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5 year old buck +
Well that's just patently false.
Stock Market is the bottom in?
- Thread starter Peplin Creek
- Start date
Well that's just patently false.
yoderjac
5 year old buck +
Buckley,
You are right. Buying solid companies with a long-term proven track record is much lower risk than swinging for homeruns. Trying to pick the next homerun by analyzing charts, scouring the news for deals, hearing they are producing the next wonder drug, or whatever is like picking a number at roulette. Value investing is an interesting strategy, I've been there too. It is a much better approach, However, keep in mind there are several things to consider. First, individual companies have individual company risk that the broad market does not. Even the best most stalwart companies can have decay inside that you can't see from public data. Unseen sins of the past like sexual harassment or product liability, or whatever can introduce large liabilities quickly. So, in order for value investing to reduce that risk you need to own many of these companies. Now that free trading has reduced transaction cost, that is more fusible than it once was. But there are several other factors. First, you have to recognize the company as undervalued. If not, even a well proven company stock can sit stagnant for many years, so unless dividends are providing high enough returns you have to consider the time value of money. Next, when you do find a undervalued company to buy, others may not recognize the value for a long time and again the time value of money comes into play. Finally, valuation is not fixed. This means you need to re-evaluate the value periodically and decide when to sell it. Again, holding a large enough sampling of companies, this can be a lot of work.
Having said that, it is investing, not playing roulette like stock picking and swinging for the fences.
I've done several things over the years. Some with real money, but in parallel, I've tested several approaches with monopoly money. That is I started a strategy with X-pretend dollars and virtually invested according to that strategy. Value investing did the best, but with all the work, it couldn't beat a broad market index fund over the long haul.
Best of luck,
Jack
yoderjac
5 year old buck +
It depends how you define stock picking.
jsasker007
5 year old buck +
Knowing when a stock is done "dipping" is when you should buy. The flood of people investing in the last couple of years is changing the way the markets perform/respond. Too many people thinking stocks only go up is not helping to predict much in the markets now. Blue chip stocks are not even solid right now. Buy the dip at the bottom if you can. One hit wonders in the stock market don't really last for the long term. A guy gets lucky on one or two stocks and all of a sudden thinks it's easy. People can argue all day long about which way is better but there is NO guarantee of anything. I like spending time researching individual stocks looking for the next big money maker. Also have money is stable, consistent, long term stocks too. Roll the dice with whatever you're comfortable with. Gotta be in it to win it. Can't win the game if you're not playing.
Angus 1895
5 year old buck +
I like picking stocks I get to own good companies and sleep well at night
SD51555
5 year old buck +
I don't have the temperament to let anyone else do this for me. As the market was pushing up the ceiling tiles, I moved some win dollars into the less volatile staples and utilities. I don't want to stay in those for any long period of time, but I think it's an alternative to going to cash while we wait for the fed to blow it all to bits.
My watch list for the next attack on the economy: ACN and DE. They need to have a lot of top blown off yet before I'm going to buy, but that's what's on my radar. If SHW can blow off another 50% in share price, I'd grab that too. I keep a watchlist of about 50 approved stocks I know I'd buy if the planets aligned. There's zero on the go list as of now, but that could change if the right person gets to the podium.
My watch list for the next attack on the economy: ACN and DE. They need to have a lot of top blown off yet before I'm going to buy, but that's what's on my radar. If SHW can blow off another 50% in share price, I'd grab that too. I keep a watchlist of about 50 approved stocks I know I'd buy if the planets aligned. There's zero on the go list as of now, but that could change if the right person gets to the podium.
BuckSutherland
5 year old buck +
I bought two more shares of Tesla this morning very near the low of the day so far. Looks like more downside is a strong possibility across all markets. The whales seem to be having a great day with all the blood in the water. Must be some margin calls going out and lots of positions liquidated.
Angus 1895
5 year old buck +
I am not worried about beating anyone.
I just like having my investment where I truly believe it should be.
I just like having my investment where I truly believe it should be.
S.T.Fanatic
5 year old buck +
We just had an employee retire at 54 years old. Our 5 stocks in our retirement account made him $1,000,000.00 with no input from him. He's not the first in our company he certainly wont be the last.
BuckSutherland
5 year old buck +
^^^
That is awesome for him. Probably sucks for you to lose an employee. Great job.
That is awesome for him. Probably sucks for you to lose an employee. Great job.
S.T.Fanatic
5 year old buck +
Doesn't put us in a great place for the short term but we have been here 103 years and wont be closing the doors up anytime soon.
b116757
5 year old buck +
I’m curious on the retirement account 401k’s and IRA’s can’t be withdrawn from without penalty until age 59.5. Now there are some exceptions to this that allows for a younger withdrawal age without penalty like loss of employment then I think the age maybe 55. Does your retirement account invest a curtain percentage that’s not within a tax sheltered vehicle to allow retirement at age 54?
Buckly
5 year old buck +
You can take withdrawals from 401k if you‘re retired and 55. Ira‘s you need to be 59. 1/2. Age 54 I’m assuming he’s just got enough to get by til 55
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chummer
5 year old buck +
The problem is the fed drives a semi and we are on a bike.
b116757
5 year old buck +
Ok this very well could be I didn’t realize the withdrawals could be taken without penalty even if you simply decided to retire at 55. I thought this was more for emergency situations but I guess it would be pretty difficult for the Federales to distinguish why your not at your job any longer.
SD51555
5 year old buck +
I wanna make a trucker themed response to this, but I can't come up with a way to say it without running head first into the ass, gas, or grass joke.
rocksnstumps
5 year old buck +
Couple ways to make happen.
Google: Rule of 55 for 401k or another is 72t rule for 401k. The rule of 55 is allowed by the feds for all but not all employers allow it with their particular plans. My employer does not actually.
72t is open for all but you have to set up equal payments for 5 yrs or more and once you turn on the tap it has to go the full time period. Its 5 yrs or until reaching 59.5, whichever is longer.
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