jbattman1016
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My understanding was never sell (unless the stock is doomed) or something. right?
I just let my money ride the waves.
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The wealth-building thread
- Thread starter JeffS7444
- Start date
I just let my money ride the waves.
sdrichard
Member
First to OP, I am curious where you are compared to where you were when you first started this thread. If you love rollercoaster rides, I'm sure you enjoyed the ride. Haha.
I just stumbled upon this thread. Did not have the patience to read through the 30+ pages of posts, so pardon me if this has all been said.
For me, building wealth is mostly about discipline and time. You did not mention your age and your nest egg in your original thread. These factors objectively dictate your investment strategy. On the other hand, you have your own philosophy about life and how to live it, and that obviously affect your investment style and risk taking.
My wife and I both know that I don't have the patience nor discipline, so she manages 90%+ of our liquid money. She gives me some leftovers to play with. Since this is the money we can afford to lose without sacrificing our current life style, I can do aggressive or even experimental type of investing: risky stocks, angel investing, even small amount of cryptos.
I just stumbled upon this thread. Did not have the patience to read through the 30+ pages of posts, so pardon me if this has all been said.
For me, building wealth is mostly about discipline and time. You did not mention your age and your nest egg in your original thread. These factors objectively dictate your investment strategy. On the other hand, you have your own philosophy about life and how to live it, and that obviously affect your investment style and risk taking.
My wife and I both know that I don't have the patience nor discipline, so she manages 90%+ of our liquid money.
She gives me some leftovers to play with. Since this is the money we can afford to lose without sacrificing our current life style, I can do aggressive or even experimental type of investing: risky stocks, angel investing, even small amount of cryptos.I wasn't thinking about renting, although that is a big problem also as the prices have increased way too much. I guess Airbnb doesn't help much the situation, that's why we have seen some cities in Europe (Berlin for example) taking some actions to restrict renting of that type. It's true that inflation has increase the cost of everything.
Everyone should be very careful and consider their risk tolerance when thinking of investing in banks and commercial RE. The bubble has burst within the commercial RE sector and with trillions of debt coming due. Without proper liquidity (fed is pulling liquidity) and improved occupancy rates, the worse is ahead of us. Like the 2008 residential bust, the banks will be a benefactor of the crisis. Of course, not all banks lend to that sector so it requires some homework but usually, even if it were a smaller minority, a falling tide sinks all boats.
I don't follow your reasoning for villianizing those who own property and rent it out. As others note, it allows those that can only afford to rent to do so. If it's wrong to own real property for profit, what should we do about the people that grow and/or produce food for profit? I assume they are just as evil, if not more so. What about the home appliances you mention? Those should be the product of non-profit industry? Furniture, kitchenware, toys and the "what not," too? Let us know where profit is acceptable and where it isn't so we can avoid this moral cliff.
If you think socialism is a dirty word, then don't deal in it.
I wasn't talking about renting, nothing wrong with renting per se, in some countries having too much real estate property is taxed heavily and that's enough for me. I was talking about buying low - selling high situations. And I don't have anything against social policies, quit the contrary.
Is this thread a contrary indicator? Thread started Sept 2021 within a few months of all time high. Thread went silent October 2022 right at the bottom. Thread revived June 2023 after huge rally off October 2022 low......
OP
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If you somehow got the impression that I was a thrill-seeking investor, nothing could be further from the truth: I like my investments sleepy, boring, but solid. You can see pretty much exactly how I've done, because I've got my eggs in just two baskets: Berkshire Hathaway stock (practically a mutual fund), and low-cost S&P 500 index funds. I seldom check my porfolio balances or make changes. I did have shares of Nintendo Corp for years but sold it a few years back, though I wish I had held onto a token number of shares in order to justify "checking in on my investment" by buying the latest Nintendo products!First to OP, I am curious where you are compared to where you were when you first started this thread. If you love rollercoaster rides, I'm sure you enjoyed the ride. Haha.
I just stumbled upon this thread. Did not have the patience to read through the 30+ pages of posts, so pardon me if this has all been said.
For me, building wealth is mostly about discipline and time. You did not mention your age and your nest egg in your original thread. These factors objectively dictate your investment strategy. On the other hand, you have your own philosophy about life and how to live it, and that obviously affect your investment style and risk taking.
My wife and I both know that I don't have the patience nor discipline, so she manages 90%+ of our liquid money.
A quote which has been associated with Warren Buffett is "If you don't know jewelry, know your jeweler". And I'll be the first to admit that my investment knowledge is very average, so I rely on the advice of the greats. Never ventured into meme stocks crypto/blockchain, much less AI, unless said stocks are incorporated into the aforementioned investment entities.
sdrichard
Member
OP brought it back up. That's why I asked how he did after all the market gyration.
We are at a funky time right now. Many industries still could not sort out their supply chain issues. Inflation is high, but unemployment is low. Commercial RE is in a hell hole, but residential RE is still sky high. AI is taking over everything. Etc, etc.
As such, many old theories and models no longer work. It would be very risky for a retired person without substantial net worth to chase any particular sector/industry based on news of the day.
OP
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It's more of an indicator of my mood
sdrichard
Member
Sounds like you know exactly what you are doing! Not many people can beat Buffett and SP500 over the long haul.
You are not alone.... amazing the change in market sentiment since the begining of the year. Sentiment is actually more of a "trend following" indicator rather than a predictive one but some people try to trade off of it.It's more of an indicator of my mood
Do you think anything in an economy should not be profit based (he cost more closely reflect the cost of the goods) or should it be a pure free market, unregulated price. I think about this all the time. We are fortunate that food is abundant in the US. What if one company owned all the food production and could raise the rates? Same with water? Where I live, water is not for profit it - price is based on cost plus a regulated profit. When I was young, most all the utilities were cost plus a small profit set by the PUC. Health care is another tricky area. Pay the 200% profit or no treatment. Very tricky issues and the answers will determine what society looks like and maybe how history will judge us.
Free market, constrained by existing (and very mature) antitrust law.
Interesting. We don't have that currently in the U.S. It is very, very, regulated, well beyond antitrust rules. It would be interesting to see what a true free market would be like. True, unregulated capitalism is brutally effective.
I know, and there are usually unintended consequences when the government picks winners and losers.
Want to hear something scary: talk to some doctors in the US and see how many are encouraging their kids to become doctors. In my circle (lots of doctors), the answer is zero. The system has encouraged big brains to do something more lucrative. And I don’t blame them, but there’s a day of reckoning. This isn’t just anecdotal; the data is out there.
Agreed. Healthcare in the US is a mess. I know a few doctors and they all say they lost control when the corporations came in an started owning medical practices - they are employees now and just get paid a fixed salary. Specialist still do well. They all complain that they don't get enough time with patients. But if they don't team up, they get rolled by the insurance companies and hospitals (more mega corps). I often see a trade off between profit and quality and access and I don't know how best to balance it all out.
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That understanding changed when I realized that we are all just providing liquidity for the more sophisticated, and bigger, players to make money from. The game is now to try not to get left holding the bag.My understanding was never sell (unless the stock is doomed) or something. right?
I just let my money ride the waves.
The days of retiring off of lazy index investing might be over.
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Good observation. The big players know this and are always one step ahead. They are buying after everyone has given up, and selling when the FOMO returns.
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Unfortunately it's not that well-regulated.
Our "free market" is ripe with externalities, many of them negative, from letting actors do whatever they want. As long as they don't have to pay for all of the costs of their business (pollution, wage theft, etc), we'll never have a great system that isn't based on race-to-the-bottom business models and creating bagholders out of everyone else.
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