The Stock Market, Investments, and Investing Thread
#81
(02-06-2020, 12:08 PM)ChicagoFire Wrote: I put some more money into bitcoin. I don't think this has been discussed in this thread but a tiny part of your investments should be having fun every now and then. The world could get hit by a comet and we're all dead.

I don't know about whether there is any necessity for "fun" in an investment portfolio, but there may be some ability to structure smaller amounts of an overall investment approach that involves some aspect of unknown, and learning along the way, which could be considered a kind of "fun" because truly guys are going to be more likely to pay attention to various assets by putting some value into some assets that interest them but they believe them to be either too risky or too unknown.

We also know that historical performance does not guarantee future results, yet bitcoin is turning out to be a pretty solid investment in a variety of timelines, just to add some portion to your portfolio... Since around the time that I got in, in 2013, I have been recommending 1% to 10%, since I personally had been aiming for 10% when I first got in, but there are even some assessments of bitcoin from traditional investor groups that show that bitcoin allocations of .5% to 3% between 2012 and 2019 would have brought a lot of upside potential to the returns of any regularly allocated investment portfolio, based on historical data. A couple of days ago, I provided a link to that tweet/article/graph in one of my bitcoin posts.


(02-06-2020, 12:08 PM)ChicagoFire Wrote: As for my all time performing investments:
Stocks have been hit or miss. I have pulled off a return that hit 2x if my memory is correct. Historically this area returns 10%.
Fundrise is too early to tell but I've been hitting 8% all time.
Crypto is too early to tell but could be my all time leader. Fingers crossed but I'm still taking action everyday.

My historical returns in historical investments have been about 5.5% over more than 35 years.

Of course, my bitcoin (fuck cryptos, by the way.. only bitcoin matters) has way outperformed my traditional investments to kind of skew my total investment portfolio from 2017 to present... It took about 2 years for my BTC to come into about a break even point in the beginning of 2016 - (which was in the $400 to $500 arena), and then through 2016 another year of gradually rising that caused my portfolio to be increasingly above the break even point before they really started to go into a kind of exponential territory starting in about 2017, when the BTC price broke above $1k for the first time in nearly 3 years... which seemed to cause more and more attention to the matter and a kind of snowballing upwards over the next year and then a decently large correction of about 85% down from $19,666 to $3,124 that never caused my investment to dip below 4x for the total then investment period of 5 years (but now over 6 years).

I am just saying all of this in order to suggest consideration of a long term strategy in regards to bitcoin rather than getting too caught up on whether the portfolio would be profitable in the short term.. so in that regard, if you have at least a 4 year investment time, then you will likely be o..k. and even a 10 year or longer investment time line might even be MOAR better.. if that is within your possible investment wheelhouse.

(02-06-2020, 12:08 PM)ChicagoFire Wrote: "Gurus"
Wall street playboys is okay in moderation. In real life you will see people working jobs that are doing fine. My buddy works as a paramedic and has been hitting me up to help him with his side business. He makes 100K+, owned a boat at one point, and has no debt.

Since I come from working class, I personally have no problems working to get started and trying to make the best of that.. a kind of working and learning can be good, and surely even better if you can make decent money while working and even build credit along the way in order to be able take advantage of credit/debt, if you feel it is to your advantage.

In my thinking credit and debt are much better used when thinking about investing rather than consumption.. nothing wrong with consumption, don't really want to be using credit/debt for those purposes unless merely just building credit/debt history and not incurring penalties, fees, interest... by managing those systems to your advantage.

(02-06-2020, 12:08 PM)ChicagoFire Wrote: Financial Samurai is garbage. His exit plan book sucks, his advice on prosper sucks (5%ish returns on my end?), his advice on betterment sucks (I lost money), his advice on driving for lyft is stupid.

30Days to X is cool. Unsexy site but advice is practical. Robert needs more love here.

Not familiar with any of those, so will take your word for it.


(02-06-2020, 12:08 PM)ChicagoFire Wrote: Mr Money Moustache: okay FIRE advice. You can only talk about living below your means before you beat a dead horse. I can't help but wonder if that's why his wife divorced him since nobody could/would want to live like how MMM proposes for decades. Somebody on the Roosh forum raised a valid point about this site possibly being linked to the Illuminati.

It seems that no matter which sites or "gurus" that you read, you can get helpful information, and surely living within your means remains a very powerful concept when put to practice. You only use your debt/credit as tools and you stock away decent amounts of your income and let it ride. With the passage of time, you should be finding that living within your means becomes easier and easier and easier, because your income should be going up with the passage of time.. at least seems to me that the earliest days are the most difficult to establish a decently sized investment portfolio, and with the passage of time, you might not be needing to extract as much from your regular life in order to add to your investment portfolio.. so your standard of living should be going up.

For example, for a bit more than 20 years while I was building my investment portfolio, I never bought new cars (there is one exception, I did buy a new motorcycle that was about 3 years old at the time that I bought it, so it was extremely discounted and sold as new and with the warranty, etc), I would buy my cars between 3-5 years old and drive them for a few years. I never really felt deprived, and I never felt as if I did not have nice and reliable vehicles. It is a great way to have more money for investing because you do not have that ongoing car bill and even a need for full coverage insurance on the car; however, in the past 10 years, my last couple of cars have been new luxury cars, and sure, I like the treat of a new car, but I keep the cars for a long time too, once I buy them..

The car example is just one way that guys can save money on the front end, but still NOT feel as if they are engaging in over sacrificing.

I don't feel bad to treat myself in current times because I already did a lot of sacrificing on the front end of a bit more than 20 years to build my investment portfolio and to have a decently large sum of money that I have available to feel that I can treat myself from time to time, and my point is that my living within my means standard of living has gone up in the last 10 years, but I surely still would not prescribe to buying a new car every few years because it seems to be a BIG waste of money.. So, my portfolio has kind of evolved out of an accumulation stage and more into a maintenance stage, but I still don't feel that I can act wildly with my situation.. or maybe wildly from time to time, but the portfolio is still building on its own to some extent even though it has migrated further towards maintenance rather than its early days were more strictly in the accumulation phase.

So buying new cars every few years does not seem to be really necessary... but if my portfolio has gone from an accumulation and into a maintenance stage, then there is a lot less pressure to continue to accumulate and more value can be spent and no need to inject new value into the fund, and surely if the portfolio starts to gravitate towards a kind of liquidation phase, then even more value can be extracted from the fund, and there can even be goals that the fund continues to maintain its value and you are merely living off of the income that is generated by the investment fund...

Being able to have the fund to be self-sustaining and then being able to have the fund distribute value to the guy should be a goal that is in sight (in the beginning guys might not see how long it is going to take, because it takes a long time to build wealth, especially if having to build on your own).. which is a kind of passive income that allows guys to continue to get distributions from his investment funds without putting more value into it.. and if a guys expenses are NOT too high, then it is a lot easier to accomplish living totally off of the distributions from the portfolio that the guy has built over the years.. the sooner that guys reach such status of maintenance and even receiving distributions, the more the guy should appreciate his past sacrifices in order to get to such status....and these points are going to be different for each guy.. including the balancing and the figuring out of how much value is necessary to take distributions from the fund and to be able to attempt to live off the distributions from the fund.. either living in full off of such distributions or partially (in a kind of supplementing of income way).
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RE: The Stock Market, Investments, and Investing Thread - by JayJuanGee - 02-06-2020, 08:04 PM

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