Investing 102

[fearlessmark]

I've been going through this thread, but at 500+ pages, it may take a while...

I do have a question that may have been answered before. I currently have investments in a company 401k and a personal account invested in dividend stocks working toward compound interest. The question is, Is there ever a time when you should just liquidate everything to turn it into cash? The last downturn did a number on my investments, so I'm wondering if there is a threshold on this.

Again, sorry if this has been asked before.

-Mark

[WSSix]

I went through the oil industry from 10-14 mainly in the Granite Wash which is Texas panhandle and western Oklahoma. There are a lot of people hurting right now. Those parts of the country don't have a lot to offer by way of careers. People did whatever they could to make ends meet and take advantage of the boom. A lot of people moved to the area to work. Unemployment in the area was very low. Plenty of money was made by all involved but it's not a life time career in my opinion. Then again, I got out for a reason.

[WSSix]

Originally Posted by fearlessmark

I've been going through this thread, but at 500+ pages, it may take a while...

I do have a question that may have been answered before. I currently have investments in a company 401k and a personal account invested in dividend stocks working toward compound interest. The question is, Is there ever a time when you should just liquidate everything to turn it into cash? The last downturn did a number on my investments, so I'm wondering if there is a threshold on this.

Again, sorry if this has been asked before.

-Mark

Not if you want to continued to be called fearless

Seriously though, I'd have to say it's way too personal of a decision to give a general answer to. What I can tell you is a lot of people like Greg and others that have been doing this a long time said they held on for the ride and made out well in the end because they didn't sell when it got rough. I think it's going to depend on what company you're invested in and just how well their business will survive whatever obstacle its facing. This is why you diversify. To me, this is also why you invest in very solid, read boring, companies that aren't going to make you rich overnight.

[SSLance]

Originally Posted by fearlessmark

The question is, Is there ever a time when you should just liquidate everything to turn it into cash? The last downturn did a number on my investments, so I'm wondering if there is a threshold on this.

I've been on all sides of this decision, started investing in the late 90s and have seen 3 major market busts during that time. I've been all in, done real well at times...and went to 100% cash back in 2011...completely fed up with the market.

With the help of this thread, I've been tip toeing back into the market since early 2014...only this time in a different way than ever before. I'm still less than 50% invested and still averaging in, but I will say this downturn has felt completely different for me than any other. I'm still sleeping soundly at night and waiting for chances to trickle more back into my core holdings.

Nobody can tell you what to do, you have to pick your comfort level yourself. Being an informed investor and understanding the companies you own helps tremendously with the comfort levels. Good luck...

[glassman]

Well said Lance.

[ErikLS2]

Originally Posted by mbstingray74

I've been lurking for a while on this forum and this is my first post. I've been trying to read as much as I can on this thread but admittedly haven't gotten through it all so I hope I am not repeating a question that has already been answered...

I follow the automotive industry pretty closely and am seeing EV cars and autonomous driving making some big strides lately. So, I have been searching to find the suppliers that will be growing along with this market. For example, every EV needs a battery pack and autonomous cars use a ton of cameras... Am i one the right track here?

I am just a beginner and will continue reading so I can better understand what a "good" company looks like. I am getting a little bit overwhelmed however with trying to find the suppliers for each company and model (Tesla Model 3, Chevy Bolt, etc.) so any tips on how to go about a search like this would be greatly appreciated!

Thanks to everyone who has shared advice so far... I hope I can return the favor someday.

Welcome! Personally I think this is still very speculative as far as investing goes but they are definitely coming. How well they are received by the driving public remains to be seen I think. It will undoubtedly take some time for people to get used to.

I'm not recommending any of these companies per say but aside from Google, Apple, and any of the automakers working on this (basically all of them) you can research NXPI / FSL (merging), HAR and MBLY for starters and please share what you come up with.

[GregWeld]

Originally Posted by mbstingray74

I've been lurking for a while on this forum and this is my first post. I've been trying to read as much as I can on this thread but admittedly haven't gotten through it all so I hope I am not repeating a question that has already been answered...

I follow the automotive industry pretty closely and am seeing EV cars and autonomous driving making some big strides lately. So, I have been searching to find the suppliers that will be growing along with this market. For example, every EV needs a battery pack and autonomous cars use a ton of cameras... Am i one the right track here?

I am just a beginner and will continue reading so I can better understand what a "good" company looks like. I am getting a little bit overwhelmed however with trying to find the suppliers for each company and model (Tesla Model 3, Chevy Bolt, etc.) so any tips on how to go about a search like this would be greatly appreciated!

Thanks to everyone who has shared advice so far... I hope I can return the favor someday.

Excellent question --- one I personally have no answer for as far as what companies to look at. I've not looked into that angle of the car industry.

Many people "reverse engineer" Apple products looking for what's inside so they can invest in those suppliers -- basically the exact same thing you're asking about....

I could write a book about the pitfalls of this style of investing... basically gambling - on which "technology" is going to be adopted. When things are in their infancy - new companies can spring up basically overnight, with the latest greatest advance. I'm not saying NOT to invest this way though. Generally it is going to work out better for an investor if they have some kind of inside track (deep knowledge) of who, what, and where these types of technology are headed. Many times these companies are private -- and funded via VC and Angel money.

I'd be very interested in any info you dig up - as this IS a car website/forum - and it's an interesting investing angle as well.

[GregWeld]

Originally Posted by WSSix

I went through the oil industry from 10-14 mainly in the Granite Wash which is Texas panhandle and western Oklahoma. There are a lot of people hurting right now. Those parts of the country don't have a lot to offer by way of careers. People did whatever they could to make ends meet and take advantage of the boom. A lot of people moved to the area to work. Unemployment in the area was very low. Plenty of money was made by all involved but it's not a life time career in my opinion. Then again, I got out for a reason.

Totally agree with this Trey.... it's like investing in the "home builders" -- that entire industry lives in a boom/bust cycle. This is why I've chosen to invest in the transport/storage/supply pipes etc (such as KMI and ETP) -- but that certainly has only been a "proxy" for what's gone on in the oil patch. I didn't expect it to get hit so hard and be so linked (as no matter the price of the oil/gas - you still need to move it somewhere...).

[AMSOILGUY]

Originally Posted by WSSix

Days like today make me think I need to have money sitting as cash in my brokerage account ready to pounce instead of be delayed 3 days or more waiting on the money to transfer.

Crazy times.

I'm not sure who your using but Schwab has treated me great. As long as they see a money transfer from my bank account(3 days) I have been able to put my order in. The trades have been in the hundreds of dollars. They did mention that larger sums have different expectations. So just do the money transfer from your funding source when you want to buy and put your order in. Yes your accounts show weird marks for a couple days but you get your price and they get their money.
You are correct crazy times.

[WSSix]

I have fidelity for that account, Jacob. I might have to ask them about that because it's not huge sums of money I'm talking about. Just a few hundred dollars as well. Thanks