I will add to this, from my personal experience and sole opinion, that you DONT have to invest the bank on a winning position in order to better your portfolio. In other words, if you think to yourself - well, this company XYZ (no pun intended) is THE ONE...! Betting your house on it will increase the likelihood of losing the house. BUT, if you put a PROPORTIONATE amount on it, as tiny as it may- will help you lessen the odds of losing the house and at the same time, if you WERE correct... Produce a SIGNIFICANT return if it did pan out to be that rare unicorn. example... if you were to invest $1000 on Tesla earlier last year... you would have invested an amount that seems reasonable to most, and, had it turned out to crash and burn - as the media back then predicted it would - you would be at a loss of a grand. But being that it turned out to be the winner that it is - you are now sitting on a 15-16k return. To me, that’s a much more sensible approach than to simply “bet” everything on one stock. At the same time you would have other positions that would gain nice returns on a long term basis, while keeping the clear winner and possibly even leading your portfolio. I had done EXACTLY that today with a company I have a lot of hopes for that is trending rather nicely in today’s market - QS. I have been watching them for awhile and support their agenda. However I am NOT big on investing in new companies/ipos and decided to invest a very small amount in them. If it pans out to work out - great! If it gradually grows I will add more, if it ends up losing steam - no harm. Just some food for thought.
VERY good food...Zukodany. This is EXACTLY WHY when I set up a portfolio.....half of the money goes into the two mutual funds, SP500 Index and Contra fund. As protection against my BIAS and stock picking. The other half of the money is spread among 12 stocks EQUALLY. By spreading it EQUALLY it prevents ME from putting too much emphasis on any one stock to begin with. It also INSURES that at the start of the portfolio.....compared to the 100% of money that I start with....ONLY 4.15% of the total money is in any one stock outside of what the mutual funds hold. There is ACTUALLY a method to my MADNESS. And....much of that method is protect me from MYSELF.
Zukodany, QS was on my mind all day today. I bought it about 2 weeks ago in the low 40's. Bought a small amount under 1K. I had my finger on the sell trigger today @125 but decided to hold. I try to do some short selling during the year to add some excitement to my life. The only reasons I bought the stock was because of Gates, VW and EV mania. I think once they do some RD on those solid state batteries people will find out it's not so cutting edge. It's on my short list, but I'm being greedy! Happy Investing!
Yup I bet, probably very tempting to sell and collect the profits. I did just that with Enphase recently and heck I was just happy with a 20% increase. But now I sense that that whole sector is extremely desirable. So I purchased more of both
A LOT of weird Chinese stuff lately with ZOOM. If I was interested in this company......I am not......this stuff would give me pause: Zoom admits calls got 'mistakenly' routed through China https://www.businessinsider.com/china-zoom-data-2020-4 How Zoom violated its own terms of service for access to China's market https://www.msnbc.com/opinion/how-zoom-violated-its-own-terms-service-access-china-s-n1252092 Former Zoom Employee Wanted by the FBI for Support to Chinese Government https://news.clearancejobs.com/2020...by-the-fbi-for-support-to-chinese-government/ SEC probing Zoom over Chinese government interference https://appleinsider.com/articles/20/12/21/sec-probing-zoom-over-chinese-government-interference
I have been REMISS in not mentioning a few threads that I really like on this site. For those that have not explored other parts of this site......the bigbear0083......threads are a great daily read. I ESPECIALLY LIKE the ones that are under the "Stock Market today" forum......the threads are: "Stock Market Today"....I love the graphic view of the markets every day. "Most Anticipated Earnings Releases" "What Stocks Are On Your Radar"
YEA......the NASDAQ just turned positive....who know for how long. We need to get the rest of the markets......many of my stocks.....involved in the rally we are seeing today. I like this little article: The Key Financial Lessons From an Awful Year One silver lining from a very tough year? The world learned some timeless financial lessons. https://www.fisherinvestments.com/en-us/marketminder/the-key-financial-lessons-from-an-awful-year (BOLD is my opinion OR what I consider important content) "2020 has been terrible. But in its awfulness, it may also have revealed the importance of what we take for granted too often. This ranges from the everyday, like getting a haircut or catching a quick lunch, to the profound—the personal connections that enrich life. Being prepared financially is on the mundane end of the spectrum, but in our view, this year has made its value abundantly clear. So in the spirit of learning from hard knocks, here are some financial lessons brought to you by 2020 that we think bring timeless benefits. It pays to stay cool and level-headed—especially when most aren’t. By their very nature, unprecedented events with big, negative consequences trigger fear and panic. But such crises aren’t the only risk. They can lead you to take the wrong actions at the worst possible moments, compounding disaster. In mid-February, after an exceptionally strong 2019 that looked likely to continue, stocks faced a wallop: a pandemic that led to blanket economic lockdowns attempting to contain it, crushing economic activity suddenly. The bear market that ensued sent the S&P 500 down -33.8% in five weeks—a record-fast drop and extraordinary in the history of bear markets, which are usually long, grinding affairs. It would obviously have been great to be able to foresee the bear market coming and take action in February or thereabouts, getting back in at lower levels later. But the next best option? Staying cool. Five months later, markets had erased the damage. To correctly have taken defensive action, you would have to had made not one, but two calls correctly: 1) Realize weakness was a bear market—before panic selling set in, bottoming on March 23. 2) Buy back in while stocks were materially lower than when you sold, which likely meant while lockdowns persisted, virus cases were rising swiftly, vaccines were distant and society was just beginning to feel economic damage. Selling in fear of further declines? That is a backward-looking choice that fails to acknowledge 2020’s critical lesson that stocks look forward, to some degree ranging from a few months to a couple of years. Looking backwards from the pain of loss could easily risk your missing the (typically swift) bear market recovery. Bad stuff happens, necessitating a healthy—but not oversized—emergency fund. This year more than most should highlight why maintaining an emergency fund is critical: It protects you against unexpected expenses, market turmoil or loss of income. Hopefully, you never have to tap emergency funds, but when needed, ready access to some cash can prevent a bad situation from becoming worse. If you lose a job or a sudden expenditure happens to hit out of the blue, having the reserves to tide you over can be a lifesaver. But don’t go overboard, which could raise the risk of not meeting your long-term financial goals. Many may come away thinking 2020 means you should keep a bigger emergency fund than you would normally—just in case, right? From an investment perspective though, an emergency fund’s purpose is to prevent you from selling during down stretches to fund an unanticipated expense. That said, we are a bit afraid many may overlearn this lesson, carrying much too much cash, given their goals and needs, out of fear. Having a bigger emergency fund than suitable—typically, around six months’ regular cash flow needs—means more of your savings aren’t working toward your objectives, especially in the near-zero rate era. Socking away large amounts of cash generally reduces your investments’ overall expected return, potentially jeopardizing your financial future. A bigger buffer than warranted doesn’t automatically make you safer or better off—it could be the opposite—which we think is worth keeping in mind. Don’t wait to plan your legacy. There have been too many untimely deaths this year. Unfortunately, many left their financial affairs in disarray—and grieving loved ones struggling to get them in order. Contemplating your own death may be difficult emotionally, but it can lighten the burden on your loved ones when they may need it most. If you haven’t already, start by establishing a will that clarifies how you want your estate divided. At the same time, review beneficiaries on your retirement accounts to ensure they are up-to-date and in keeping with your wishes. The next step may be harder: informing those you want to help handle your affairs and be your will’s executor. This can be a hard topic to broach, but your heirs and executor will appreciate your briefing them on where you have accounts, who your contacts are and what passwords are relevant, if any. Maybe write a letter and tell them you will leave it in a safe place. Of course, there are other things to consider: any end-of-life directives, medical or financial power of attorney and your digital assets (online accounts, profiles and the like). But getting the basics down is the best way to begin. Weigh what matters. As 2020 has demonstrated in spades, life is short and unexpected things happen. We may not know what the future will bring, but it helps to envision what you want yours to look like—your lifetime goals—to map out how to achieve them. With vaccines potentially heralding a return to more normal activity in 2021, this is a good time to think critically about your long-term objectives and whether they have changed. What you need or want your money to accomplish—the overall purpose for the nest egg you have built—may be different than what you imagined before. Is there a charitable organization you have become involved with that you would like to leave a legacy to? A child or grandchild whose education you want to fund? A second home you have been considering? Or, do you intend to live it up and do everything you always wished, but couldn’t during your working years? What if there is a terminal diagnosis for you or a family member that accelerates your plans? Are you planning properly for long-term care expenses late in life? Reappraising your financial plans in light of changes to your investment goals could inform how you construct your portfolio to bring them to fruition. To make the most of a bad year, learn from the challenges it revealed and come away stronger from it. Adapting in this way can turn a dark year into a brighter future for you—and your family—financially." MY COMMENT Simple.....yet critical stuff. I do agree with the.....not going overboard....on the emergency fund comment. To me......there comes a time when investment accounts are large enough to be considered the emergency fund. I DO NOT keep an emergency fund because I have immediate access to investment accounts and the value of those accounts is high enough that I do not feel that I need an emergency fund. SAME with LIFE INSURANCE. I reached the point about 25 years ago that I no longer had a need for life insurance. So, I canceled my TERM Insurance policy. There is a point where the funds you have are sufficient to take care of the needs of kids education and family in the event of your death. To me.....at that point paying a life insurance premium is a waste of money. Well I see that the NASDAQ has now gone back negative as I was typing this........oh well (sigh). Much time left in the day for a turn around.
Whewww what a trainwreck ZM has become. A big MESS. Talk about a stock that was a Wall Street sweetheart for exactly 15 minutes. Now. Nothing but horrible news. Was in the red today .41 it’s ok I don’t except anything exciting for this short Christmas week. Will ride this any which way it goes till the new year and then will probably add some serious money into existing well performing positions. Maybe a couple of new ones as well? We’ll see. We’re going to visit the business in NY next week so will be away from everything anyways, so MERRY CHRISTMAS AND A HAPPY NEW YEAR to everyone! Be safe, healthy and yes hopefully a little richer next year. love ya’s Zuk
To all, looking for suggestions or comments about ZM. Sell and put those profits somewhere else or let it ride? How long should you keep a stock that was performing well, but has falling off? Also, I am sure ZM was performing well because of the pandemic.
WELL.....dont ask me about ZM. I dont own it and at this point I have a BIG BIAS against it. ALL the recent publicity about the stock and China as well as the fact that the CEO is raised.....and......educated....for the most part.......and........a Chinese communist national for nearly 40 years of his life.......before coming to this country........NO THANKS. I dont like or trust the management....in the slightest......and.....I dont like all the ways that they have been "KOW-TOW"ing to the Chinese.....and I AM definately using that term in the historical meaning INTENTIONALLY. I am NOT a fan of the worlds MOST BRUTAL DICTATORSHIP........China that is......not ZM. I heard the CEO on TV the other day discussing the recent negative stories about the company and China. I thought he came across as..... EXTREMELY dismissive and condescending.....using the typical tech and bay area WOKE language.....talking to the "little people"......in a way they could understand. He sounded.....to me.....totally bored......like he was reading from a WOKE script......touching on all the linguistic, business, and woke, BUZZ words.......that some PR person handed him.
I was in the RED today........and.....got beat by the SP500 by .59%. Every time I hit a new high.....by a slight amount.....I get pushed back slightly by the markets. ONE step forward and ONE step back. In the OLD DAYS.....I would say the market is building a base for the next move up. TODAY.....I would just say......the markets dont know WTF they are trying to do. GLAD I am a long term investor......that allows me to just ignore the short term INSANITY. One of my kids and their spouse are THRILLED.....they just hit the $225,000+ milestone. They are in their mid 30's and started investing in the SP500 on a regular basis in 2012. They are NOW seeing that their old DAD might actually know what he is talking about. They are experiencing the THRILL of seeing their accounts hit REAL MONEY. DEFINITELY motivating them. SO.....they will be putting a big chunk of money....about $32,000 in the SP500 next Tuesday once the funds clear in their accounts. NO market timing for them......they are investing it all in all at once........while they have the money available. Going to get it to work in the markets and NOT worry about it.....since......this is long term money. They got their first chunk of money from the sale of a house back in 2012 and now this second chunk of money is what is left from the sale of their second home after buying their third home and fixing it up. Between them they are investing $1000 per month automatically into the SP500 over and above their pension contributions that come out of their monthly pay. I have been hammering it into them to.....PAY YOURSELF FIRST. Hitting the $200,000+ milestone is OPENING THEIR eyes. They BOTH have great pensions......as government workers.....and now with this amount in their Schwab accounts.....at their ages......even if they never contributed another penny.......they are set when they hit age 65. ACTUALLY....they will BOTH be able to retire at about age 54 with a lifetime pension of 100%.....yes.....100%....of their final years pay when they hit age 54. THE GLORY of working for the government. JUST a few hours away from....CHRISTMAS EVE............MERRY CHRISTMAS TO ALL.
Hey WXYZ, I have a question for you. You have mentioned the S&P500 a lot of times in your thread as a great index stock. I am curious as to why you mention it so much in comparison to the NASDAQ when the NASDAQ has outperformed the S&P500 handily over the last 12 years. I do not mean this to be a slight or anything like that. Perhaps you have a different viewpoint or knowledge than what my research has turned up. Based on this graph and how the indexes are weighted, I would much rather invest in IXIC for the long haul. Perhaps I am missing something?
NO PROBLEM.....I prefer the SP500 because it is BIG CAP. Over my life of investing I have always PREFERRED to invest in the BIG CAP world. I like the dividends and I like the extra safety that I believe comes from owning PROVEN big cap companies. In BEAR MARKETS I believe the big cap stocks give an extra edge with more safety, the dividend, and less volatility. Your chart is the NASDAQ 100.......not the NASDAQ which has 3300+ stocks. The NASDAQ 100 certainly has a great record over the past 10-12 years. Just mainly personal preference. I ALSO like the very long history of the SP500 and the long history of returns averaging 10-11% going way back.
Got out of IRBT just before close yesterday and put it all into TSLA. Made a bit, but I just could not stand selling before at least breaking even. Going long with TSLA regardless of whatever near term market turbulence comes to fruition. I really hope they go all in with battery and software tech as well as getting into new areas of growth. That'll be where they grow into their valuation. Building cars is just the entry into their "ecosystem".
I like the fact that the SP500 has been around WAY longer. I also like that the SP500 is way BROADER and more diversified and not as TECH heavy since my portfolio is in my opinion tech heavy. The chart above shows the differences pretty well. BOTH are nice indexes....but I think the SP500 is more the industry standard for the general US economy and investors. In the end it just comes down to personal preference.....perhaps it is a sign of age and being an OLD investor since the Nasdaq 100 has not been around as long as I have been investing, having started in 1985. The SP500 started in 1957. Interesting question.....roadtonowhere08.
