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Individual Stock Discussions

75 38 September 27, 2017 at 06:04 AM in Finance
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I've been a member of the FatWallet community for a long time, and one of the most popular threads, though not necessarily the most useful, was the Individual Stock Discussion thread. I figured, it couldn't hurt to start one here.

Keep in mind that some people buy and sell a lot of stocks while others invest for the long term.
Some people do no research and others do lots of research.
Some people have good luck, and some people have bad luck.
Some people can afford to take a lot of risk while others cannot.
Some people lie about their investments; some post only their successes.

All of this is a warning to you -- nobody cares more about your money than you do (with the possible exception of a financial advisor, who may want to take your money and therefore cares a great deal about it).

The vast majority of my investments are in very low cost ETFs, but I currently have a handful of individual stocks that I am invested in.

Apple 3.3% of my portfolio. (With options to sell most of it come January, at 155)
Googl 1.7%
MA: 0.8%
NYT: 0.3%
ROL: 0.3%
TMUS: 0.3%

I am happy to share my entire portfolio, and occasionally do so. I've been investing for a long time and have no idea how I am doing in comparison to how I would have done had I kept it simple and invested in a broad index fund and simply added to it as the years rolled by. What I do know is that for many years the returns in my 401(k) were essentially zero. That had something to do with market crashes. But my individual portfolio did much better. So, I THINK I've done better than I would have had I stayed with fund investments, but it is by no means a scientifically arrived at conclusion.

During the financial crisis, I made a lot of money by investing when others were selling. I recall promising myself that I would be more careful with my money once the markets recovered. For the most part, I ignored my promise, or at least delayed its implementation. This year, I changed my asset allocation so that I am investing nearly 20% of my portfolio in fixed income (5.5% of which is earning 7% under NYC teacher's fixed income fund). Previously, I was essentially 100% invested in equities.

Additional advice to people interested in growing a nest egg is to head on over to bogleheads.org and review their investment wiki. It is very well done and may convince you to forgo individual stock picks altogether. If you need the thrill of stock picking, then I also suggest heading over to Fool.com and trying out their Stock Advisor service. You can try it and cancel for a refund, particularly if your portfolio is under $10,000 (I would not pay a penny in fees with such a small portfolio).

Anyhow, I hope the Moderators allow this thread to stick.

Community Wiki

Last Edited by bkkebi June 19, 2018 at 12:28 PM
I highly recommended getting the free trade from Robinhood backup by Google.

www.robinhood.com [robinhood.com]

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#3
Oh this is just great.
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#4
Quote from davidscubadiver
:
I am happy to share my entire portfolio, and occasionally do so. I've been investing for a long time and have no idea how I am doing in comparison to how I would have done had I kept it simple and invested in a broad index fund and simply added to it as the years rolled by.
If you have no idea, then IMO you shouldn't be picking your own stocks.

And since you are new here to SD, that makes your credibility questionable as to your real intent. Sorry for sounding so negative, but investing/trading is serious business, and I would hate to see people lose money just because anyone can post anything on the internet.
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#5
Perhaps I should not be picking my own stocks. I know I should exercise more and eat better than I do. Alas, I find it difficult to change my ways!

My motive is to open up a dialogue for people who are interested in discussing individual stocks/investments and maybe to re-house the FatWallet discussion here at Slickdeals assuming enough people choose to come over. That thread is 8 years old and has over 10,000 posts a year. It may not be the most useful, but it does have a readership.

I am pretty sure that the vast majority of people trading have no idea whether they have outperformed the relevant market, or even know how to define the relative market to benchmark their performance.

I tried to provide adequate warning to people to take posts as being worth a grain of salt, and to be careful with their money. People can't "lose" money because someone posted something that they read on the internet. Though I would add to my cautions, that people should certainly stay away from penny stocks and ignore posts concerning same.
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Last edited by davidscubadiver September 27, 2017 at 07:27 AM.
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#6
Picked up 60 shares of MA (MasterCard) @ $139.967. The stock has had a very good run for a very long time, so I added to my position.
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#7
Quote from davidscubadiver
:
Perhaps I should not be picking my own stocks. I know I should exercise more and eat better than I do. Alas, I find it difficult to change my ways!

My motive is to open up a dialogue for people who are interested in discussing individual stocks/investments and maybe to re-house the FatWallet discussion here at Slickdeals assuming enough people choose to come over. That thread is 8 years old and has over 10,000 posts a year. It may not be the most useful, but it does have a readership.

I am pretty sure that the vast majority of people trading have no idea whether they have outperformed the relevant market, or even know how to define the relative market to benchmark their performance.

I tried to provide adequate warning to people to take posts as being worth a grain of salt, and to be careful with their money. People can't "lose" money because someone posted something that they read on the internet. Though I would add to my cautions, that people should certainly stay away from penny stocks and ignore posts concerning same.
one thing I've found very useful is instead of picking individual stocks, picking ETFs that have that stock, because you have a lot of upside but also a lot of downside. An ETF eill hedge that. you wont see a crazy gain but wont lose it all and don't need to worry about it too much.
one ETF that has performed very well for me is SKYY, which is for cloud-related tech companies....everyone wants to buy cloud even if they dont know shit
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As Tony Schwartz, who co-wrote The Art of the Deal with Trump, said in 2016, "Something I saw early on [with] Trump: most negative things he says about others are actually describing him. Read his tweets with that in mind."
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#8
You can surely buy an ETF that owns the stock -- heck, VTI owns almost every stock. Or you can buy sector ETFs if you have a belief about the sector. Or you can just buy less of the stock you want if you want less exposure to it. Smilie
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#9
My stock of FW T-shirts worth anything?
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Quote from ZenNuts
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My stock of FW T-shirts worth anything?
Absolutely. You can still hope to be a star of the week to get the very best swag before they close up shop.
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#11
Anyone ever heard of Aapl?
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#12
Quote from MakeitRainDolla
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Anyone ever heard of Aapl?
It's a consumer electronics company. Makes phones and computers. Has a lot of cash on hand.
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#13
Quote from davidscubadiver
:
I've been a member of the FatWallet community for a long time, and one of the most popular threads, though not necessarily the most useful, was the Individual Stock Discussion thread. I figured, it couldn't hurt to start one here.

Keep in mind that some people buy and sell a lot of stocks while others invest for the long term.
Some people do no research and others do lots of research.
Some people have good luck, and some people have bad luck.
Some people can afford to take a lot of risk while others cannot.
Some people lie about their investments; some post only their successes.

All of this is a warning to you -- nobody cares more about your money than you do (with the possible exception of a financial advisor, who may want to take your money and therefore cares a great deal about it).

The vast majority of my investments are in very low cost ETFs, but I currently have a handful of individual stocks that I am invested in.

Apple 3.3% of my portfolio. (With options to sell most of it come January, at 155)
Googl 1.7%
MA: 0.8%
NYT: 0.3%
ROL: 0.3%
TMUS: 0.3%

I am happy to share my entire portfolio, and occasionally do so. I've been investing for a long time and have no idea how I am doing in comparison to how I would have done had I kept it simple and invested in a broad index fund and simply added to it as the years rolled by. What I do know is that for many years the returns in my 401(k) were essentially zero. That had something to do with market crashes. But my individual portfolio did much better. So, I THINK I've done better than I would have had I stayed with fund investments, but it is by no means a scientifically arrived at conclusion.

During the financial crisis, I made a lot of money by investing when others were selling. I recall promising myself that I would be more careful with my money once the markets recovered. For the most part, I ignored my promise, or at least delayed its implementation. This year, I changed my asset allocation so that I am investing nearly 20% of my portfolio in fixed income (5.5% of which is earning 7% under NYC teacher's fixed income fund). Previously, I was essentially 100% invested in equities.

Additional advice to people interested in growing a nest egg is to head on over to bogleheads.org and review their investment wiki. It is very well done and may convince you to forgo individual stock picks altogether. If you need the thrill of stock picking, then I also suggest heading over to Fool.com and trying out their Stock Advisor service. You can try it and cancel for a refund, particularly if your portfolio is under $10,000 (I would not pay a penny in fees with such a small portfolio).

Anyhow, I hope the Moderators allow this thread to stick.
David I followed your thread for years on Fat wallet forums and I am really thankful for sharing your knowledge and have open discussion.

Keep up the good work.
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#14
Quote from mgmn
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David I followed your thread for years on Fat wallet forums and I am really thankful for sharing your knowledge and have open discussion.

Keep up the good work.
Happy to share my wisdom and wit, such as it is. I appreciate the comment since, as you see, being a newbie here makes me a suspect. Smilie
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#15
If you don't know if you're outperforming the market, it's likely you haven't been paying attention to your monthly statements, although, I suppose, it's possible your broker doesn't show some benchmark on your statement. Furthermore, whether you've beaten the market or not, you really ought to look at your portfolio's beta to get a handle on the risk you're taking on compared to the broad market.

FWIW I've pretty much matched the market with a β slightly less than 1.00.
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