melch 0 #1 January 7, 2015 First off, this is not a 'Rich talks Stocks' or 'Where should I invest my money?' thread. Simply put, I am looking at getting serious about my investments as opposed to what I currently do which is put money in the same old mutual fund. I would like to get more serious about market research, diversifiying, etc. With that being said, my preliminary research has been rudimentary (Google for the win) but I am finding that the information available is simply overwhelming. In an effort to avoid janxy information, I was hoping that some of you with a little more...um, life experience (not that you are old or anything) in particular with investing would share reputable magazines, periodics, websites, companies with solid foundational teachings to narrow down my humble beginnings of financial research. Quote Share this post Link to post Share on other sites
NWFlyer 2 #2 January 7, 2015 I think asking for investing advice on a skydiving forum is bound to get you a high percentage of janky info, actually. That said, when I started dabbling in individual stock investing, I followed the WWWBD strategy. Seriously. I looked at the companies that Warren Buffett was actively investing in (Google can tell you that), and I reviewed them against my own personal interests and values, and picked a few of those same stocks to invest in (plus I invest in Berkshire Hathaway itself). Conceptually I try to pick the same way Buffett picks his own investments (though I totally lack his financial prowess!). But I at least take to heart his idea that I shouldn't invest in something I don't understand. So, I invest in companies for which 1) I have a clear (at least high level) understanding of their business model and how they make money now and how they'll make money in the future and 2) The business they're in isn't something I find fundamentally distasteful. In most cases, they're also companies of which I'm a regular customer (which helps with that "understanding the company" part). So far, that's actually worked out really well for me. Granted, my investing in individual stocks has mostly been over the past 3 years or so and the market itself is also going gangbusters, but my individual stocks are outperforming my index funds pretty handily. I have no interest in investing in companies and industries I don't understand. I'm a "buy and hold" investor, not a "time the market" investor. I'm under no illusions that I have any kind of special expertise that's going to allow me to play market timing in some cool way to work it to my advantage (nor do I have the patience or interest in learning). Even though I live a stones' throw from Silicon Valley, you'll almost never find me investing in tech and that's because I don't have a freaking clue how the market values many tech companies (and frankly, I'm not sure the market has much clue, either ). I've got a couple shares of Google stock and a few shares of a tech company I used to work for (which have grown at a wonderfully surprising rate), but it amounts to such a tiny proportion of my portfolio that if both of those stocks dropped to zero I wouldn't miss it. I have an automatic investment plan set up with an online brokerage that costs me $12/month for up to 12 transactions. Each month it takes money out of my savings account and allocates it across 12 different investments as I've specified. It's very hands-off, and though I'll occasionally look at my portfolio and consider whether to increase my monthly investment or reallocate my monthly share differently, I'm otherwise super passive. I'm basically doing dollar cost averaging investing through this strategy. Motley Fool is a pretty decent site for starting to learn the basics. "There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
Remster 24 #3 January 7, 2015 I'm a theory kinda guy. Investment theory states that you achieve optimal (not maximal) return while minimizing risk by investing the the total market. So I try and aim at the 2000 and 5000 level index funds. Or, in a bind, a S&P 500 index fund in combo with a small and/or mid cap index fund. Yeah, it's not sexy. But it works.Remster Quote Share this post Link to post Share on other sites
melch 0 #4 January 7, 2015 NWFlyer I think asking for investing advice on a skydiving forum is bound to get you a high percentage of janky info, actually. True...it is not SC though so I am hoping the jankyness stays low. I always tend to take advice on stuff like this with a grain of salt that is why my focus is more on the area of where people conduct their research/get started. That way I can do my own and as you point out, find things I understand to invest in. Thanks for the initial info :) Quote Share this post Link to post Share on other sites
NWFlyer 2 #5 January 7, 2015 Remster I'm a theory kinda guy. Investment theory states that you achieve optimal (not maximal) return while minimizing risk by investing the the total market. So I try and aim at the 2000 and 5000 level index funds. Or, in a bind, a S&P 500 index fund in combo with a small and/or mid cap index fund. Yeah, it's not sexy. But it works. Yep. I should add that the overwhelming majority of my portfolio is in funds. Individual stocks are fun, but I'm not banking my retirement fund on them, that's for sure. Also, any non-retirement investing I'm doing is with money over and above my emergency fund, which is low-risk and highly liquid, of course). I'm not playing with stocks to make sure I've got enough money to cover rent if I lose my job. "There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
BIGUN 1,051 #6 January 8, 2015 I suck at investing. Don't listen to a word I say about it. Sincerely, 2002 tech stock collapse victim Nobody has time to listen; because they're desperately chasing the need of being heard. Quote Share this post Link to post Share on other sites
ryoder 1,381 #7 January 8, 2015 Watch this: http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/ Short version: Index funds."There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones. Quote Share this post Link to post Share on other sites
aarco 0 #8 January 8, 2015 melchFirst off, this is not a 'Rich talks Stocks' or 'Where should I invest my money?' thread. Simply put, I am looking at getting serious about my investments as opposed to what I currently do which is put money in the same old mutual fund. I would like to get more serious about market research, diversifiying, etc. With that being said, my preliminary research has been rudimentary (Google for the win) but I am finding that the information available is simply overwhelming. New micro chip technology and counter chip science, bio mechanical systems and art, social engineering to civilian preflight space travel, such as geo thermal mining and geo engineering that steps into place of terraforming technology, modern warfare rnd, pre fab agricultural, and synthetic animation, this is the only studied direction for the planet to go, realy, star trek or bust, most big companies know this, they just want to know is you believe it or not, if you know it but invest In darwin youll be selling short matter systems for anvanced social sets, they really on constant energy pattern and laws that out step small thinkers, such as progamable matter and other advancements, none linear systems, more not less, carbon fiber and aluminum manufacturing is a start part in some modern industries. In an effort to avoid janxy information, I was hoping that some of you with a little more...um, life experience (not that you are old or anything) in particular with investing would share reputable magazines, periodics, websites, companies with solid foundational teachings to narrow down my humble beginnings of financial research. Having something never beats doing (>|<) Iam building things - Iam working on my mind- I am going to change this world - its what I came here 4- - - Quote Share this post Link to post Share on other sites
wmw999 2,120 #9 January 8, 2015 My one thought about tech when investing is I have to be able to actually identify the product (besides goodwill, advertising space, or anything else ephemeral like that). So Ebay seemed like a good bet, but Yahoo not so much, and yeah I passed on Google . But I (mostly) missed the 2002 bust, and the 2008/9 bust, mostly by getting scared when I didn't think there was anything propping up the prices at the time. Other than that, now I'm almost exclusively into index funds, because I don't check regularly any more. I'm retired, and don't enjoy it so much -- it's time to spend that money Wendy P. There is nothing more dangerous than breaking a basic safety rule and getting away with it. It removes fear of the consequences and builds false confidence. (tbrown) Quote Share this post Link to post Share on other sites
aarco 0 #10 January 8, 2015 You need a graphics realy software program to give auto e up dates the fit you money grid or what some call an actions grid, it helps if the trade group or options team you have stays active with your knowledge base, there are a few games that are real and fun to learn, yet some greedy spokes in the almost a good deal machine keep trying to kill to good program, the thing with them is they are to targety and get found out quickly, another tip is tech that works with shipping companies and vice versa twards a geometry system that frees Industry, fed ex is gettig closer, like hybrid flight energy on their front line charter as they work and ship the same start up systems with other branch companies, Having something never beats doing (>|<) Iam building things - Iam working on my mind- I am going to change this world - its what I came here 4- - - Quote Share this post Link to post Share on other sites
FlyingRhenquest 1 #11 January 8, 2015 If you have any credit cards or other debt, pay those down first. Odds are you won't find an investment with a return as high as the interest you're paying on your credit card. A potentially useful exception to this is mortgage interest, which in the USA you can write off on your taxes. IIRC same thing goes for home equity loans et al, so taking one of those to eliminate credit cards is a worthwhile idea. Doublecheck this if you're considering taking this advice, been a while since I looked into it. From what I recall, it's hard for a home investor to beat the gains on a good mutual fund. If you're looking for less-risky places to park your money, I believe there are some inflation-indexed treasury bonds you can buy. They're guaranteed to pay at least at the rate of inflation. You can read up on them on Wikipedia and research if you're interested. From what I've seen, if you really want to get ahead, you want a company. My first boss was a small business and he exploited every loophole legally possible with his company. Some of these things may not be legal anymore (Some of them might not have been back then either heh heh.) For example, the company owned all the vehicles he used personally. So he was basically writing off the depreciation of the vehicles and their maintenance as a corporate expense. The company owned a lot of his personal stuff, as I recall. If you own a company, the company can also pay you less in salary, which would mean lower personal income taxes. You don't care, the money's still in the company. I hear the IRS has been cracking down on this, though. This is why you have an accountant and a lawyer.I'm trying to teach myself how to set things on fire with my mind. Hey... is it hot in here? Quote Share this post Link to post Share on other sites
skymama 35 #12 January 8, 2015 My son has been learning the ropes for the last few years (he graduated with degrees in Finance and Real Estate last year), so I posed his question to you. He's doing pretty well with his and my investments so far. Here is his reply for what it's worth: QuoteIf he just wants to get into stock market like the average Joe, then I would suggest going on yahoo finance every day and just start reading articles and when he finds something that is interesting to him look further into it, pull up the company’s ticker and try to examine the jargon that is on the page and the news articles associated with that company. Then while browsing look up any word or concept they don’t understand on investopedia.com or google. It may be a lot of looking up at first but once he starts learning things it will become a lot easier and he will start understanding more about the market as a whole. Time invested before Money invested. Books on this matter can be helpful but also dull and you could lose interest. If he really wants a book to read I suggest a college 101 book on investing that covers all the securities the market has to offer. But the internet is a lot more fun, cheaper, and brings in real time stories that keep you up to date with what is going on. She is Da Man, and you better not mess with Da Man, because she will lay some keepdown on you faster than, well, really fast. ~Billvon Quote Share this post Link to post Share on other sites
Phillbo 11 #13 January 8, 2015 I use the NoLoad FundX news letter to help guide me on my mutual fund investment: https://www.fundx.com/default.aspx Quote Share this post Link to post Share on other sites
NWFlyer 2 #14 January 10, 2015 NWFlyer Even though I live a stones' throw from Silicon Valley, you'll almost never find me investing in tech and that's because I don't have a freaking clue how the market values many tech companies (and frankly, I'm not sure the market has much clue, either ). Like I said... https://hbr.org/2015/01/investors-fawning-over-uber-should-recall-aols-stumbles"There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
headoverheels 291 #15 January 10, 2015 ryoderWatch this: http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/ Short version: Index funds. I'm pretty sure that I would have done better over the years by simply using SPY or MDY index funds, which have very low expenses, rather than individual stocks. My wife has been in some broker suggested funds (not ETFs), which have underperformed the index funds, even before they extracted ~1.4% per year expenses. Quote Share this post Link to post Share on other sites
JohnMitchell 14 #16 January 10, 2015 NWFlyer Yep. I should add that the overwhelming majority of my portfolio is in funds. Same with us. An article I read on Warren Buffet the other day said that his will reads to put 90% of his wife's money in a Vanguard S&P 500 fund when he dies. That and a similar TSP (federal employee fund) is where we have 95% of our $$$ that is not tied up in real estate. For the adventurous, I say get on board with the Motley Fool bunch. I think they have some of the most sound investment ideas. Quote Share this post Link to post Share on other sites
DrewEckhardt 0 #17 January 10, 2015 melchFirst off, this is not a 'Rich talks Stocks' or 'Where should I invest my money?' thread. Get a computer science degree, move to Silicon Valley, work for tech startups which just closed a $10-$15M series-A, and early exercise your options for under $0.10 a share with an 83(b) election once you have sales traction but the 409(a) valuation has not gone up. At least 20% of the time (Kleiner Perkins has done better, with 200 IPOs on 700 investments) you'll do great, and you won't loose money on the real losers that don't start to scale. In case that doesn't work out or isn't in your future, invest in broad-market index funds. Quote Share this post Link to post Share on other sites
JohnMitchell 14 #18 January 10, 2015 Iago I looked into real estate many years ago and decided it was better suited for other people. Too many headaches being a landlord. I do own a REIT I did both of those and found that stocks performed better during the same period. A lot depends on the period you buy in, etc. Quote Share this post Link to post Share on other sites
DeeBeeGee 0 #19 January 13, 2015 Before getting started I was advised to read this http://monkeywithapin.com/ which pretty much spells out how 98% of the profit from all funds ever has ended up in the fund managers' pocket I started out with low cost index funds with mixed success 0-20% As stated already, if you like the look of a managed fund it's not hard to find out what it holds and self invest. Just try to be patient and avoid frequent trading. Quote Share this post Link to post Share on other sites
JohnMitchell 14 #20 January 14, 2015 GoPro is having a sale on its stock right now, about 40% off. Quote Share this post Link to post Share on other sites
JohnMitchell 14 #21 January 15, 2015 DeeBeeGeeBefore getting started I was advised to read this http://monkeywithapin.com/ which pretty much spells out how 98% of the profit from all funds ever has ended up in the fund managers' pocket I started out with low cost index funds with mixed success 0-20% As stated already, if you like the look of a managed fund it's not hard to find out what it holds and self invest. Just try to be patient and avoid frequent trading. Absolutely true. Most of our money is with Vanguard and the Federal TSP funds, which all have costs below 0.10%. If you consider the miracle of compounded interest, the same "miracle" applies to compounded fees over the course of 20-30 years. Quote Share this post Link to post Share on other sites
ryoder 1,381 #22 January 15, 2015 JohnMitchell GoPro is having a sale on its stock right now, about 40% off. RSH(RadioShack) is have a sale right now, too!"There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones. Quote Share this post Link to post Share on other sites
airtwardo 6 #23 January 15, 2015 ryoder ***GoPro is having a sale on its stock right now, about 40% off. RSH(RadioShack) is have a sale right now, too! Ouch ~ I'd side with those touting the virtues of index funds... That said, it can be fun to have a little to play around with too...just gotta pay attention to short term trends - couple weeks back I got 30% in two days on a Russian inverse 'gamble'...and there's a little company I've been watching for a few months now, constant fluctuations that have allowed for a few hundred bucks a week just getting in & out as it wobbles. ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
NWFlyer 2 #24 January 15, 2015 airtwardo That said, it can be fun to have a little to play around with too...just gotta pay attention to short term trends - couple weeks back I got 30% in two days on a Russian inverse 'gamble'... Yep, it is fun, but none of us should be kidding ourselves that it's anything other than gambling. Just like when I go to Vegas; I figure out how much money I'm willing to play with on that weekend... maybe I finish up, maybe I finish even, but my "down" limit is that pre-set amount, and it's an amount that's well within my "play money" budget, not something that I might need for rent or food or skydives the next month. Same goes for my stock market fun money. It's not my "go to hell" fund. It's not my retirement fund. It's not my monthly budget money."There is only one basic human right, the right to do as you damn well please. And with it comes the only basic human duty, the duty to take the consequences." -P.J. O'Rourke Quote Share this post Link to post Share on other sites
airtwardo 6 #25 January 15, 2015 Quote Yep, it is fun, but none of us should be kidding ourselves that it's anything other than gambling. It's MUCH worse than gambling...no free drinks! And I agree 100% - like Vegas, never gamble more than you can lose and not feel it. ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
