Author Topic: Stocks  (Read 395191 times)

Offline Sowhat

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Re: Stocks
« Reply #3645 on: January 06, 2020, 02:13:58 PM »
+1

this turned up in a simple google search. There is a wealth of info on this topic and am trying to keep as simple as possible.

https://www.marketwatch.com/story/why-way-fewer-actively-managed-funds-beat-the-sp-than-we-thought-2017-04-24

This what led to my question, I guess I was looking at the top 1% of funds.  For example, Fidelity and T Rowe Price have mid-cap funds.  Both funds beat the relevant ETF's over long periods by some 5% or so.  Short term returns were higher.  Can these funds fall off a cliff?  Yes, but that's not the point.

Offline dealfinder11

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Re: Stocks
« Reply #3646 on: January 06, 2020, 02:39:53 PM »
Yes, these are all relevant.  It doesn't address my question.

how in the world does that not address your question??

Regardless, the difference isn't going to be that significant, odds are you will underperform, and that is before tax considerations.

I have come to two basic understandings, when it comes to investing in the stock market.

1. Historically, If you are investing long term, the stock market has been a great place to put money and let it compound.

2. Beyond investing in the S&P, you are more likely to make a bad decision than a good one. 

Offline aygart

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Re: Stocks
« Reply #3647 on: January 06, 2020, 02:50:56 PM »

2. Beyond investing in the S&P, you are more likely to make a bad decision than a good one. 

Depending on time frame there may be value in changing the weighting more towards small caps than the S&P.
The thing with the hamster is that running on the wheel is actually what it is trying to do.

Offline ltttc

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Re: Stocks
« Reply #3648 on: January 06, 2020, 03:09:21 PM »

1. Historically, If you are investing long term, the stock market has been a great place to put money and let it compound.

+1  As a general sweeping rule, stocks on average will give you a 10-12% return. If you buy and hold, you stand to gain.

Offline aygart

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Re: Stocks
« Reply #3649 on: January 06, 2020, 03:11:25 PM »
+1  As a general sweeping rule, stocks on average will give you a 10-12% return. If you buy and hold, you stand to gain.
I don't recommend doing that with individual stock unless you are going to be busy researching and rebalancing them.
The thing with the hamster is that running on the wheel is actually what it is trying to do.

Offline ltttc

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Re: Stocks
« Reply #3650 on: January 06, 2020, 03:12:52 PM »
I don't recommend doing that with individual stock unless you are going to be busy researching and rebalancing them.
There's always mutual funds...

Offline aygart

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Re: Stocks
« Reply #3651 on: January 06, 2020, 03:13:47 PM »
There's always mutual funds...
That is correct.
The thing with the hamster is that running on the wheel is actually what it is trying to do.

Offline dealfinder11

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Re: Stocks
« Reply #3652 on: January 06, 2020, 03:20:45 PM »

Offline Sowhat

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Re: Stocks
« Reply #3653 on: January 06, 2020, 08:40:27 PM »
how in the world does that not address your question??

Regardless, the difference isn't going to be that significant, odds are you will underperform, and that is before tax considerations.

I have come to two basic understandings, when it comes to investing in the stock market.

1. Historically, If you are investing long term, the stock market has been a great place to put money and let it compound.

2. Beyond investing in the S&P, you are more likely to make a bad decision than a good one.

To say that future returns are not guaranteed in a fund (why is an ETF different on that?) does not address the underlying issue.  Nothing is guaranteed, anywhere.  You always look back to gauge.  One things is certain--you are not a fan of mutual funds.


Offline dealfinder11

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Re: Stocks
« Reply #3654 on: January 06, 2020, 11:24:56 PM »
To say that future returns are not guaranteed in a fund (why is an ETF different on that?) does not address the underlying issue.  Nothing is guaranteed, anywhere.  You always look back to gauge.  One things is certain--you are not a fan of mutual funds.



Look back at what? To borrow an illustration from Jack Bogle. If you put 1012 gorillas in a gym and had all of them flip a coin 10 times, one gorilla will likely get 10 heads in a row. We would call that one lucky gorilla. Wall Street would call him a genius. Please look at all the funds that didn't beat the bench mark, not just the few that have.

Of course i'm against active high fee Mutual Funds. The only ones who like them are Financial Advisors who can charge a 5.75 % load fee + a .50 - 2% AUM fee.

This really isn't rocket science and is the consensus among any educated people in the world of finance. I am really not suggesting anything contrarian or original here.

Offline ExGingi

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Re: Stocks
« Reply #3655 on: January 09, 2020, 05:17:26 PM »
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline mercaz1

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Re: Stocks
« Reply #3656 on: January 09, 2020, 05:44:23 PM »

Offline dealfinder11

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Re: Stocks
« Reply #3657 on: January 09, 2020, 11:48:49 PM »
On the topic of index funds:

https://www.bloomberg.com/news/features/2020-01-09/the-hidden-dangers-of-the-great-index-fund-takeover

Interesting read. If fractional shares can be utilized to allow investors to own the index directly (through tools set up by the big brokers) it solves some of the “too much power” problem, however you are still left with the passive “I don’t care” issue. Will be interesting to see what happens.

Offline good sam

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Re: Stocks
« Reply #3658 on: January 13, 2020, 06:19:20 PM »
So when do we sell tsla?
If you don't care why would you comment?
HT: DMYD

Online grodnoking

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Re: Stocks
« Reply #3659 on: January 13, 2020, 06:43:02 PM »
So when do we sell tsla?
I'd wait till after q4 earning report.
I'm not who you think I am.