"Twenty Ways To Tell If You're A Lousy Investor"

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Taylor Larimore
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"Twenty Ways To Tell If You're A Lousy Investor"

Post by Taylor Larimore » Wed Dec 14, 2016 4:48 pm

Bogleheads:

George Sisti, editor of Vectors, is the author of one of the few e-mail publications I read. I hope you don't recognize yourself in this list:

TWENTY WAYS TO TELL IF YOU'RE A LOUSY INVESTOR

 You look at your portfolio more often than you wash your car.
 You talk about investing like it's something exciting; using smart sounding words that you probably can't define.
 You're a reactive, not pro-active investor - changing your portfolio allocation in response to the latest headlines.
 You spend more time focusing on what you can’t control instead of what you can control.
 You own individual stocks.
 You think that variable annuities are investments, not insurance products.
 You consider market volatility to be abnormal and believe that volatility and risk are synonymous.
 You let your political beliefs determine your portfolio allocation.
 You think that the financial media provides actionable information; not relatively useless entertainment.
 You cannot explain your portfolio's composition in 60 seconds or less.
 You are attracted to investments that promise returns that are too good to be true.
 You don’t understand that investment success is more about not making errors than hitting home runs.
 You think that complexity is the secret to successful investing when it's simplicity that you need.
 You are focused on the short-term even though successful investing can only be measured over the long-term.
 You are more interested in tactics than in long-term planning.
 You can't sit on your hands and do nothing during times of market volatility.
 You are overconfident. This comes from having an opinion about everything and confusing your opinions with insight.
 You 're optimistic at the wrong time. Optimism isn't tested during boom or normal times. The real optimist is someone who can stay positive during the bad times.
 You're constantly looking for shortcuts, seeking the non-existent Holy Grail of investing – an investment that yields stock market returns without stock market volatility.
 You chase past performance and own a portfolio that worked well last year but is unlikely to do so next year.

http://www.oncoursefp.com/files/Decembe ... 0final.pdf

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

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by mickeyd » Wed Dec 14, 2016 4:59 pm

Whew... I was afraid to read the list for fear that I'd find myself in there. I see that I am not guilty of any of that stuff, though I have flirted with some of them in the past.
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by McGilicutty » Wed Dec 14, 2016 5:12 pm

How does owning individual stocks make you a bad investor?

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by best2u » Wed Dec 14, 2016 5:15 pm

Fortunately some of us can learn from our mistakes. :happy
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by 5th_Dimension » Wed Dec 14, 2016 5:16 pm

I'm guilty of the first two, although the first one is really not fair because I never wash my car :shock:

That said I'm a new Boglehead so I look every day to educate myself and I'm excited to talk about it because I've been recently converted. :happy
Sometimes I feel like I'm waltzing in a 4/4 world.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Taylor Larimore » Wed Dec 14, 2016 5:17 pm

McGilicutty wrote:How does owning individual stocks make you a bad investor?
McGilicutty:

What Experts Say about Individual Stocks vs. Mutual Funds

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

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by nisiprius » Wed Dec 14, 2016 5:33 pm

Nice! Perhaps I think so because I did OK. I missed on two of them, though.

1) "You think that variable annuities are investments, not insurance products."

I think they're a hybrid product that includes an investment. I always thought of my TIAA-CREF variable annuity contracts as being essentially mutual-fund-like investments with a built-in goal of eventually buying an annuity.

2) "You consider market volatility to be abnormal..."
...no, I don't...
"...and believe that volatility and risk are synonymous."

According to Investopedia, Risk definition, Volatility definition:
Investopedia wrote:What is 'Risk'
Risk involves the chance an investment's actual return will differ from the expected return. Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment....

What is 'Volatility'
Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
That is within shouting distance of synonymous. Volatility is a kind of risk--and an important kind. Investopedia might not be the whole answer, but it's not crazy to think of volatility as risk.

I don't mind people saying I might be too risk-averse for my own good, but I hate it when people tell me that something isn't risky, because it isn't muculent and, you know, really, "risky" means "muculent."
Last edited by nisiprius on Wed Dec 14, 2016 5:38 pm, edited 2 times in total.
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by qwertyjazz » Wed Dec 14, 2016 5:36 pm

 You look at your portfolio more often than you wash your car.
I usually wait until it rains - so yes

 You talk about investing like it's something exciting; using smart sounding words that you probably can't define.
In previous threads realized, I cannot consistently define market timing, risk or low.

 You're a reactive, not pro-active investor - changing your portfolio allocation in response to the latest headlines.
I have been cured of that. Thank you Mr Larrimore and Bogleheads.

 You spend more time focusing on what you can’t control instead of what you can control.
I still watch the news.


 You let your political beliefs determine your portfolio allocation.
I have home country bias - so in a way yes.

 You think that the financial media provides actionable information; not relatively useless entertainment.
I just changed which media I read to Boglehead friendly ones

 You cannot explain your portfolio's composition in 60 seconds or less.
I really do not understand bond funds

 You are attracted to investments that promise returns that are too good to be true.
S$P 500 will average 8 percent a year for the next 50 years ...


 You are focused on the short-term even though successful investing can only be measured over the long-term.
I check my accounts every few weeks.

 You are more interested in tactics than in long-term planning.
Debating backdoor Roth and FF factor tilt


 You are overconfident. This comes from having an opinion about everything and confusing your opinions with insight.
I know I am an idiot


 You chase past performance and own a portfolio that worked well last year but is unlikely to do so next year.
See comments on SP500 and factor tilts

Invest we must - but I really do not like the choices.
G.E. Box "All models are wrong, but some are useful."

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by 260chrisb » Wed Dec 14, 2016 5:44 pm

Nineteen out of twenty isn't so bad!! [OT comments removed by admin LadyGeek]

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Taylor Larimore » Wed Dec 14, 2016 5:47 pm

260chrisb wrote:Nineteen out of twenty isn't so bad!! [OT comments removed by admin LadyGeek]
260chrisb:

Our mentor, Jack Bogle, likes to say: "Don't Peek."

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

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by billyo44 » Wed Dec 14, 2016 7:01 pm

Vectors is educational...a great monthly read. :thumbsup

Thanks (once again), Taylor
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Case59 » Wed Dec 14, 2016 7:16 pm

Whenever tempted to buy individual stocks, I recall the line I read somewhere on this forum: "Buying individual stocks is like volleying with the Williams sisters."
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by basr518 » Wed Dec 14, 2016 7:33 pm

This is pretentious nonsense. Follow your own style. As we can't predict what the stock or bond market will do tomorrow, it's safe to assume that investing in what you know (whether it's total market index funds or slicing or dicing, or tilting), is just as good even if it's against the crowd. I own individual stocks and I don't care that some think that foolish taking on extra risk with little reward. (I agree, it's my choice to tinker and I feel okay about that choice). I use this sight for reading about other people's thoughts on investing and finance. Most I find rewarding, but this is just "set of laws" feels obsurd and elitist. I will ignore, and invest according to my beliefs and values.


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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Grt2bOutdoors » Wed Dec 14, 2016 7:46 pm

Taylor Larimore wrote:
McGilicutty wrote:How does owning individual stocks make you a bad investor?
McGilicutty:

What Experts Say about Individual Stocks vs. Mutual Funds

Best wishes.
Taylor
I did not read the attached. I have to question the motivations of those associated with the asset management industry, they themselves could be guilty of bias especially when the hand that feeds them are those very investment vehicles they advocate so strongly for. Taylor - you yourself have said there are many roads to Dublin, I have no qualms with those who use a variety of methods so long as they are cognizant of the risks and willingly accept the outcomes whatever they may be. These lists by the experts are akin to name calling and remind me of classic schoolyard bullying tactics.
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Grt2bOutdoors » Wed Dec 14, 2016 7:47 pm

Case59 wrote:Whenever tempted to buy individual stocks, I recall the line I read somewhere on this forum: "Buying individual stocks is like volleying with the Williams sisters."
Will that remain the case when they retire?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by NOLA » Wed Dec 14, 2016 7:52 pm

Great article Taylor. Thanks for posting!

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Grt2bOutdoors » Wed Dec 14, 2016 7:53 pm

I take exception to the part of being a reactive investor. Guilty as charged, when the market makes a significant movement whether it was caused by headlines or not, such that my asset allocation deviates substantially from that stated in my IPS, I will and do take action, thereby preserving my gains and limiting my losses. On the forum we call it rebalancing. Too bad Mr. Sisti's rules don't seem to acknowledge the need for reaction, ought to hangout or read the forum posts. Headlines can and do move markets, one only need look at the 2008 headlines to understand what moves markets in a violent manner.
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by TinkerPDX » Wed Dec 14, 2016 8:00 pm

Grt2bOutdoors wrote:I take exception to the part of being a reactive investor. Guilty as charged, when the market makes a significant movement whether it was caused by headlines or not, such that my asset allocation deviates substantially from that stated in my IPS, I will and do take action, thereby preserving my gains and limiting my losses. On the forum we call it rebalancing. Too bad Mr. Sisti's rules don't seem to acknowledge the need for reaction, ought to hangout or read the forum posts. Headlines can and do move markets, one only need look at the 2008 headlines to understand what moves markets in a violent manner.
I expect most here would agree that having an IPS with an AA and rebalancing to the AA according to the IPS is not "reactive," it is following through on one's proactive plan.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Wakefield1 » Wed Dec 14, 2016 8:11 pm

I am guilty of most of the above
The Namesake of this Forum is guilty of at least one of them!

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by carguyny » Wed Dec 14, 2016 8:16 pm

Buffet's guilty as well, so it is probably better to be a lousy investor than not. Really just written as a broad list by a financial planner to market for new clients.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by goingup » Wed Dec 14, 2016 8:24 pm

I concur completely with that list! I'll admit to too much portfolio gazing but I'm gonna do better next year. :wink:

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Wakefield1 » Wed Dec 14, 2016 8:57 pm

Seriously something I don't think is so good is "dividend reinvestment plans" that automatically divert dividends from a stock holding into buying more shares of that same stock. In my earlier years at investing I had that,then realized it is a time bomb for concentrating the portfolio more and more into those few stocks. Got out of those plans,put the dividends into direct deposit and when the account has something to spare built up send a check to the mutual fund company. (When I first started buying those stocks I didn't know much about mutual funds except perhaps that they had "loads".)
Also creates a nightmare of keeping track for tax purposes of your "basis"(what you have paid for it/the shares) in that stock should you want to sell it.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by jhfenton » Wed Dec 14, 2016 9:26 pm

I wash my car once or twice a year. I look at my portfolio every single day.

But I don't feel the slightest bit guilty about it.

I enjoy looking at our investments. And with six separate periodic investments going in every two weeks, three of them invested manually, I don't really have any choice but to look anyway.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by obafgkm » Wed Dec 14, 2016 10:07 pm

Imageek2 wrote:I'm guilty of the first two, although the first one is really not fair because I never wash my car :shock:
Same here! I saw myself in the first two and got worried!

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by pkcrafter » Wed Dec 14, 2016 10:47 pm

Thanks, Taylor. It's a fair list of questionable behavior.

Grt2boutdoors wrote:
I take exception to the part of being a reactive investor. Guilty as charged, when the market makes a significant movement whether it was caused by headlines or not, such that my asset allocation deviates substantially from that stated in my IPS, I will and do take
action
I don't think you have to take exception to the rule. It states:
You're a reactive, not pro-active investor - changing your portfolio allocation in response to the latest headlines.
There's a big difference between getting in or out of equity in reaction to headlines and adjusting your allocation to a pre-established target when necessary.

Nisiprius! Muculent, huh. You made me look that up.

Slimy; moist, and moderately viscous.

The spelling made me suspicious, but now I feel like I better get some Mucinex. Clever how you got that word into a description of risk. And no, I didn't know muculent meant really risky, but now I won't be able to forget it.
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.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by FIREchief » Wed Dec 14, 2016 11:26 pm

jhfenton wrote:I wash my car once or twice a year. I look at my portfolio every single day.

But I don't feel the slightest bit guilty about it.

I enjoy looking at our investments. And with six separate periodic investments going in every two weeks, three of them invested manually, I don't really have any choice but to look anyway.
+1
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by criticalmass » Wed Dec 14, 2016 11:43 pm

nisiprius wrote:Nice! Perhaps I think so because I did OK. I missed on two of them, though.

1) "You think that variable annuities are investments, not insurance products."

I think they're a hybrid product that includes an investment. I always thought of my TIAA-CREF variable annuity contracts as being essentially mutual-fund-like investments with a built-in goal of eventually buying an annuity.
TIAA (formerly TIAA-CREF) variable annuities are much better than almost all other variable annuities. Many folks have them in a retirement program because they were the only option, and a relatively low fee option at that. You can certainly do a lot worse.

That said, TIAA now has a number of index mutual funds that are very similar to the index based variable annuities. Some of these (particularly some of the the large cap index funds) have very favorable fees, such as 0.05% or 0.06% in the institutional class.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Tamalak » Thu Dec 15, 2016 8:29 am

I'm guilty of a bunch of these!
Taylor Larimore wrote:You look at your portfolio more often than you wash your car. Almost daily. It's like an every day football game and the outcome is worth thousands to me! Thrilling! :sharebeer
 You talk about investing like it's something exciting Yes, and it is!!
 You spend more time focusing on what you can’t control instead of what you can control. What I can control, I already have. No need to focus on it any more
 You own individual stocks.Majority is indexed, but I keep the individual stocks my grandfather left me.
 You think that variable annuities are investments, not insurance products.You buy them and they produce money over time.. how's that not an investment?
 You are attracted to investments that promise returns that are too good to be true.Who isn't? I don't invest in them, but I'm not so smug and stolid that I can't dream a little :mrgreen:

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Dottie57 » Thu Dec 15, 2016 8:39 am

I don't accept #1 as definitive. There are times when I watch daily. The key is that I don't make changes based on what I see.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Snowjob » Thu Dec 15, 2016 8:40 am

Guilty of about 6, but I'll take the "lousy" results I've had any day of the week

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by livesoft » Thu Dec 15, 2016 8:46 am

Doing the opposite of these 20 things still doesn't make one a good investor.
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by riptide » Thu Dec 15, 2016 8:54 am

I am recovering from several of these on the list, and doing well. I can tell you my portfolio in 20 seconds.
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Beardog » Thu Dec 15, 2016 8:59 am

For a long time, I was a perfectly oblivious Boglehead. But, after a nightmare experience of identity theft a couple of years ago, I now check my bank accounts and portfolio almost everyday. No more just looking every few months for me. At 54 years old, semi-retired, and perfectly comfortable with my 4 fund portfolio's level of risk and amount of volatility, I feel zero guilt (and zero impulse to tinker) about checking in often!
Beardog

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Identity Theft ?

Post by Taylor Larimore » Thu Dec 15, 2016 9:07 am

Beardog wrote:For a long time, I was a perfectly oblivious Boglehead. But, after a nightmare experience of identity theft a couple of years ago, I now check my bank accounts and portfolio almost everyday. No more just looking every few months for me. At 54 years old, semi-retired, and perfectly comfortable with my 4 fund portfolio's level of risk and amount of volatility, I feel zero guilt (and zero impulse to tinker) about checking in often!
Beardog:

It will be helpful if you will you tell us how your "nightmare experience" affected your bank and investment accounts? Any advice?

Thank you and Happy Holiday!

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

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Da5id » Thu Dec 15, 2016 9:18 am

Taylor Larimore wrote:
260chrisb wrote:Damn man, you scared me on number one!! Nineteen out of twenty isn't so bad!! Hell I look all the time but just for fun.
260chrisb:

Our mentor, Jack Bogle, likes to say: "Don't Peek."

Best wishes.
Taylor
I think most of the list is a good idea, not sure about not checking relatively often. While I think not obsessing is good, have to say I think with the amount of identity theft in the marketplace logging in periodically to see that nothing is amiss is a good idea. Vanguard's online fraud policy (https://personal.vanguard.com/us/help/S ... ontent.jsp) says:
Review your accounts regularly.
Check your account frequently. Promptly and completely review all information we send you.
Report any errors or discrepancies in your account and any suspected unauthorized transactions or account changes to Vanguard immediately.
I look at my Vanguard account regularly (and after each transaction). I do the same for bank/credit cards etc. I probably don't need to for Vanguard so much, as I have all security turned on (two factor, text notification of all transactions, phone password, etc). But their policy says to check it "frequently" to be covered by their antifraud asset reimbursement policy.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by goingup » Thu Dec 15, 2016 9:34 am

One reason not to peek every day is it may affect your investing behavior, whether you realize it or not. Larry Swedroe wrote a very interesting article about the pitfalls of frequent peeking. http://www.etf.com/sections/index-inves ... nopaging=1

The upshot of his article is that frequent peeking may result in myopic loss aversion and short term thinking, ultimately causing an investor to become more conservative than they might otherwise be. Makes sense to me.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by jazman12 » Thu Dec 15, 2016 10:48 am

Is there a passing grade for this test and can we mark on a curve?
I do hold individual stocks that I bought many years ago. Even though I would prefer not to keep them in my portfolio, I would prefer to hold them (avoiding capital gains) until I can gift them to my children. I am otherwise employing a boglehead philosophy of and hold for the long term.
Act soon... time is running out

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by telemark » Thu Dec 15, 2016 11:34 am

Finally, an actionable thread! My car needs washing.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Random Poster » Thu Dec 15, 2016 12:13 pm

Taylor Larimore wrote:Our mentor, Jack Bogle, likes to say: "Don't Peek."
I may not peek, but I do gaze lovingly....

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by lazydavid » Thu Dec 15, 2016 12:27 pm

Grt2bOutdoors wrote:
Case59 wrote:Whenever tempted to buy individual stocks, I recall the line I read somewhere on this forum: "Buying individual stocks is like volleying with the Williams sisters."
Will that remain the case when they retire?
I'm pretty sure Michael Jordan is still a MUCH better basketball player than I am, and he retired almost 15 years ago.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by UndeadHead » Thu Dec 15, 2016 1:22 pm

I love posts like this, thank you for posting it. It reminds me that I am a recovering Lousy Investor. I'm guilty of a lot of them, especially the earlier ones. I wouldn't have developed a lot of the 'ways' without a lot of encouragement from the industry. I'm glad Jack Bogle decided to share what he learned with the average investor and provide us with the tools to act on our own. Thanks to those who have helped spread the word as well.

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by sreynard » Thu Dec 15, 2016 3:29 pm

telemark wrote:Finally, an actionable thread! My car needs washing.
It's raining here today, so I agree with you. :D

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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by MathWizard » Thu Dec 15, 2016 6:05 pm

Guilty of first and half of second.

1) I don't wash the car very often, and carefully monitor portfolio, though I rarely make changes
that are not rebalancing, or are due to life circumstances (getting older & decreasing equity %)

2) I find making money with a passive portfolio very exciting, but can explain everything that I am doing.
(My plan may not be optimal, but I understand it.)

bayview
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by bayview » Thu Dec 15, 2016 6:13 pm

Good grief. I look at my portfolio every day, out of curiosity. Sort of the same way that I stroll around my yard on summer evenings, looking at my garden. I don't yank out my plants, move them, plant new ones, etc. We have five whole funds (all index or nearly so, in the case of Treasuries) in Vanguard and three in TSP.

That "don't peek" bit is one of the sillier bits of advice I've ever read. If an investor is subject to hand-wringing and second-guessing, OK fine. Otherwise, I'll peek all I want.

By golly! 8-)
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

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triceratop
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by triceratop » Thu Dec 15, 2016 6:18 pm

I am proud to be a lousy investor: not only do I never wash my car but also I look at my portfolio (in spreadsheet form) every day.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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nedsaid
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by nedsaid » Thu Dec 15, 2016 6:22 pm

My take on the individual stocks are that they are more likely to detract from performance than add to performance. I have suggested ways on this forum to minimize the tracking error risk with individual stocks if you absolutely get the bug and decide you have to invest this way. My take is that the risks associated with owning individual stocks have been overstated, even by experts like Larry Swedroe and Dr. Bill Bernstein. But again, the odds are not in your favor with individual stocks and indexing is a much more efficient way to invest.
A fool and his money are good for business.

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catdude
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by catdude » Thu Dec 15, 2016 6:53 pm

Count me as yet another dude who's guilty of item #1 -- I never wash my car.
catdude | | "As much as cats fight, there always seems to be plenty of kittens." (Abraham Lincoln)

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FIREchief
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by FIREchief » Thu Dec 15, 2016 8:20 pm

If the dealer washes my car when it is in for service, do I "earn" a bonus peek at my portfolio? :confused
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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GerryL
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by GerryL » Thu Dec 15, 2016 8:50 pm

"You look at your portfolio more often than you wash your car." At the top of the list.

Wash my car?!? I thought that's what the rain here in Oregon is for.

Dulocracy
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Re: "Twenty Ways To Tell If You're A Lousy Investor"

Post by Dulocracy » Fri Dec 16, 2016 12:38 pm

 You look at your portfolio more often than you wash your car.
Guilty. I do this, however, to learn. Oddly, it helps me to stay the course to look. It confirms that my portfolio is doing what it is supposed to do. I like downturns, as I am buying cheap. Looking helps me, as I am looking primarily at how I am receiving more shares for the dollar than I was before.

 You talk about investing like it's something exciting; using smart sounding words that you probably can't define.
I get really excited about boring investing. My friends are likely tired of hearing about it. I do use smart sounding words like "index" and "diversification," but I can define them.

 You are attracted to investments that promise returns that are too good to be true.
I am extremely attracted to investments that promise ridiculous returns. However, that is how I found this site. While I still feel the magnetism, I handle it like an alcoholic. I am an investaholic. I want to buy individual stocks and wild card investments (my alchohol), but I know I should be buying index funds instead (my water). I will always be an investaholic, so I must be cognizant of that. Being attracted to the wild card investments does not mean one has to give in.

 You can't sit on your hands and do nothing during times of market volatility.
Not at all. I try to find extra money lying about that I can throw into the market. I have a grand sitting around that is not a part of our investment budget? Throw it in! Invest!

 You are overconfident. This comes from having an opinion about everything and confusing your opinions with insight.
My opinions ARE insight. What are you talking about? Of course I know everything! (Ok, no, I don't but I had to comment.)


Thanks Taylor, for the post! It is good to remind oneself of one's tendencies and temptations in order to better stay the course!
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.

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