How do you think of yourself as an investor?

[HFWR]

Blind dog in a meathouse...

 

[Keim]

Boglehead here. I strive for average.

 

[friar1610]

Average, at best. My investing prowess consists of picking a good crop of no load mutual funds 25 years or so ago, putting as much into them as possible since then and letting them grow without interference.

From what I read here and on Bogleheads and hear on a number of podcasts, following an average strategy like that puts you so far ahead of the typical investor that you are, almost by definition, above average. Paradoxical but true.

Edited to add: I wrote this before I read through the entire thread. Obviously, many others made essentially the same point.

 

[unclemick]

Outstanding! A legend in my own mind! Read books, joined clubs, ate the doughnuts and coffee at meetings, and even had a broker for several decades. While doing that - the auto deduct index fund I wasn't paying too much attention to became the big dog on the porch. Not to mention rental RE, timberland, coin collecting excluding commodity contacts thank goodness.

I clicked average cause I don't want to admit more fishing and watching football would have sufficed just as well.

heh heh heh - I have stumbled forward into my 27th year of ER. Picking stocks might snatch defeat from the jaws of victory.

 

[Ed_The_Gypsy]

I used to be an average investor, which means I made almost every possible mistake and lost money. I saved and invested and learned, though. I never made Early Retirement, but we are in good shape today.

Right now I have an AA of 60/40 with only 3 funds that I don't fiddle with--LT B&H now. That probably makes me an above-average investor today.

 

[Splash]

I voted above average because our savings and investments allowed DH and me to retire comfortably at 55.

I have gone through an evolution as a self taught investor. I was an above average saver who was motivated to retire early. In my younger years, I was a much more active and aggressive investor. But I learned that I am not good at investing in individual stocks or market sectors. I feel like I have matured into a much better investor since I became more disciplined in my approach and knowledgeable about investing concepts and strategies.

 

[RenoJay]

Above average based on results and the willingness to make big bets when there’s blood in the streets. Last year not so good though.

 

[travelover]

As others have noted, it all depends on who I'm compared to. Joe Average that can't even invest in index funds without market timing and pi$$ing away otherwise good earning? Yea, I'm better than that.

 

[Lsbcal]

Outstanding! A legend in my own mind!
...

I think that is an excellent phrase for my tombstone. Thanks.

 

[RHONDAVE]

Average, at best. My investing prowess consists of picking a good crop of no load mutual funds 25 years or so ago, putting as much into them as possible since then and letting them grow without interference.

Lucky, Same as above along with a consistent and regular savings rate (until now) of 20-30%. No I am Scared Safe with 70% in VMMXX since 3/19.

 

[wannabefire]

Above average in taking money and investing it. I think too many people are really bad at actually making that happen (but this site likely has the majority of the users that are "above average" in that sense).

Now the returns on the investment are likely pretty average, slightly less than average. I'm not taking any major risks and keep a diversified portfolio that is only 55% equities.

 

[Lsbcal]

Above average in taking money and investing it. I think too many people are really bad at actually making that happen (but this site likely has the majority of the users that are "above average" in that sense).

Now the returns on the investment are likely pretty average, slightly less than average. I'm not taking any major risks and keep a diversified portfolio that is only 55% equities.

Good point about actually just getting down to investing money. I've been working with DS to get him to the point where he is comfortable investing money. He was quite shy about dipping his toe into the investing pool. It is easy to forget how we learned to take those first steps.

It looks like we have a lot of above average investors here.

It would be very interesting to compare a group of a few hundred US adults versus this site's investors who have so far answered this poll. I guess that won't happen. My guess is the ER site investors would beat the random sample of US adults on returns.

 

[OldShooter]

... It looks like we have a lot of above average investors here.

Yes. Absolutely.

... My guess is the ER site investors would beat the random sample of US adults on returns.

I'm not sure that returns is a good measure. Lots of people here, for good reasons, are investing for low volatility, low risk, etc. I think the measure should somehow consider investing skill to be more like "ability to create and manage a portfolio that meets the investor's objectives." Or maybe a criterion based on what the investor knows about investing options, market behavior, trading vs investing, outside influences like the Fed, inflation, world financial events, etc. Squishy ideas I know but I just don't think returns necessarily correlate well with investing skill.

 

[mickeyd]

I have followed the guidance of John Bogle for over 30 years therefore, I am among the best investors. Bogle and I (on the same team) have done very well. Very well!

 

[wannabefire]

Good point about actually just getting down to investing money. I've been working with DS to get him to the point where he is comfortable investing money. He was quite shy about dipping his toe into the investing pool. It is easy to forget how we learned to take those first steps.

It looks like we have a lot of above average investors here.

It would be very interesting to compare a group of a few hundred US adults versus this site's investors who have so far answered this poll. I guess that won't happen. My guess is the ER site investors would beat the random sample of US adults on returns.

After re-reading my post and your reply it dawned on me that there can certainly be a BROAD interpretation of what really makes a "good investor"?

 

[ER Eddie]

"Lazy" was the first word that came to mind. I don't want to think about it. I don't want to work to understand the market and maximize my portfolio. That's why I was pleased to discover index funds and the buy and hold strategy. It's easy and simple.

 

[statsman]

Very far below average investors. Hopefully in the long run it won't matter.

 

[HI Bill]

With a 27.6% rate of return for 2019, I'd say I'm a pretty average index investor. My investments make the average of what the markets make. My AA is ~85/7/10, so I guess that is in line with my response.

But the real question is, are your returns above average, or are you above average as an investor? My knowledge, patience, and lack of panic probably makes me above average, but the returns, not so much.

 

[Third Son]

Simple and boring...

....................

 

[Third Son]

Simple, Boring, Boglehead....

Answer with your gut feeling. This may be a combination of your returns, your knowledge and your ego.

EDIT: This is about your total investing picture, not about how good a stock picker you are or if you do wild ass options, etc. You might invest like a Boglehead and might answer "average" but you could also think this is an "above average" investing style or some other category in the 5 to choose from.

Stock and bond total index funds...done!

 

[denstl]

In 2019 I was a genius. Just rode the stock market and realized some nice gains. But did retire early because I was an investor for many years. Just can't seem to impart that knowledge to my kids...

 

[Lsbcal]

In 2019 I was a genius. Just rode the stock market and realized some nice gains. But did retire early because I was an investor for many years. Just can't seem to impart that knowledge to my kids...

Might depend on age. DS recently asked me to help set up his investments. If I get it wrong there is always his inheritance to tide him over. He is 35 so maybe hang in there.

 

[2177V]

Average Investor - My definition

The question regarding whether you are average, below average, above average is highly subjective. This also means most of the responses and the poll numbers are also high "subjective".

I decided to take a different approach by being "objective" which means I have to throw out numbers.

My investment average annual return over the last 10 years was 10% per year according to Vanguard which tracks my investments.

The S&P 500 return over the last 10 years was also 10% per year. However, this assumes your portfolio is 100% S&P 500. A 60% stock/40% bonds portfolio should return less or about 8.6% according to Vanguard model portfolio. IMO..If your 60/40 portfolio returned 8.6% per year in the last 10 years, then that should be considered "average" because that is the average return of a 60/40 model portfolio. If your 60/40 portfolio returned more than 8.6%, then you should be considered an "above average" investor. Click https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations

I achieve 10% over the last 10 years because my portfolio was mostly stock with very little bonds. However, I retired about 2 years ago and last July I changed my strategy to an asset preservation portfolio which is 100% treasuries. This is in response to a possible recession.

We can now talk subjective: I consider myself "lucky" rather than an average, above average, or below average investor. This is because I was mostly 100% stock during the bull market. If a crash had occurred when I was 100% stock, my portfolio would have been crushed.

In the stock market, I am mostly a gambler and a risk taker by nature. This is because I was in the US Army where I faced death numerous times in a designated combat zone. My additional combat pay (which was in addition to my basic pay) was only about $20 a day.

In the stock market, the worst case is losing some money...so I usually go "all in" or "all out". I was 60% stock and 40% bonds for a short time but I got bored and I prefer to live a life of danger. In a way my 10% return makes me an "average" investor simply because I had a 100% stock portfolio most of the time. A 10% return is the expected return for a 100% model portfolio according to Vanguard.

 

[Time2]

I've been a genius the last ten years, I have almost everything in VTSAX.

 

[SloHan]

I voted below average. What wealth I have accumulated came from investing over a long period of time 30+ years. Mostly indexed funds tracking the S&P 500.