Today's Market 2/21-27

Man you are super nimble like a ninja.

Puru is as weird as the poster @manch.

WB is a buy n hold investor while Puru is a trader. Why is Puru comparing trading with WB’s investment approach? Let’s examine his rules with @wuqijun

  1. @wuqijun uses 30% margin
  2. @wuqijun all in. Position size? This is for trading.
  3. Hedging? @wuqijun doesn’t hedge
  4. Who doesn’t know?
  5. Wrong. Market is wrong about TSLA. @wuqijun is right.
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Keep ego in check aka I’m right, market is wrong

This time I clearly pointed out TSLA peaked at $880 range and it is buy at $715 range.

His buy and hold will not give him far better returns…where as your case AAPL is going good even now after so many decades…

If investor is really wise, they need to understand market and mend according to the market. Strict rigid blind action will result less return…

When clearly market swings, investors must take wise action…to save their own money.

@Jil

You talk exactly like any swing traders :slight_smile: Buy n hold is not about a few trades or a short period of time. Is at least 10 years, I have proven to @manch (may be is you, I am getting old) in this forum, using some computations. Try harder. Refer to MRNA thread.

DON’T KEEP TALKING LIKE A SWING TRADER :smiling_imp:

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All-in works out great for people whose all in trades work great.

I don’t think you have gotten rid of your survivorship bias.

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Don’t help him :face_with_symbols_over_mouth:

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Um, how much of Buffet’s net worth is Berkshire?

Is there any billionaire who got there with diversification? I don’t think there’s any who didn’t get there without starting a company or inheriting from someone who did. That’s literally the extreme opposite of diversification.

I bet it’d be hard to find people who reach $30M with heavy diversification. The more diversified you are the closer to market average returns. Market average returns don’t generate UHNW. People just don’t have high enough incomes to save enough to get there with market average returns. People at the highest income levels are usually highly concentrated not diversified.

People diversify once they are rich not to become rich.

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For every person who got rich by betting all in on one stock, I can find 10 others who went broke by doing the same.

I see survivorship bias is a powerful bias.

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:+1:

:+1:

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You could well be one of 10 :joy:

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People often got the lesson wrong when they cite founders of companies. They got rich not because they bet all in on one company. They got rich because it’s impossible for them to sell. They are forced to buy and hold forever.

The compounding forces them to get rich. You just can’t be not rich.

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CCIV went down 30% after hour. You sold just in time!

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Right, compared to all the equally wealthy people who aren’t founders and got there with diversification.

Founders wouldn’t be so wealthy if the companies generated market average returns. The wealth is from superior returns. Just look at how fast the companies go 10x vs the time it takes to 10x with market average returns.

I always remind myself to guard against my own mistakes. I am my worst enemy.

You make it sound Iike market average returns are easy to achieve.

There are orders of magnitude more millionaires in the 1-5M range who got there by just sitting in their homes and rentals for decades, than investing in the stock market. RE return is even lower than the 12% or so for S&P.

RE is illiquid. It forces people to buy and hold. It guards against people’s worst instincts.

It’s not about how long it takes you to get there. It’s more about whether you will get there at all. Ask people who bet everything on Luckin Coffee, or oil futures when it went negative.

That’s why there’s the 1%. If everybody can be the 1%, then where’s the rest of the 99%? Dead people? :rofl:

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Anyway, market almost bottomed but retail investors are being scared by these advertisements

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Ah, so now you moved the goal post down to $1-5M. Anyone with a median income can do that saving 10% a year in SPY. It’s literally that simple.

I sold 45% TSLA at 870, CCIV at 60.

Am I now a genius? :innocent:

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If it’s that simple why isn’t every median income person has that kind of net worth?

People with 30M obviously have more than 1-5M. My point is simply that building wealth is easier with ways that induces or forces you to sit right on your investment. Obviously higher rate of return is better than lower, but that is secondary.

We all choose our own adventures. If betting all on a single stock works for you, all the power to you.