Join Early Retirement Today
Thread Tools Search this Thread Display Modes
What I learned in 2014
Old 12-31-2014, 01:33 PM   #1
Recycles dryer sheets
Join Date: Aug 2013
Location: North
Posts: 420
What I learned in 2014

In terms of investing, I learned a ton in 2014. A year ago I couldn't tell you what the S&P500 was, now I can tell you I'm beating it.

As for the Dog of Dow, you would be just about breaking even if that was your strategy in 2014.

Dogs of the Dow - High dividend paying stocks - Daily YTD Performance Tables

If you were to listen to analysts and charts and historical trends, you would have known this year was not the year for a Santa's rally which typically sees investors put back 1.5% of gains into the market. Typically those rally's do not happen when we experience such great gains the month before that small Santas Rally week between Christmas and New years and this year it was certainly no Santa's Rally. However, that could be a good thing because according to history if you look at what happened in 2000 Santas sleigh went for about a 33month slide or 38% decline.Christmas is over, but Santa rally isn’t | America's Markets

I also learned that market timing is impossible. I bought both a Stock and ETF this year that immediately dropped more than 5%, CASY and VDE. One has since recovered, the other I am using as a lesson, but I am going to bet that eventually oil prices will recover.

Its incredible how many things can affect a companies performance. Remember, at the end of the day you are buying shares of a company you feel has the capability to return earnings on your shares. You are investing in this company knowing there future earning potential is bright.

Buying low is key, I bought AAPL on the dip this year and man am I thankful for that. I will continue to use this strategy for a couple of individual stocks I plan to buy and hold for at least 5years.

Diversification is nice, but too much diversification and too many accounts can make managing your investments tougher. I am in the process of moving most of my invested assets to VG...keeping open any accounts through my other brokerages...Just in case.

Happy New Year.

AA (Stock/Bond/Cash ): 90/0/10% MIX (Small/Mid/Large): X/Y/Z% BLEND(US/Foreign): 100/0%, (Value/Growth/Blend): X/X/X% REIT (Real Estate Equity): X% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $3.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
kgtest is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-31-2014, 01:39 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
Join Date: Jul 2008
Posts: 15,892
Buying low is key, I bought AAPL on the dip this year and man am I thankful for that. I will continue to use this strategy for a couple of individual stocks I plan to buy and hold for at least 5years.
Buying low usually works, until it doesn't.

I've told a story I heard from another engineer I met recently. He worked for Nortel, and was selling high/buying low Nortel stock with his 401k. He built it up to $600K. And then after his last "buying low", it kept going lower. He eventually bailed out at $10K.

As we may recall, Nortel eventually went bankrupt in 2009. What was sadder was that the public and media hardly paid any attention. Nortel had faded slowly into oblivion ever since the tech bubble of 2000. I did not remember when I myself stopped following this stock (I owned it too in 1999). Same with Nokia or other tech stocks that were the talk on CNBC, Bloomberg and magazines like Business Week, Fortune, etc...

"Old age is the most unexpected of all things that can happen to a man" -- Leo Tolstoy
NW-Bound is offline   Reply With Quote
Old 12-31-2014, 01:59 PM   #3
Thinks s/he gets paid by the post
Join Date: Jun 2007
Posts: 2,383
I also learned that market timing is impossible.
This is true. But then your post is also full of "buy on the dips" and charts and historical trend analysis. I wonder if you do not fully appreciate the issues of market timing. It does work when it works, which is what makes all that analysis and rules of what happens when seem so seductive. Beware. They all work, until they don't.
growing_older is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Hi - have learned so much from these boards dan71 Hi, I am... 1 01-30-2007 10:46 AM
What I learned from home improvement this month. Nords Other topics 20 05-18-2006 12:20 PM
Treasury Direct Lesson learned dex FIRE and Money 6 02-28-2006 09:00 AM
What I learned in 1040 class. Martha FIRE and Money 72 12-22-2005 06:57 PM
What I learned from life haha Other topics 19 12-04-2004 02:27 AM


All times are GMT -6. The time now is 04:11 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.