W2R
Moderator Emeritus
I hope you realize you've just alienated all the cat-lovers on the board...![]()

I hope you realize you've just alienated all the cat-lovers on the board...![]()
Just watch it, Bub! That's all I've got to say. (sharpening my fileting knife)All I can say is that its a dang good thing you didnt say anything about rabbits.
Attica, Attica...
Or maybe that's "Cattica"...
Lots of smart people believe you can "beat" the market, and I do not doubt that.
I choose to listen to other smart folks who say dumb$hits like me are better off with low-cost diversification through indexing.
Can I use that as my signature?
The Japanese caption says, "This cute bunny is using his favorite flamethrower to properly season an oil coated cast iron skillet, instead of putting it upside-down on an outdoor grill. How clever!"Hey I'm ready for ya...
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Psst...its in french. Which is frequently mistaken for japanese...![]()
In your defense, the bunny ate some sushi today.
I only invest in individual stocks. I couldn't get excited about paying a pro to invest my money when most of them can't beat the dart board method. In their defense, fund managers have to diversify to a degree that makes it hard to beat the market.
I agree. I gradually switched from mutual funds to individual stocks after figuring out that the great majority of managers are highly-paid closet indexers.
ETFs are a legitimate alternative, but personally I avoid them because they contain lousy companies in low margin industries: e.g., auto manufacturers, restaurant chains, airlines, retailers, etc.
Maybe:Those who can, do. Those who can't, [-]teach[/-] ridicule those who can.
"If you own a stock and you won't buy more of it when the price drops, then you should be selling that stock".
"If you own a stock and you won't buy more of it when the price drops, then you should be selling that stock".
Loss aversion is a behavorial finance trap. It is very important to sell your losers. Your portfolio should not have any losers that are more than year old. One can always find something to replace the losers with. So nervous people should dump their stocks at a loss if they have held them a little while.This doesn't make sense to me. As cute fuzzy bunny points out, it may well prompt nervous people to dump their stocks at a loss.
Loss aversion is a behavorial finance trap. It is very important to sell your losers. Your portfolio should not have any losers that are more than year old. One can always find something to replace the losers with. So nervous people should dump their stocks at a loss if they have held them a little while.
I've seen several posters refer to "back when I was buying individual stocks". I started buying them 18 months ago using TMFs Stock Advisor and Global Gains services as my guides. I'm currently "playing" with 1/8 of our portfolio in this manner.
It's exciting and probably mildly addictive, but I am buying for the long-term. I put the most money in the losers and the only stock I've sold was Jet Blue.
My self-devised strategy is to spread the risk by holding small positions in lots of companies (anywhere from $2k-$10k in about 25 or more different stocks). I would appreciate any feedback on this strategy.
I'm still working and planning to FIRE before 50 (hopefully two more years of work).
My question is: Did you once by individual stocks and then stop because,
A) You realized it wasn't a sound strategy for the average investor, or
B) You moved from the investing to the withdrawal phase?