billryan
billryan 
Joined: Nov 2, 2009
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June 5th, 2017 at 3:02:01 PM permalink
I don't gamble on stocks. I invest.
At some point, you stop working for money and let your money work for you.
It's what you do and not what you say If you're not part of the future then get out of the way
ZenKinG
ZenKinG
Joined: May 3, 2016
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June 5th, 2017 at 4:56:24 PM permalink
Quote: billryan

I don't gamble on stocks. I invest.
At some point, you stop working for money and let your money work for you.



XLP is probably the safest investment on the market then. But I don't mind taking a small risk right now and putting some capital on ASNA before I back up the truck on XLP
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mamat
mamat
Joined: Jul 13, 2015
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June 5th, 2017 at 6:30:55 PM permalink
Quote: billryan

Someone with a net worth of $50,000 and no certain source of income shouldn't be speculating on junk stocks.
What are you going to do? Tie up a quarter of your worth? A good rule of thumb is 3 to 5 percent of your portfolio in any one stock.

When one has less than $100K-200K, one can use more aggressive strategies to speed up the early money-making process (akin to overbetting Kelly).

At $200K, 10% annual growth is only $20,000/yr.
For many people the wealth from working a regular job or being an entrepreneur is much greater than $20,000/yr.
Regular savings every year can add more to net worth than investment growth.

However, after accumulating more wealth (or a larger bankroll), diversification is helpful.
At $1M, 10% annual growth is $100,000/yr. Most people can not save $100K/yr after taxes & expenses.

Note: Classic "max 3-5% in one investment" diversification does not work in market downturns where almost everything is correlated & heading south.
In these cases, one might need active insurance bets in the opposite direction.
The 2000 & 2007 market downturns were unlike any in the previous SHORT history of stock markets.

We don't know what will happen in future economic shocks.
...which is why many wealthy people keep an unusually high percentage of wealth in cash or cash-equivalents (compared to college endowment funds).
A lot depends on the psychology of wealthy people (which might have 5-7-10 main types).
Perhaps 1/4-1/3 of wealthy people are mainly "wealth preservation" types, and less concerned with growth of wealth than security.
Boz
Boz
Joined: Sep 22, 2011
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June 5th, 2017 at 7:54:59 PM permalink
For anyone interested in stocks, I suggest you follow Steelco. The man has been on the money and those of us who have invested in his suggestions have beaten the market handily.
lilredrooster
lilredrooster
Joined: May 8, 2015
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June 6th, 2017 at 2:29:47 AM permalink
i used to gamble on the futures market. haven't done it in a while. with stocks i'm very conservative; buy and hold index funds for centuries. but with a very small % of my capital i don't mind taking a flyer now and then. in the futures market i like making a day trade on a highly volatile issue such as soybeans and make a trend play when the short term trend matches the long term trend on a day when the previous day's movement was marginal.
Last edited by: lilredrooster on Jun 6, 2017
everybody wants to go to heaven but nobody wants to die
ZenKinG
ZenKinG
Joined: May 3, 2016
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June 7th, 2017 at 1:48:43 AM permalink
Wow Macy's at 21.90. God retail has been beaten down, for the most part unfairly. Macy's real estate alone is more than double the current market cap and would already make buying the stock a good buy, let alone their company sales and profit.

ASNA + Macy's + XLP + Bitcoin = wealth
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onenickelmiracle
onenickelmiracle
Joined: Jan 26, 2012
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June 7th, 2017 at 2:09:33 AM permalink
For the longest time the internet had no tax, while maybe the internet should be taxed greater now than real life sales at stores. Ideally, but unlikely.
Looks like sh!t just got imaginary!
ZenKinG
ZenKinG
Joined: May 3, 2016
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June 7th, 2017 at 2:21:07 AM permalink
Quote: onenickelmiracle

For the longest time the internet had no tax, while maybe the internet should be taxed greater now than real life sales at stores. Ideally, but unlikely.



Macy's and brick and mortar stores are not going anywhere. The retail industry just needs to make some adjustments, that's all. This has all been way overblown. Retail will recover within next year or two. People that know this are buying heavily discount retail stocks at the moment.
Wong Halves Full Indices ------------ LoneWoLF >
odiousgambit
odiousgambit
Joined: Nov 9, 2009
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June 7th, 2017 at 4:52:45 AM permalink
More important I think than 'how much you have to invest' or 'what to invest in' [tho these are considerations] is 'how likely are you to need the money?'

A big reason the otherwise-not-an-idiot-investor loses money in the stock market is that the average Joe usually needs the money just as the stock market goes down.
"Baccarat is a game whereby the croupier gathers in money with a flexible sculling oar, then rakes it home. If I could have borrowed his oar I would have stayed." .......... Mark Twain
777
777
Joined: Oct 7, 2015
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June 7th, 2017 at 5:08:21 AM permalink
Quote: ZenKinG

Macy's and brick and mortar stores are not going anywhere. The retail industry just needs to make some adjustments, that's all. This has all been way overblown. Retail will recover within next year or two. People that know this are buying heavily discount retail stocks at the moment.



Investors just reacted to Macy's warning of its reducing gross margin outlook for rest of the year. Macy at $21.90/share would yield an annualized dividend of 7%, which is pretty good providing that its business outlook will be improved...

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