Ok, Did You Do Better?

Time to toot your own horn. (No need to send financials for verification…:grin:)

That’s some good advice

Last year, yes, but other years I probably should stick to indexing. But picking individual stocks are a lot more interesting and fun!

For my 401k/IRA, I use index and active funds. My taxable account is only individual stocks.

Not to say we wouldn’t like to be like @hanera (and probably others) who bought Apple (and probably other stocks too) at the low point and is now reaping even more proverbial fruit from that astute buy.

Midwest investors have the highest return, much better than the West and even the Northeast.

Are highly educated people dumb at stock investment?

Some study say yes. The smarter you’re, the probability of you bad at investment is higher. Two examples commonly cited:

a. Isaac Newton’s investment in South Sea Inc (not sure is inc). An overhyped enron like company.
b. A monkey randomly throwing darts can select stocks better than a medical doctor.

So I strive to be as dumb as I can. If you need someone who is dumber than you, look no further. I’m here.

Need to throw some light on this because it is more an act of desperation than astute buy. I was investing dotcom stocks and then everything bombed out. So I sold all except AAPL, and dumbed into AAPLs hoping for the best. Many of those dotcom stocks that I have previously invested are gone e.g. SUNW, some are still around e.g. JNPR, AKAM, CSCO and YHOO. I have no idea what Apple business is except heard about Steve Jobs being a genius… in the book called In Search of Excellence. Essentially, a dumbfounded guy just dumbing around and it happens… some1 like me.

1 Like

You could have just remained silent and accepted the praise as an astute stock picker you know…:slight_smile:

2 Likes

The coastal elites have no clue what’s going on with a majority of America.

I think it may be better to do it the other way. Individual stocks may involve more buying and selling, triggering capital gain taxes. Index funds are buy once and forget about it. You never sell.

No, I don’t think being smart hurts investment. It’s more a case of over confidence. When you are smart in something you often fool yourself into thinking you are good at everything. So if you did badly in schools you may take things more conservatively. In stocks it’s often about controlling how much you lose, not how much you earn.

K.I.S.S. applies here again. KEEP IT SIMPLE, STUPID…

When you are knowledgeable, you tend to factor every possible variable since you, well, know so much, thus, potentially clouding or over analyzing the objective.

Good points. There is nothing I can do about 401k (only index/active funds), no brokerage window. I started my IRA in college and only did funds back then. I kept contributing to the same funds since then.

Maybe I should sell my funds in my IRA and start stock picking instead.

I think you can move your holding from one brokerage to another. The only thing you can’t do with 401k is trading on margin, I think. Everything else is kosher.

1 Like

K.I.S.S also applies here in just answering the question posed:
Did You Do Better?? Yes or No

For me, no. The start of a new year is a good time for self-reflection. I just reviewed my activity over the past year, and it has shown me that I made much more profit during the months where I didn’t do any selling. My pessimism may have prevented some loss in the short-term but not in the long term (being too hesitant in picking those tech stocks back up at a low). Perhaps real estate is a better investment for me. I had also wanted to sell when things weren’t going well but hassle kept me from doing so and wound up with big benefits when compared to stocks. Just a beginner and learning.

Good topic!