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

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

Post by boglehooligan » Wed Mar 25, 2020 1:32 pm

Curious to know what stocks (or Bingo money) you currently hold? :beer

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

Post by HomeStretch » Wed Mar 25, 2020 1:34 pm

What is “Bingo money”?

ETA: Thanks, Wiggums! OP, sorry I have nothing for you. I’m a boring “3-funder”. :happy
Last edited by HomeStretch on Wed Mar 25, 2020 1:46 pm, edited 1 time in total.

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

Post by Wiggums » Wed Mar 25, 2020 1:38 pm

This maybe the reference:

Appendix #2
Stock Picking as a Hobby

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

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

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

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

Post by Sidney » Wed Mar 25, 2020 1:38 pm

I don't play games with money.
I always wanted to be a procrastinator.

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

Post by rockonhumblepie » Wed Mar 25, 2020 1:56 pm

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

When we are huckered down got to have heathy snacks.

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

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

Sticking to my plan till the cows come home.



Be safe and keep the home front happy as possible. 8-) Music feeds the soul

new2bogle
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Re: Rick Ferri says to put aside something for "Bingo Money"

Post by new2bogle » Wed Mar 25, 2020 2:03 pm

Was thinking about BA, but missed that boat. I believe it has a lot further down to go though, even after today's rise.

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

Post by michaeljc70 » Wed Mar 25, 2020 2:08 pm

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

GibsonL6s
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Re: Rick Ferri says to put aside something for "Bingo Money"

Post by GibsonL6s » Wed Mar 25, 2020 2:33 pm

I had my Bingo money in a leverage mortgage ETF paying a 22% yield until it lost 99% of its value and evaporated. I think I agree with the don't play games with money posted above. :(

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

Post by 22twain » Wed Mar 25, 2020 2:38 pm

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

I don't do it myself. I have other hobbies.
My investing princiPLEs do not include absolutely preserving princiPAL.

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

Post by Dottie57 » Wed Mar 25, 2020 2:40 pm

My allotment of bingo money goes to an occasional (1 per month) lottery ticket. Not willing to spend more than $2 a month.

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

Post by jeff1949 » Wed Mar 25, 2020 4:24 pm

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

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

Post by jdb » Wed Mar 25, 2020 5:05 pm

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

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

Post by EnjoyIt » Wed Mar 25, 2020 5:09 pm

How about Royal Caribbean?

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.

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

Post by anon_investor » Wed Mar 25, 2020 5:39 pm

My bingo money went into VGT (Vanguard Info Tech Sector Index ETF)...

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

Post by Sandtrap » Wed Mar 25, 2020 5:42 pm

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

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

Post by celia » Wed Mar 25, 2020 5:56 pm

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

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

Post by roka » Wed Mar 25, 2020 6:13 pm

Mostly for fun I took a small amount of our cash holdings and bought some dividend paying stocks. Of course I happened to invest about 2 weeks before the crash started. If it wasn’t for bad timing I wouldn't have any timing at all. :|

as9
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Re: Rick Ferri says to put aside something for "Bingo Money"

Post by as9 » Wed Mar 25, 2020 6:23 pm

Honestly would rather gamble on sports.

The only individual stocks I own are in Robinhood and WeBull from their free stock promotions (combined value ~$100).

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Phineas J. Whoopee
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Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Phineas J. Whoopee » Wed Mar 25, 2020 6:33 pm

Sometimes Rick's advice is good. Sometimes it's terrible.
PJW

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

Post by ARoseByAnyOtherName » Wed Mar 25, 2020 7:04 pm

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

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Phineas J. Whoopee
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Re: Rick Ferri says to put aside something for "Bingo Money"

Post by Phineas J. Whoopee » Wed Mar 25, 2020 7:07 pm

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

PJW

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

Post by arcticpineapplecorp. » Wed Mar 25, 2020 7:09 pm

That's odd coming from a guy who wrote a book called "Serious Money". But I guess there's your serious money, and then there's your bingo money.
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

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

Post by spae » Wed Mar 25, 2020 7:18 pm

My bingo money is in seed-stage investments of tech companies. The most likely outcome is that every investment goes to zero, but I might get lucky. Unlike stock picking, the market is illiquid enough that it's possible in principle for a small private investor to have an edge but the sample size is small enough that individual investors can't tell if they have an edge or are just lucky.

The market for seed stage investments is surprisingly stupid. There are only a few funds that do any research, like Pioneer Fund. Most funds are trend following and won't lead a round but will throw FOMO money in if someone else is leading a round or there's hype. When you look at historical returns, hyped companies don't have better returns than unhyped companies.
Last edited by spae on Wed Mar 25, 2020 8:00 pm, edited 1 time in total.

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

Post by AK_Kiter » Wed Mar 25, 2020 7:20 pm

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

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

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

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

Post by whodidntante » Wed Mar 25, 2020 7:22 pm

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

j :happy
It's better to gamble 10k instead of a dime. That way you give appropriate thought to your decisions. :wink:

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

Post by JonnyDVM » Wed Mar 25, 2020 7:52 pm

My bingo money is currently in RC
It’s not “just the flu”. Stop saying that. It’s really annoying. -me

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

Post by GoldenFinch » Wed Mar 25, 2020 8:05 pm

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

j :happy
This sounds familiar. Literally.

Wise too.

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

Post by JaneyLH » Wed Mar 25, 2020 8:13 pm

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

But I was unsure and didn't want to be a market timer. Yea Bogleheads! :beer I'm still happy. :D

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

Post by Sandtrap » Wed Mar 25, 2020 8:53 pm

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

j :happy
This sounds familiar. Literally.

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

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

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

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

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

Post by abuss368 » Wed Mar 25, 2020 8:57 pm

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

j :happy
Very well said. I have not speculated with individual stocks in over 12 years and never plan to again. I would rather own the haystack with Total Stock and keep buying it.
John C. Bogle: "Simplicity is the master key to financial success."

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

Post by abuss368 » Wed Mar 25, 2020 8:58 pm

Jack Bogle in the excellent book "The Little Book of Common Sense Investing" advised that if investors really wanted a "funny money account" that it should represent no more than 5% of the portfolio. However, he also advised to compare it to your index fund portfolio of Total Stock and Total Bond.
John C. Bogle: "Simplicity is the master key to financial success."

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

Post by abuss368 » Wed Mar 25, 2020 9:01 pm

I have actually never heard Rick Ferri call it "Bingo Money".
John C. Bogle: "Simplicity is the master key to financial success."

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

Post by michoco911 » Wed Mar 25, 2020 11:18 pm

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

I hold CSCO, VMW and XOM.
30% VWRD 30% VUSD 40% AGGG until further notice

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

Post by jello_nailer » Wed Mar 25, 2020 11:42 pm

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

:mrgreen:

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

Post by tesuzuki2002 » Thu Mar 26, 2020 12:24 am

SPCE and BA Both are up Big since last Wednesday! :sharebeer

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

Post by birdog » Thu Mar 26, 2020 3:54 am

That’s great if you are able to do that and not be tempted to let it grow to a larger part of your portfolio. My IPS says, that due to past performance, I’m no longer allowed to buy an individual stock. I think my IPS is so mean but it says it’s just being strict because it loves me.

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

Post by Johnsson » Thu Mar 26, 2020 6:19 am

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

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

Little to lose, much to gain. :greedy
'In theory there is no difference between theory and practice. In practice there is.' Yogi Berra

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

Post by JonnyDVM » Thu Mar 26, 2020 6:26 am

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

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

Little to lose, much to gain. :greedy
To be fair bankruptcy is certainly a possibility. But I’ll take my chances. We’re playing bingo remember.
It’s not “just the flu”. Stop saying that. It’s really annoying. -me

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

Post by student » Thu Mar 26, 2020 6:35 am

One potential benefit of having bingo/play/fun money is that many will find out that they are not one of the talented investors and abandon stock picking.

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

Post by birdog » Thu Mar 26, 2020 6:37 am

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

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

Post by retiringwhen » Thu Mar 26, 2020 6:42 am

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

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

Post by Johnsson » Thu Mar 26, 2020 6:46 am

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

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

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

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

Post by 3funder » Thu Mar 26, 2020 7:36 am

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

BTW, I holding tight with my 3 fund but I have considered putting some money into some of the cruise ship stocks.
I don't invest in individual stocks (outside the context of an index fund), but I can't stand the thought of anything so cyclical and dependent on the economy. I'm not saying you're necessarily wrong, though.

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

Post by michaeljc70 » Thu Mar 26, 2020 8:08 am

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

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

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

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

Post by MnD » Thu Mar 26, 2020 8:32 am

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

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

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

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

michaeljc70
Posts: 6387
Joined: Thu Oct 15, 2015 3:53 pm

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

Post by michaeljc70 » Thu Mar 26, 2020 8:40 am

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

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

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

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

MnD
Posts: 4578
Joined: Mon Jan 14, 2008 12:41 pm

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

Post by MnD » Thu Mar 26, 2020 8:52 am

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


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

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

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

soundwave
Posts: 41
Joined: Thu Jun 28, 2018 10:13 am
Location: USA

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

Post by soundwave » Thu Mar 26, 2020 9:10 am

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

j :happy
Same here. Many pennies add up to dollars :moneybag
"Go placidly amid the noise and the haste..." Epictecus

michaeljc70
Posts: 6387
Joined: Thu Oct 15, 2015 3:53 pm

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

Post by michaeljc70 » Thu Mar 26, 2020 9:11 am

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


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

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

Image

The gains do not include the interest paid to me (outside of a sale).

soundwave
Posts: 41
Joined: Thu Jun 28, 2018 10:13 am
Location: USA

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

Post by soundwave » Thu Mar 26, 2020 9:16 am

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

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