Thread 60840356

is buying individual stocks retarded? what if I really believe in a company???

>>60840356 (OP)
Depends, which company and why?

>>60840363

not decided yet, I'm just doing general research and trying to learn about investing

>>60840356 (OP)
yes goy better buy this index fund that puts most money in stocks with 300 p/e

Cede and Co. owns the stock you buy. You don't even 'own' it lol.
https://www.bloomberg.com/opinion/articles/2015-07-14/banks-forgot-who-was-supposed-to-own-dell-shares?embedded-checkout=true
I'm a tin foil hat silver maxxi and even I know that you can technically own crypto. But you don't own the stocks you buy.

>>60840356 (OP)
It's more risky. Its not retarded if you went all in on nvidia or tesla 10 years ago

>>60840356 (OP)
buying individual stocks is not retarded, however you need to set up some rules for yourself to follow or else you'll buy high and sell low, go all-in on a bad trade, and blow up your account

here's some example rules for you to follow:
>don't buy more than $2k of any stock
>everything you buy has to be held for at least five years before you can sell it
>only sell stocks that have underperformed the S&P 500's total return; keep holding the winners
>wait for a stock to be close to its 52-week-high before selling
>only invest in companies with positive earnings and growing revenue

read the book "Thinking, Fast and Slow" if you want to understand why your monkey brain is retarded and therefore why you need to follow rules like this if you want to succeed at investing in individual stocks

t. outperformed the S&P for ten years following these rules

>>60840621
>>only invest in companies with positive earnings and growing revenue
This is the only good advice everything else you said was retarded

>>60840356 (OP)
never got this "cult" buying. Generally when people buy J&j stock they dont start wearing shirts with baby oil bottles on it, or buy stock in appl then start posting on their twitter about how awesome the products are and change your profile pic to an apple. Like just buy it and shut the fuck up, thats how you make quiet money. Even if you made anything, you would be so autistic and retarded that you would lose it right away anyways.

>>60840356 (OP)
>buy OPEN
>hold for 1 year
>retire

The reason people advise against it is asymptomatic risk, which is largely believed to be an uncompensated risk

I dont totally buy into that, in a winner take all game, buying the winner will always be better than buying the top 10. I guess it is a sort of cheap insurance to diversify but I think there's some underlying fallacy at play. I have a barbell strategy currently with one side being very diverse and the other intentionally not

>>60840636
yes, the guy who has outperformed the S&P for a decade is giving retarded advice, it's definitely not you that's poor and retarded

>>60840356 (OP)
>is buying individual stocks retarded?
No. You just need to be prepared to have an active role, hence "active investing."
People tend to think etfs like VOO provide safety through diversification. It's actually the rotation within that diversification that protects you. Market cap-weighted indices follow the money in a sense, and drop the losers. That is a good thing even though they're effectively buying high and selling low all the time. The cost of diversification is dilution of your gains. Buying individual stocks means you do those things yourself.
You don't have to be a purely active or passive investor. If you hold VOO plus a few high conviction companies, let's say the mag7, you will beat the market. Alternatively, if you're willing to do the research and be vigilant, you can build your own version of the dow with top picks from multiple sectors, plus some smaller positions in speculative bets.
In the end, the best path depends on how much work you're willing to do, while accounting for your own emotional weaknesses.

>>60840723
Sure you have

>>60840727
if you had anything valuable to say then you would say it, instead of just calling people retarded for no reason

go back to your hole if you have nothing valuable to say >>>/r9k/

>>60840729
Saying "2k" makes no sense. It should be based on a percentage of your portfolio. Like 3% of your portfolio. Your portfolio could be worth 5k or it could have 5 million. In both cases just saying "invest 2k" makes no sense. And the 5 year rule is retarded because you could end losing 99% of your investment. You should have a stop loss around 10% instead. That way worse case scenario you barely lose any money. With your advice someone could lose their entire portfolio

>>60840767
>you should set a stop loss around 10%
okay, so you sold your whole portfolio at a loss when we flash crashed 20% in April? That would make you the retard, not me.

>the 5 year rule is retarded because you could end losing 99% of your investment
if you're investing in companies that might go bankrupt within 5 years then you're picking shit companies. "Only invest in companies with positive earnings and growing revenue" practically guarantees that none of your investments will go to zero within five years. This is a non-issue.

>Saying "2k" makes no sense. It should be based on a percentage of your portfolio
this is a reasonable criticism, however if you're a 22-year-old who just got his first paycheck and has $2,000 to invest, it would be silly to assemble a portfolio of tiny $100 positions in various stocks. You're taking on extra risk compared to investing in an index fund, but in absolute terms you're not going to be meaningfully compensated for that risk, because even if one stock does a 20x, that's only ~$2,000 in profit.

It's more reasonable for such a person to invest the whole $2,000 in one stock and then invest their subsequent paychecks in other stocks. That way, if one stock does a 20x, the return is actually meaningful.

People on this board are in their 20s and 30s so they have many future paychecks coming, and they can afford to take on the risk of investing $2,000 in one company, in order to benefit from the potential asymmetric returns.

Finally, if you're investing in companies based on % of portfolio, then you're tasked with constantly re-evaluating whether you should add to your positions that are less than X% of your portfolio, and that's bad because 1) it's a waste of your mental bandwidth and distracts you from researching new opportunities, and 2) it's going to encourage you to chase losses and throw good money after bad.

>>60840356 (OP)
No, you will make outsized gains if you're buying sector leaders. The problem is most people try to buy penny stocks because they're cheap and they go to zero.

>>60840852
Post portfolio

>>60840852
>okay, so you sold your whole portfolio at a loss when we flash crashed 20% in April? That would make you the retard, not me
From my point of view most stocks will take 50%+ drops it's not uncommon. Unless you're buying something like mcdonalds but that point I don't see you outperforming the s&p. And there are strategies to buy back in if you see the trend reversing.
>>60840852
>you're investing in companies that might go bankrupt within 5 years then you're picking shit companies.
Can you name 5 companies right now that are guaranteed to not go bankrupt and you know will go up 100% within five years

Hank, I have 200k sitting in momentum and growth ETFs. I’m thinking of partially denouncing my bogglehead ways and investing in individual stocks. I just have a few questions:
Do you think putting a portion of my paychecks in Ondas and Sofi over time is retarded??
Should I set some aside some dry powder and yolo into TQQQ once the next downturn (it will happen) occurs?
>>60840852

>>60840930
I DCA into tqqq from $70 down to $38 during the drip and just recently sold it for $92

>>60840957
Should I should just wait then?

>>60840877
SIMO, SWKS, MCHP, NXPI, TEL, QCOM, JD, ADI, AMAT, CRM, TSM, BABA, HIFS, AMD, MCK, AVT, BIDU, TMUS, MKSI, MU, AMZN, STM, ASML, TER, PEGA, NTES, AEIS, LRCX, NVO, TCEHY, TXN, AVGO, COF, ROG, ONTO, SIEGY, KLAC, QRVO, IFNNY, MELI, GLW, SCHG, ETSY, ON, CPRT, NVMI, KSCP, CHWY, CHA, TTD, MTSI, DY, AVUV, AVDV, CRWV, SMCI, SHOP, TEM, PANW, BRKB, ISRG, SBAC, VIG, PDD, WMT, VMI, KEYS, ANET, MPNGY, NOBL, CMG, XIACY, DGRO, MRVL, INFY, KTOS, SYNA, TMO, MPWR, META, WM, CAT, RDDT, VRT, GOOG, FSV, YUM, MSFT, CAVA, VST, FDX, BMI, TXRH, CRDO, JCI, CRWD, ALAB, LVHI, CELH, FORM, LKNCY, NTDOY, XYZ, KO, BELT, ACLS, ASX, NVDA, BROS, NET, SCHD, CMC, S, ONDS, VUG

copy/paste those into a portfolio on SeekingAlpha and happy researching

>>60841181

Thats the whole market bro you ain't stock picking

>>60840356 (OP)
Trust the experts. Mutual funds are safe and effective ways to invest your money.
(This is not Financial Advice)

>>60841198
nobody invests in mutual funds any more grandpa

>>60841184
it really isn't though. Check out picrel (1/2)

>>60841210
(2/2)

as you can see I'm overweight growth, underweight value

and I'm overweight on small caps

>>60841215
and I'm extremely underweight on financials, healthcare, and energy

>>60840356 (OP)
You don't directly "buy" stock. Your broker holds it for you in its "street name" while you receive "beneficial ownership" and have "proxy voting" capacity. They act in a custodial capacity but you own nothing. Basically your broker gives you an IOU for every share in your account.

If you want to hold the stock directly you must DRS (direct registration) through the stocks Transfer Agent which you can usually find on their website.

While you may be able to transfer your shares through your broker (as a "transfer in kind") many brokerages now charge a fee for this.

From my experience buying individual shares is not good unless you know the company to be profitable. Buy an index to hedge some of the risk.

>>60840925
>there are strategies to buy back in if you see the trend reversing
timing the market doesn't work out for 80% of traders; thinking that you're special is statistically not going to work out for you or anyone else.

it also adds a bunch of stress to your life. You're constantly asking if you should sell or buy and constantly watching your portfolio. It's not healthy. I know from experience.

the whole point of behavioral economics is learning how the truths we learn in an economics textbook collide with our monkey brains to shape our economic reality.

so to maximize your returns you need to set rules for yourself that prevent your monkey brain from investing in dogshit, buying high and selling low, and chasing losses.

>Can you name 5 companies right now that are guaranteed to not go bankrupt and you know will go up 100% within five years
what's this about "know will go up 100%"? What I said is "practically guarantees that none will go to zero". You should try to win the argument without moving the goalposts to the other side of the planet.

>>60841215
Boy I wouldn't want to be in tech stocks when that AI bubble goes tits up like it's threatening to do now.

>>60840930
>TQQQ
I don't touch leveraged ETFs; maybe it's a good investment but I don't want to deal with the stress of watching my portfolio lose 80% of its value

>Ondas and SoFi
I'll have to research them and get back to you; I'm busy at the moment

>>60840930
Hank, I have 200k sitting in momentum and growth ETFs. I’m thinking of partially denouncing my bogglehead ways and investing in individual stocks.
I'd suggest selling off $50k and investing it in 25 different companies, while leaving the rest in the ETFs. And later, after 5 years or so, see if that's working out well for you, at which point you can consider rebalancing further into individual stocks.

also, consider investing money from paychecks into more individual stocks, because it gives you an incentive to be frugal and hardworking to save up $2,000 at a time so you can invest in another company that you've researched and that you're excited about.

>>60841260
you bank balance is just a number in a database too

>>60841264
>what's this about "know will go up 100%
You said you outperform the s&p. Which is up 100% in 5 years. So what are the stocks you own right now

>>60840356 (OP)
Normies going full risk-on at the top. ya luv 2 see it!

>>60840356 (OP)
Just do options trading with a decent dte if you believe in the company. I slowly amass positions in smaller companies but I think I will forever be priced out of anything besides options for bigger stocks.

>>60841474
I already answered that here >>60841181

>>60841284
Leveraged ETFs are way more predictable than individual stocks. You don’t have to keep 100% of your portfolio in them if you don’t want to. And if you don’t like TQQQ there’s QLD. Or just SSO.

>>60840356 (OP)
Ideologically? Politically? Politics can change in a second.

>>60840368
Buy an index that goes up 10% because 5 companies double and all the rest are losers...
Buy a few of the 5 companies and get all the gainz...

>>60840356 (OP)
if you have to ask the question, you're extremely underqualified to be picking stocks.

>>60840356 (OP)
i have five thousand american dollars invested in a shitcoin called "useless" so i don't really have many grounds to hold an opinion on this but look at what tesla managed to do, look at nvidia, look at amd post intel shit-show, so on. it's still gambling though, if news come out tomorrow that nvidia's ceo is a pedophile the stock will suffer greatly.
>>60840621
this sounds based. also thank you, i will read the book.

>>60842718
forgot to attach a funny image to my post.

>>60840356 (OP)
Fraser looking fresh again huh
PEPE

>>60842718
This is why you get market weighted index. Imagine not reapong some of the benefits of those stocks while you were invested fully in ibm or some shit