Investing 102

[GregWeld]

I don't compare my portfolio against anything. I just make sure it's doing what "I" want it to do. Everyone is different and everyone needs their portfolio to be customized for themselves. So a comparison is pretty meaningless. I want to have capital gains and dividends - I search for the best companies in a sector that fit my needs and I treat each company as an individual contributor. I written in the past that I just make sure each of them is doing the best job they can.

People spend too much time fussing with all this stuff and it's really just not very helpful IMHO. You start comparing your portfolio against some other metric and then you start to be pulled off your game trying to play catch up or whatever.

Think about what happens around here with car builds - a guy starts out to build his perfect car - then gets on Lat G and sees all this other stuff - next thing he's 5 years off plan with a complicated car sitting in the garage all torn to pieces. In way over his head and trying to catch up -- in the 5 years he spent doing metal work - now his engine is passé and the wheels are dated...

Don't get caught up in stocks and bonds this way... trying to be something you're not.

[Bucketlist2012]

Morning Guys..

For me, benchmarks are weird, but I am a newbie..

I look at them , but don't use them.

I am also following different assets, but the same best of breed, looking at long term strategies.

Things like the S and P was up and down 25% last year and ended at 0, and my assets were up and down 35% , and ended up 12%...

But I still travel the course I am on...Not easy for most..

Man what Greg just said, i am following a totally different drummer boy Portfolio, and that is why , on this thread, I keep some of it private to not cloud the Thread, But I could have gone crazy with my Car/Portfolio, once i got on this thread...

I would have gone and done all kinds of things midstream. Send back the springs, got a 4 link, on and on..And end us with a half finished car. With the Ideas on the table...Maybe the same with my Portfolio..

I still have a yearning to take a chunk of money and do a test of this thread for myself, another Schwab account..I name them, so this would be the Lat G Portfolio, we will see.

So I am doing things that are coming to fruit right now, and on those Great days, i used to get all giddy and full of myself, but I have learned to just take it as another day, because I don't want to get too high, of too low, in what is a momentary swing..

[GregWeld]

Originally Posted by ErikLS2

This is a very imporant point Greg and one I don't think has been brought up in here yet. I'm wondering if you regularly compare your portfolio to some sort of benchmark, be it the Dow, S&P, or other various indexes? I always think it's good to know if all the research one puts into buying individual stocks pays off over just buying an index ETF for a corresponding industry.

Erik --

I think that's been my point of this entire thread --- i.e., it really doesn't take that much "research" to find 20 great stocks to own... it takes a matter of a few minutes really -- particularly if you stick to best of breed stocks and then just diversify to cover different sectors. Investing is really really simple. A guy can try to make it complicated and onerous but then he'd be a stock broker!

The point of exposing my own holdings etc has been to show that if it works for someone with millions to invest - it certainly should work for those with slightly less.

[MoparCar]

Again what an awesome real life thread. It's inspired me to do a lot of research and learning. I think I'm spending as much time researching stocks and investments (if not more) than cars right now. As mentioned before, this really should be taught in high school and by every parent. What a difference in life it could make.

Any chance the mods can update the sticky PDF on the first page periodically to list all the pages? This thing has grown substantially since the last PDF.

Wes

[GregWeld]

Wes ---

Doing this FIRST --- is what allows you to buy all the car parts your heart desires!

Happy to hear someone is getting some "good" from the thread.

[Bucketlist2012]

Hey guys,

I thought I would post this to avoid problems..

I am Mike and I have started an investment thread elsewhere.

I am just giving people references to use to study, no advise ...I can't.

One was to come to this thread and read it several times and have a note pad with you..

My post today is for the new guys, PLEASE do not PM Greg about what to invest in...

If you are truly PAYING ATTENTION, this thread teaches you some skills to study and apply, not go buy this....

Everyone wants the quick answer and gets upset when we don't give them the Hidden codes to wealth...They are not hidden....But you got to comprehend what you are reading.

I just felt the need to say something ahead of time since I used this thread as what I think is a great tool for learning...I am pointing people to the tools, not the stocks to pick....A man must know his limitations..

So enjoy this thread, and study it, but do not PM Greg for help with your 401K, or what should I do with this or that...That won't go over well and then I am responsible for it..

Please, study and be patient... And these guys are here to help, but read the theme of the thread...To learn to do it yourself, and , or understand why your advisor is doing what he is doing...

Thanks Guys, and gals...I thought a preemptive strike was necessary ...

[GregWeld]

Well said Mike...

None of us mind "helping" -- but this thread is trying to be the "teach a man to fish..." thread rather than let me catch you a fish.

Investing is a lot like hot rodding. Each guy has different taste - different dreams - different resources... different skills.

Once you know how to tune up a car - the basics can be translated to any car..

It's the same in investing. Some guys are chart happy - some need to see a P/E (Price to earnings ratio) that makes 'em happy - some are more comfortable investing in the sector that they work in and understand the best... but the basics remain the same IF you want to be comfortable owning stocks.

But! Before you can DO any of this -- you've got to save some money each month - or be willing to save that bonus rather than blowing it going to Hawaii.... because saving for 10 years -- and investing -- will then allow you to go because your investments will be growing and compounding.... and that's what this thread is really all about. As Nike says! Just do it!

[Bucketlist2012]

Originally Posted by GregWeld

Well said Mike...

None of us mind "helping" -- but this thread is trying to be the "teach a man to fish..." thread rather than let me catch you a fish.

Investing is a lot like hot rodding. Each guy has different taste - different dreams - different resources... different skills.

Once you know how to tune up a car - the basics can be translated to any car..

It's the same in investing. Some guys are chart happy - some need to see a P/E (Price to earnings ratio) that makes 'em happy - some are more comfortable investing in the sector that they work in and understand the best... but the basics remain the same IF you want to be comfortable owning stocks.

But! Before you can DO any of this -- you've got to save some money each month - or be willing to save that bonus rather than blowing it going to Hawaii.... because saving for 10 years -- and investing -- will then allow you to go because your investments will be growing and compounding.... and that's what this thread is really all about. As Nike says! Just do it!

Thanks Greg...Yes some of the guys are bitten with interest, and some of them are both smarter than me, and they are excited, so a few will study, act and prosper..

We have the few nervous nelly's and of course the condesending sceptic talking before they read, and reading with bias, and then commenting.

I prefaced by saying that I am no pro and just here to help, and I get the comment that I SAID, I was a Guru, and to buy and trade Gold ??? hahahaha... Never in my words but people read what they want. So that is why I posted what I did.For those who start reading the thread with one eye, and listening with one Ear..

But you would be proud...Almost all are sharing why they are doing this, should I pay off this and do that..Thinking about it and getting ready to act..i love it..I recommend NOTHING but this thread, magazine's and resources, NO assets at all...So they can never say, i said to do this....But funny , someone will say it, but there are so many great people, the one or twp that don't read correctly, it is still worth it to see people getting excited about the right things. because i have a soft spot for those who taught me what i know. Killer life skills that no one wants you to know..

Also if they truly read as they should, you won't get bothered. AND IF YOU DO, tell them to finish reading because they flunked the Quiz.

[toy71camaro]

Just wanted to pop in and say I am one of those "guys from the other forum". LOL

Just have to say, I'm about 1/2 way through reading this thread here, and it has helped tremendously in my understanding and also reiterating what i was reading elsewhere (that i didnt know if i should trust or not). Hearing it come from multiple sources, successful sources, that i trust arent trying to "Sell me something" but rather "help learn something" is key.

So to Greg, Mike, and the others who have participated in both this thread, and the other forum, I say thank you. I can see and feel the motivation for me and a lot of other people just by explaining things in laymen terms.

Again, thanks.

Albert

[GregWeld]

Albert == WELCOME!!

Good to hear that someone is reading! Many times I think it's just Mike and I having our own little discussion... so glad to have you join in.

Now - since I'm in Scottsdale enjoying some sunshine after our rainy Run To The Alamo race event... I'm going to hit the Starbucks and start my day!

Cheers!