4 ms·

And then I would just shrug my shoulders and buy more index funds. Investing in individual companies, no matter what you think you know, is always unwise compar

And then I would just shrug my shoulders and buy more index funds. Investing in individual companies, no matter what you think you know, is always unwise compared to index investing.

jumbopapa 8y ago
If anyone would like to know more about this please visit the Bogleheads Wiki [1] and join the forums [2]. I have found this community to be an invaluable resource in pursuing financial independence. [1] - https://www.bogleheads.org/wiki/Main_Page https://www.bogleheads.org/wiki/Main_Page [2] - https://www.bogleheads.org/forum/index.php https://www.bogleheads.org/forum/index.php
- weaklearner 8y ago
  or read a random walk down wallstreet
  - jumbopapa 8y ago
    Great recommendation! Also read The Millionaire Next Door if you want to get into the right mindset.
    - weaklearner 8y ago
      Thanks this book also looks good!
mythz 8y ago
My first foray into US shares was in a managed funds which saw me lose 25% of my net worth and they still took their 1.5% fee for their service. I decided I'd rather lose money due to my own decisions and loaded up on AAPL instead which ended up being recouping my losses and then some. I basically limit myself to major tech co's since that's where I see the consolidation of wealth ending up which has proven to be a smart bet so far. As long as I have good convictions about a company I'm happy to invest directly, maybe in retirement when I stop caring enough to follow companies closely I may consider a managed fund with a proven track record to diversify the risk.
- minikites 8y ago
  >in a managed fund That's different from an index fund.
- jressey 8y ago
  Managed funds are a ripoff, and not index funds. There is nearly infinite data showing that S&P 500 index funds outperform every single investment strategy. I would be focusing on bonds indexes right now though, that's just me. Good luck with the lifetime win/loss if you keep this up.
  - brianpgordon 8y ago
    Bond funds are the one place where active management actually does make sense...
- SEJeff 8y ago
  Index funds track the market index, and aren't managed like a mutual fund. The fees are massively lower. You're comparing apples to lawnmowers here. They aren't the same thing.
tardo99 8y ago
This advice is almost always right. It's wrong when you're on the precipice of a massive market bubble. Your job is to decide whether or not that is the case right now....
breakyerself 8y ago
I have mostly index funds, but I bought a share of Tesla and a couple of other companies because I want them to succeed. Not because I expect them to. Its amazing what they've accomplished so far, but it's still a rocky road ahead
- jressey 8y ago
  When you buy a share, you are not contributing to the company. Their shares were sold at IPO and they've already collected all the proceeds from them. You are just gambling.
  - breakyerself 8y ago
    It does help them a little. If their market cap is higher it's cheaper for them to raise capital. It's also kind of a moral support thing. I bought a second share since I posted that. I am also gambling, but it's like .01% or less of my retirement so I don't think I'm being too risky. I also bought a model 3. Which actually does help them a little. They need sales more than they need people to buy shares on the secondary market. That's not why I bought it though. I bought it because it was the first BEV with a useful range I could afford.

And then I would just shrug my shoulders and buy more index funds. Investing in individual companies, no matter what you think you know, is always unwise compared to index investing.

jumbopapa 8y ago

If anyone would like to know more about this please visit the Bogleheads Wiki [1] and join the forums [2]. I have found this community to be an invaluable resource in pursuing financial independence. [1] - https://www.bogleheads.org/wiki/Main_Page https://www.bogleheads.org/wiki/Main_Page [2] - https://www.bogleheads.org/forum/index.php https://www.bogleheads.org/forum/index.php

weaklearner 8y ago
or read a random walk down wallstreet
- jumbopapa 8y ago
  Great recommendation! Also read The Millionaire Next Door if you want to get into the right mindset.
  - weaklearner 8y ago
    Thanks this book also looks good!

mythz 8y ago

My first foray into US shares was in a managed funds which saw me lose 25% of my net worth and they still took their 1.5% fee for their service. I decided I'd rather lose money due to my own decisions and loaded up on AAPL instead which ended up being recouping my losses and then some. I basically limit myself to major tech co's since that's where I see the consolidation of wealth ending up which has proven to be a smart bet so far. As long as I have good convictions about a company I'm happy to invest directly, maybe in retirement when I stop caring enough to follow companies closely I may consider a managed fund with a proven track record to diversify the risk.

minikites 8y ago
>in a managed fund That's different from an index fund.
jressey 8y ago
Managed funds are a ripoff, and not index funds. There is nearly infinite data showing that S&P 500 index funds outperform every single investment strategy. I would be focusing on bonds indexes right now though, that's just me. Good luck with the lifetime win/loss if you keep this up.
- brianpgordon 8y ago
  Bond funds are the one place where active management actually does make sense...
SEJeff 8y ago
Index funds track the market index, and aren't managed like a mutual fund. The fees are massively lower. You're comparing apples to lawnmowers here. They aren't the same thing.

tardo99 8y ago

This advice is almost always right. It's wrong when you're on the precipice of a massive market bubble. Your job is to decide whether or not that is the case right now....

breakyerself 8y ago

I have mostly index funds, but I bought a share of Tesla and a couple of other companies because I want them to succeed. Not because I expect them to. Its amazing what they've accomplished so far, but it's still a rocky road ahead

jressey 8y ago
When you buy a share, you are not contributing to the company. Their shares were sold at IPO and they've already collected all the proceeds from them. You are just gambling.
- breakyerself 8y ago
  It does help them a little. If their market cap is higher it's cheaper for them to raise capital. It's also kind of a moral support thing. I bought a second share since I posted that. I am also gambling, but it's like .01% or less of my retirement so I don't think I'm being too risky. I also bought a model 3. Which actually does help them a little. They need sales more than they need people to buy shares on the secondary market. That's not why I bought it though. I bought it because it was the first BEV with a useful range I could afford.