I was googling the qoute of Bob Brinker about reaching critical mass ... the point to achieve financial freedom. I stumbled on some interesting blogs about FIRE movements (Financial Independence, Retire Early). I see similar wisdom as W is preaching: Start saving and investing early on and use the power of compounding...
Yeah Bob Brinker.......I used to listen to him all the time on the radio......he had a market timing strategy but was definately a long term investor. Here is his CRITICAL MASS thinking. "Bob's Land Of Critical Mass: A state of freedom from worry and anxiety about money due to the accumulation of assets which make it possible to live your life as you choose without working if you prefer not to work or just working because you enjoy your but don't need the income. Plainly stated, the Land of Critical Mass is a place in which individuals enjoy their own personal financial nirvana. Differentiation between earned income and assets is a fundamental lesson to learn when thinking in terms of critical mass. Earned income does not produce critical mass......critical mass is strictly a function of assets." "Critical Mass, as a concept appears to be slightly different from the Retirement corpus. Initially, we grow our assets by savings. Investing these savings over time then starts to accumulate assets in terms of yearly incomes. A simple 10% saving rate, if not invested, will accumulate one year's savings in 10 years. While with investing, it will do so in much lesser period depending upon the rate of investment return. Then one day, we see that we have assets worth income of multiple years. And after some years, the yearly growth of our assets can become equal to the yearly income. At this point in time, we have reached the Critical Mass. And now the possibility to retire from a day job / salaried job is a real possibility. Actually speaking, the salaried job then makes a lot less sense after that, since the regular income gets a worse tax treatment while the tax on the capital growth can be deferred for a long time. Much better to do the latter rather than the former. The best way to reach a Critical Mass is to save drastically in the initial years and accumulate as fast as possible. Although doing it the slow and steady way up to the 50s with wise savings is not a bad thing. By keeping this in mind, one can change from the more stressful kind of jobs to more relaxed ones much before the actual retirement. This way of thinking is slightly different from the usual Accumulation phase where you work, work and work and suddenly when you cannot or do not want to, you take an (arbitrary) age-based retirement and hope to live off whatever you have got."
Nice day for me......obviously GREEN. Plus a good beat of the SP500 by 1.72%. It will be interesting to see how the markets follow through tomorrow. I suspect some selling at the open........and......I am hoping some strength and follow through to the positive as the day moves on. But.....lately we see strength followed by weakness and weakness followed by strength after a few days. Should be entertaining in any event.
So Green Day UP 1.79% YTD UP 8.14% Notables for the day CNRG UP 9.33% MU UP 5.00% Intel UP 4.71% Wife's Account UP 2.84% (So, I told her the last 2 weeks were a little brutal , but she's UP again ) (I just recently opened an account in her name) In re-reading my posts over the last day, I need to make a correction , I used the wording "MARKET TIMING" I think I should have said just plain "TIMING" or maybe "Sector Timing" , either way I'm plain bad at it. IE: Bot VTWO (Russel 2000) last week and it proceeded to go down immediately, until the last couple of days.
WOW....Bitcoin is trying to become MAINSTREAM. Bitcoin Hits Highest Level in Two Weeks as Big-Money Bets Flow https://finance.yahoo.com/news/bitcoin-hits-highest-level-two-051056953.html (BOLD is my opinion OR what I consider important content) "Bitcoin rallied to a two-week high as a risk-on sentiment returned following selloffs in more speculative corners of the financial market. The digital asset rose as much as 5.7% before trimming some gains to trade at $53,747 as of 1:02 p.m. in New York. Ether -- the world’s second largest cryptocurrency -- jumped as much as 3.8%. The gains mirror broader risk-on optimism, with the Nasdaq 100 Index recovering from a decline Monday that pushed the tech index to a so-called correction level. “We feel that it is more of a ‘risk-on/risk-off’ play,” Matt Maley, chief market strategist at Miller Tabak + Co. said in a note Tuesday. Maley did note, however, that the world’s largest cryptocurrency held up “quite well” throughout the recent Nasdaq correction, adding that this could “have been due to the fact that the S&P 500 had also held-up quite well.” Even as high-flying bets like Tesla Inc. and the ARK Innovation ETF have cratered recently, Bitcoin prices have been buoyed by news of more institutional adoption, fueling crypto proponent’s argument that big financial players are rushing to gain exposure to the token, while another viewpoint stands that the digital asset is a stimulus-fueled bubble destined to burst like its 2017-2018 boom and bust cycle. Mark Mobius, founder of Mobius Capital Partners made a little-discussed connection between tech stocks and the world’s largest digital asset on Bloomberg Television Tuesday. “The relationship between Bitcoin prices and the tech market is very close,” he said. If “Bitcoin prices go down, I think the tech stocks are going to be hit very badly.” Meanwhile, the digital-asset industry continues to see endorsements from institutions. On Monday, NYDIG, a provider of Bitcoin-related financial services, announced that it raised $200 million from investors including Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual and Soros Fund Management. NYDIG said Bitcoin adoption among institutions is accelerating, citing data that insurers have more than $1 billion in Bitcoin-related exposure on its platform. Technical analysis is also supportive of higher prices, according to a report by Evercore ISI strategist Rich Ross, who said Bitcoin could reach $75,000. “Bitcoin and Ethereum bullishness are back as more big-money bets keep flowing into cryptocurrencies,” Edward Moya, senior market analyst at Oanda, wrote in an email. “Institutional interest still seems strong.”" MY COMMENT LOOKS like we might be off to the races with bitcoin going forward. We are seeing EVER INCREASING acceptance and investing in bitcoin by the big banks, corporations and other entities. As a few BIG companies put HUGE amounts of cash into Bitcoin......the dam broke. It is now acceptable to put cash and money into bitcoin. My poor little Bitcoin account.......I have not looked in a while.....since I dont see it as an investment....simply a fun diversion for $100 worth of MAD MONEY monthly. I have definately made money.....but my contributions.......so far.........are less than $1000. I must have a decent gain.....but nowhere near a single bitcoin.
I could not agree more with your way of doing it , personally I will have it all written out on paper (some of you older guys remember that stuff) beforehand what I'm selling and what I'm replacing it with. BUT the idea of storing it in one of my funds (VGT or VOOG, makes sense . My luck I'd end up infringing on the wash rule somehow , argh Well back to watching the daughter play volleyball , HS Varsity, OK I'm back . they won !
HERE are some great tips for successful investing......yes.....it really is this simple. Peter Thiel’s 7 best tips to identify businesses for long-term investing success https://economictimes.indiatimes.co...rm-investing-success/articleshow/81364002.cms (BOLD is my opinion OR what I consider important content) "Famous venture capitalist and silicon valley entrepreneur Peter Thiel says investors shouldn’t be too dependent on investment decisions based on formulas. Instead, they should look for companies that do things differently through disruptive business models. Thiel believes these companies have the ability to find value in places that other people might not notice. Thiel feels to achieve investing success, investors shouldn’t wait to think big; they should look for high-growth businesses in new industries. Peter Thiel is the co-founder of PayPal and Palantir and was also an early investor in Facebook. He also made early-stage investments in LinkedIn, Yelp, Lyft, Asana, Yammer, and many other successful technology companies. He is well known for his business and investing acumen, which has put him in the same league as the top investors of the world. Born in Frankfurt, West Germany in 1967, Thiel was very good in mathematics. He studied Philosophy at Stanford University and also served as the Editor-in-Chief of the Standford Review. He remained the editor till he completed his Bachelor in Arts degree in 1989. He then enrolled in Stanford Law School and earned his Doctor of Jurisprudence degree in 1992. Invest in successful businesses Thiel says investors should pick the most successful businesses, which are monopolies as they combine proprietary technology with network effects, economies of scale and branding. “In the real world outside of economic theory, every business is successful exactly to the extent that it does something that others cannot do. Monopoly is, therefore, not a pathology or an exception. Monopoly is the condition of every successful business,” he wrote in his hugely popular book Zero to One. Secret behind the success of a business Thiel says today's largest tech giants began their business journeys as startups. The secret behind their rise was their ability to identify and eventually dominate an emerging market with little to no competition. “The most successful companies make the core progression – to first dominate a specific niche and then scale to adjacent markets – a part of their founding narrative,” he says. Thiel attributes the success of companies like PayPal to their ability to start small in an untapped market. Giving the example of Paypal, he says the company started its business by playing in small niches and then perfecting its product before moving into other adjacent areas to dominate the markets. Paypal gained traction by getting in touch with E-bay auction customers, who were a small but important niche that dealt in high-volume transactions. The company then moved outside this small niche by reaching out to non-auction customers and offered them attractive incentives. Once the company got acquired by E-bay itself, it moved to other niches like online music providers and convinced credit card gateway providers to include them on their platforms. “Focus on a small niche helps a company avoid excessive competition while learning valuable lessons without endangering their survival. This is no different in the public market spheres, where a company establishes dominance in a product category before making ‘bolt on’ acquisitions to widen its dominance,” says he. In his book, Thiel lists out a few tips for investors to achieve long-term investing success. 1. Look for principles in companies An investor has to find value in unexpected places by looking at principles of a business rather than using formulas to pick potential investment bets. He says investors often make the mistake of judging companies solely on their results. “It is important to look for the principles a company follows before looking at anything else. Companies with strong and ethical principles are a good bets to invest in,” he says. 2. Invest in Quality Thiel says it is important for investors to conduct thorough research about a business before investing in it to ensure that they are able to pick quality stocks. He advises investors to look at the strength of the balance sheet, sound dividend policy and returns of a business to ensure that they pick the right stocks for investment. “Look at its principles, but more importantly, look at the quality of the business. Companies with strong balance sheets can stand strong amid adverse conditions. If a company has a history of growing dividend payout, you can consider it a quality bet,” says he. 3. Love the art of investing Thiel believes investors should take the art of investing seriously and it should be the most important task they should focus on in their priority list. If one shows huge passion and determination while investing, one is bound to earn huge profits in the long run. “Investment is not an activity to do on the sideline of your life cycle. It should be one of the most important tasks to focus on. The culture today does encourage us to do things we love, but sometimes it could be unprofitable. Investment is an activity that can bring huge profit if done with passion and dedication. It does not matter what you do as long as you do it well,” he says. 4. Pay attention to growing companies Investors should not have a casual approach towards investing, as it may lead to losses. Thiel feels one should pay great attention to growing companies and invest in them. Also, he is a great believer of investing in venture-backed firms. “One of the major mistakes one can commit as an investor is to have a casual approach towards investing. Don’t make the mistake of underestimating the power of diverse portfolios in growing companies. It is important to pay attention to growing companies and invest in them,” he says. 5. The most contrarian thing of all is not to oppose the crowd, but to think for yourself Thiel says there is no point in being contrarian for the sake of being contrarian. Only the truly independent thinking investor or entrepreneur can find market opportunities that turn into wealth generators. Thiel feels investors should have clarity in thoughts and base their decisions on facts and reasoning. 6. Monopoly is the condition for every successful business There is a huge difference between creating value and actually capturing it. Thiel feels companies operating under perfect competition-like conditions do not capture most of the value they create and, hence, investors should be careful while investing in such companies. On the other hand, monopoly businesses both create and capture value and, hence, should be first on the investor's radar. Thiel says in order to find a ‘monopoly business’, investors need to find businesses with a solid moat. Such businesses can be identified… By looking for businesses that consistently underplay their monopoly status By looking for businesses that use their excess cash to invest for the future versus needing their excess cash to defend their margins. 7. Have a long-term focus Investors make the mistake of having a short-term focus on investing, which can derail any effort towards building long-term durability. Thiel’s success as an investor seems to come from following many of the same principles that have made Warren Buffett successful, which includes independent thinking or focusing on “monopoly businesses,” which is just another term for companies with moats. Thiel advocates having a single-minded focus on very few companies that can become extremely valuable over time versus the ‘spray and pray’ approach that most other ordinary investors follow to achieve mediocre results. " MY COMMENT It is amazing to me how often I see SUCCESSFUL investors and very wealthy people like Thiel that......constantly......encourage and use long term investing and a long term mind set. It is......not......random chance that many of these successful investors are ALSO successful business people. It is .....not....random chance or just FLUFF that they talk about being long term......and....are NOT traders. The above is another way of saying what I always say about my investing criteria.......American, BIG CAP, DOMINANT, ICONIC PRODUCT or SERVICE, DIVIDEND PAYING, WORLD WIDE MARKETING, GREAT MANAGEMENT....companies.....the cream of the crop. I might not get into these sorts of companies when they first start up.....but.....I LOVE to get into them when the handwriting is.......starting.......to appear on the wall. As he says......MONOPOLIES......and.....companies with long term durability. ONCE you find them......you let them run and ride them for as long as possible.
You know oldmanram........gee......writing something down on paper.....what a novel concept. I use multi-colored note cards that I keep on my desk. I go through hundreds of them. The colors DONT designate anything......I just like the NEON cards......not as BORING as white. I DO use my SP500 Index Fund like a money market sweep fund. Except I do the sweeping. If I sell something or have stock market money and no particular investment target....I put it in the SP500 Index fund so it is STILL exposed to the market until I invest it. That way it is STILL a lateral investment from day one.
So , after reading that Theil article , and agreeing with it , the one company that first comes to mind is Amazon , but at a 73:! PE , and admittedly I have not looked over their financials, they seem to check all the boxes (except dividends) of the above article. AND , they are down from a 3500 high to a mere 3,000 /share . What are your guys thoughts on them ? Are they still over priced ? Just looking for your gut reaction thanks
You probably know my reaction.....LOL. I think Amazon is one of those....once in a lifetime.....companies for investors. There is some potential for turmoil with their recent leadership change.....as always when leadership changes. I see them as the MOST dominant company in existence. They are basically an old fashioned CONGLOMERATE.....made up of different businesses. Their cloud business is making great money. Their retail operation is the most dominant on the planet. I just dont see anyone that can outdo or compete with them. They represent a monopoly. I dont think they are overpriced. They were very attractive before today....but.....even at this price I like them. This little bump up might be temporary. There may be a chance to buy them at an even bigger discount in the days ahead. OR......when we look back today might represent the end of this little correction. I REALLY wish they and a good number of other companies would do some old fashioned stock splits. I think they are missing the boat by not splitting. I think MUSK and APPLE were very smart to split their stock.
I was pondering the exact same thing yesterday seeing the price dip under 3,000. Looks like a good time to buy. If they were to split stock similar to Tesla the stock would blow up in my opinion. Many people just have a mental block to pay 3,000 for a share and fractional shares just doesn’t have the same appeal.
I think AMAZON is an amazing company. I would buy at any price if long term is your focus. They do need a stock split, it's a shame that most of the employees of AMAZON can not afford some shares of a company they work for. Would like to see at least a 10:1 split but if they where to get that split price in the 150 range that stock would catch fire. It's interesting, was just looking at Microsoft and Apple split history, Microsoft had 8 stock splits over an 11 year run Apple had 3 over 15 year run. A lot of Micro's splits where 2:1 while Apple had one at 7:1. Micro out grew Apple because of the steady splitting and compounding over time. CASH IS TRASH! Happy Investing!
AMZN is a great company. Some of us that choose not to fully invest or simply trade for that matter have learned to use the overall metrics of the market to our advantage. Yield curve is obviously a new term to some of these guys that claim the cash is trash mumbo jumbo. Which is fine in their methods, however to some we are able to use those tools to our advantage. We DONT buy bonds, we simply use them as a Guage that has worked AWESOME the past few weeks. Example, by using the yield and being patient with our stagnant cash, we can now invest or trade into companies like AMZN at discounted prices that have recently erased MONTHS of gains by those that choose to just simply buy at any price. Because of this very simple observation,method and patience we can now enjoy a better entry price and enjoy the upward move. While some are still down and will do fine longer term, we have gotten in at a discount and therefore have upstaged some of these guys by MONTHS. I use the price of OIL to work OIL STOCKS, another important tool in the box. Sectors rotate and it never hurts to make adjustments accordingly as you see fit. We all have our own ways and should find a plan that works for our individual needs and goals. Personally, Im still mostly CASH and simply trade my way along with satisfactory results. Regardless, happy investing/ trading to everyone, ultimately CAPITAL GAINS is what we all have to agree is our ultimate goal. Charts do not lie, they tell a story, look at a few and you can clearly see my point.
Great article I just read at https://marklyck.medium.com/why-80-of-day-traders-lose-money-78d51b10fe25#:~:text=According to the stock platform,quitting within just two years.&text=Less than 48.4% of stocks,delivered a monthly positive result. I highlighted some interesting parts. Why 80% of Day Traders Lose Money Mark Lyck Jun 17, 2020·7 min read I recently came across a very scary statistic from one of the bigger public trading platforms. An analysis of trading-platform data shows that 80% of day traders are unprofitable over the course of a year According to the stock platform Etoro, they found that a whopping 80% of day traders lose money over the course of a year with the median loss of -36.30%! It’s no surprise more than 75% of all day traders end up quitting within just two years. So let’s go over why these investors are losing so much money, how you can avoid this pitfall and how you can end up making money in the long term instead of just throwing it away. For those who aren’t aware day-trading is a style of investing in which you buy and sell a stock (or any other type of investment) within a short period of time (anything from minutes to a day or two) This type of investment relies on daily momentum and price fluctuations in the market to make a quick short term “profit”... Or that’s the idea anyway. In 1999 The North American Securities Administration Association or NASAA (Why do they have to choose a name like that!?) reported that: 70% of traders will lose nearly all their money With only 12 percent of them actually making a profit on their short term trades, and now those numbers have only gotten worse! It’s through the increase of readily available apps like RobinHood that make it so easy to trade stocks that more people want to give this investment strategy a try. (and also fail miserably doing it) But why do so many people just end up losing money? Just consider this, a finance professor from Arizona State University analyzed the performance of over 26,000 publically traded stocks since 1926. He found that the average stock only traded for ~7 years and then ALL of their money. The common return of stocks over the last ~100 years was a loss of 100%. Less than 48.4% of stocks out there delivered a monthly positive result. That’s just slightly higher than the roulette wheel. Most importantly out of all the 26,000 stocks analyzed, only 1,000 of them accounted for all of the profits in stocks since 1926, and out of those just 86 stocks (one-third of 1%) were responsible for half of those gains. From this data, only 4% of profitable stocks made more money than the average return of a one-month super-safe Treasury bill. (That’s astounding!) The other 96% of profitable stocks really only kept pace with inflation. It is worth noting that the data he analyzed (ALL stocks in almost 100 years) included a lot of really scammy penny-stocks out there. If you actually look at just the largest cap stocks out there, over 80% of them actually do return a profit over a 10-year rolling period. Yet still 56% of those performed worse than the overall market index. And remember the day-trader isn’t holding a diversified portfolio for anywhere near 10 years! Not only do you have to be able to find and pick the few stocks that will sky-rocket, but you will also have to do it with the perfect timing. The vast majority of profits in the stock market is made in just a few days out of the entire year. If you happen to miss investing on the 3 best days of the year, you will will miss out on over 70% of the profits. This is why you so often hear the saying “Time in the market, beats timing the market”. The likelihood of losing money day-trading is incredibly high from just looking at the numbers. But still, a lot of people will insist that they are smarter than the average day-trader and they will somehow land in 20% category that didn’t lose money, year after year for the rest of their life. Which brings me to the next big reason day-traders lose money… Overconfidence Most investors are overconfident in their abilities leading them to trade more aggressively, take on more risk and thus… lose more money. A study conducted in 2017 found that when stock-traders were successful and made a profit they disproportionally attributed success to their ability rather than luck. On the opposite side when day-traders lost money, they often attribute it to bad luck and downplay their losses, leading them to want to keep going. Overconfidence like this is dangerous, it makes you more likely to jump into a trade without doing enough research or stay in a trade for too long when you don’t want to say to yourself that maybe you were wrong. I often say regarding investing that ego is your worse enemy and admitting to yourself that maybe you were wrong about something, is a hard pill to swallow. The hardest barrier to overcome with day trading is likely your emotions. Anytime you invest there are 4 emotions that will creep up: hope, greed, fear & regret. Often these emotions will overpower any amount of logic out there. HOPE At first, you are hopeful you will make a ton of money just like that 1 “investment guru” you saw on YouTube making millions of dollars by investing in no-name penny stocks or whatever else they are selling you through a course. You hear about so many success stories and think “what’s to stop me from doing these same trades?” GREED So you start day-trading and get greedy when you see your stock go up in value and think “How much MORE can it go up in value?”, “This is just the beginning, if I just hold onto it a little bit longer I’ll have made X profit…” FEAR And then you’re hit with fear. It’s the fear of missing out on profits if you just held onto it a little bit longer than “you should”, it’s the fear of losing money that causes you to sell the stock as soon as it goes down in value. Even though it might just end up sky-rocketing back up the next hour. The fear of loss is a much more powerful motivator than potential profit. (this is why insurance companies always try to scare you into buying, & it works!) REGRET Lastly, we have regret. This one I hear all the time, people regret buying a stock, people regret not buying a stock, selling too soon, not selling soon enough, etc. And then they think they won’t make that mistake next time. These 4 emotions are going to seriously hinder your ability to make profits day-trading. But that’s not all, the biggest reason day-traders lose money is the risk they take on. Day traders are more likely to make risky investments to reach for those higher potential returns, and as you can probably guess, high risk = high potential loss. Imagine this scenario You’re only trading $5,000 You make a 15% return in 1 year (which is a great return by the way!) Trading 3 days per week 2 hours per day. That’s 312 hours of work in a year, and what do you have to show for all that work? $4.80 per hour (assuming. you’re the in the top 10% of day-traders who managed to get such a good return!) You’d be better off working a minimum-wage job which is a lot less stressful. That’s why people with little money to invest often take one HUGE amount of risk to try to get those +1,000% profits instead of the safer 7% profits. and thus sadly ends up just losing everything. In the end, Day-trading is the most common “Get rich quick scheme” on the internet. People believe it’s just an easy way to make money from their computer or phone, and they think they can beat the market by following some “guru” out there who’s promoting his stock trading course or system. If there really was a magic system to day-trading that could earn +100% profits in a year, there is no way that would be on sale for a $49 fee and Warren Buffet (a long-terrm value investor) would not be the most successful investor in the world. The way I look at day-trading is no different than casinos, you can put a few dollars into it that you might otherwise spend at a casino, and you might get lucky a few times in a row. But in the end, the house always wins. This type of investing style is inherently risky and when you understand why so many people fail, you can better adapt your investment style to something that will benefit you in the long-term with a better risk-to-reward ratio. Not only are you competing with your own emotions when day-trading but also Hedge funds, institutional investors, high-frequency trading, algorithms, and just random news. The CEO had some unrelated scandal? Boom Stock drops 10% and you’re a day-trader so you immediately sell at a loss instead of just holding a few months it until it might just go back up. It’s for these exact reasons why I have never had an interest in day-trading. Longterm investing is way less risky, less stressful, has better tax benefits and you are way more likely to make money over the next several years than you are over the next several hours or days. This comes from someone who has spent years trying to develop a successful unbiased day-trading algorithm. But at this time, we haven’t come remotely close to the success of our long-term investing strategies with a +90% win ratio. But I can tell you this much if we ever find a magic short-term algorithm that actually works. We won’t be selling it for $49 on YouTube! This took a lot of research to write, so if you found this article helpful in any way please consider clicking that CLAP button a few times! Thanks for reading! Mark Lyck Founder of https://weeklystocktip.com (algorithmic longterm investing) My take I think day trading success is hard to come by, no matter what Rustic1 and others say and such success is most likely based on pure luck. Luck helps the long term trader too but not at all to the same degree. Emotional decisions can bite the long term trader but again probably is less likely.
I do appreciate the day and swing traders here for their ability to identify decent buy points and where support for a stock likely is. If I could learn that aspect of charting my profits would likely be higher.
That Theil article is screaming AMAZON & TESLA... although Tesla hasn’t reached market monopoly YET it is heading there with its AI & Autonomous EXCLUSIVE developments, but all the other boxes check (minus dividend) for both Amazon & Tesla. My opinion on it is- not everything is so cut and dry- it sounds very INSPIRING but in practice - investing in opportunistic companies that develop niche markets is EXTREMELY vulnerable. In other words out of 1000 companies investing in tiny cap niche markets you will probably have 1 or 2 that will succeed. Maybe less. I think that I will be more comfortable doing that once I built a steady net of stocks that work for me and are MORE SECURE for the long term. I was thinking about the airline companies last night... and Disney... and decided to go ALL in on Dis at the open today instead of an even split of Dis/delta/united.... I think that all 3 have the traveling concept in common, but Disney has the tech element baked in with Disney+ AND in relation to the Theil article - they have a HUGE monopoly over intellectual properties all across the board with Marvel, Pixar & Lucasfilm Under their belt as the prime acquisitions. That Bob Iger was a MONSTER with his deals during his tenure. And by doing so I will also add more meat to my NON tech companies which I currently own which will balance the diversification balance to my portfolio. So looks like I’m gonna pull a W at the open even though it goes against my mantra of BUYING LOW. And it’s ok, even if Dis dips in the next month or 2, I’m fine with it!
The importance of dividends to me: When you don't have the income to further add to your investments (that's me) dividend bearing stocks need to be a huge part of your investment strategy. As of today my stocks are paying roughly an average of 5.75% or so, almost $2400 a year. I have a few big ones paying over 7% (CSSEP, GOF, and ENB) and a bunch at various levels below that. Only NVAX and DIS pay 0%. Now I had expected the higher paying stuff to not appreciate in value as much but that expectation has not been realized. CSSEP is up 15.6%, ENB and KMI are both up around 10%, and I made around 20% before selling CODI, GLP, DCP, and SDIV in 2020 (Jan for SDIV). I never understood why Rustic1 slammed the idea of dividends so often. Since I'm ignoring his conversations now I guess I'll never know.
We already known AMZN is a great one. AAPL,TSLA, DIS are 3 more jewels and happen to be NANCY STOCKS. Hint "she speaks loudly and has a record of never losing" . Regardless of our time frame these will perform great over the longterm, all are now at a discount from recent highs. AI and EV should not be ignored as they are positively going to be very strong in the future. The JETSONS was more than a cartoon and history is proving it to be true. We know have robots that can do things we never could have imagined possible. We already have a foreign country that has developed electric powered farm equipment with very promising results. Knowledge is power, use it to educate yourself and achieve your investment goals.
That is a great article gtrudeau88. Right in line with ALL the other academic research. Although I suspect that it UNDER-REPORTS the FAILURE rate. BUT....you know....if you look at ALL the various investing message boards.....you will probably have a very hard time finding even one day trader or short term trader that is losing money. I suspect that if you could see ACTUAL DATA......the vast majority of people that think they can time the market did not make any trades before this little two day.....so far.....rally. They are STILL waiting for that MYTHICAL buy point. BUT....I HOPE everyone makes money and has success. This stuff is NOT a zero sum game......just because someone...."might"...be able to make money trading does not impact me making money and vice versa.
