4 ms·

For example, say you left a company and transferred a 401k balance into Vanguard and put it into VTSAX (total stock market ETF) with no ongoing deposits. Lets s

For example, say you left a company and transferred a 401k balance into Vanguard and put it into VTSAX (total stock market ETF) with no ongoing deposits. Lets say you thought the market was going to go down and on Jan 3rd 2022 you yoinked out your entire balance which for the sake of easy math was exactly $100k (not take a withdrawal, just pull it from the ETF). Today you would still have $100k sitting there in a placeholder account earning $0 (its like a no-mans-land account for moving money in between funds, or if you were prepping an actual withdrawal). If you let that $100k balance stay in VTSAX on Jan 3rd, you would be -19.15% and have $80,850 sitting there today. Granted in this example there aren't regular deposits going in so it really is just money parked there. If you are continually contributing money into a 401k or other tax deferred account, contributing as the market goes down is fine because you're averaging down with the market. Or maybe its not fine depending on your personal circumstances (i.e. going to retire soon or something like that).

NegativeK 4y ago
I've always interpreted Buffet's advice as aimed at time periods way longer than one year.
- daniel-cussen 4y ago
  Not like he has a fucking Bloomberg terminal with no latency or anything. Like he can't spell out FPGA's but he delegates. Not half as senile as he makes himself look, not a shit mathematician at all, not a folklore-driven dude that anybody can imitate (counterfactual, that's part of the business), publishes information on his colon biopsies for a reason, he is rich because he wants to be rich, he likes money. Plus he's the designated "Richest Man in the World" trading off with Bill Gates like they're a wrestling team. Makes no fucking sense, wealth has been aggregating incredibly for thirty years, rich getting richer, more stratified, more clustered, according to literally everyone even USG census, everyone. But the richest man in the world has had 60 billion dollars on the nose since 2000? What the fuck? Apparently now it's a little higher, Jeff Bezos and Elon Musk, at like $160 or some billion...like no it's not. Diminished variance stedda amplified variance. Silva Paradox, http://fgemm.com http://fgemm.com. An actual valuation of their wealth would significantly diminish it, and inform others of it, they don't know really. Only a hobo can look in his pocket and say "I have 550 pesos" a rich man it's like either his company has a fluctuating market cap or he needs armies of accountants and lawyers and like occasionally vudu priests literally "Vudunomics" like they believe in magic. Why not? There can be a physics explanation behind it that will not be understood for hundreds of years, if it works hell. Yeah. If it works Hell. White magic or black magic? Well preferably white but when told that requires giving all wealth away to the poor as the first step, they like say...uh...what's the other one? Be richer and richer, always, black magic. OK that works better. And the richest men wrestling team agreed to give half their wealth away, which is OK that's cool in principle, I don't have a read on that. What I can say is white magic simply is hard, you can't successfully give away all your money, you end up with more even more money, and then you give that away and you get it all back, give all all of it away get down to a penny. Apologize to a beggar when you give it to him (it's considered insulting) dude riches leak into your ascetic life, from every nook and cranny, out of nowhere like not quite to the point of finding cash on the sidewalk (who knows, any day now, it's becoming a sick game). Spesh when you have faith, a mustard seed, thing is a mustard seed is a huge amount of neurons, that's a subsection of your brain that needs to germinate from somewhere, very tricky very tricky, and it doesn't work at all half-way. It's all or nothing. Saying more would make it impossible for you to develop it. Matthew 17:20, that's all I got, that's all you need. Whereas if Warren Buffett asks me, I'd say "you're rich." Simple as that, and that's the actual question, it's in practice binary, does he have to worry about money or not? No because he's rich. No, Buffett has no bloomberg terminals, no technology he does understand (he gets for instance stock tickers, gets a ton of things, plays dumb, and some stuff he does in fact not get and is truthful about it, like investing in Apple, he doesn't get that). Yeah bajillion dollars and gets his information for free on yahoo finance like you or me.
  - llampx 4y ago
    The best application of GPT-3 I've seen.
    - daniel-cussen 4y ago
      The best application of GPT-3 I've seen.

NegativeK 4y ago

I've always interpreted Buffet's advice as aimed at time periods way longer than one year.

daniel-cussen 4y ago
Not like he has a fucking Bloomberg terminal with no latency or anything. Like he can't spell out FPGA's but he delegates. Not half as senile as he makes himself look, not a shit mathematician at all, not a folklore-driven dude that anybody can imitate (counterfactual, that's part of the business), publishes information on his colon biopsies for a reason, he is rich because he wants to be rich, he likes money. Plus he's the designated "Richest Man in the World" trading off with Bill Gates like they're a wrestling team. Makes no fucking sense, wealth has been aggregating incredibly for thirty years, rich getting richer, more stratified, more clustered, according to literally everyone even USG census, everyone. But the richest man in the world has had 60 billion dollars on the nose since 2000? What the fuck? Apparently now it's a little higher, Jeff Bezos and Elon Musk, at like $160 or some billion...like no it's not. Diminished variance stedda amplified variance. Silva Paradox, http://fgemm.com http://fgemm.com. An actual valuation of their wealth would significantly diminish it, and inform others of it, they don't know really. Only a hobo can look in his pocket and say "I have 550 pesos" a rich man it's like either his company has a fluctuating market cap or he needs armies of accountants and lawyers and like occasionally vudu priests literally "Vudunomics" like they believe in magic. Why not? There can be a physics explanation behind it that will not be understood for hundreds of years, if it works hell. Yeah. If it works Hell. White magic or black magic? Well preferably white but when told that requires giving all wealth away to the poor as the first step, they like say...uh...what's the other one? Be richer and richer, always, black magic. OK that works better. And the richest men wrestling team agreed to give half their wealth away, which is OK that's cool in principle, I don't have a read on that. What I can say is white magic simply is hard, you can't successfully give away all your money, you end up with more even more money, and then you give that away and you get it all back, give all all of it away get down to a penny. Apologize to a beggar when you give it to him (it's considered insulting) dude riches leak into your ascetic life, from every nook and cranny, out of nowhere like not quite to the point of finding cash on the sidewalk (who knows, any day now, it's becoming a sick game). Spesh when you have faith, a mustard seed, thing is a mustard seed is a huge amount of neurons, that's a subsection of your brain that needs to germinate from somewhere, very tricky very tricky, and it doesn't work at all half-way. It's all or nothing. Saying more would make it impossible for you to develop it. Matthew 17:20, that's all I got, that's all you need. Whereas if Warren Buffett asks me, I'd say "you're rich." Simple as that, and that's the actual question, it's in practice binary, does he have to worry about money or not? No because he's rich. No, Buffett has no bloomberg terminals, no technology he does understand (he gets for instance stock tickers, gets a ton of things, plays dumb, and some stuff he does in fact not get and is truthful about it, like investing in Apple, he doesn't get that). Yeah bajillion dollars and gets his information for free on yahoo finance like you or me.
- llampx 4y ago
  The best application of GPT-3 I've seen.
  - daniel-cussen 4y ago
    The best application of GPT-3 I've seen.