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DOW 20k!!! - the investing thread

Discussion in 'Everything Else (off topic)' started by basod, Jan 25, 2017.

  1. basod

    basod

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    So it finally happened I was in High School when it hit 10k. I remember working on the farm and taking a ride with a "well to-do" customer who needed help unloading some whiskey barrel planters at his condo in Pine Point - fairly "exclusive" place. He brought up to me so "what do you think about the DOW almost @ 10k" - me being a 16/17yo had seen/heard on the news but didn't own any investments - other than a sweet 1985 Buick LeSabre and a wad of cash under my mattress.

    In my senior year of college(engineering) course requisite was an economics 101 hybrid - mostly to teach the guys going into merchant marine what to do with their new found wealth. Teacher set up a group account on Yahoo with $10k starting for each class member - whoever finished with highest balance got +20pts on the final, +10 for second and +5 for third. I know I didn't own the textbook for the class and mailed it in but turned 10K into 24k within ~3months betting low cost stocks while everyone else bought big companies they knew(GE CAT,DOW, Seimens) Only one guy (as we could see what others were invested in) jumped on my plan and bet everything on some mining stock and beat me by ~$200 in the final - he needed the extra 20pts worse than me anyways:D

    Fast forward to my early 20's - had a rollover IRA from my first employer that I actively traded in and made substantial gains (while contributing to current employer 401k) but made some boneheaded bets and lost most all of that.
    I'd say I passively managed my active 401k in the highest yielding lowest load mutual funds offered within previous employers account - ended up doing really well.
    Employer just changed end of November so I just rolled that into another IRA so I can take advantage of better fund options. Had the option of going "actively managed" for 1% load - on top of the mutual fund fees(which are really low but only accessible to active managed funds)
    They sent me their plan and I sort of mirrored it with my picks for more aggressive growth and the fees should be net lower with less foreign market exposure.

    I know there's some folks smatah than me in the investing world - but I kind of enjoy self managing my portfolio.

    Feel free to derail - just don't start investing in Thongs:D - depreciating assets
     
  2. Frank and Beans

    Frank and Beans

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    I bought a lottery ticket last week. Didn't win nuttin'.
     
  3. basod

    basod

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    Can't fault a lottery ticket - I'd buy one here/there if Alabama would adopt one, not because I think I'd win but it is fun to imagine
     
  4. Frank and Beans

    Frank and Beans

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    I buy one every few months, just to make sure I'm not meant to be a millionaire.
     
  5. basod

    basod

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  6. papadave

    papadave

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    Heck, I learned that lesson long ago. Although, we recently became 5dollarionaires. Hit it bigtime. Wife plans to buy 5 more to see if we can double our winnings.
     
  7. Gary_602z

    Gary_602z

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    I only buy them when the jackpot gets up around 200 mill or so. My Dad used to say if he only won a few million he would just start paying bills until it was all gone!:) So you might as well win a big one.

    Gary
     
  8. cnice_37

    cnice_37

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    I am a boring investor, basically a Boglehead. Index funds and low fees, I suck at picking individual stocks. 90/10 split, mostly US but some international.

    I opened my brokerage account around 2007 and lost a sizeable amount of it. Had I just used index funds and stayed the course, I would have been a genius.

    So the DOW has only doubled in how many years? I thought conventional wisdom was every 10 years?
     
  9. cnice_37

    cnice_37

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    Somewhat on topic, just watched The Big Short, pretty decent. I read the book a couple years ago, Michael Lewis is an excellent author for the average Joe.
     
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  10. yooperdave

    yooperdave

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    And how is that approach working out for you?? ;)
     
  11. Gary_602z

    Gary_602z

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    Let you know tomorrow!:yes:

    Gary
     
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  12. Jack Straw

    Jack Straw

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    It truly amazes me that with a little education, if you are good with your money you can actually live off it w/o doing any work! :thumbs:
     
  13. Fanatical1

    Fanatical1

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    Im a saver and investor. I've come to the conclusion that a balanced approach is best for me. Stock picking or placing significant amounts in any one investment takes on significant risk meaning big gains or losses.

    There's a reason 90% of managed mutual funds (with professional managers) underperform the market in general. Unlikely we will do better than them long term, unless we're lucky.

    As I tell my kids.... It's all about saving a portion of your income. If your making a million dollars a year and spend all of it how much do you have in 30 years. Nothing.

    If you make 35,000 a year and save 10,000 a year how much do you have in 30 years. Close to a million.

    All about saving.
     
  14. Eric VW

    Eric VW Moderator

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    One safe bet I can attest to... you're a funny dude!:rofl: :lol::rofl: :lol::rofl: :lol::rofl: :lol::thumbs:
    Old, but funny:BrianK::handshake:
    :D
     
  15. Beetle-Kill

    Beetle-Kill

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    I'm picking up a metal detector this spring, would this count as investing in gold futures?
     
  16. bushpilot

    bushpilot

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    I have done a few things over the years, with moderate success.

    I take a pretty well balanced approach, but see little use for bonds, especially in the current low-interest environment. I include many broad categories in my investments - large, small, and micro cap US stocks; foreign large, small and emerging market stocks; some gold; some REITS; some cash. I am currently using mostly Schwab ETFs for my non-401k investments. They are extremely low cost. I use both the traditional and fundamental funds. I have no concern about being very overweight in equities.

    I sometimes will buy individual stocks, but never more than 10% of my total. Not a rule, I just don't find I have any expertise there. I have had a winner or two, and a disaster or two. It is less trouble to be more passive, and probably just as good.

    On the more active side, I use closed end funds to advantage when discounts are high enough at a reasonable cost. I would add to my holdings of Central Securities (CET), RMR Real Estate Income (RIF), and Royce Global Value Trust (RGT) if I had additional funds to invest.

    I am considering investing in options, but haven't taken the plunge yet. The only option that interests me is selling covered calls. Anything riskier than that would terrify me.

    A story - from 1986-1991 I invested 10-15% of my income in stock funds. I never added another cent to that account after 1991. Over the next 20 years, the account increased to 5 times its starting value, which is not extraordinary. In 2011, I emptied that account and bought my first house outright, cash. In 2013 I had to leave that job, and went to another one in another state. After selling the first house I paid cash again for my current house. All paid by my investments made pre-1991. It is so worth the small sacrifice, the rewards are great.

    About the Dow 20,000 - it has no meaning, nor does 10,000 or 30,000. Just keep plugging away, saving a reasonable amount in low-cost, moderate-risk investments, well diversified, and you will do fine.
     
  17. lukem

    lukem

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    I keep the vast majority of my savings in low cost index funds. I dabble a little with some other stuff (mostly commodities) for fun.

    I wish the market would stay down for a while so I could buy some stuff on sale, but really it's all on sale for me as I won't spend this money for at least 20ish more years.

    My only regret is that I didn't start sooner. I've always been a good saver but a poor investor. It wasn't until I was in my late 20's that I had any kind of saving/investing plan (which I guess is still not too terrible).
     
  18. Jack Straw

    Jack Straw

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    It sounds like you've done a great job, don't be hard on yourself.
     
  19. JIMBETHYNAME

    JIMBETHYNAME

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    This is weird. I had a dream last night and someone was asking meif I knew the Dow jones average. I remember sayin 176 over 20k. Idk even what that is? Lol
    Maybe I should start?
    Hows that ENRON stock doing? Still hot? lol
     
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  20. lukem

    lukem

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    I'm not being hard on myself...just wish I had a do-over. I did get my house paid off by the time I was 30 by not "investing" though...
     
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