yesthattom: (Default)
[personal profile] yesthattom
A few weeks ago I impulse-purchased The Little Book That Beats The Market, mostly because the foreword is by someone I trust. I read it, and it was basically my investment strategy, but he worked out a trick that makes the difficult math disappear.

According to his simulations, you can turn $15k into a million in 17 years. That’s when I retire. So I hope to invest $30k.

Wish me luck!

Date: 2007-01-31 07:13 pm (UTC)
vasilatos: neighborhod emergency response (Default)
From: [personal profile] vasilatos
Look. Value investing is a perfectly valid strategy. I just don't enjoy it. But by all means, read the book Tom recommends, and go to http://www.fool.com/index.htm where you can pick and choose your preferred style: value, dividend, mutual funds, smallcap, etc. and there are discussion groups. There are also discussion groups at http://morningstar.com and at http://marketwatch.com and at http://thestreet.com and at http://finance.yahoo.com and at http://finance.google.com/finance and at your own broker's site.

Personally, I'm the old traditional your-age=bond-percentage, 20% real estate, 14% international, and the rest mostly indexed funds. I confess to a passion for CEFs in states where they're available, and I note that New Jersey has 13: BNJ (from http://www.etfconnect.com/select/FindAFund.aspx) though trading at a premium, is one example, though its state tax status is a little unclear and I don't know New Jersey.

Date: 2007-02-02 12:24 am (UTC)
From: [identity profile] xthread.livejournal.com
Hmmm.. That mix sounds extremely risk averse - in fact, it looks to me like your only real chance for significant inflation-adjusted upside is the international portion. What rate of return are you trying to achieve?

Date: 2007-02-02 02:43 am (UTC)
vasilatos: neighborhod emergency response (deco wiener)
From: [personal profile] vasilatos
It jumps around between 10 and 20%, which is fine with me. And the risk aversion level sort of depends on how old I am, doesn't it? Which is the traditional point.

Date: 2007-02-02 04:17 am (UTC)
From: [identity profile] xthread.livejournal.com
Yes... except for the part about median lifespans having increased rather dramatically over the last forty years, and median working lives having started to stretch over the last decade.

Date: 2007-02-02 04:25 am (UTC)
vasilatos: neighborhod emergency response (linden street)
From: [personal profile] vasilatos
Point taken. Having highjacked Tom's journal already, what's your mix?

Date: 2007-02-02 04:48 am (UTC)
From: [identity profile] xthread.livejournal.com
A decade ago, 20% cash (working capital) and 80% stocks, almost entirely in various parts of the tech sector. After I used that to fund my startup, which sadly drained the entire portfolio, I've been very slowly building back in the last two years, let's see, call it 35% growth fund, 65% individual stocks. But then, I'm a young pup with no significant liabilities; that's a significantly riskier mix than I'd recommend to anyone who wasn't very well insulated against having their portfolio crash.

Date: 2007-02-02 05:05 am (UTC)
From: [identity profile] xthread.livejournal.com
Oh, and I would describe every one of the individual issues as being a 'distress purchase' - pick up an otherwise solid company when they've just stumbled and their stock has plummeted because speculators have all bailed out.

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