Hey Nerds: Blockchain
- Thread starter zeke
- Start date
Preston
MBow30 alt account
LeafOfFaith
Well-known member
Everything is being destroyed, even banks and energy.
And as usual, I don’t know what to think or do and fall back on the paralysis of the buy hold philosophy which is killing me.
And as usual, I don’t know what to think or do and fall back on the paralysis of the buy hold philosophy which is killing me.
MindzEye
Wayward Ditch Pig
Temporarily.
If you're a buy and hold and invest over a long time horizon, this is just a blip however painful it is.
LeafOfFaith
Well-known member
Feels like we’ve been saying that for two years, and right now if I’d sold off some stuff, I’d be much better positioned to buy some of the better stuff within the wreckage.
LeafOfFaith
Well-known member
Yeah, this too. My biggest gainer, which I’ve held for like 7 years now, and was up around 7x at the peak, I’m now down on. Pretty pathetic and soul crushing. It’s like what am I even doing?
Preston
MBow30 alt account
Yeah you're just playing a completely different game than most. I would have sold much of that product far sooner than 7x. I don't fuck with individual stocks because their success is largely out of my control. When I do play them, if I'm up a lot I pay myself. At least with a broader market ETF I can feel pretty comfortable that whenever I cash out the SP will be higher than today.
I wish I played the tech boom more aggressively in the last decade so you did well with that.. But that doesn't mean tech will outperform all in the follow decade or two.
Oh well you still have a lot of life left to get much of it back.
MindzEye
Wayward Ditch Pig
2 yrs isn't really a long time horizon...
The possibility of flat returns is a good reason to look at a div based strategy though, I switched over to dripping a few years ago personally.
Sure, if you time it right. If you figure out how to do that, please write a book and I'll buy it.
Preston
MBow30 alt account
Have had a few folks suggest that to me over the last year or so.. Do you have any resources or even a starters kit on deploying that strategy?
MindzEye
Wayward Ditch Pig
Honestly, I just farm ideas from online communities/creators and I just vet their suggestions myself. I've built my own structure of how much I want in specific baskets that are traditionally good div yielders (Energy, bluechip, REIT's, ETF's, etc) to try to arrive at 7-8% total portfolio yield and I keep an eye on a few key metrics (Div%, DPR) but try not to sweat share price overly much. If one of the names in the portfolio either cuts div, or sees a spike in DPR, those are red flags to consider selling out and moving on to something else.
Starters kit are just the usual online resources, Investopedia, seekingalpha, etc, etc
LeafOfFaith
Well-known member
The problem is, the majority of the action (funds) are in regular accounts that aren’t retirement accounts that are immune from current taxation. So each time I’d ponder whether I should sell something that ran up, I’d be like, first that violates the buy hold philosophy and who knows where it goes from here, and second, I’ll have to pay at least 20% to the government so isn’t it better to let that continue to do its thing in the market? Going in, I made myself a deal that basically I’d never sell anything unless I soured on the company. But selling out at highs would’ve served me a heck of a lot better as of now, that’s for sure.
LeafOfFaith
Well-known member
I’ve never been a fan of the drip. I’ve always preferred to have any cash come in be handled as I see fit at the time. Why do you prefer it?
Also, would you give me an advance on my book?
LeafOfFaith
Well-known member
By the way, I’ve come to believe that my strategy of buy hold on individual stocks was a good one, but I fucked it up by going with anything other than blue chips. Like, just holding Google, Microsoft, Apple, etc., is kinda the best pseudo ETF you could find because there’s no garbage among the bunch. I’d be off highs but not down on anything if those are all I had bought. I have some of those, but shouldn’t have strayed by throwing money at smaller companies I thought were good gambles - even though they were temporarily and I sat around and idly watched 2x or more just fade away into the ether.
LeafOfFaith
Well-known member
Par example, I remember my partner proposing to do some private investment a few years ago, and I was like, I’d rather just put that money in MSFT at $100 back then. But I felt it was too old, slow, boring to invest in. If I had, I’d have watched a 3x turn into a 2x now, while collecting dividends, but would that have been bad?
MindzEye
Wayward Ditch Pig
The power of compounding numbers and the simplicity of not worrying about it. Quarterly div comes in, buys stock, div is slightly higher in 3 months, rinse and repeat.
I'm a bit of a different cat, so the plan is to tap out on all the bullshit as long before 50 as I can with less total value than most retirement portfolios are suggested to have (especially for "retiring" at my age), but all of it being income driven. I wished I would have had this outlook before the cannabis rush, I would have been done before 40. Between relatively stable div income, and relatively stable commercial real estate income, wifey and I are "done" in 3 years. I intend on continuing to do what I do, but the type of work that I want, when I want as well. More than enough income to live off of (and continue investing into the snowball) and free time to do whatever the fuck we want while we're young enough to enjoy it. YMMV.
Preston
MBow30 alt account
Ty. I think it's about time I explore something like this. I have my general etfs but lots of spare cash that I need to deploy. Just haven't had a chance to do any digging. Last time I took your advice was in the early pages of this thread and it quite literally transformed my life for the better so I'm happy to explore further now that you recommend it too.