- Share your investing success stories -

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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YoungBoglehead
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- Share your investing success stories -

Post by YoungBoglehead » Tue Jan 10, 2012 12:42 am

Hope this 'general' section is the right place for this.

What I was looking for are people who not necessarily day trade, but spend a lot of time investing in say the stock market, who study and teach and invest themselves not for a company as a job. Those who actually investigate companies and buy stock, ect.

What are some of your best years and what did you buy? - if that is not Too personal. Also how much did you work that year researching stocks?

Example: in 2007 I spent about 10 hours a week studying/researching stocks. Purchased some low cap stocks and had a total 25% return on investment for that year. (not true, example)


Would be good to hear some success stories and see what it took for you to get there
Started investing around 21, joined Bogleheads at 23.

mamster
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Re: - Share your investing success stories -

Post by mamster » Tue Jan 10, 2012 12:53 am

Me first! I bought low-cost index funds and rebalanced annually. Then the next year I did it again.

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White Coat Investor
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Re: - Share your investing success stories -

Post by White Coat Investor » Tue Jan 10, 2012 1:05 am

Second! Uhh...same story. Biggest success was piling money in during Fall 2008 and early 2009. Made a bundle off those investments.

Never really been into individual stocks though. I ran into the Bogleheads less than halfway through residency, so I never really got any bad habits entrenched.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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Sunny Sarkar
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Re: - Share your investing success stories -

Post by Sunny Sarkar » Tue Jan 10, 2012 1:08 am

I researched stocks and "invested" in the stock market for a short time (few months) at the beginning of my "investment career". I had a few brag-worthy successes, but then I also had equally shame-worthy losses. The successes were of course due to my genius, but the losses for baffling. Plus I lost all sleep and obsessively checked price movements all day. All in all, I didn't make or lose any noticeable amount of money, but the losses managed to baffle me enough to secretly admit to myself that I have no freaking clue. That's when I started reading books and websites, and one day bumped into an obscure cultish unpretentious forum on the internet.
"Cost matters". "Stay the course". "Press on, regardless". ― John C. Bogle

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Sunny Sarkar
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Re: - Share your investing success stories -

Post by Sunny Sarkar » Tue Jan 10, 2012 1:21 am

EmergDoc wrote:Second! Uhh...same story. Biggest success was piling money in during Fall 2008 and early 2009. Made a bundle off those investments.
Same here. My then 401k was $18k at the end of 2009, and $74k at the end of 2010. My contribution: $16.5k . Other parts of the portfolio were actively re-balanced to utilize the once in a lifetime 40+ percent market drop.
"Cost matters". "Stay the course". "Press on, regardless". ― John C. Bogle

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stemikger
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Re: - Share your investing success stories -

Post by stemikger » Tue Jan 10, 2012 2:02 am

mamster wrote:Me first! I bought low-cost index funds and rebalanced annually. Then the next year I did it again.

:D :lol :dollar
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

Johm221122
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Re: - Share your investing success stories -

Post by Johm221122 » Tue Jan 10, 2012 3:48 am

Bought savings bonds starting at beginning of year 2000,best investment I made so far especially I bond's

yobria
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Re: - Share your investing success stories -

Post by yobria » Tue Jan 10, 2012 5:26 am

if you could "do a little research" and outperform the market, we'd all be retired at 25.

But it's like "playing a little golf" and then winning the US Open. It can't be that hard, right? Just hitting a little ball with a stick.

Nick

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nisiprius
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Re: - Share your investing success stories -

Post by nisiprius » Tue Jan 10, 2012 5:49 am

My biggest success story was that, although I was not an academic, the first job I had was at a nonprofit with academic ties which offered TIAA benefits to employees. After you'd been with them a few years, they started contributing an amount equal to 12.5% of your salary to the plan. Almost like a 401(k) with a 100% company match. Only two investment choices TIAA Traditional (think bonds) and CREF Equities (think stocks), so the very first investment thinking I needed to do was stock/bond allocation. They soon added a 403(b) with eight or nine mutual-fund-like options, all sensible. Not your typical list dominated by a couple of dozen active stock funds, no Cubeb & Fungus Megillah Fund, no QRM Actors Equity Fund, no Sanchez Diversified Capital Strategies Value Growth Management Plus Fund, sitting there to distract you with 19.3% returns when the S&P 500 index fund made 7.2%?

The two reasons this was a big success is that a) it was completely painless, and b) TIAA's whole approach in educating plan participants was very Boglehead-like. The investment choices were very reminiscent of the sort of basic low-cost mutual funds Bogleheads favor.

The contributions I made to the conservative TIAA Traditional account are, today, worth ten times the number of dollars I put in. True, today's dollars are only worth 1/3 of the dollars I (and my employer!) contributed, so in real value it only tripled, and over about thirty years it works out to about 3.5% "real" per year.

My experiences with individual stocks involve perhaps six or seven small "flyers" where I made a decision to buy individual stocks for whatever flaky reasons I had, and a very small quantity of income stocks I inherited--one of the traditional "widows-and-orphans" portfolios, mostly invested in regulated utilities. I had one decent win on my stock gambles, the others all were very close to breaking even. I don't ever plan to buy individual stocks again, and if I don't, I will have, overall, succeeded in quitting while I'm ahead.

My most recent purchase of individual stocks involved 100 shares in a humongous blue-chip company that a close friend had just gotten a job with. I did it as a kind of symbolic flattering act--if you're joining it, it is sure to do well. I bought it near the end of the Great Bull Market of the Nineties; it soared, then sagged, and, let me check? Really? I sold at a 10% gain? Maybe I really am the next Warren Buffett and just missed my calling.

Oh, wait, I also bought 100 shares of Apple around that time and sold them at an 11% loss. Good thing I didn't quit my day job. My experience with Apple is a good illustration of the flakiness of the Peter Lynch "invest in what you know" theory, at least when put into practice by someone who isn't Peter Lynch. I loved the products. Had the illusion, along with a million other customers, of having some special insight into the intrinsic quality of those products. Knew Bill Atkinson's signature was embossed inside the case, etc. And, in fact, Apple has been a very profitable company whose stock has done fabulously well. It just didn't do well for me.

Did I learn anything from the experience? Well, yes, I did. The experience of receiving physical dividend checks in the mail, receiving printed annual reports and trying to read them, voting proxies, and, in one case, attending a shareholder's meeting to present a resolution (I was very young, foolish, and idealistic), gave me a nice direct basic lesson in what stocks are, and I think that was worthwhile.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

peppers
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Re: - Share your investing success stories -

Post by peppers » Tue Jan 10, 2012 6:30 am

Back in 1979, the company started the "long term savings and security plan". ( 401k today). The original contribution was $20.00 a week with a 50% company stock match. Looking over the annual paper (GASP) statements it showed what steady and increasing contributions could grow to. Too bad the company didn't include index funds back then. When before tax contributions and increased contribution limits came along it grew even more. Bumps along the way to be sure, but all in all not to bad for a "what's a dividend?" kid starting out.
"..the cavalry ain't comin' kid, you're on your own..."

jimkinny
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Re: - Share your investing success stories -

Post by jimkinny » Tue Jan 10, 2012 6:35 am

I once bought a stock based upon the advice of a coworker who had bought and sold it several times on the advice of broker. I lost 20% or so and that taught me that I was pretty dumb and had no business buying individual stocks.

Jim

xerty24
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Re: - Share your investing success stories -

Post by xerty24 » Tue Jan 10, 2012 8:41 am

If you're willing to read all the company reports, sometimes you find actionable information to buy or sell a stock. Fundamental research still works! (whether it's worth my time or not is a separate question)
No excuses, no regrets.

scrabbler1
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Re: - Share your investing success stories -

Post by scrabbler1 » Tue Jan 10, 2012 8:52 am

Similar to EmergDoc, when I ERed back in late 2008 I was able to sell my shares of company stock which had not yet sunk while everything else was sinking and buy 20% more shares of my targeted bond fund (at an already depressed NAV) whose monthly dividends are supporting my ER. The market downturn in late 2008 was a terrific break for me, something I had not counted on when I was preparing my ER budget.

Grt2bOutdoors
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Re: - Share your investing success stories -

Post by Grt2bOutdoors » Tue Jan 10, 2012 9:14 am

MasonSS wrote:Hope this 'general' section is the right place for this.

What I was looking for are people who not necessarily day trade, but spend a lot of time investing in say the stock market, who study and teach and invest themselves not for a company as a job. Those who actually investigate companies and buy stock, ect.

What are some of your best years and what did you buy? - if that is not Too personal. Also how much did you work that year researching stocks?

Example: in 2007 I spent about 10 hours a week studying/researching stocks. Purchased some low cap stocks and had a total 25% return on investment for that year. (not true, example)


Would be good to hear some success stories and see what it took for you to get there
Best years - from the beginning until today and quite possibly the rest of my life. There will always be opportunities, don't think for a minute that if you missed out on one investment that there will not be others down the road. Boring companies make great investments because they allow you to buy at the "ugly duckling" price, when the investment blooms into the golden swan you will reap the benefits.

My first investment was 10 shares of Colgate-Palmolive, it was all I could afford at the time. I requested the certificate and signed up for the DRIP plan (reinvest dividends). I picked that company by buying what I knew - toothpaste, toothbrushes, AJAX. I had requested the Annual Report and read through it, the company had roughly 50%+ of its business in Latin America (emerging markets - all the rage now) and a charismatic CEO (now retired). I just held, and reinvested - I wish I had the money to have bought more shares. That holding has returned thus far, 1,163% (not a typo) - not bad for a soap and personal care business. The company was originally a mid-cap, now considered a large/mega cap company.

Of course, for every grand slam, I've had a couple of losers - the lesson learned there is speculation doesn't pay.
Also, don't bet more than you can afford to lose.

These days, I mainly stick to indexing though will invest in dividend paying equities if the potential return looks appealing, time is a precious commodity that I spend more carefully on things like my family. :D
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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leonidas
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Re: - Share your investing success stories -

Post by leonidas » Tue Jan 10, 2012 9:37 am

I bought 8000 shares of some POS company called Enhanced Services or something like that in the late 90's for less than a dollar a share and sold for over 8 a share. The stock then cratered back to about a buck so I bought 2500 shares the second time and watched it till it hit about .015 cents.

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ascenzm
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Re: - Share your investing success stories -

Post by ascenzm » Tue Jan 10, 2012 9:39 am

Johm221122 wrote:Bought savings bonds starting at beginning of year 2000,best investment I made so far especially I bond's
Yep. I was slow following Mel's advice, but I purchased $30,000 worth of 3% fixed Series I bonds in 2001 using my Discover card. Those were the last I bonds to have a 3% or greater fixed rate and I got $300 in Discover rebates for buying the I bonds with my Discover card. My next best investing success story was buying Vanguard's Emerging Markets Index fund in 2002.

Mike
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Re: - Share your investing success stories -

Post by patelbhavesh » Tue Jan 10, 2012 10:46 am

Sunny Sarkar wrote:I researched stocks and "invested" in the stock market for a short time (few months) at the beginning of my "investment career". I had a few brag-worthy successes, but then I also had equally shame-worthy losses. The successes were of course due to my genius, but the losses for baffling. Plus I lost all sleep and obsessively checked price movements all day. All in all, I didn't make or lose any noticeable amount of money, but the losses managed to baffle me enough to secretly admit to myself that I have no freaking clue. That's when I started reading books and websites, and one day bumped into an obscure cultish unpretentious forum on the internet.
well said , same boat ,+1.after reading books like a random walk down wall street and jack bogles common sense investing , started doing indexing and started sleeping well at night :-)

KyleAAA
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Re: - Share your investing success stories -

Post by KyleAAA » Tue Jan 10, 2012 10:50 am

I bought around $2000 worth of stock in T Row Price back in college. That turned out pretty well. Wish I'd invested more.

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PaddyMac
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Re: - Share your investing success stories -

Post by PaddyMac » Tue Jan 10, 2012 1:40 pm

Bought Apple when they were going out of business. Have $70K in apple now with a cost basis of $25.
Bought a little Google at the IPO stage.
DeutscheBank and Ford preferred stocks were also a steal during the recent downturns.

But thanks for NOT asking about all the companies we researched that were dogs - like Enron, other tech stocks long forgotten....more recently First Solar...and even the "manager of the decade" fund Fairholme (although to be fair we owned them for many years and they only crashed and burned this year, and I did sell half before the worst of it). First Solar looks like a good value buy now, though still a bit of gamble.

By all means buy a little individual stock, but keep it to 5% or so of your portfolio. I would find all-index-all-the-time quite boring. More recently we've been buying dividend growth companies and also Wellesley, Wellington, VG Utilities, and other more stodgy funds to balance out the highflying apple and google etc.

MP173
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Re: - Share your investing success stories -

Post by MP173 » Tue Jan 10, 2012 8:06 pm

In no particular order:

Ibonds in 2001-2004
Illinois Central stock, now Canadian National in 1995 (up over 15x).
McDonalds in 1995.
Emerson Electric in 1995
Exxon (now Exxon Mobile) in 1996.
Coca Cola in 2004
American Express (first trading day after 911) 2001
Vanguard GNMA based on recommendation from Bob Brinker

Not so good results
Asche Transportation in 1996 (rode it to $0)
Motorola in 1995
Van Wagonner funds in 2000 (absolutely free fall with the tech bubble)
QQQ at $85 based on Bob Brinker recommendation
Inland Western REIT

Investments that havent really gone anywhere:
Vanguard S&P 500 - except for reinvested dividends
Microsoft in 2004

ed

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Re: - Share your investing success stories -

Post by sschullo » Tue Jan 10, 2012 8:14 pm

The only individual stocks that I own I inherited from my mother. She worked on the assembly line at 3M during the 50s and 60s making 50 cents per hour starting out. I have no idea what she was thinking, but it's how I first learned about shares and investing as a kid. The 60 shares are worth about $5000 but I certain that my mother paid pennies out of the dollar that is worth now. Best investment that I have.
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

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mickeyd
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Re: - Share your investing success stories -

Post by mickeyd » Tue Jan 10, 2012 8:30 pm

When DW and I were first married in the early 70s and got our first real jobs I decided that SS would probably not be around the next century when we retired, so we decided to retirement plan w/o it and, if it was there when we retired, it would just be extra cash (gravy) for the rest of our life.

My plan worked out perfectly. Gotta love the gravy. 8-)
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sunspotzsz
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Re: - Share your investing success stories -

Post by sunspotzsz » Tue Jan 10, 2012 8:48 pm

I started researching and picking stocks after I finished graduate school and started making real money early in 2008. I kept putting money in till late last year and now I lost 50-80% on almost all of my picks and made money only on one pick. At the same time, the market was going up.

Now, I am putting money only in index funds and the good thing is that I have losses to harvest for the next decade.
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nisiprius
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Re: - Share your investing success stories -

Post by nisiprius » Tue Jan 10, 2012 9:15 pm

xerty24 wrote:If you're willing to read all the company reports, sometimes you find actionable information to buy or sell a stock.
The most amazing-to-me story to come out of the Enron collapse was that, after the fact, an analyst noticed that at least one of the footnotes in the annual report--the annual report, the glossy magazine-like thing--actually did mention the "special-purpose entities" in a way that could have been a tip-off. Or so it was said. Just for laughs I downloaded and saved the annual report and actually went looking for the passages in question. I think this might have been one of them:

Image

I am prepared to believe that fundamental analysis could work and that there might be people who really can spot overlooked values. However, I am absolutely certain that I'm not one of them. And I think it would take more than an accounting course, or a reading of Graham and Dodd, to be one of them. Even Graham himself said, in 1973 I think, "I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities." I'm not sure what it would take. It seems to me that you'd have had to have had some real-world experience running a business, and not a small business either--perhaps being a businessperson who'd actually taken part in some mergers and acquisitions.

I don't even know what it means to be able to "read a balance sheet." I sure can't. I look at one and say "wow, that's a lot of big numbers."
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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bob90245
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Re: - Share your investing success stories -

Post by bob90245 » Tue Jan 10, 2012 9:19 pm

Back in the late 1990's when I wasn't a Boglehead, I scored several 10 baggers (as Peter Lynch would say) buying tech and internet stocks. Fortunately, I read Burton Malkiel's A Random Walk Down Wall Street in 2000. This taught me that I was just as smart as a monkey throwing darts at stocks listed on the Nasdaq. In other words, no special skill was necessary on my part.
Ignore the market noise. Keep to your rebalancing schedule whether that is semi-annual, annual or trigger bands.

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camper
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Re: - Share your investing success stories -

Post by camper » Tue Jan 10, 2012 9:28 pm

Finding this site in 2008 was our single best investing success. I think the first thing I learned here is that when you young and just starting out, savings rate is a whole lot more important than what you invest in.

Anon1234
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Re: - Share your investing success stories -

Post by Anon1234 » Tue Jan 10, 2012 9:54 pm

I rebalanced into TISM on Oct 4th, 2011. That's the first time my IPS and my gut disagreed, and I followed the IPS.

YoungBoglehead
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Re: - Share your investing success stories -

Post by YoungBoglehead » Tue Jan 10, 2012 10:08 pm

camper wrote:Finding this site in 2008 was our single best investing success. I think the first thing I learned here is that when you young and just starting out, savings rate is a whole lot more important than what you invest in.
Agreed. Glad I found this site.

I am 23, and am hoping to save 50% of my income next year.

Note: 100% independent and taking care of family back home financially. Felt like noting that because many my age have a majority of living costs paid for parents, where saving 50% is no challenge for them.
Started investing around 21, joined Bogleheads at 23.

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Exige
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Re: - Share your investing success stories -

Post by Exige » Wed Jan 11, 2012 12:08 pm

Some of these stories are great I do think there is a place for success stories it helps those of us just starting realize that there is light at the end of the tunnel hopefully! haha for example the story at the end of the little book of common sense investing about the gentleman that never made more then 25k a year and had a 30 year portfolio of 1.4million! That was amazing
‘I found the road to wealth when I decided that a part of all I earned was mine to keep. And so will you.'

lazyfabs
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Re: - Share your investing success stories -

Post by lazyfabs » Wed Jan 11, 2012 2:25 pm

When I graduated and got my first job many moons ago I realized that i had to quickly learn between how to live w/ a little extra money from my newly acquired $18,500/yr job and living like a starving student w/ Natural Light as a main dietary staple.

I bought Eric Tyson's Personal Finance for Dummies, Investing for Dummies, and Mutual Fund for Dummies and read them in about a week. I bought my first mutual fund. AARP Growth and Income Fund (years before Scudder took them over). Figured if AARP was good for the 'grown-ups' it should be ok for the young folks. Fast forward many moons and I have held multiple types and brands of mutual funds and safely landed on the Vanguard Boglehead planet. I have always off and on and in some shape or form owned a few Drips over the years, Coca Cola being my first individual stock ever. After many years of just doing the mutual fund thing, five years ago we started dabbling in blue-chip type stocks and generated a 10 stock portfolio that we have added on occasions, TLH when appropriate, and it has grown at a nice pace w/o to much heart burn.

We stopped contributing additional money to all but 2 stocks. Those 8 stocks we have decided to let them sit at Vanguard, reinvest dividends, and twenty+ years from now we'll see. If and when we make it to the Vanguard Flagship level and they are still offering 25 free trades maybe we'll sell. Until then I'll save the $7 per trade fee.

The other two stocks we have decided to add additional money when the change jar gets too full are Coca Cola and Pepsi. Reasoning is if you don't like Pepsi you drink Coke. If you don't like Coke you drink Pepsi. If you don't like either Coke or Pepsi they probably own whatever you (the reader) are drinking at the moment.

salud :beer
"I think the best way to find happiness is to stop looking so hard." - Kermit the Frog

Grt2bOutdoors
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Re: - Share your investing success stories -

Post by Grt2bOutdoors » Wed Jan 11, 2012 2:33 pm

You forgot Nestle and Dr. Pepper/Seven Up. :beer
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Toons
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Re: - Share your investing success stories -

Post by Toons » Wed Jan 11, 2012 6:12 pm

Mcdonalds 1990
Coke 1990
Px 1994 (bought steadily till 2010)
Wmt 1992
Fusex 1993 bought steadily till 2010
:D :D

A few I would like to forget
US Surgical,,bought @103 and dollared down,,,ouch
Latin American Sector fund
Prudential limited partnerships
Dogs of the Dow Unit Trusts
:shock: :shock:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Naikansha
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Re: - Share your investing success stories -

Post by Naikansha » Wed Jan 11, 2012 10:17 pm

A good luck story involved when in 1997 I moved my 403b funds from the TIAA annuity into TIAA-CREF Real Estate. I used that one because I liked the investments in commercial real estate properties (not REITS) and could see how the fund kept rising while the other T-C funds fluctuated quite a bit. I can't say I had any idea why this was happening, but it looked good. Eventually, just prior to my retirement (2005-6) I began to see that it was beginning to drip away, slowly but surely. I sold everything and rolled it over into my Vanguard bond index IRA. Call it market timing or luck, this combo turned out to be the best retirement investment.

ABQ4804
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Re: - Share your investing success stories -

Post by ABQ4804 » Thu Jan 12, 2012 3:39 am

My best investment to date wasn't stocks or mutual funds
Last edited by ABQ4804 on Sat May 05, 2018 12:19 am, edited 2 times in total.

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Sbashore
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Re: - Share your investing success stories -

Post by Sbashore » Thu Jan 12, 2012 5:40 pm

My greatest success was due to luck. Back in 1987 I was invested in mutual funds through a 403/b plan. I remember thinking that the Dow was getting too high (around 2600 something I think) so when I got my monthly statement I checked a box to move out of equities into a money market fund and sent it to the management company. Then the crash of 87 came along and I remember that the mail came that same evening. In it were my statements. As I looked at the envelope I recall feeling smug about how smart I was to have side stepped this crash. Then I opened the statement and to my horror found that I had checked only the box that applied to new contributions. My balance was still mostly in equities. I still remember that gut wrenching realization. So as I thought about it, I dedided "what the heck, I might as well stay in, the money is already gone". So I stayed invested and of course in short order the value came back. I think the most valuable part of all this was the lesson I learned so long ago. I thought of it often through subsequent corrections and bear markets. That experience has served me well and probably saved me far more in subsequent sound decisions, than the cost of the of the immediate loss in 1987. Of course I am now a Boglehead, so it's a moot point now, but I wasn't then.
Steve | Semper Fi

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mickeyd
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Re: - Share your investing success stories -

Post by mickeyd » Fri Jan 13, 2012 6:02 pm

What a great variety of success stories. Just goes to show that there are Many Roads to Dublin as that guy Taylor used to say all of the time. :lol:
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

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Qtman
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Re: - Share your investing success stories -

Post by Qtman » Fri Jan 13, 2012 9:06 pm

Although I am mostly an individual muni bond buyer, equity index and rental real estate buyer. I bought DNDN when the FDA squashed their first try of approval for prostate cancer, stock was about 3. The patient/citizen lobby was so strong I figured the FDA was under intense pressure to approve, which they did. Sold out at 35, nice profit. Took my money and walked away from the table to buy more real estate.

Smart? No just a WAG that went my way.

I will say I bought numerous Caiifornia and Illinois GOs when everyone thought the muni world was ending ( thank you Ms. Whitney) , they have actually worked out well - so far.
Don’t wear yourself out trying to get rich; be wise enough to control yourself. | Wealth can vanish in the wink of an eye. It can seem to grow wings and fly away | like an eagle. - King Solomon

mamster
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Re: - Share your investing success stories -

Post by mamster » Tue Jan 17, 2012 3:19 pm

Qtman wrote:Smart? No just a WAG that went my way.
If there's a more succinct expression of Bogleheadedness, I can't think of it.

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Noobvestor
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Re: - Share your investing success stories -

Post by Noobvestor » Wed Jan 18, 2012 1:58 am

I traded Zecco for Vanguard. It was AWESOME.
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

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Re: - Share your investing success stories -

Post by DP » Wed Jan 18, 2012 5:42 pm

I have actively traded a significant portion of my portfolio since 2006, when I first started applying a more objective approach to evaluating stocks and funds. Since then I have a 22.5% annualized return for my trading accounts (doesn't include 401K, and a buy and hold account for college savings). I consider my best years the timeframe since Oct 2009 when I first added a significant allocation to the short side and have since earned a 32% annualized return w/ max 8.5% drawdown. If you are interested in what I mean by an objective approach I recommend the Ivy Portfolio by Mebane Faber and Short Term Strategies that work by Larry Connors. I do not analyze stocks or funds in detail, rather I analyze strategies and then use tools to find stocks/funds to match the characteristics identified in my strategies. So the execution is easy, the work is in the research.

But this is a Boglehead forum and I agree that the Boglehead approach is the best approach for most people. Where I disagree with some on this forum is that those with time, discipline, and desire cannot possibly outperform the market over long periods of time. It is just extremely difficult, but the individual investor does have some significant advantages over large funds.

Don

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