Anyone else want to join the "Lost over a million" club?

[W2R]

One does not need $10M to lose $1M. He can have just $1M, but put in all on Global Crossing or Nortel in 2000, then lost it all.

Or he could put it all on a company like Peabody Energy or Chesapeake Energy. He would have lost 99% in the case of the 1st, or 90% in the case of the 2nd company.

True, it does help to diversify.

 

[Katiek]

Thanks OOPS I'll go back to stalking

I hope you'll continue to post! Lots of friendly, helpful people here, and we can always benefit from new posters and new input!

 

[papadad111]

I can't imagine what it's like to have enough money to lose over $1M ....

Math:

Someone with a net worth of around $1.8M and fully invested in, say SP500 index funds in their 401k would have easily lost $1M during the six month market decline in 2007-2008.... Ie during the decline from 2007 market high of 1575 down to 666 at the "Haines" market bottom of March 2009.

Losing 1M in a day: again Presuming you were in broad market stocks and not a specific loser that went to zero, you saw a 20 percent haircut on Oct 19 of 1987.

Nearest after that was a 9 percent haircut on October 15 2008. So you would need a nut of over 10 million to do that in a day again if you were broad market SP500 equity based..

If you were weighted toward financials say holding bear stern and Lehman and countrywide etc you may have lost it all.

 

[rayinpenn]

I've lost at times, more money then I ever dreamed at having. After so many up and downs Ive learned not sweat the dips. The pile is was never the primary focus rather the result of LBYM and marrying the right gal. It built up slowly - kinda like autopilot - you've heard that phrase 'pay yourself first' my saving were always automatic. I didn't worry about its growth, I knew it would grow and I was too busy living. I grew and before I knew it was more then enough.

I've learned to focus on the income stream which has been more consistent. The market is a fickle beast -watching it each day and worrying isn't good for the soul.

I buy dividend stocks, ETFs and mutual funds - steady eddies if you will. Certainly not high flyers and likely kinda boring for most people. Even after all these years I still enjoy seeing the dividends accumulate.


Sent from my iPad using Early Retirement Forum.

 

[Major Tom]

If I had $10,000,000 I wouldn't take much risk. Some 10 year Treasuries for me.

I suspect that if I came into $10 million slowly, over the course of a career, and was used to a solidly middle class lifestyle, I'd have the usual mix of stocks and bonds. However, if I came into it suddenly, I'd put it all into equity funds. My current annual spend is ~$17K, so the dividends alone from $10 million worth of equity index funds would allow for a generous increase in my material standard of living with effectively no risk of loss of income. A 50% portfolio drop wouldn't concern me, as I'd still be able to live comfortably from dividends alone.

However, for someone who is used to a higher standard of living than the likes of $20K/yr can provide, I can well understand a more conservative approach.

 

[Andre1969]

I didn't realize at first that this was an old thread that was resurrected, so my first thought was damn, some of you guys and gals are well off, if you've had enough stashed away to lose $1M in this latest rough patch!

I just ran my numbers last night, and was pleasantly surprised...so far this year I'm only down about 4.6%. At one point, I think it was in excess of 10%.

Back during that 2008 tumble, I did lose about $230K+from peak to trough. I topped out at around $422K in October 2007, and was down to $210K when I hit bottom in November 2008. I know that's only a $212K drop, but I was adding money during that downfall.

 

[kcowan]

I am down a Ferrari since the 2015 peak.

 

[NW-Bound]

I am down quite a bit from my personal high-water mark, but that was set back in July 2014.

Then, I figured out how much I have spent since then, and the real loss was not so bad. It's only 10% or so.

 

[fritz]

I've lost at times, more money then I ever dreamed at having. After so many up and downs Ive learned not sweat the dips. The pile is was never the primary focus rather the result of LBYM and marrying the right gal. It built up slowly - kinda like autopilot - you've heard that phrase 'pay yourself first' my saving were always automatic. I didn't worry about its growth, I knew it would grow and I was too busy living. I grew and before I knew it was more then enough.

I've learned to focus on the income stream which has been more consistent. The market is a fickle beast -watching it each day and worrying isn't good for the soul.

I buy dividend stocks, ETFs and mutual funds - steady eddies if you will. Certainly not high flyers and likely kinda boring for most people. Even after all these years I still enjoy seeing the dividends accumulate.


Sent from my iPad using Early Retirement Forum.

+1 LBYM has served us well during the accumulation phase of our lives. It always amazes me when I look at our lifetime's accumulation of net worth (more than we ever imagined), and the amounts it has risen and fallen even in a day. Retired 6 years now (RE 58) and focus is on the income stream as well (draw dividends for income off taxable accounts). Keep a 52/48 stock/bond mix with mutual funds, and take a monthly PDF of it's performance (old habit).

 

[haha]

I am down quite a bit from my personal high-water mark, but that was set back in July 2014.

Then, I figured out how much I have spent since then, and the real loss was not so bad. It's only 10% or so.

Sounds like someone either had a lot of EM equity, or oil and gas investments.

Ha

 

[Gumby]

I am down quite a bit from my personal high-water mark, but that was set back in July 2014.

Then, I figured out how much I have spent since then, and the real loss was not so bad. It's only 10% or so.

I am down a Ferrari since the 2015 peak.

So far, my peak portfolio was in May 2015. I'm off about 10% from there. And, yes, it would easily buy a Ferrari.

 

[W2R]

So far, my peak portfolio was in May 2015. I'm off about 10% from there. And, yes, it would easily buy a Ferrari.

+1, except in my case it wouldn't buy a Ferrari, unless it was used.

 

[Throwdownmyaceinthehole]

Is this like getting on the scale? I've lost the same 5 pounds over and over and I can't tell you how many times I 'lost' 100k. Keep wearing the same pants.

 

[NW-Bound]

I am down quite a bit from my personal high-water mark, but that was set back in July 2014.

Then, I figured out how much I have spent since then, and the real loss was not so bad. It's only 10% or so.

Sounds like someone either had a lot of EM equity, or oil and gas investments.

Ha

I overweighted in both , until I sold in mid 2015. Yes, that was why my portfolio peaked long before the S&P, then ebbed. I was not overweighted in these sectors initially, but you know what happens when one does not sell high. The market god takes it away.

So far, my peak portfolio was in May 2015. I'm off about 10% from there. And, yes, it would easily buy a Ferrari.

+1, except in my case it wouldn't buy a Ferrari, unless it was used.

I never shopped for a Ferrari nor was curious until now, so did not know how much a new Ferrari goes for. So, this is what the Web tells me.

Ferrari car prices range from $188,425 and go upwards of $400,000.

OK, so my 10% loss is indeed somewhere in this range.

 

[W2R]

Is this like getting on the scale? I've lost the same 5 pounds over and over and I can't tell you how many times I 'lost' 100k. Keep wearing the same pants.

I love it! Yes, I can see some similarities, that's for sure.

 

[kcowan]

I never shopped for a Ferrari nor was curious until now, so did not know how much a new Ferrari goes for. So, this is what the Web tells me.

$188k-$400k

OK, so my 10% loss is indeed somewhere in this range.

Yes my price point was $250K and I was using it as a surrogate for multiple Honda Civics.

 

[Hangingitup]

Lost a little less than 6% from my May 2015 high. But have an FA (still working at mega crop). Maybe I'm getting getting some bang for the buck I pay in fees (<0.5%).


Sent from my iPad using Early Retirement Forum

 

[mickeyd]

Where are all of you folks losing this money? If you lost some, there must be someone else who won an exact amount. Are they posting on a different thread?

 

[Car-Guy]

Where are all of you folks losing this money? If you lost some, there must be someone else who won an exact amount. Are they posting on a different thread?

In some cases, we (I) know exactly who "won" mine, but I don't think any of them post here.

 

[NW-Bound]

A hurricane or a twister blows through town, destroying properties. Everybody loses money. Does anyone gain?

Same with the stock market. A few guys who bet against the market and short stocks make some money, but these stock shorters are far and few in between, and their gains are minuscule compared to the "losses".

From beginning of year to Jan 25 (last Monday), the US stock market drop was $1.7 trillion. The number for the entire world market was $3.2 trillion. And same as many posters here, I contributed a mid-range Ferrari to the altar of the market god.

Poof, up in smoke! No, just poof, not even smoke.

Oh wait, not even a poof when Quicken tallied up the numbers to report at the bottom of its screen. Quicken does not emit a beep or any sound when it completes the screen update. I think Quicken should make a Bronx cheer when your portfolio goes down, and some jubilant sound when it goes up.

 

[Danmar]

This thread reminds me of a conversation I had with my DW a few years ago. It was a good day in the market and I proudly told her we made $xxx,xxx today. She responded by asking me if this was money we had already made before? Alas, it was. Deflated me a bit.

 

[NW-Bound]

Hey, every day when the market closes, I tell my wife the number at the bottom of the Quicken screen. When the market reverses after a string of down days, she would say "OK, nowhere where we were, but at least the bleeding stops".

I think my wife is getting much better at handling the vagaries of the market. Before, she would say "Woulda, shoulda, coulda sell off everything when it was high". I used to have to remind her that we are still higher than previous highs, which were of course impossible to time perfectly. I do not have to tell her that anymore.

 

[Danmar]

Hey, every day when the market closes, I tell my wife the number at the bottom of the Quicken screen. When the market reverses after a string of down days, she would say "OK, nowhere where we were, but at least the bleeding stops".

I think my wife is getting much better at handling the vagaries of the market. Before, she would say "Woulda, shoulda, coulda sell off everything when it was high". I used to have to remind her that we are still higher than previous highs, which were of course impossible to time perfectly. I do not have to tell her that anymore.

My DW has almost the same credentials and experience I have. Nothing of significance gets by her. I think sometimes she plays a little "dumb" or uninformed just to gratify my ego. I am a lucky man.

 

[Car-Guy]

A hurricane or a twister blows through town, destroying properties. Everybody loses money. Does anyone gain?

Absolutely, people who rebuild the infrastructure, homes, fences, debris removal, etc. I know whenever a simple hailstorm comes through this part of the country the roofing contractors seem to come out of the woodwork. I suspect they are all making a lot of money quickly.

 

[ziggy29]

My investment portfolio was down about 8% at its worst. Overall liquid net worth fell about 5% -- not enough to buy a Ferrari, but maybe a decently equipped new Lexus.