I'm Addicted [to investing and personal finance]

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Cramerica
Posts: 224
Joined: Sat Oct 03, 2015 5:30 pm

I'm Addicted [to investing and personal finance]

Post by Cramerica » Thu Apr 07, 2016 11:59 am

I am starting to realize that I have become addicted to the world of investing and personal finance.

I have no problem reading about finance for hours on end and disregarding the studying I'm supposed to be doing in residency.

I find myself pouring over investment data and researching every possible strategy. While this activity has resulted in great outperformance of the market and good tax planning/strategy, I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine.

Can anyone relate to this and how did you learn to strike a balance?

ResearchMed
Posts: 7088
Joined: Fri Dec 26, 2008 11:25 pm

Re: I'm Addicted

Post by ResearchMed » Thu Apr 07, 2016 12:05 pm

This reminds me of a lengthier version of the "I must re-arrange the furniture the night before grad school exams..." syndrome.

Good that you recognize it.

Can you segregate the activities, and set a limited and *specified* amount of time for financial matters, including the background reading?

Would that help?

RM
This signature is a placebo. You are in the control group.

User avatar
steve roy
Posts: 1576
Joined: Thu May 13, 2010 5:16 pm

Re: I'm Addicted

Post by steve roy » Thu Apr 07, 2016 12:06 pm

I can relate.

I spent a lot of time yesterday looking at this:

https://am.jpmorgan.com/blob-gim/138328 ... lebook.pdf

It's a little bit connected to my job, and I'm eight months from retirement so I don't feel too guilty goggling at the flat screen, but yeah. Can be addicting.

Snowjob
Posts: 1488
Joined: Sun Jun 28, 2009 10:53 pm

Re: I'm Addicted

Post by Snowjob » Thu Apr 07, 2016 12:07 pm

Yes --

I've been there. You are being penny wise and pound foolish. All of the grand strategizing and out performance doesn't really mean much unless your portfolio already has a lot of zeroes behind it. After learning the basics (which you seem well past) you would be better off working on a great career so you can earn and invest more.

User avatar
whaleknives
Posts: 1210
Joined: Sun Jun 24, 2012 7:19 pm

Re: I'm Addicted

Post by whaleknives » Thu Apr 07, 2016 12:08 pm

Everyone runs into it. One of my roommates liked bridge better than studying, but he realized he wouldn't graduate if all he did was play bridge.

What were your temptations before investing? How did you get your medical degree? Won't your future work depend on your residency performance? Unless you want to change careers, you have to change your priorities. :beer
"I'm an indexer. I own the market. And I'm happy." (John Bogle, "BusinessWeek", 8/17/07) ☕ Maritime signal flag W - Whiskey: "I require medical assistance."

Dude2
Posts: 726
Joined: Fri Jun 08, 2007 3:40 pm

Re: I'm Addicted

Post by Dude2 » Thu Apr 07, 2016 12:09 pm

I think that is very common. The financial world is one of the few areas where something is always happening, always moving. Around here people say to tune out the noise. It isn't easy. My advice is to try not to look at the day-to-day numbers (and chit-chat). I had to remove bookmarks for the Wall Street Journal and Bloomberg from my computer. There are ways to avoid looking at it, and the truth is that your constant vigilance isn't going to change the outcome. Pick a plan. Stick to it. Check it when you logically should.

Alternatively, some people might suggest using only a very small portion 5-10% of portfolio as your mad money and do what you want to do with that.

We all crave distraction, especially when having to study dry or intense subjects. A change of scenery may help.

123
Posts: 3634
Joined: Fri Oct 12, 2012 3:55 pm

Re: I'm Addicted

Post by 123 » Thu Apr 07, 2016 12:10 pm

In case you haven't found them yet you might want to search (in the box on the top right of the screen) for "Fama-French" discussion on this board. It's a good dose of math if you like that sort of thing once in awhile. For me the stuff that's in a prospectus is deep enough for my needs.
The closest helping hand is at the end of your own arm.

User avatar
bertie wooster
Posts: 764
Joined: Mon Jun 25, 2007 5:14 pm

Re: I'm Addicted

Post by bertie wooster » Thu Apr 07, 2016 12:28 pm

I remember my residency days well and I had a similar problem. I think the issue is that it's nice to have a distraction from the constant study and stress of medicine.

They way I thought about it, if I were in some finance job and had to constantly read that stuff I'd get into reading about some other subject for the distraction. I think that's just the nature of the beast.

User avatar
Will do good
Posts: 675
Joined: Fri Feb 24, 2012 8:23 pm

Re: I'm Addicted

Post by Will do good » Thu Apr 07, 2016 12:29 pm

Guilty.
Even after FI, I'm still obsessively reads and think about our finances on hourly bases :oops:

User avatar
abuss368
Posts: 12743
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: I'm Addicted

Post by abuss368 » Thu Apr 07, 2016 12:56 pm

Cramerica wrote:I am starting to realize that I have become addicted to the world of investing and personal finance.

I have no problem reading about finance for hours on end and disregarding the studying I'm supposed to be doing in residency.

I find myself pouring over investment data and researching every possible strategy. While this activity has resulted in great outperformance of the market and good tax planning/strategy, I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine.

Can anyone relate to this and how did you learn to strike a balance?
Hi Cramerica,

One of the best benefits of being a Boglehead investor in low cost total market index funds is it provides more time for the important things in life like friends and family.

Best.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

delamer
Posts: 5855
Joined: Tue Feb 08, 2011 6:13 pm

Re: I'm Addicted

Post by delamer » Thu Apr 07, 2016 12:58 pm

Try rewarding yourself with 30 minutes of personal finance time after 60 minutes of studying time, or whatever ratio works for you.

workingovertime
Posts: 191
Joined: Sun Dec 27, 2015 8:06 pm

Re: I'm Addicted

Post by workingovertime » Thu Apr 07, 2016 1:04 pm

I can somewhat relate. I just try to remember that small tweaks to my investment plan doesn't really make that big of a difference in the big overall picture. Right now, I'm trying to focus more on reducing expenses on daily basis and investing in myself to increase income. I've done what I can for my investment plan and I feel like the only other significant way to make my financial status better is to invest in myself and hopefully make more money.

synpacket
Posts: 112
Joined: Wed Apr 09, 2014 10:01 am

Re: I'm Addicted

Post by synpacket » Thu Apr 07, 2016 1:07 pm

What is the "out performance" relative to the amount of time spent digesting all that information? I bet it's not worth it. If you are out performing, I bet it's luck. I understand that feeling though. It will wear off eventually. I would say don't underestimate the value of your time. It's worth a lot more than you may think.

User avatar
pennstater2005
Posts: 2454
Joined: Wed Apr 11, 2012 8:50 pm

Re: I'm Addicted

Post by pennstater2005 » Thu Apr 07, 2016 1:43 pm

Asking for advice about addiction from a group of addicts seems wrong :wink:
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

RoC
Posts: 151
Joined: Fri Jul 03, 2015 9:30 am

Re: I'm Addicted

Post by RoC » Thu Apr 07, 2016 1:51 pm

Everyone at some point allows themselves to be distracted when they should be working on something else. It's a common form of procrastination.

Check out a book called The War of Art. It's a quick read and is ultimately about acknowledging the force trying to distract you, and then just doing what it is that needs to be done.

It's a good book that I should probably go back and re-read.

Allixi
Posts: 159
Joined: Sat May 09, 2015 4:01 am

Re: I'm Addicted

Post by Allixi » Thu Apr 07, 2016 2:04 pm

Cramerica wrote:I am starting to realize that I have become addicted to the world of investing and personal finance.

I have no problem reading about finance for hours on end and disregarding the studying I'm supposed to be doing in residency.

I find myself pouring over investment data and researching every possible strategy. While this activity has resulted in great outperformance of the market and good tax planning/strategy, I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine.

Can anyone relate to this and how did you learn to strike a balance?
"Great outperformance of the market" you say? Doesn't sound very Bogleheadian :wink:

It's a phase. I went through about 2 months of obsessive reading before I snapped out of it. It doesn't take that long to get the fundamental concepts down, plus a lot of stuff about retirement planning really doesn't apply to residency or even early practice.

Carl53
Posts: 1595
Joined: Sun Mar 07, 2010 8:26 pm

Re: I'm Addicted

Post by Carl53 » Thu Apr 07, 2016 2:46 pm

steve roy wrote:I can relate.

I spent a lot of time yesterday looking at this:

https://am.jpmorgan.com/blob-gim/138328 ... lebook.pdf

It's a little bit connected to my job, and I'm eight months from retirement so I don't feel too guilty goggling at the flat screen, but yeah. Can be addicting.
Nice link.

TSR
Posts: 696
Joined: Thu Apr 19, 2012 9:08 am

Re: I'm Addicted

Post by TSR » Thu Apr 07, 2016 3:03 pm

I'm with you. I spend way too much time on this stuff, and no, I don't delude myself into thinking that I get any great marginal utility from each extra minute. It's just interesting. More interesting than work sometimes. ;)

User avatar
Toons
Posts: 12934
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: I'm Addicted

Post by Toons » Thu Apr 07, 2016 3:34 pm

BogleHeads Addict

:mrgreen: :mrgreen:
:sharebeer :sharebeer
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

TomCat96
Posts: 510
Joined: Sun Oct 18, 2015 12:18 pm

Re: I'm Addicted

Post by TomCat96 » Thu Apr 07, 2016 3:54 pm

Cramerica wrote:I am starting to realize that I have become addicted to the world of investing and personal finance.

I have no problem reading about finance for hours on end and disregarding the studying I'm supposed to be doing in residency.

I find myself pouring over investment data and researching every possible strategy. While this activity has resulted in great outperformance of the market and good tax planning/strategy, I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine.

Can anyone relate to this and how did you learn to strike a balance?

have you ever procrastinated by doing other work?
I think you are just looking for a mental break from what you are doing.
It happens to everyone.

User avatar
rob
Posts: 2971
Joined: Mon Feb 19, 2007 6:49 pm
Location: Here

Re: I'm Addicted

Post by rob » Thu Apr 07, 2016 3:58 pm

I'm so addicted that I clicked on a heading of "I'm Addicted" just to see what it was :D
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

User avatar
Index Fan
Posts: 2552
Joined: Wed Mar 07, 2007 12:13 pm
Location: The great Midwest

Re: I'm Addicted

Post by Index Fan » Thu Apr 07, 2016 4:00 pm

If you're like the typical person here, your addiction will eventually wear off and you'll go back to 'normal'. You may even stop logging on and posting to this forum.
"Optimum est pati quod emendare non possis." | -Seneca

GoldenFinch
Posts: 1612
Joined: Mon Nov 10, 2014 11:34 pm

Re: I'm Addicted

Post by GoldenFinch » Thu Apr 07, 2016 4:12 pm

pennstater2005 wrote:Asking for advice about addiction from a group of addicts seems wrong :wink:
That's funny and true!

I too have become addicted. I was just beginning to push myself away from this finance stuff since I have everything automated. But yesterday I received an unexpected pension buyout deal from the University where I was employed. So now I have a new financial decision to ponder, threads to read, calculations to make, etc. :moneybag (There is always an excuse!)

Nicolas
Posts: 1039
Joined: Wed Aug 22, 2012 7:41 am

Re: I'm Addicted

Post by Nicolas » Thu Apr 07, 2016 6:45 pm

.....
Last edited by Nicolas on Fri Apr 08, 2016 3:49 am, edited 1 time in total.
De gustibus non est disputandum.

User avatar
in_reality
Posts: 4529
Joined: Fri Jul 12, 2013 6:13 am

Re: I'm Addicted

Post by in_reality » Thu Apr 07, 2016 7:23 pm

Cramerica wrote:Can anyone relate to this and how did you learn to strike a balance?
Yes, I can relate. I think I will try the "War of Art" recommendation made in this thread.
pennstater2005 wrote:Asking for advice about addiction from a group of addicts seems wrong :wink:
Recovering addicts best understand addiction. They have experienced the downside and use it's unacceptability as a reference to motivate themselves to make a different choice when the behavior is about to start.

Many here had trading days and will tell you that based on their years of investing (and lows with the highs, hits with misses, and turns of fortune) that they wanted to get away from it.

The first step, admitting there is a problem, is always the most difficult because it commits you to changing your behavior.

Worst case of course would be getting an emotional charge out of a trade that almost succeeds. Then you would be in a state of getting a reward for failing behavior. Then, it's really addiction.

Van
Posts: 575
Joined: Wed Oct 27, 2010 9:24 am

Re: I'm Addicted

Post by Van » Thu Apr 07, 2016 7:30 pm

The fix is easy. Give yourself a time limit, e.g. 1.5 hours per day, for reading or otherwise being involved with financial matters. Then exert some self discipline. You can do this. You never would have gotten through med school and internship without the ability to prioritize and organize your time.

User avatar
pennstater2005
Posts: 2454
Joined: Wed Apr 11, 2012 8:50 pm

Re: I'm Addicted

Post by pennstater2005 » Thu Apr 07, 2016 7:34 pm

in_reality wrote:pennstater2005 wrote:
Asking for advice about addiction from a group of addicts seems wrong


Recovering addicts best understand addiction. They have experienced the downside and use it's unacceptability as a reference to motivate themselves to make a different choice when the behavior is about to start.
Maybe you missed my wink..... :wink:
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

selters
Posts: 594
Joined: Thu Feb 27, 2014 9:26 am

Re: I'm Addicted

Post by selters » Thu Apr 07, 2016 7:46 pm

Reading about finance and investing can be very interesting and captivating. But in the end you won't really find any new information that with any degree of certainty can increase your returns, beyond, "Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle. Sure, maybe tweaking one's international allocation or implementing some kind of factor tilt will increase returns slightly, but there's noe guarantee of that.

Most of us will be better off spending our time developing our human capital if our goal is to increase returns.

User avatar
Doom&Gloom
Posts: 2159
Joined: Thu May 08, 2014 3:36 pm

Re: I'm Addicted

Post by Doom&Gloom » Thu Apr 07, 2016 7:53 pm

Cramerica wrote:I am starting to realize that I have become addicted to the world of investing and personal finance.
Hello! My name is Doom and I'm an addict.
Cramerica wrote:I have no problem reading about finance for hours on end and disregarding the studying I'm supposed to be doing in residency.
That sounds very much as if it could be avoidance behavior.
Cramerica wrote:I find myself pouring over investment data and researching every possible strategy. While this activity has resulted in great outperformance of the market and good tax planning/strategy, I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine.
Excellent insight! Do you have a lot of OCD traits? Not that there is anything wrong with that--many (most) successful people do. Your "great outperformance" is almost certainly due to chance/luck/etc rather than any exemplary investing skills you possess. Superstitious behaviors develop exactly in this manner.
Cramerica wrote:Can anyone relate to this and how did you learn to strike a balance?
I learned through experience. Not recommended. In addition, I realized that having talent, ability, and success in some (many?) areas does not generalize to being able to "beat" financial markets, regardless of how much time I spent trying to do so.

WhyNotUs
Posts: 1327
Joined: Sun Apr 14, 2013 11:38 am

Re: I'm Addicted

Post by WhyNotUs » Thu Apr 07, 2016 8:18 pm

Time and getting the right plan and mix of investments for you will help. I serve on an endowment committee that used to meet every three months and tinker. Over a few years, we all got to develop a common understanding and we found an AA and mix of funds that meets the consensus. We have not met since last October. Just review performance and confirm by email that we are staying the course.
I own the next hot stock- VTSAX

TRC
Posts: 1883
Joined: Sat Dec 20, 2008 5:38 pm

Re: I'm Addicted

Post by TRC » Thu Apr 07, 2016 8:19 pm

It's about as addicting as watching grass grow.

ramonsito
Posts: 20
Joined: Mon Dec 28, 2015 11:28 am

Re: I'm Addicted

Post by ramonsito » Thu Apr 07, 2016 8:40 pm

Interesting OP and discussion. I suppose that ALL of us are addicted to finance on this website (to some degree). I do think that high stress situations call for some distractions. In writing a PhD dissertation years ago, I took up motorcycling. It was a useful distraction, but I had to always resume the tedious work of "dissertating." So, I can understand that the demands of a medical residency require some down time. Like other posts, I would recommend pacing yourself, perhaps rewarding yourself with one hour of finance time for every two hours of medicine (or some other % that strikes an appropriate balance). Medicine is a noble profession, with many blessings and benefits (to you - and to others, as per Hippocrates). I predict great financial success if you pursue a Boglehead philosophy with your comfortable earnings as a physician. Best wishes :happy

jayhawkerbeef
Posts: 246
Joined: Tue Jul 22, 2014 11:10 am

Re: I'm Addicted

Post by jayhawkerbeef » Thu Apr 07, 2016 8:56 pm

There are a lot worse addictions out there.

User avatar
Taylor Larimore
Advisory Board
Posts: 27329
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Re: I'm Addicted

Post by Taylor Larimore » Thu Apr 07, 2016 9:32 pm

Cramerica wrote:I am starting to realize that I have become addicted to the world of investing and personal finance.

I have no problem reading about finance for hours on end and disregarding the studying I'm supposed to be doing in residency.

I find myself pouring over investment data and researching every possible strategy. While this activity has resulted in great outperformance of the market and good tax planning/strategy, I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine.

Can anyone relate to this and how did you learn to strike a balance?
Cramerica:

For many years I had the same addiction. It was when I started my collection of Investment Gems and What Experts Say About Investing.

Now, I realize that most (not all) of what I read, watched, and listened too was more confusing than helpful. I have cancelled nearly all my financial subscriptions and stopped reading so many books. Watching TV financial programs is a thing of the past.

Jack Bogle made investing simple and better with his wisdom and his introduction of low-cost index funds. Go beyond that and we are more likely to lag the market than beat it.

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

anoop
Posts: 690
Joined: Tue Mar 04, 2014 1:33 am

Re: I'm Addicted

Post by anoop » Thu Apr 07, 2016 9:45 pm

Maybe you could ask Michael Burry for advice.
https://en.wikipedia.org/wiki/Michael_B ... _education

flyingaway
Posts: 1876
Joined: Fri Jan 17, 2014 10:19 am

Re: I'm Addicted

Post by flyingaway » Thu Apr 07, 2016 10:51 pm

The investing part is easy and does not need a lot of day-to-day attention. Now, I spent much more time on reading other people's stories, situations, and thoughts, related to investing, planning, spending, traveling, etc. Still, an addiction.

User avatar
LowER
Posts: 678
Joined: Sat Sep 29, 2012 12:43 pm

Re: I'm Addicted

Post by LowER » Thu Apr 07, 2016 11:19 pm

The more I read = the more I read.

It always comes back to the good old boring 3 fund portfolio.

A few tilts with nominal dollars have resulted in a few more dollars, for now.

In essence, the marginal benefit for me for reading hundreds, probably thousands, of more hours has resulted in minimal marginal/additional returns.

I always come back to the 3-fund conundrum - there must be something else more complicated that I can decipher and profit from, and then a few more hundred hours and I'm right back to the 3-fund.

The rumor of the Fidelity study, that I can not seem to find, about the best investors being dead or forgot about their investments, helps ground me from time to time.

As my assets grow, my addiction fades, but slowly....

My name is LowER and I am addict, recovering slowly, and enjoying the ride :sharebeer

User avatar
whodidntante
Posts: 3944
Joined: Thu Jan 21, 2016 11:11 pm

Re: I'm Addicted

Post by whodidntante » Thu Apr 07, 2016 11:45 pm

I have always liked the stock market. I had money in the market before I graduated high school. Small, hard earned money going towards the most carefully considered investments in the history of the stock market. :)

Quantitative easing and the gentle bull market had me yawning and investing on autopilot. Volatility makes me interested. I like to buy when a "good" opportunity arises.

I don't follow financial news much. Much of it is ambiguous, provocative, embellished, or just plain crap. Following the stock market is a hobby for me. I don't think of it as destructive behavior.

If it interferes with your medical school, career progress, etc., you should consider taking steps to modify your behavior. It's also necessary to invest in yourself, even more so at your stage in life.

User avatar
stemikger
Posts: 4867
Joined: Thu Apr 08, 2010 5:02 am

Re: I'm Addicted

Post by stemikger » Fri Apr 08, 2016 12:01 am

Cramerica wrote:I am starting to realize that I have become addicted to the world of investing and personal finance.

I have no problem reading about finance for hours on end and disregarding the studying I'm supposed to be doing in residency.

I find myself pouring over investment data and researching every possible strategy. While this activity has resulted in great outperformance of the market and good tax planning/strategy, I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine.

Can anyone relate to this and how did you learn to strike a balance?
Great Post!

I think everyone here can relate. I totally agree with what Taylor said and my only addiction at this point is coming here to talk with the Bogleheads and watching endless videos of Jack Bogle and Warren Buffett which I watch just to keep me on the straight and narrow and keep me motivated to stay the course. After that, everything else is pretty much noise and not healthy for my financial health.

I think Warren Buffett shares your addiction. Supposedly Warren reads 5 to 7 hours a day. His idea of fun is reading a prospectus in one sitting and going through 8Ks, 10Qs, financial journals and so on. I once saw a video where he said when he was young, he would go to the library and go through thousands of pages in Moody's book of stocks one by one. Who knows, if you love it that much, you are still young maybe you should think about switching careers. John Bogle also might have a little bit of that in him with all the books and crusading he does for all of us little guys. He is still spreading the word at 86 and sharp as ever. I think that is what keeps him and Warren going.

On a side note, I recently had a colonoscopy and endoscopy at the same time and the doctor that did my procedure was very young looking. I was hoping he knew his stuff (I personally like to see a little grey around the temples when getting any invasive procedure done). So from a patient's point of view, please make medicine your priority. :D
Last edited by stemikger on Fri Apr 08, 2016 12:23 am, edited 5 times in total.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

johnra
Posts: 176
Joined: Sun Dec 28, 2014 12:07 pm

Re: I'm Addicted

Post by johnra » Fri Apr 08, 2016 12:04 am

I find investing relaxing because it is very concrete and measurable. Opinions are cut-and-dried.

User avatar
stemikger
Posts: 4867
Joined: Thu Apr 08, 2010 5:02 am

Re: I'm Addicted

Post by stemikger » Fri Apr 08, 2016 12:19 am

pennstater2005 wrote:Asking for advice about addiction from a group of addicts seems wrong :wink:
LOL!!! Bravo! LOL! So True! :P
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

User avatar
stemikger
Posts: 4867
Joined: Thu Apr 08, 2010 5:02 am

Re: I'm Addicted

Post by stemikger » Fri Apr 08, 2016 12:20 am

johnra wrote:I find investing relaxing because it is very concrete and measurable. Opinions are cut-and-dried.
In the early days of my marriage (25 years ago), I had trouble sleeping and thinking about investing would help me to sleep. Sad but true. So I guess I agree with the relaxing part.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

Lafder
Posts: 3773
Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: I'm Addicted

Post by Lafder » Fri Apr 08, 2016 12:38 am

As others already beat me to saying, there are worse addictions!

I find Bh to be relaxing compared to most things I could do in the eves.

Try to be a BH reading/posting addict and help others with your knowledge rather than being an investment research and moving your money addict.

Consider moving your own money into all in one funds so you can truly ignore them and not check them.

Or if well placed now, ignore your holdings !

Regarding this " While this activity has resulted in great outperformance of the market" I would say that is dangerous thinking and could lead you to do worse than the market! Are you sure your performance is due to your choices vs the market itself?

" and good tax planning/strategy" This is very reasonable to me :)

" I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine." Sometimes the best way for me to decrease my time on something is to let it go for awhile then come back to it. It helps break the cycle. If you are unable to decrease time on your own, you may need professional help :)

The question I would have is not how much time do you spend studying vs on "this stuff", but has your medical performance or attendance suffered due to your time and attention to finance ? If it has suffered, I would seriously consider talking to a counselor or advisor if you can not cut back on your own. If you are doing well in residency, truly and not just self perception!, then who cares how much time you spend on finance ?

Just be careful about trying to beat the market, the odds are you will do worse than the market over time :)

lafder

User avatar
White Coat Investor
Posts: 13400
Joined: Fri Mar 02, 2007 9:11 pm
Location: Greatest Snow On Earth

Re: I'm Addicted

Post by White Coat Investor » Fri Apr 08, 2016 1:13 am

I guess I can relate a bit. Right now medicine is a bit old hat to you. Counting pre-med, you've been doing it for 5-10+ years already. You're starting to hit some diminishing returns there. But you just recently started getting a paycheck and realizing that there is this whole world of information critical to your lifetime financial success out there. It's new and interesting and extremely relevant right now, especially when you realize you do NOT want to work 80 hour work weeks ever again. You feel about it like you did about general surgery as an MS3-neat, new, different, and relevant.

But trust me, in a year or two you'll realize there isn't that much to learn that is actually useful in finance either unless you plan to be an advisor or teacher or writer or something. The fraction of personal finance and investing that applies to my life is actually quite small and easily mastered. It's kind of fun when your financial situation changes so you can learn something new- a new tax schedule or a new retirement account or a new employer etc. It will soon become just as routine as medicine. And that's good, because it means you are becoming an expert.

I highly doubt you're neglecting your studies. How many hours a week are you spending in the hospital? Exactly. Are you passing your inservice exams? Exactly.

Moderation in all things.
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

User avatar
fire5soon
Posts: 548
Joined: Tue Feb 20, 2007 3:07 pm
Location: FL

Re: I'm Addicted

Post by fire5soon » Fri Apr 08, 2016 6:40 am

I could relate at one point in my life. I couldn't read enough about personal finance and investing. It took over for a while so I needed another hobby/distraction. I've always loved cars, have owned muscle cars in the past, and missed not having one. So now that I have another project/muscle car I spend all my time (and money lately) researching car mods and working in the garage. It's much more fun than reading a finance book :beer
A man is a success if he gets up in the morning and gets to bed at night, and in between he does what he wants to do. - Bob Dylan

snarlyjack
Posts: 780
Joined: Fri Aug 28, 2015 12:44 pm
Location: Montana

Re: I'm Addicted

Post by snarlyjack » Fri Apr 08, 2016 9:34 am

Cramerica,

I believe like John Bogle "No one knows nothing"!

I'm a long term investor. My hold time is 40,50,60,70 years.
I believe a lot of things are going to happen in this period of time.
My plan is to be 100% invested & 40 years from now I'll take a look at it.
In the mean time I'm going to dollar cost average as much as possible.
I believe in the USA & I believe the USA will always be here!
Long term buy & hold with dollar cost averaging, Imho is the way to go...
Vanguard low cost funds are the best.
Think long term & invest in stocks!
100% of what you hear on t.v. & read in the papers is "Noise".
Noise is a total waste of time!

malabargold
Posts: 489
Joined: Fri Aug 08, 2014 8:16 am

Re: I'm Addicted

Post by malabargold » Fri Apr 08, 2016 11:15 am

To the contrary, I like BH philosophy exactly because
It is so simplistic and effortless.

No time wasted obsessing on market/economic gyrations = more time to concentrate on patients and CME.

chicagoan23
Posts: 299
Joined: Thu Jan 29, 2015 4:34 pm

Re: I'm Addicted

Post by chicagoan23 » Fri Apr 08, 2016 12:35 pm

I find myself pouring over investment data and researching every possible strategy. While this activity has resulted in great outperformance of the market and good tax planning/strategy, I feel like it is starting to get unhealthy. I spend much more time on this stuff than I do studying medicine.
One way that I have kept my "addiction" in check is to keep track of my winners, losers, and missed opportunities, and then realizing what I've missed.

One that always comes back to me is not buying 500 shares of Google at its IPO auction. I was newly married, no real obligations, had the money set aside in anticipation of the IPO, I was ready to do it, and then I chickened out by putting in a bid at $75/share, even though everyone was estimating that it would go for $100 and that's what I had planned for.

Instead I bought smaller amounts of a bunch of different companies, including Citigroup in early 2005. What could be safer than a huge diversified financial institution that brilliantly took advantage of the repeal of Glass Steagall?

Buying Colgate-Palmolive 11 years ago after a lot of research has been a nice long-term win--12.7% annual return with dividends reinvested, compared to 5.2% for the S&P. Under Armour three years ago on a whim after seeing basically every kid in my neighborhood wearing UA has turned out well too (35% to 8%).

There are endless opportunities to make money (and to outperform the market) but as you chase them you will have some winners, some losers, and some big missed opportunities. Buying the market gives you all of these combined. You can research this all day every day (and many do) and develop the most sophisticated strategies, but almost all who do still can't beat the market long-term. Chances are that you will miss out on just about all of those 5,000% gainers that a market index catches, and you will allocate more to a big decliner or laggard than the market would have.

Once you start making a high income I would automate the all-but-guaranteed strategy to get rich slowly by maximizing tax deferrals and using low cost index funds, but keep some "play money" in a brokerage account to chase after your strategies. If you keep outperforming, then once you get up over the $2 million mark in your portfolio you can become a trader and profit off your wisdom. If not, then you have a pretty bulletproof portfolio that will be there.

BW1985
Posts: 1749
Joined: Tue Mar 23, 2010 6:12 pm

Re: I'm Addicted

Post by BW1985 » Fri Apr 08, 2016 4:14 pm

chicagoan23 wrote:
Instead I bought smaller amounts of a bunch of different companies, including Citigroup in early 2005. What could be safer than a huge diversified financial institution that brilliantly took advantage of the repeal of Glass Steagall?

Buying Colgate-Palmolive 11 years ago after a lot of research has been a nice long-term win--12.7% annual return with dividends reinvested, compared to 5.2% for the S&P. Under Armour three years ago on a whim after seeing basically every kid in my neighborhood wearing UA has turned out well too (35% to 8%).

There are endless opportunities to make money (and to outperform the market) but as you chase them you will have some winners, some losers, and some big missed opportunities. Buying the market gives you all of these combined. You can research this all day every day (and many do) and develop the most sophisticated strategies, but almost all who do still can't beat the market long-term. Chances are that you will miss out on just about all of those 5,000% gainers that a market index catches, and you will allocate more to a big decliner or laggard than the market would have.
This would drive me insane and insanity was the path I was headed down until I found BH. Phew! :sharebeer
"Squirrels figured out how to save eons ago. They buried acorns. Some, they dug up, for food. Others, they let to sprout, in new oak trees. We could learn from squirrels." -john94549

ParkersPaPa
Posts: 101
Joined: Sun Jun 14, 2015 9:16 am

Re: I'm Addicted

Post by ParkersPaPa » Fri Apr 08, 2016 8:45 pm

LowER wrote:...

The rumor of the Fidelity study, that I can not seem to find, about the best investors being dead or forgot about their investments, helps ground me from time to time.
viewtopic.php?t=167234

Post Reply