2022 investing thread

Bernardo de la Paz

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In all seriousness, I would recommend that any investor actively managing a portfolio of individual stocks compare their return with the return of the market every year.

If you are not consistently beating the market it may be time to consider that you might have a gambling problem.
 

Egor's Assistant

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In all seriousness, I would recommend that any investor actively managing a portfolio of individual stocks compare their return with the return of the market every year.

If you are not consistently beating the market it may be time to consider that you might have a gambling problem.
Excellent advice. Can confirm.
I have a gambling problem.
 

GatorCatsi

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In all seriousness, I would recommend that any investor actively managing a portfolio of individual stocks compare their return with the return of the market every year.

If you are not consistently beating the market it may be time to consider that you might have a gambling problem.

"The Americans have been over-trading and over-speculating ever since they were a nation; their liabilities have always been, more or less, a mortgage on futurity; but they have never yet failed to find a way, wherever they had a will to force them forward in search of it…
(The New York Herald, August 04, 1854)
 

Bernardo de la Paz

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Not sure, Bernie brought up socks... :dunno: I went "mandals" years ago! :lol:
Yeah I wasn't sure if he was digging at my socks typo or asking how to buy the market.

Couldn't see a play on socks in the response but it might have gone straight over my head.
 

Egor's Assistant

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In all seriousness, I would recommend that any investor actively managing a portfolio of individual stocks compare their return with the return of the market every year.

If you are not consistently beating the market it may be time to consider that you might have a gambling problem.
So my wife and I came into a few bucks back in 2019. We hired an advisor to manage the funds since neither of us had any confidence for investing. The March 2020 crash came and our advisor expertly pulled us out of the market early, and we only lost 7-8% while the market crashed -38% from it's February highs. We gained 15% that year and were ecstatic with the results considering he avoided the crash and made us a return.

Well forward to this year, our returns were 1% while the market gained 26-28% (he likes to use the S&P for metrics). He keeps quoting Warren Buffet's rules. Rule 1.) Don't lose money. Rule 2.) See rule one.
He plays too much defense. We lost 5% to inflation. Don't know what to do now. Says we're positioned for an excellent 2022. Have a meeting with him on Monday to discuss. I mean it's one thing to suck it up with your own money, but a completely different story to get paid to fuch it up.
 
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Bernardo de la Paz

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So my wife and I came into a few bucks back in 2019. We hired an advisor to manage the funds since neither of us had any confidence for investing. The March 2020 crash came and our advisor expertly pulled us out of the market early, and we only lost 7-8% while the market crashed -38% from it's February highs. We gained 15% that year and were ecstatic with the results considering he avoided the crash and made us a return.

Well forward to this year, our returns were 1.25% while the market gained 26-28% (he likes to use the S&P for metrics). He keeps quoting Warren Buffet's rules. Rule 1.) Don't lose money. Rule 2.) See rule one.
He plays too much defense. We lost 5% to inflation. Don't know what to do now. Says we're positioned for an excellent 2022. Have a meeting with him on Monday to discuss. I mean it's one thing to suck it up with your own money, but a completely different story to get paid to fuch it up.
The Wilshire 5000 (decent proxy for the total market) returned about 21% in 2020 despite the covid dip. Most people aren't 100% in equities though and their total portfolio would do worse than that.

Hopefully your money manager talked to you about your risk tolerance and your investment goals before going overly conservative with your money.
 

FireFoley

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So my wife and I came into a few bucks back in 2019. We hired an advisor to manage the funds since neither of us had any confidence for investing. The March 2020 crash came and our advisor expertly pulled us out of the market early, and we only lost 7-8% while the market crashed -38% from it's February highs. We gained 15% that year and were ecstatic with the results considering he avoided the crash and made us a return.

Well forward to this year, our returns were 1% while the market gained 26-28% (he likes to use the S&P for metrics). He keeps quoting Warren Buffet's rules. Rule 1.) Don't lose money. Rule 2.) See rule one.
He plays too much defense. We lost 5% to inflation. Don't know what to do now. Says we're positioned for an excellent 2022. Have a meeting with him on Monday to discuss. I mean it's one thing to suck it up with your own money, but a completely different story to get paid to fuch it up.

First find out what you own, whatever it is. Get the name of every individual stock, bond, fund, ETF, whatever it is. Secondly if he is fee based, he can make as many transactions as he wants and it won;t cost you anymore money.

My view is this. I do not want to be average, so I don;t invest in funds. But others may not have the time or inclination to want to do the work. Clearly your guy had some inclination at one time and did something good. But my experience is that they all are in the same things, so your returns will be similar to the quote/unquote benchmarks.
 

BMF

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Markets taking a beating today. I think 2022 is going to be a long, boring roller coaster.
 

FireFoley

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Over time, how have you done compared to the market? As well as Brad's daughter?

Not as well as Brad's daughter b/c I don;t understand some of those fads, but I have beaten the major index averages over a large amount of time. I consider myself an active investor these days. Not in and out a lot, but will not be shy to take profits when things hit my points or even sell losers that show no hope. But I do stay nimble in changes, It is not easy but I want to be above the averages.
 

Egor's Assistant

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Not as well as Brad's daughter b/c I don;t understand some of those fads, but I have beaten the major index averages over a large amount of time. I consider myself an active investor these days. Not in and out a lot, but will not be shy to take profits when things hit my points or even sell losers that show no hope. But I do stay nimble in changes, It is not easy but I want to be above the averages.
Do you use stop-losses? My advisor blamed the poor 2021 showing on a choppy market triggering his stop-losses over and over. We're on the verge of firing him. Or at least halving what he's managing. Pretty pissed about the lost opportunity costs, plus getting reamed by inflation. 1% return?!?! Come on, man, that's a MuLLLLenz-like effort.
 

FireFoley

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Do you use stop-losses? My advisor blamed the poor 2021 showing on a choppy market triggering his stop-losses over and over. We're on the verge of firing him. Or at least halving what he's managing. Pretty pissed about the lost opportunity costs, plus getting reamed by inflation. 1% return?!?! Come on, man, that's a MuLLLLenz-like effort.

I never use stop loss orders, although I am not saying it is a bad thing. I am disciplined enough to pull my own trigger, so to speak But another reason I don;t use them is that most stop loss orders are placed at key technical levels and everyone knows them. So when those levels get close the "pros" will push those stocks just to activate the stops. If you use stop orders based on a max you are willing to lose on a position, I understand that. But I would also recommend using and moving up trailing stop orders on your winners so as to protect a good portion of those gains if something goes awry.
 

Concrete Helmet

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So my wife and I came into a few bucks back in 2019. We hired an advisor to manage the funds since neither of us had any confidence for investing. The March 2020 crash came and our advisor expertly pulled us out of the market early, and we only lost 7-8% while the market crashed -38% from it's February highs. We gained 15% that year and were ecstatic with the results considering he avoided the crash and made us a return.

Well forward to this year, our returns were 1% while the market gained 26-28% (he likes to use the S&P for metrics). He keeps quoting Warren Buffet's rules. Rule 1.) Don't lose money. Rule 2.) See rule one.
He plays too much defense. We lost 5% to inflation. Don't know what to do now. Says we're positioned for an excellent 2022. Have a meeting with him on Monday to discuss. I mean it's one thing to suck it up with your own money, but a completely different story to get paid to fuch it up.
I had a similar situation from a financial windfall a few years back. At the time I had my investment in mostly RE(2 rental houses) and a decent amount in our family business profit sharing account, IRA, and some CD's. I took the money that I got and decided to start my own investment/trading account.

The managed money in my PSP and IRA have returned around 13% in that time frame and I've managed a little over 10% on my own with a lot of upswings and over the last 14-18 months some downswings putting me at almost 5% at certain times. I also "speculate" on some risky positions since my professional advisor won't. I manage roughly 1/3 of my total retirement money and although I've struggled at times I learned a ton which will be crucial for me down the road once we close out the PSP account.

Long story short there are a lot of resources out there if you decide to try on your own. Start small and add small amounts as you go.....and try to find a more polished financial advisor for the bulk of you stash.
 
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alcoholica

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I'm trying to mark some stocks that have suffered from the logistics issues. Not throwing any money yet because they could still drop more. Two of the stocks are around $10 and had been trading in the low $20's, but with rate issues they could drop to $7's or $5's as a low and the thought of an extra 50% or more is driving hesitancy. Plus you can always throw money on a dip of the market taking a profit and have a quickie.
 

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