Fargo stock, write off the loss for taxes and buy more of your Vanguard S&P500 index fund.

buhlaxtus
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by buhlaxtus » Fri May 22, 2020 7:56 pm

^^^^ this
HenrysPlan2 wrote:
Fri May 22, 2020 7:44 pm
I would like to have some inputs to avoid bad decisions.
The input is, don't speculate on single stocks.

Triple digit golfer
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by Triple digit golfer » Fri May 22, 2020 7:58 pm

Not a good idea to sell off a highly diversified stock mutual fund for one company's stock. Time for HenrysPlan3.

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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Fri May 22, 2020 8:06 pm

SP 500 has risen so much while Wells Fargo Still near it’s 5 years time low with still 50% down. While the well Fargo will never go away, it’s a matter of time the stock goes back to $50 like couple if months ago? If not selling any SP 500, do you guy ms suggest to keep my current position and increase WFC for any new money?

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JoMoney
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by JoMoney » Fri May 22, 2020 8:06 pm

If you're going to actively invest, I think you need both an edge other's don't have, and the fortitude to go it based on your own information.
I don't think most people should actively invest, but soliciting the opinions of everyone else on how you should go about actively investing seems like an especially bad way to do it.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by Triple digit golfer » Fri May 22, 2020 8:15 pm

HenrysPlan2 wrote:
Fri May 22, 2020 8:06 pm
SP 500 has risen so much while Wells Fargo Still near it’s 5 years time low with still 50% down. While the well Fargo will never go away, it’s a matter of time the stock goes back to $50 like couple if months ago? If not selling any SP 500, do you guy ms suggest to keep my current position and increase WFC for any new money?
I suggest you sell all individual stock holdings immediately and invest the money into index funds.

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arcticpineapplecorp.
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by arcticpineapplecorp. » Fri May 22, 2020 8:16 pm

HenrysPlan2 wrote:
Fri May 22, 2020 8:06 pm
SP 500 has risen so much while Wells Fargo Still near it’s 5 years time low with still 50% down. While the well Fargo will never go away,
So just because the phrase is buy low, sell high doesn't mean you should just buy anything that's low.

If the S&P500 went up but wells hasn't in 5 years, doesn't that tell you something about that company?

The well fargo will never go away? First off, if I had a dollar for everytime someone said that about a company that doesn't exist anymore...
Secondly, perhaps they should go away. Are you aware of all the misteps, misdeeds, poor judgements, and basically fraud (they settled without admitting wrongdoing) over many many years:

https://www.google.com/search?client=fi ... ells+fargo

Bogle used to talk about character and business. They should be tied together. Wells has demonstrated their character again and again. Be careful of the company you keep. Happy investing! (or unhappy speculation)
Last edited by arcticpineapplecorp. on Fri May 22, 2020 9:12 pm, edited 1 time in total.
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by frugalecon » Fri May 22, 2020 8:19 pm

I honestly wonder if this type of post is just a troll and should be ignored. Why should someone who hasn’t bothered to understand the orientation of the forum be taken seriously?

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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Fri May 22, 2020 9:05 pm

I don’t think that’s right and nice for you ignore people, if you can be silent if you don’t like the post. But a lot of newbies wants valuable opinion from the forum. It’s an investing forum that share opinions.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by dru808 » Fri May 22, 2020 9:07 pm

frugalecon wrote:
Fri May 22, 2020 8:19 pm
I honestly wonder if this type of post is just a troll and should be ignored. Why should someone who hasn’t bothered to understand the orientation of the forum be taken seriously?
+1, I can kinda understand a new member asking, the op has been a boglehead forum member for 4 years now.
60% US equity | 25% International equity | 15% US Treasury bonds

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arcticpineapplecorp.
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by arcticpineapplecorp. » Fri May 22, 2020 9:10 pm

frugalecon wrote:
Fri May 22, 2020 8:19 pm
I honestly wonder if this type of post is just a troll and should be ignored. Why should someone who hasn’t bothered to understand the orientation of the forum be taken seriously?
because everyone needs help now and again. In 2016 the OP wrote:
HenrysPlan2 wrote:
Wed Dec 07, 2016 3:54 pm
We have $800k now and $900k more next year with sale of 2 investment properties out if 5. So need to invest $1.7m. I have a question would the bond ever lose money ? Or is bond with guaranteed return?
and
HenrysPlan2 wrote:
Wed Dec 07, 2016 10:04 pm
I have a regular job earning about $230k per year, so I don't need the fund and can invest for long term. We live below our mean, I would say $1.5m can be invested until we retire. However the money will be invest in taxable account
just because people have money doesn't mean they don't need help.
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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Fri May 22, 2020 9:11 pm

dru808 wrote:
Fri May 22, 2020 9:07 pm
frugalecon wrote:
Fri May 22, 2020 8:19 pm
I honestly wonder if this type of post is just a troll and should be ignored. Why should someone who hasn’t bothered to understand the orientation of the forum be taken seriously?
+1, I can kinda understand a new member asking, the op has been a boglehead forum member for 4 years now.
Thanks, again you don’t have to reply if you don’t like to discuss with this issue or if you don’t like to give your opinion.
Last edited by HenrysPlan2 on Fri May 22, 2020 9:16 pm, edited 2 times in total.

dru808
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by dru808 » Fri May 22, 2020 9:14 pm

HenrysPlan2 wrote:
Fri May 22, 2020 9:11 pm
dru808 wrote:
Fri May 22, 2020 9:07 pm
frugalecon wrote:
Fri May 22, 2020 8:19 pm
I honestly wonder if this type of post is just a troll and should be ignored. Why should someone who hasn’t bothered to understand the orientation of the forum be taken seriously?
+1, I can kinda understand a new member asking, the op has been a boglehead forum member for 4 years now.
Thanks, again you don’t have to reply if you don’t like to discuss with this issue or if you don’t like to give your opinion
Sure,I apologize. for future reference you aren’t going to get a good response and or the response you want at bogleheads if you’re asking about buying single stocks or market timing. again, sorry
60% US equity | 25% International equity | 15% US Treasury bonds

dru808
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by dru808 » Fri May 22, 2020 9:16 pm

HenrysPlan2 wrote:
Fri May 22, 2020 8:06 pm
SP 500 has risen so much while Wells Fargo Still near it’s 5 years time low with still 50% down. While the well Fargo will never go away, it’s a matter of time the stock goes back to $50 like couple if months ago? If not selling any SP 500, do you guy ms suggest to keep my current position and increase WFC for any new money?
What makes you think Wells Fargo can never fail?
60% US equity | 25% International equity | 15% US Treasury bonds

Ferdinand2014
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by Ferdinand2014 » Fri May 22, 2020 9:17 pm

I would never consider your proposed plan. If it were me, I would never consider owning individual stocks and would instead continue to hold the S&P 500 fund.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

annu
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by annu » Fri May 22, 2020 9:18 pm

Atleast look into the the financial ETF, https://investor.vanguard.com/etf/profile/portfolio/vfh

It has your wells fargo and more funds. :sharebeer

mervinj7
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by mervinj7 » Fri May 22, 2020 9:22 pm

Sell WF, buy more VTI.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by pkcrafter » Fri May 22, 2020 9:22 pm

HenrysPlan2 wrote:
Fri May 22, 2020 9:05 pm
I don’t think that’s right and nice for you ignore people, if you can be silent if you don’t like the post. But a lot of newbies wants valuable opinion from the forum. It’s an investing forum that share opinions.
+1 Henry regarding previous post. However, to answer your question, I'll mention that there are 3 kinds of information:
Insider information, Little known information, widely known information. Ask yourself which group you are in. The takeaway is Wells Fargo is not really an obvious screaming buy. Secondly, what you are doing is not in the Bogleheads game plan.
Posters will tell you what they think, but if you are really looking for support you will have to go to another website.
I am still down 15% this year since I moved the funds and sold off the total international and didn’t get back in right away.
You would not be down that far if you had simply held.

regards,

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

dukeblue219
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by dukeblue219 » Fri May 22, 2020 9:22 pm

Everything else has risen a bunch since March. Wells is just sitting there. Did the market suddenly forget about one of the largest banks in America, or does it know a lot more about Wells than you do?

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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Fri May 22, 2020 9:25 pm

I agree, I really want to hold the index fund. Probably buy more index instead of WFC And to keep the Current WFC positions. Maybe I am not a bogelhead, I still not convinced with SP 500 almost retaken it’s lost, while WFC still 50% off would be a bad investment, my way of thinking is once the covid thing goes away, WFC will reach $50 again hopefully early next year. But for SP500 to increase 100% is hard. I will go back to this thread next year and see what happens.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by SevenBridgesRoad » Fri May 22, 2020 10:34 pm

HenrysPlan2 wrote:
Fri May 22, 2020 9:25 pm
I agree, I really want to hold the index fund. Probably buy more index instead of WFC And to keep the Current WFC positions. Maybe I am not a bogelhead, I still not convinced with SP 500 almost retaken it’s lost, while WFC still 50% off would be a bad investment, my way of thinking is once the covid thing goes away, WFC will reach $50 again hopefully early next year. But for SP500 to increase 100% is hard. I will go back to this thread next year and see what happens.
You are courageous to post such a plan on BH Forum. I too thought it might be trolling at first. But I think you are serious. I admire the courage to post your heretical plan here. Doesn't mean I agree with your plan. Individual stock. Timing. I dunno...

Please report back over the years.
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by drk » Fri May 22, 2020 10:49 pm

Wells Fargo was a bad investment before the Fed re-adopted a ZIRP for the foreseeable future. Now it's even worse. Sell it, or at least resist the urge to buy more.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by Scatterbrain » Fri May 22, 2020 10:54 pm

Wells is priced where it is for a reason.

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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Fri May 22, 2020 11:01 pm

Warren Buffett said stock “short term is voting machine, long term is weighting machine”

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anon_investor
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by anon_investor » Fri May 22, 2020 11:30 pm

HenrysPlan2 wrote:
Fri May 22, 2020 11:01 pm
Warren Buffett said stock “short term is voting machine, long term is weighting machine”
Warren Buffet also recommends an S&P500 index fund to most investors...

viewtopic.php?t=315596

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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Fri May 22, 2020 11:37 pm

Also can’t ignore the Div yield of 8.44%. I know they might decrease it , but still will be better yield than 500

gips
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by gips » Sat May 23, 2020 12:35 am

if you had $1.7mm in 2016 to invest after selling 2 of 5 investment properties, i’m guessing this is a small piece of your portfolio. so if the investment is less than 1 percent of your total net worth and you think it’s the right move, go for it!

from a theory pov, the US market is very efficient, news, risk and return is reflected in wells’ price. i spent many years consulting for asset and wealth managers. the typical portfolio manager i worked with attended a top school and held an advanced degree. they have access to top research and computer analysis. they spend all day, every day analyzing and picking stocks yet their portfolios and funds rarely beat the broad index on a risk adjusted basis.

you think you can do better? why?

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by muffins14 » Sat May 23, 2020 12:42 am

It’s ridiculous to buy it for the reason that it has a high current yield.

Would also recommend not telling the people who are sharing advice that they “can just be quiet” when they disagree with you, since the advice to avoid more concentration in one random bank stock is probably very good advice.

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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Sat May 23, 2020 1:14 am

I only have $600k invested now.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HawkeyePierce » Sat May 23, 2020 1:20 am

HenrysPlan2 wrote:
Fri May 22, 2020 11:37 pm
Also can’t ignore the Div yield of 8.44%. I know they might decrease it , but still will be better yield than 500
A dividend is a tax-inefficient way to move money you already own from one pocket to the other. The company is paying out money to shareholders that is already owned by those shareholders.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by quadog » Sat May 23, 2020 1:29 am

You are asking the wrong questions. The question you should be asking is “how can I improve myself as an investor?”. Go to the site wiki and start reading. Your mind will be blown.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by Nastywarnob » Sat May 23, 2020 6:36 am

I view WFC as a boom or bust play. If it recovers to par with its peers...high upside. If it maintains it’s dividend (highly unlikely), great yield. I personally don’t make boom or bust plays with my investment portfolio. I win with market returns and a higher savings rate.

Bogleheads....can I get an amen?

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by abuss368 » Sat May 23, 2020 6:56 am

anon_investor wrote:
Fri May 22, 2020 7:50 pm
Bad plan. Sell your Wells Fargo stock, write off the loss for taxes and buy more of your Vanguard S&P500 index fund.
Agreed. What could possibly go wrong with owning an individual bank stock?
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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anon_investor
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by anon_investor » Sat May 23, 2020 7:22 am

abuss368 wrote:
Sat May 23, 2020 6:56 am
anon_investor wrote:
Fri May 22, 2020 7:50 pm
Bad plan. Sell your Wells Fargo stock, write off the loss for taxes and buy more of your Vanguard S&P500 index fund.
Agreed. What could possibly go wrong with owning an individual bank stock?
Or any individual stock for that matter...

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by frugalecon » Sat May 23, 2020 7:27 am

dru808 wrote:
Fri May 22, 2020 9:14 pm
HenrysPlan2 wrote:
Fri May 22, 2020 9:11 pm
dru808 wrote:
Fri May 22, 2020 9:07 pm
frugalecon wrote:
Fri May 22, 2020 8:19 pm
I honestly wonder if this type of post is just a troll and should be ignored. Why should someone who hasn’t bothered to understand the orientation of the forum be taken seriously?
+1, I can kinda understand a new member asking, the op has been a boglehead forum member for 4 years now.
Thanks, again you don’t have to reply if you don’t like to discuss with this issue or if you don’t like to give your opinion
Sure,I apologize. for future reference you aren’t going to get a good response and or the response you want at bogleheads if you’re asking about buying single stocks or market timing. again, sorry
I apologize as well, my comment was snarky, and I could have just kept quiet. But to the OP, I would suggest spending some time studying the wiki to gain an understanding of the investment principles summarized there. That would help you understand the orientation of the people you are asking for advice. It might be that there are other forums that could offer more suitable advice for the kinds of questions you have,

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by J295 » Sat May 23, 2020 7:31 am

Here’s a different take on analysis of a Wells Fargo investment… I do not support the way they run their business, and it’s more than just the fiasco a couple of years ago with the fake accounts, so for that reason alone I would not make a investment in WFC .... by way of further example, I would not make an individual stock investment in a tobacco company…

I understand this may or may not be motivators for other investors, but I know it is for me.

Sure, I have exposure to those and other business interests in my index funds, and I have no problem with same, but you were asking about an individual company stock investment

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by abuss368 » Sat May 23, 2020 7:36 am

anon_investor wrote:
Sat May 23, 2020 7:22 am
abuss368 wrote:
Sat May 23, 2020 6:56 am
anon_investor wrote:
Fri May 22, 2020 7:50 pm
Bad plan. Sell your Wells Fargo stock, write off the loss for taxes and buy more of your Vanguard S&P500 index fund.
Agreed. What could possibly go wrong with owning an individual bank stock?
Or any individual stock for that matter...
Exactly. I have not owned individual stocks in over 12 years. Had some huge winners and bad losses. But everyone only wants to talk about winners at the party!

Own a total market index fund or the S&P 500.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

smalliebigs
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by smalliebigs » Sat May 23, 2020 7:38 am

It's your money, do what you want.

Bratbill
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by Bratbill » Sat May 23, 2020 8:18 am

Often wonder what Bogle would think with Bond rates so low?
But if I had Wells Fargo in my play account...I’d be far less worried about it getting back to 50’s ...more concerned about the dividend....even if they cut in half.....I’d love that 4% 😀

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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Sat May 23, 2020 12:24 pm

I am preparing to sell one of my investments Propety, so Wells Fargo is kind of play money for now. By taking the advice, mostly I will not increase the position. But after the sale of the property, it will be a difficult choice again for the courage to put all the money to the market
Also my plan is to sell Wells Fargo once it recover to near $45, hopefully I hold it a year to offset my lost(tax hervest in March for a big lost).

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by Gustav » Sat May 23, 2020 12:53 pm

J295 wrote:
Sat May 23, 2020 7:31 am
Here’s a different take on analysis of a Wells Fargo investment… I do not support the way they run their business, and it’s more than just the fiasco a couple of years ago with the fake accounts, so for that reason alone I would not make a investment in WFC .... by way of further example, I would not make an individual stock investment in a tobacco company…

I understand this may or may not be motivators for other investors, but I know it is for me.
I agree with J295. When I have a choice to do so, I try not to separate my investment decisions from what is important to me ethically. I know it’s sometimes controversial to conflate personal values and investing, but for me it is a factor that I consider. For that reason I would avoid WFC based on the company’s record of business practices that have been documented in the press and in the courts.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by cinghiale » Sat May 23, 2020 1:07 pm

OP, Please help me with something. From where (within the United States?) are you writing? Forgive me, but I cannot get past your... oh, let’s say... struggling grammar. I cannot divorce it from your advocacy of your I’m-going-to-hit-a-homerun-on-this-stock buying strategy. Are your writing and investing from within the USA?
"We don't see things as they are; we see them as we are." Anais Nin | | "Sometimes the first duty of intelligent men is the restatement of the obvious." George Orwell

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HenrysPlan2
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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Sat May 23, 2020 1:31 pm

cinghiale wrote:
Sat May 23, 2020 1:07 pm
OP, Please help me with something. From where (within the United States?) are you writing? Forgive me, but I cannot get past your... oh, let’s say... struggling grammar. I cannot divorce it from your advocacy of your I’m-going-to-hit-a-homerun-on-this-stock buying strategy. Are your writing and investing from within the USA?
Yes I am in the USA. I think a lot of people invested individual stocks, but a lot more people investing in indexes now. I think Wells Fargo has changed leadership, they didn’t do anything very bad but just created some fake accounts. All companies are here for profit,morally I don’t see too much issues knowing they already been panalized.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by deltaneutral83 » Sat May 23, 2020 1:41 pm

HenrysPlan2 wrote:
Sat May 23, 2020 1:31 pm


Yes I am in the USA. I think a lot of people invested individual stocks, but a lot more people investing in indexes now. I think Wells Fargo has changed leadership, they didn’t do anything very bad but just created some fake accounts. All companies are here for profit,morally I don’t see too much issues knowing they already been panalized.
I don't think Bogleheads is going to be able to offer you too much. Trading single stocks from a retail perspective (meaning you read Yahoo finance and watch CNBC) has a consistent percentage success rate without a whole number in front of the decimal. Even the professional space with world class research and 16 monitors and many letters after their name would struggle to achieve 1% as far as alpha over the course of 30 years. And you have 0% chance of identifying that in advance. Stay away from single stocks and most definitely stay away from consistently playing single stocks over decades.

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Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by retired@50 » Sat May 23, 2020 1:43 pm

HenrysPlan2 wrote:
Sat May 23, 2020 1:31 pm
cinghiale wrote:
Sat May 23, 2020 1:07 pm
OP, Please help me with something. From where (within the United States?) are you writing? Forgive me, but I cannot get past your... oh, let’s say... struggling grammar. I cannot divorce it from your advocacy of your I’m-going-to-hit-a-homerun-on-this-stock buying strategy. Are your writing and investing from within the USA?
Yes I am in the USA. I think a lot of people invested individual stocks, but a lot more people investing in indexes now. I think Wells Fargo has changed leadership, they didn’t do anything very bad but just created some fake accounts. All companies are here for profit,morally I don’t see too much issues knowing they already been panalized.
You should read the links in this post if you think Wells Fargo "didn't do anything very bad". See link.

viewtopic.php?f=1&t=314896&p=5251577&hi ... r#p5251577

Regards,
Last edited by retired@50 on Sat May 23, 2020 1:48 pm, edited 1 time in total.
This is one person's opinion. Nothing more.

magicrat
Posts: 971
Joined: Sat Nov 29, 2014 7:04 pm

Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by magicrat » Sat May 23, 2020 1:46 pm

Could you post a link to your valuation model? Would be easier to give feedback if we can see your numbers and assumptions.

Topic Author
HenrysPlan2
Posts: 108
Joined: Tue Dec 06, 2016 9:19 pm

Re: Thinking of selling some SP 500 to buy more Wells Fargo

Post by HenrysPlan2 » Sat May 23, 2020 1:51 pm

deltaneutral83 wrote:
Sat May 23, 2020 1:41 pm
HenrysPlan2 wrote:
Sat May 23, 2020 1:31 pm


Yes I am in the USA. I think a lot of people invested individual stocks, but a lot more people investing in indexes now. I think Wells Fargo has changed leadership, they didn’t do anything very bad but just created some fake accounts. All companies are here for profit,morally I don’t see too much issues knowing they already been panalized.
I don't think Bogleheads is going to be able to offer you too much. Trading single stocks from a retail perspective (meaning you read Yahoo finance and watch CNBC) has a consistent percentage success rate without a whole number in front of the decimal. Even the professional space with world class research and 16 monitors and many letters after their name would struggle to achieve 1% as far as alpha over the course of 30 years. And you have 0% chance of identifying that in advance. Stay away from single stocks and most definitely stay away from consistently playing single stocks over decades.
Thank you, this is the answer I was looking for to “why I will lost”. It’s very helpful and appreciate it. So buying individual stocks will mostly lose Or earn less over a long term? Also I know Wells Fargo is the 5th largest holding of Warren Buffett

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