All things STOCKS

#20,428
#20,428
TVOLS said:
AMD is my big gainer I’m in at average $3.43 years ago up over 12,000% gain. Had I only invested a little more at the time and not sold so much here and there over the years. I’d probably be considering leaving the work force right about now.
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That's how I feel about COF. I'm in at $1.80 but only have 100 shares :(
 
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#20,429
#20,429
For those of you who’ve been in the investment game for 30-40+years, how long does it take to quit being a bit amazed at a day like yesterday where your on paper gain is more than than you were planning to pull out to spend for the year? I’ve spent my whole life working, raising a family, and stretching our dollars to allow us to live a lifestyle we were comfortable with. Now that the “compound interest” effect is happening on a significantly larger sum vs 20 years ago the dollars gained seem crazy. Gotta be a correction around the corner sometime or everyone who’s tried is going to be multi millionaires.
 
#20,430
#20,430
walkenvol said:
For those of you who’ve been in the investment game for 30-40+years, how long does it take to quit being a bit amazed at a day like yesterday where your on paper gain is more than than you were planning to pull out to spend for the year? I’ve spent my whole life working, raising a family, and stretching our dollars to allow us to live a lifestyle we were comfortable with. Now that the “compound interest” effect is happening on a significantly larger sum vs 20 years ago the dollars gained seem crazy. Gotta be a correction around the corner sometime or everyone who’s tried is going to be multi millionaires.
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I don't know, but a game people play is this: The most you can ever spend on a car is the maximum your portfolio went up in one day. So once in a while you'll get an increase to that number. You don't have to buy a car right then, of course. It's just a mental game. You do have to buy a seafood tower right then, though. Clearly that's required.

Eventually I guess you move on from cars to airplanes, but I really just am at the cars level myself.

Stocks are sky high, that is true, but the earnings are there for now. There are always corrections, so we'll have one, but you just never know if it's going to be a correction from a much higher point.
 
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#20,431
#20,431
walkenvol said:
For those of you who’ve been in the investment game for 30-40+years, how long does it take to quit being a bit amazed at a day like yesterday where your on paper gain is more than than you were planning to pull out to spend for the year? I’ve spent my whole life working, raising a family, and stretching our dollars to allow us to live a lifestyle we were comfortable with. Now that the “compound interest” effect is happening on a significantly larger sum vs 20 years ago the dollars gained seem crazy. Gotta be a correction around the corner sometime or everyone who’s tried is going to be multi millionaires.
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The key there is to stop lifestyle inflation from spiraling out of control. A little lifestyle inflation is fine, but it can get excessive quickly.

I think the much harder mental struggle is large red days/weeks/months. Watching a significant portion of your net worth "dissolve" can be mentally draining. I've found that working to remind myself of the big picture tends to help.
 
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#20,432
#20,432
JFreak said:
The key there is to stop lifestyle inflation from spiraling out of control. A little lifestyle inflation is fine, but it can get excessive quickly.

I think the much harder mental struggle is large red days/weeks/months. Watching a significant portion of your net worth "dissolve" can be mentally draining. I've found that working to remind myself of the big picture tends to help.
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Diversification:
How much depends on your age/needs. I'm 74. Wife 75.
I'm normally about 75% stocks, 20% bonds/CDs, and 5% cash. That includes a SEP-IRA which is large because I was self employed bginning at the age of 33. The percentages change almost daily or weekly to be safe and provide for living expense and other things.
 
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#20,433
#20,433
Go aeiou said:
Diversification:
How much depends on your age/needs. I'm 74. Wife 75.
I'm normally about 75% stocks, 20% bonds/CDs, and 5% cash. That includes a SEP-IRA which is large because I was self employed bginning at the age of 33. The percentages change almost daily or weekly to be safe and provide for living expense and other things.
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Very aggressive allocations for being in your 70's. Nothing wrong with that and I'm sure it's intentional, but always interesting to see.
 
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#20,438
#20,438
Go aeiou said:
Diversification:
How much depends on your age/needs. I'm 74. Wife 75.
I'm normally about 75% stocks, 20% bonds/CDs, and 5% cash. That includes a SEP-IRA which is large because I was self employed bginning at the age of 33. The percentages change almost daily or weekly to be safe and provide for living expense and other things.
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Do you think diversification becomes any less important despite on the total of your portfolio? If you had $100million, would you still want to have $20M in bonds and $5M in cash?

If the answer is no, $20M total, would you still keep $3M in bonds and $1M in cash?
 
#20,442
#20,442
TVOLS said:
AMD is my big gainer I’m in at average $3.43 years ago up over 12,000% gain. Had I only invested a little more at the time and not sold so much here and there over the years. I’d probably be considering leaving the work force right about now.
Click to expand...
Oh man, I hear ya! If I had held on to all my good ideas and not sold too soon….oh lawdy! But, I’m quite comfortable where I’m at, so there’s something to be said for that.
 
#20,443
#20,443
walkenvol said:
Do you think diversification becomes any less important despite on the total of your portfolio? If you had $100million, would you still want to have $20M in bonds and $5M in cash?

If the answer is no, $20M total, would you still keep $3M in bonds and $1M in cash?
Click to expand...

I think you need more divesification at $100M, but you might add real estate, precious metals, other. OTOH, You might not need as much diversification. Depends on the individual.

I keep the bonds/CDs so if the stock mkt is down I don't have to sell stocks. Amount of cash needed depends on one's lifestyle and expected lifestyle. And have a good cash cushion. We do get cash from CDs.
So if I had $100M I might be spending $5M annually. I can't imagine on what. Give it away?
Then you get into RMDs at age 73. Since the majority of my portfolio is in a SEP-IRA that I contributed to for about 20-25 years I know how much I will have to take each year in January. It is calculated based on accounts balances at 12-31 of prior year and age.
I don't have to stick to my stock/bond/cash percentages. I sold some stocks today for reasons other than keeping my ratios. I sold TRMD in last day or two because it is near it's typical high. Also XDIV. Just have too much.
 
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