This guy’s advice is applicable to 99% of us, myself certainly included. The market is going to average 10-15%. Pick an index fund that mirrors the market – S&P if you want to stay domestic, MSCI if you want a global portfolio. Sit back and watch. VERY few pros – as in ‘people entrusted to manage well in excess of $1B’ – out-perform the market with any consistency, and you’re probably no pro. [/quote]
Have you considered the effect that having to manage $1,000,000,000 would have on their results? There’s a company that I’m invested in right now that’s grievously undervalued. I could easily buy $50,000 without affecting the market price at all. Try doing that with a few million dollars.
[quote]
The ability to outperform the market in the long term isn’t about ‘picking winners’ – it’s about knowing when to be IN stocks and when to be OUT.[/quote]
With all due respect, I have to disagree. I’m not going to sell a company that increases per share earnings by 20% year after year for decades because it is slightly overvalued. Of course, if you are talking about insane valuations, as in a P/E of like 80, then yeah, selling might be a good idea. Then again, it’s not too often that a company that has regularly posted earnings increases above 20% for a long time gets valued at that level.
Yes, being psychic is difficult. Looking at fundamentals is not.
Security Analysis by Benjamin Graham is a must read and will give you the Warren Buffet blueprint investing and Money Game by Adam Smith is a must read as well
I also recommend a book called Den of Thieves which provides a blueprint of everything you shouldn’t do on wall street and it’s a fun read.
And if you want to learn how the monetary and banking system works and how to exploit it, read a book called Death of a Banker by Ron Chernow. It’s mostly a biographical account of the rise of JP Morgan as well as how a lot of current monetary policies and securities laws came to be
I would start with Learn to Earn by Peter Lynch and The Neatest Little Guide to Stock Market Investing by Jason Kelly.
Intelligent Invester by Benjamin Graham is good. Edwin Lefevre’s Reminiscences of a Stock Operator, a 80+ year old fictional biography of Jesse Livermore, is also a favorite of many traders.
The way to make the highest % of return will always be contrarian investing. This means you are leading the market and not chasing after it.
If you want to get into real estate the next few years are the time due to all the cheap housing.
If you want to buy on the market don’t buy gold/silver because the big money has already been made.
If you research and know your choice is good and everyone else is running away from it you’ll usually come out a winner.
That being said I’d buy Ford like there is no tomorrow. They aren’t going to go out of business and they stopped bleeding a few months ago. Even if they were still hurting we are gonna have a Demo for next president and those communists would never let a major American company like Ford go under just like the airlines.
Ford is just starting to bring their European line of cars to the US this summer and they are outselling pretty much everything else in Europe. Also, they finally have some decent leadership that is starting to pay off.
Whatever you decide to do make sure to research your butt off. Course you could punk out like most of baby boomers and just get an IRA/401k.
[quote]GhorigTheBeefy wrote:
The way to make the highest % of return will always be contrarian investing. This means you are leading the market and not chasing after it.
If you want to get into real estate the next few years are the time due to all the cheap housing.
If you want to buy on the market don’t buy gold/silver because the big money has already been made.
If you research and know your choice is good and everyone else is running away from it you’ll usually come out a winner.
That being said I’d buy Ford like there is no tomorrow. They aren’t going to go out of business and they stopped bleeding a few months ago. Even if they were still hurting we are gonna have a Demo for next president and those communists would never let a major American company like Ford go under just like the airlines.
Ford is just starting to bring their European line of cars to the US this summer and they are outselling pretty much everything else in Europe. Also, they finally have some decent leadership that is starting to pay off.
Whatever you decide to do make sure to research your butt off. Course you could punk out like most of baby boomers and just get an IRA/401k.[/quote]
How in the sweet hell is getting an IRA “punking out”?
[quote]GhorigTheBeefy wrote:
The way to make the highest % of return will always be contrarian investing. This means you are leading the market and not chasing after it.
If you want to get into real estate the next few years are the time due to all the cheap housing.
If you want to buy on the market don’t buy gold/silver because the big money has already been made.
If you research and know your choice is good and everyone else is running away from it you’ll usually come out a winner.
That being said I’d buy Ford like there is no tomorrow. They aren’t going to go out of business and they stopped bleeding a few months ago. Even if they were still hurting we are gonna have a Demo for next president and those communists would never let a major American company like Ford go under just like the airlines.
Ford is just starting to bring their European line of cars to the US this summer and they are outselling pretty much everything else in Europe. Also, they finally have some decent leadership that is starting to pay off.
Whatever you decide to do make sure to research your butt off. Course you could punk out like most of baby boomers and just get an IRA/401k.[/quote]
Whatever you decide to do make sure to research your butt off. Course you could punk out like most of baby boomers and just get an IRA/401k.[/quote]
Right…so I take Door 1, you take Door 2:
Door 1
$5,000 (tax-deferred income) + $2,500 (employer contribution, $.50 per dollar invested) = $7’500
Door 2
$5,000 (gross income) - $1400 (income tax). $3,500 to invest as you see fit.
I’ve already earned a 50% ROI before we say ‘go’. I invest in a low-cost index fund that will essentially mirror the MSCI less a percentage point +/-. I’ll sit back and close my eyes while you try to outperform the market. Good luck catching me any time soon.
[quote]jehovasfitness wrote:
At your age, this post right here could change your life forever (then again it could for anyone of any age).
Read anything by Dave Ramsey, his Total Money Makeover book/CDs are life changing, I really can’t stress it enough.
While it may not be 100% devoted to investing, the overall principles should be taught in every HS in this country or at least college freshman[/quote]
I second this Dave Ramsey changed my financial life.