You’re one hell of a market timer… true speculator at heart. However, your volume is too low to be effective, will not make a difference in the grand scheme of things. But isn’t it fun to roll that roulette knowing that all you have to lose is your pocket change…
Is why speculation lose out to buy n hold.
Given $1M, speculators would bet $10k and ecstatic that they make 50% i.e. $5k.
Buy n hold would buy $1M worth, do nothing thereafter, happy to collect $5k every quarter, didn’t bother about the 25% yearly appreciation.
But of course it is different if you are taking out your mortgage and betting your farm on bitcoin. I don’t think anybody here is brave enough (or crazy enough) to be doing so. Even Mr. @BAGB. He is ultra optimistic about bitcoin but if that indeed were the case shouldn’t he have speculated more? I’d say go in with at least 50% of your net worth…
Some guys, not long ago, in their clouded mind asked me why I didn’t sell my home to “invest”, a word that doesn’t go with the way I approach my retirement, to buy whatever I was promoting.
Now, I ask the same question to them, why don’t you sell all your homes and invest in Bitcoin. You know is a sure thing, right? So, put your words where your mouth is and show us you are a leader.
Don’t thank me if you become a billionaire…or if I see you under a bridge with a sign on your hand.
I realized it yesterday when I saw my friend’s account. Whatever I gained in 20 stocks,spread across nasdaq &,s&p still tech heavy, my friend got it in just two stocks (anet & tree) by holding it long term. On any case, I have appx 5% on each stocks and I am not so much comfortable to hold such a big amount in just two tech stocks.
It’s not so much the diversification or lack thereof, but the quantity that matters. Investing 50% of your net worth is different from investing 5% of your net worth. You can put 50% into SPY or just one stock, but it’s still 50% which is way more effective than 5% into anything…
Have about 20 stocks of almost equal weightage in the dividend stock portfolio. The goal is to achieve a passive income equals to the annual expenses (excluding income tax). The criteria is safety rather than appreciation of the stock price & stability of dividends. The idea was conceived before Apple starts distributing dividends. Now that Apple distributes dividends, its purpose is redundant but didn’t bother to dismantle it, just don’t add. Mostly defensive stocks in the portfolio such as RSG, WM, VZ, PG, JNJ, PCG, AEP, and AWK.
Diversification is only good for wealth preservation. For wealth growth, have to take more risks doing something like your friend