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#46 | |
Sauntering Vaguely Downwards
Join Date: Sep 2005
Location: Columbia, Mo
Casino cash: $2599099
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Quote:
Sometimes they'll crater on you when they invest in some company that goes tits up, but it's been my experience that they tend to do better than the market by a point or two. Unless you're going to be extremely diligent, I'd stick with mutual funds. Additionally, don't underestimate the utility of stop-losses. Put in a sell option with a trailing stop if you're in something volatile. I bought into a bunch of the 3D printer options several months ago, rode them up and then when they had that mini-bubble burst on them, my stop losses kicked in after they dropped 5% in a day and sold off before the next couple of days when they ended up dropping another 20+% Stop losses can be annoying sometimes, but they can also save your ass on occasion. Oh yeah, and buy Ford. I don't care if they make you any money, but they didn't take the bail out and make a damn good truck. (In other words, one homer pick may not be smart, but it won't sink you either. I like having a few thousand invested in my rooting interest...)
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"If there's a god, he's laughing at us.....and our football team..." "When you look at something through rose colored glasses, all the red flags just look like flags." |
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Posts: 60,883
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#47 |
Sauntering Vaguely Downwards
Join Date: Sep 2005
Location: Columbia, Mo
Casino cash: $2599099
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An example of the phenomenon above regarding 'rising tides' and the problem with mid-cap and growth funds.
One of my favorite funds is the T Rowe Price New Horizons fund (PRNHX). I like their prospectus, I like their goals; I just think it's a nice fund that's fairly aggressive for a mutual fund but not run by an idiot. That said, if you look at what it's done since Jan. of 2012, it's beaten the S&P by tenths of a % (it's beaten the DOW by about 5%, so that's been good). The problem is that when things are going well on those funds, the mid-caps will rock and roll past those index funds. But when things drop, the index funds stay fairly stable where the mid-caps will fall hard. December of 2012 saw the S&P stay flat where the DOW and my fund both bled off 5-7%. Since then, my mid-cap has caught back up to the S&P, but another drop off will hit me in the shorts and it will be scrambling to catch up. You So that's again where a good stop-loss can help you. Additionally, having a significant portion of your portfolio in those 'boring' index funds can be a nice hedge investment if you're looking at a 20-30 year timeline. There's nothing sexy about them and they'll constantly look like they're lagging behind your other investments, but they really are the tortoise in this race.
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"If there's a god, he's laughing at us.....and our football team..." "When you look at something through rose colored glasses, all the red flags just look like flags." |
Posts: 60,883
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#48 |
Veteran
Join Date: Jan 2004
Casino cash: $9078035
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If you have the money, buy APPLE. Yes, it does cost $400 but it pays $12 dividend.
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Posts: 1,999
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#49 | |
2 Legit 2 Colquitt
Join Date: Sep 2010
Casino cash: $4175754
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Posts: 4,719
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#50 |
2 Legit 2 Colquitt
Join Date: Sep 2010
Casino cash: $4175754
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Disagree. I think Apple has "lost its burst." My fiancee owns AAPL, and I've been telling her to sell after they make their next big announcement. They have not been the same company since Jobs' death.
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Posts: 4,719
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#51 |
Veteran
Join Date: Nov 2010
Location: KC
Casino cash: $9925938
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penny stocks and Chesapeake energy
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Posts: 3,859
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#52 |
In Search of a Life
Join Date: Aug 2008
Casino cash: $1694497
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Absolutely agree. Especially given that the iPhone is losing some serious steam.
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Posts: 48,551
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#53 | |
In Search of a Life
Join Date: Aug 2008
Casino cash: $1694497
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Quote:
Yeah, if you're trading frequent and short term based on price imperfections, you're gambling. I see nothing wrong with reading up on a business strategy and taking an educated guess on their growth prospects. |
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Posts: 48,551
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#54 |
Don't Tease Me
Join Date: Dec 2000
Location: KS
Casino cash: $11047037
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go with what you know(ie a specific company or class that you know about)
or a general fund research
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Posts: 95,626
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#55 |
Mammoth penis
Join Date: May 2006
Location: Springfield
Casino cash: $7394386
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I'd go with whatever a Nigerian financial adviser says, they're great with money. Just keep checking your email, one will likely contact you very soon.
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Posts: 11,432
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#56 |
Supporter
Join Date: Sep 2000
Location: Hollywood, CA
Casino cash: $10053648
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Posts: 88,960
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#57 | |
Banned
Join Date: Feb 2009
Location: Fort Worth, TX
Casino cash: $10049239
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Quote:
ETFs take the individual selection of securities risk down. I like ETFs, they allow you to be approximately right. |
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Posts: 24,946
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#58 | |
Banned
Join Date: Feb 2009
Location: Fort Worth, TX
Casino cash: $10049239
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Quote:
Mid funds are a crucial part of a moderately aggressive to aggressive portfolio. If you are real risk averse then you should probably stay out of that space. Also, a lot of large cap funds dip into the mids to get growth potential and a lot of small cap funds reach up into mids because of their limited opportunity set. So make sure you pay attention to how your funds actually invest because you may end up way overweight Mid Caps unintentionally. |
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Posts: 24,946
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#59 | |
Banned
Join Date: Feb 2009
Location: Fort Worth, TX
Casino cash: $10049239
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Quote:
Also, I have problems with those out performance studies. Some funds are benchmark agnostic and intentionally have styles that are supposed to run counter to indices. Also, all investing styles are out of favor at times. That doesn't mean that you should increase/decrease their portion of your portfolio. Also, there is the issue of which market you are comparing them to. |
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Posts: 24,946
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#60 |
Veteran
Join Date: Jul 2001
Location: OC
Casino cash: $10009560
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Research Tesla - TSLA . It has a way to run.
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Posts: 1,792
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