2020 Investment Thread

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W800

W800

Noob
dagle said:
this guy in particular has mentioned 3 other options in the past 2 months that have hit that i didn't buy. i took the plunge for this one and it worked out. i'll probably continue to buy until the winstreak ends. i sold a few more this morning and locked in a double up with contracts left to ride out. ironically, i feel stock options are way less volatile than crypto lol its kind of therapeutic thinking about this stuff as opposed to crypto (especially since semiconductors/microchips are actual product you can evaluate)
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I'm reading "The Intelligent Investor" by Benjamin Graham. It's helping me understand fundamentals. I have some aggressive mutual fund positions right now - but in a month I am probably going to move towards a more conservative portfolio.

I also have some bond mutual fund positions that I am getting nervous about.

What happened was that I had a certain sum of money and I didn't want to lose money on inflation. So I moved it into mutual funds. But as I get more educated about the market, I am seeing things that I missed before.

I do enjoy the adrenaline rush of speculating, but that's why I have crypto, and I limit my positions there. But for actual investing, I am trying to divest my emotions from the process.
 
cfives

cfives

Well-known member
NorCalAthlete said:
There's speculation that was algos and not so much people.
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It would be even more frightening to me, if people are using algorithms/automated scripts to buy or sell stocks based on key words found on social media posts, assuming that is what you mean by algos.
 
NorCalAthlete

NorCalAthlete

O_o
cfives said:
It would be even more frightening to me, if people are using algorithms/automated scripts to buy or sell stocks based on key words found on social media posts, assuming that is what you mean by algos.
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That is exactly what I mean. It's been a frequent topic of discussion on Reddit as an exploit, a risk, a tool, benefits, downsides, etc.

Wealthfront kicked the door open a bit on the retail investor usage compared to just big wall street firms using algorithms to buy and sell for fractions of a % increase at a time, but people have caught on to the fact that once it's in play, it's harder to tweak / reign in on the fly. So there's a significant amount of "hmmmmm can we fuck with the algorithms to create an artificial short squeeze" type of posts right now with Gamestop (GME) for example. There's a fair amount of analysis and speculation there but as far as I can tell it was all initiated by tens of thousands of people on r/wallstreetbets basically coming together and being like "if enough of us buy into this, the algorithms will go crazy buying up the stock and drive the price higher." I honestly don't know how much of it was BS but it certainly seems to be playing out that way so I stayed away because it sounded like a massive pump and dump scheme.
 
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dagle

Well-known member
one of the things i've been buying up here and there is sumo logic. it's in the space where my company sits and IMO they do a lot of similar things to splunk, datadog, snowflake and the like. they seem severely undervalued to me, but that may be because i understand the arena they operate in. splunk is the worst, but is a reliable (but awful) to deploy in scif's and there are plenty of consultants who are "certified".

i also bought ABNB to hold last week because it seems weird to me that doordash is 60% the value of ABNB (their share prices are the same and i think the technology in airbnb is worth much more)
 
afm199

afm199

Well-known member
W800 said:
I know this sounds really boring - but does anyone just buy and hold index funds?
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Sure. In fact, Warren Buffett said that the average investor who wanted to invest should just buy and hold VOO. It was great advice.
 
W800

W800

Noob
afm199 said:
Sure. In fact, Warren Buffett said that the average investor who wanted to invest should just buy and hold VOO. It was great advice.
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jt2 said:
Absolutely, index ETFs are the vast majority for me, most of it in SPY. Not exciting, but slow 'n steady...
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Yes - it looks like index funds have lower costs too. My investment asset allocation plan is along the lines of 70/30.

70 equities index funds.
30 bond indexes.

Those will be in a SEP IRA.

In a separate sub account - I have a certain amount in money market in case stuff gets weird or I have large unexpected expenses, etc. .

From going through the Graham book, and also an "Idiot's" book - it's just looking like for long term, indexes are consistent. That being said - I am setting aside a VERY small amount for some day trading so I can get my little endorphin highs when I can't get out on the bike, LOL.
 
Killroy1999

Killroy1999

Well-known member
W800 said:
Yes - it looks like index funds have lower costs too. My investment asset allocation plan is along the lines of 70/30.

70 equities index funds.
30 bond indexes.

Those will be in a SEP IRA.

In a separate sub account - I have a certain amount in money market in case stuff gets weird or I have large unexpected expenses, etc. .

From going through the Graham book, and also an "Idiot's" book - it's just looking like for long term, indexes are consistent. That being said - I am setting aside a VERY small amount for some day trading so I can get my little endorphin highs when I can't get out on the bike, LOL.
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For the %Stock (Equities) /%Bond, I learned of the old rule of tumb:

100-your age = %Stock you should own

but then there is a modified version that is for more growth:

110-your age =%Stock

Holding this amount of bonds did help me when the stocks hit the bottom in March, so I rebalanced by then by selling bonds which were relatively flat and bought more stock when they were low. Yet, for a period of time before Covid I saw that the S&P500 was gaining faster than my portfolio, so I was missing out.

I found an article with research on holdings in retirement and the research analyzed different %Bond holding in retirement and found that holding only 10% Bonds in retirement had a low probability of running out of money. Since, my overall net worth now is 80% real estate, I dont think its a big risk to rebalance to only 10% Bonds.

Here is the article on the research: https://www.investopedia.com/articl...1815/buffetts-9010-asset-allocation-sound.asp
 
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Killroy1999

Killroy1999

Well-known member
asdfghwy said:
This is the way
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4tv149.jpg
 
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dagle

Well-known member
TSMC popped this morning and i got out. ABNB is doing well, kinda kicking myself for buying stock instead of options now haha..

am thinking about parlaying into facebook stock (half options, half stock)
 
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