Belated 2Q Results - how are things going now??
So gosh, when was the last time there was an update on my portfolio?
Once summertime hit, guess may have gotten a bit distracted by the longer days and lovely weather, and may have wound up taking my eye off the ball - which we're not supposed to do
Guess that's another mistake to add to the long list of mistakes put together for the 1Q review ...
Quote:
Originally Posted by TrustySam
First Quarter Results - so how are things going?
Guess this thread starts off wondering if it might be possible to invest from home and get decent returns, using only the resources available on the internet? And since it's only been 3 months, maybe trying to answer that question might be like trying to figure out how poker is going after only about 5k hands - just too soon to tell?
Maybe 3 months has been long enough to have noticed a couple of things though? Some early observations:
1. When was first starting out with poker, made every mistake new players are warned not to make - now the same thing's happening with investing
Did everybody start out doing these things, or was it just fishy Sam?
- played too loose
- chased draws without getting odds
- made curiosity calls on the river, even though it seemed obvious was beat
- played bingo, rather than consider what the other players at the table might be up to
- went on a heater and then moved up stakes too quickly and wound up playing sharks
- tilted and spewed off my stack rather than regroup and be patient
- etc
Maybe some lessons are just meant to be learned the hard way? Here's some of my mistakes from my new hobby
- invested a bit too much on risky investments, more than once (too loose)
- keep buying impulsively on days when the market is up, hoping to catch a 'heater', only to find that it's variance and the price drops the next day or the day after, which is chipping away at my returns (chasing)
- started to veer away from relying on earnings, hoping to make bigger returns on riskier more complicated stuff ... (playing bingo)
- ... where the pros all hang out (eek)
- continue to focus on too short a time frame of highs and lows, rather than just wait for the price to calm down and reflect earnings (impatient)
- etc
Maybe having to switch all the links of my photos was a bit of a blessing in disguise, since it gave me a reason to look through the thread and remember that was supposed to be keeping an eye on my investments
And the timing is good as well, since summer's starting to wind down ...
Anyways, guess have calmed down some now that it's been a couple of more months, and have basically been trying to stick with this - which kind of makes my investing sound quite a bit similar to my other hobbies of playing The Deal, and collecting Airmiles ...
Quote:
Originally Posted by TrustySam
Preliminary Findings - added August 29, 2017
Investing in stocks does seem to be quite a bit like poker?
- There's promos for recreationals - the government offers very generous tax breaks to encourage amateurs to participate, which makes buying and selling tax free
- Have been trying to maximize EV by sticking with strong starting hands, and then continue to gather info and monitor changes post-flop - have stuck with investing in quality companies that appear like they may continue to grow profits in the long-term, like Amazon and Facebook
- Have been avoiding higher stakes play where the sharks hang out - so no day trading, options, or short-selling ... any more
- Guess there's still risk and uncertainty though - so guess it helps to run lucky!
Must admit that things are going much better than would have expected
Guess have been really lucky for there to have not been any crashes of any kind ... yet!
One thing that made me want to really give investing a try this year, was seeing how quickly big returns for quality companies can compound into something meaningful ...
Quote:
Originally Posted by TrustySam
The Big Investment Dilemma
just about every article on the internet seems to recommend the first option - of investing in a index fund that tracks one of the broad market indices, like the Dow Jones Industrial Average. So it's interesting to look at how much/little the Dow has grown over the last 15 years, when it's compared to something else like Apple stock.
The Dow Jones Industrial Average has grown by 67% over the last 15 years - but Apple's grown by 9206%. So guess $10k, invested 15 years ago ... would it be worth this much today (?)
DILEMMA: With conventional wisdom being that index funds that track the Dow are the way to go, would it be foolhardy to take a different route and buy a stock like Apple instead? Or would it be more foolhardy to stick with conventional wisdom, when there's the potential to make millions by making different investment choices?
Guess after only 8 months, it's still too early to tell if decent returns will be sustainable - in poker it'd be silly to assume a decent roi would be due to anything other than rungood ...
Although part of me really likes the idea that even in the face of uncertainty, it might sometimes be better to give things a try, even if it's likely there'll be mistakes and stumbles along the way ... rather than sit on the sidelines and not try something new at all?
Looks like it's already past the middle of 3Q
But guess the plan for the rest of 3Q and the rest of the year will be to keep investing in company superstars, and continue to hope for the best, and try to prepare for the worst?
Am holding some BABA right now - but may change it to FB or APPL in mid-September, a couple of weeks before 4Q ...
GL us!!