Investing General Discussion

My take. What we are seeing is people/funds positioning for the bear. Value stocks that pay nice dividends are being bought generally. Companies that make money by lending money are being bought generally. Tech and growth stocks are being sold. God forbid you are an infinite PE stock because you are getting ass-raped.

I am not saying this rotation is going to prove out over the next 6-7 months, but that is what I am seeing. Except for AAPL and MSFT, my mom's fixed income IRA is all in the green today.

nu_11 said:

Just shows [what an addiction culture we have], if dudes have nothing better than to blow money on some internet THOT

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FTFY.

Locnar said:

I feel cleansed. For the first time in in nearly 2 years I have no more margin debt. Of course the cleansing was accomplished with FIRE.

Now (thinking of that line you got when you started a new char in Vanguard), my eyes are on the horizon thinking of the tasks ahead (or something like that). Time to slowly rebuild from the ground up. If nothing else I feel a weight off my shoulders. I'm still in my 40's and still have the vast majority of my net worth intact. I lost 70 percent of my non-retirement investment account and i'm not minimizing what a disaster that was, but I still feel blessed overall and I will move forward and this time not be retarded.

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Since you are starting fresh from scratch here is some advice that I and others have stated many times before. Don't fly by the seat of your pants. Open an Excel or Google Spreadsheet and build your new portfolio. Set parameters. Follow those parameters.

My personal parameters are no more than 5% of my portfolio total goes into any single stock. If I choose to go overweight a stock then it is 10%. I only own two of those (AAPL and MSFT). If they go bankrupt then we have bigger concerns than my portfolio.

The core of your portfolio should be a broad ETF (IVV, ITOT, QQQ, FTEC etc) and make up 40-50% of your portfolio at a "minimum". Learn to read the basket of holdings. If you own an individual stock then you need to add in how much of the dollars in the ETF you own into that individual stocks weight. Example if you own $10,000 of the QQQ and $1,000 of AAPL and AAPL makes up 5% of the QQQ then in reality you are holding ($1,000 + ($10,000*0.05)) of AAPL or $1,500. Notice that ETF position increased your AAPL holding by 50%.

Cap your "meme/wsb/discord" investments to a tiny fraction of your portfolio. Its ok to gamble once in a while but limit your downside. For me this cap is 2.5% of my total portfolio for all of my speculative positions combined.

Buy companies you know. Buy companies that (barring a nuclear war) should still be around in 20 years. Buy companies with a moat. Buy companies with bulletproof balance sheets. Buy companies that make actual profits. Ps, this is not an either/or list. It should be a checklist of all 5. And yeah, Warren Buffet rings pretty loud with these parameters.

Finally, examine the 11 sectors of the market and find 3 or 4 you know about or want to know about. Invest there. You cant know all 11. The market is just too big.

The ideas above aren't linked to a certain amount of investment. $10k, $100K, $1mi. The philosophy would stay the same for me. The key is using fractional share buying. Only have a portfolio of $10K but want to buy GOOGL? Buy 0.25 shares. Ignore dollars and only focus on percentages of your total portfolio.

Don't buy whole portfolio positions in a single purchase. Some of us refer to partial positions or tranches. For me, since 5% is a "full" position, 1.25% is a quarter position, 2.5% is a half etc. Add to stocks in those increments. I never just buy a full position on a stock. I buy in with a quarter or half and then let the market tell me what to do next. If the trade goes south, my at risk money is lower and if it goes well, adding in tranches as it rises only costs me a few dollars. If the market is red and after an entry it drops to the next support level, you can add another quarter and dollar cost average down. Again you are limiting risk which has to be key to your investing.


All the other stuff we talk about (when to buy/sell, what to buy sell etc) is important, but it all depends on having a basic portfolio foundation built.


Most important of all...

Power Hour here we come!!!

AAPL breaking down below its long term support level. If there was a line in the sand for the overall market, this is it.

Mist said:

Oh we're back to not-stonksing.

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Not true. PM +5% today. People all over that tasty 5% dividend

For those playing at home:
SPY - 17.7% off its high
QQQ -28.2% off its high
IWM - 30.2% off its high
FTEC - 26.8% off its high
DIA - 13.8% off its high

Added a tiny bit to my AMZN at $2100 and decided to add some TSLA at $735. I am not sure if I end up keeping this TSLA if it does crazy TSLA shit and runs higher in the near future.