Comments on: My First Attempt at Investing Advice http://howiwillberich.com/2007/08/my-first-attempt-at-investing-advice/ Wed, 28 Jul 2010 21:57:41 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: John Hancock Mutual Funds http://howiwillberich.com/2007/08/my-first-attempt-at-investing-advice/comment-page-1/#comment-111 John Hancock Mutual Funds Wed, 12 Sep 2007 06:20:58 +0000 http://howiwillberich.com/?p=14#comment-111 <strong>John Hancock Mutual Funds</strong> John Hancock Mutual Funds John Hancock Mutual Funds

John Hancock Mutual Funds

]]> By: Matt http://howiwillberich.com/2007/08/my-first-attempt-at-investing-advice/comment-page-1/#comment-11 Matt Tue, 07 Aug 2007 04:14:08 +0000 http://howiwillberich.com/?p=14#comment-11 Thanks CW for your comments. You are pretty much the exact reason for the creation of this site. So we can share our ideas and recieve feedback from others who have common interests. I am never against re-evaluating my investment strategies. I was merely explaining a strategy that has worked for me this far. Thanks Again, -Matt P.S. Thanks for link. I have visited it and bookmarked it. I believe it will be a valuable resource. Thanks CW for your comments. You are pretty much the exact reason for the creation of this site. So we can share our ideas and recieve feedback from others who have common interests. I am never against re-evaluating my investment strategies. I was merely explaining a strategy that has worked for me this far.

Thanks Again,
-Matt

P.S. Thanks for link. I have visited it and bookmarked it. I believe it will be a valuable resource.

]]> By: cw http://howiwillberich.com/2007/08/my-first-attempt-at-investing-advice/comment-page-1/#comment-10 cw Tue, 07 Aug 2007 00:57:11 +0000 http://howiwillberich.com/?p=14#comment-10 I never implied you were advocating that people "go read all t e advice at Motley Fool and Live by it"... was merely pointing you to another resource and touching on how suspect MF has become over the past few years. The CAPS tool might be helpful, but I still think it's something that promotes market timing and that in the end, you will discover that very few people can "do better picking individual sotcks than" they would "with funds." That assumption is precisely why a vast majority of people who invest in low-cost index funds do better than the average investor (who, admittedly, unwisely invest in "hot" mutual funds with high expenses/loads). Unforunately, the premise that "I am different... I can pick the winner" has been shown to a fallacy by countless statistics, and communities like diehards are filled with investors who make a pretty good case against individual stock picking. Furthermore, you should check out some articles about the difference between how men invest and women (men more frequently take unnecessary risks and buy into the thinking that we're smarter than the majority of the investors out there, so our experiences with the market are going to be "better" than theirs). What's more, your assumption that since you're young, you can afford to suffer some loses if you make a huge mistake now strikes me as pretty naive. You say "stocks are the way to go," but were stocks the way to go in Japan just before 1989? Check out this recent newsclip featuring a very smart, though bearish, guy: http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vJck9ysOID2E.asf then again, there's a reason they call him "Dr. Doom"... but, quite frequently, his analysis are correct. Still, I guess if you're going to learn, it's better that it's not vs. when you're older and you *really* have a lot of money to lose. Regardless, I think it's great that you're young and are actively thinking about your finances and whatnot. In fact, I'm quite young too. However, I think that plays against us because we've grown up in a time of unsurpassed prosperity where, save for a few exceptions, the market has gone up, up, up. I would just caution you AGAINST buying in to the truism that it's okay to invest in the market and take losses when you're young because, over time, it all balances out (after all, the market always goes up, up, up in the long run). Ask the japanese if that's the case. Ask Peter Schiff what he thinks about domestic equity. Be cautious. I also invest, but I lean much more heavily towards bonds than most people my age. Consider the need to preserve capital too, but the risk inherent in equities is much greater than our recent memories would lead us to believe. After about five years or so of egregious market returns, I hope you will come back here and read this comment and reflect on this comment and see how it reconciles with your situation. I never implied you were advocating that people “go read all t e advice at Motley Fool and Live by it”… was merely pointing you to another resource and touching on how suspect MF has become over the past few years. The CAPS tool might be helpful, but I still think it’s something that promotes market timing and that in the end, you will discover that very few people can “do better picking individual sotcks than” they would “with funds.” That assumption is precisely why a vast majority of people who invest in low-cost index funds do better than the average investor (who, admittedly, unwisely invest in “hot” mutual funds with high expenses/loads). Unforunately, the premise that “I am different… I can pick the winner” has been shown to a fallacy by countless statistics, and communities like diehards are filled with investors who make a pretty good case against individual stock picking. Furthermore, you should check out some articles about the difference between how men invest and women (men more frequently take unnecessary risks and buy into the thinking that we’re smarter than the majority of the investors out there, so our experiences with the market are going to be “better” than theirs).

What’s more, your assumption that since you’re young, you can afford to suffer some loses if you make a huge mistake now strikes me as pretty naive. You say “stocks are the way to go,” but were stocks the way to go in Japan just before 1989? Check out this recent newsclip featuring a very smart, though bearish, guy:

http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/vJck9ysOID2E.asf

then again, there’s a reason they call him “Dr. Doom”… but, quite frequently, his analysis are correct. Still, I guess if you’re going to learn, it’s better that it’s not vs. when you’re older and you *really* have a lot of money to lose.

Regardless, I think it’s great that you’re young and are actively thinking about your finances and whatnot. In fact, I’m quite young too. However, I think that plays against us because we’ve grown up in a time of unsurpassed prosperity where, save for a few exceptions, the market has gone up, up, up. I would just caution you AGAINST buying in to the truism that it’s okay to invest in the market and take losses when you’re young because, over time, it all balances out (after all, the market always goes up, up, up in the long run). Ask the japanese if that’s the case. Ask Peter Schiff what he thinks about domestic equity. Be cautious. I also invest, but I lean much more heavily towards bonds than most people my age. Consider the need to preserve capital too, but the risk inherent in equities is much greater than our recent memories would lead us to believe. After about five years or so of egregious market returns, I hope you will come back here and read this comment and reflect on this comment and see how it reconciles with your situation.

]]> By: Matt http://howiwillberich.com/2007/08/my-first-attempt-at-investing-advice/comment-page-1/#comment-8 Matt Mon, 06 Aug 2007 14:40:47 +0000 http://howiwillberich.com/?p=14#comment-8 <p>I don't agree with a lot of the investment advice that the Motley Fool gives. I never claimed too. I go to a section of The Motley Fool, called Caps, where users pick and explain why they like certain stocks. Once I've found a few that look like winners, I study them and do my own DD on them. I watch them for weeks to months to see how they react to market conditions and then I buy when I feel they have dropped due to other reasons other than a market correction.</p> <p>The point of my post was not, "Go read all the advice at Motley Fool and Live by it." It was simply a post explaining how I find stocks before I start studying them. Most of the stocks I pick in Motley Fool Caps I never actually put in my real portfolio. I just use it as a tool to watch the stock's movements...</p> <p>I am still young and I feel at this time in my life I can do better picking individual stocks than I can with funds. I don't think funds are a bad thing but while I am young, have more free time now than later, and can afford to suffer some loses if I make a huge mistake now, I think stocks are they way to go.</p> <p>Thanks for the comment.</p> I don’t agree with a lot of the investment advice that the Motley Fool gives. I never claimed too. I go to a section of The Motley Fool, called Caps, where users pick and explain why they like certain stocks. Once I’ve found a few that look like winners, I study them and do my own DD on them. I watch them for weeks to months to see how they react to market conditions and then I buy when I feel they have dropped due to other reasons other than a market correction.

The point of my post was not, “Go read all the advice at Motley Fool and Live by it.” It was simply a post explaining how I find stocks before I start studying them. Most of the stocks I pick in Motley Fool Caps I never actually put in my real portfolio. I just use it as a tool to watch the stock’s movements…

I am still young and I feel at this time in my life I can do better picking individual stocks than I can with funds. I don’t think funds are a bad thing but while I am young, have more free time now than later, and can afford to suffer some loses if I make a huge mistake now, I think stocks are they way to go.

Thanks for the comment.

]]> By: cw http://howiwillberich.com/2007/08/my-first-attempt-at-investing-advice/comment-page-1/#comment-7 cw Sat, 04 Aug 2007 16:58:52 +0000 http://howiwillberich.com/?p=14#comment-7 oh, and btw, once they abandoned their mantra of low-cost investments in no-load index funds, MF has become a pariah of sorts among the personal finance community. I don't just point you to diehards to be a jerk, but because I sincerely believe you'll find much better/sound advice there than that from the jokers at MF. oh, and btw, once they abandoned their mantra of low-cost investments in no-load index funds, MF has become a pariah of sorts among the personal finance community. I don’t just point you to diehards to be a jerk, but because I sincerely believe you’ll find much better/sound advice there than that from the jokers at MF.

]]> By: cw http://howiwillberich.com/2007/08/my-first-attempt-at-investing-advice/comment-page-1/#comment-6 cw Sat, 04 Aug 2007 16:55:32 +0000 http://howiwillberich.com/?p=14#comment-6 I think you need to go to diehards.org and read up on the merits of indexing/buy-and-hold investing vs. the perils/challenges of picking individual stocks. If you believe you are better at picking stocks than the majority of investors out there (taking this method you describe into account), more power to you. But, given the institutional tools the big boys have like computer models and in-depth information about a company (not to mention insider information), I think the odds are against you in every way, shape, and form. It is people who believe they can "beat the market" that ensure index funds outperform mutual funds by a large percentage. I think you need to go to diehards.org and read up on the merits of indexing/buy-and-hold investing vs. the perils/challenges of picking individual stocks. If you believe you are better at picking stocks than the majority of investors out there (taking this method you describe into account), more power to you. But, given the institutional tools the big boys have like computer models and in-depth information about a company (not to mention insider information), I think the odds are against you in every way, shape, and form. It is people who believe they can “beat the market” that ensure index funds outperform mutual funds by a large percentage.

]]> By: cintia http://howiwillberich.com/2007/08/my-first-attempt-at-investing-advice/comment-page-1/#comment-4 cintia Fri, 03 Aug 2007 06:51:48 +0000 http://howiwillberich.com/?p=14#comment-4 Hi Matt and Joe, I learnt about this site from SHARPE Investment blog. Your articles are pretty easy to understand (so far at least) since I know nothing about investment though I'm eager to learn more about it :) You guys don't have a contact page, otherwise, I'd email you rather than leaving a comment here :) Will check out CAPS later. Hi Matt and Joe,
I learnt about this site from SHARPE Investment blog.
Your articles are pretty easy to understand (so far at least) since I know nothing about investment though I’m eager to learn more about it :)
You guys don’t have a contact page, otherwise, I’d email you rather than leaving a comment here :)

Will check out CAPS later.

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