Buying into the stock market

[ultrarunner]

I was told in my teens buy and hold but it didn’t work well for me as I held all the way to the stocks being delisted… basically cured me of the equity markets.

I found real estate gave me a very good 40+ year run but the crazy regulatory climate that has evolved here regarding any residential rental is full of peril.

So 4.25 interest on cash at the credit union it is.

 

[grsthegreat]

Just follow a successful investor like Nancy Pelosi

She has incredible luck in the stock market. Recent buys of Ai stock have skyrocketed

Id like to have insider knowledge investing also, but i would end up in jail

 

[Mtsoxfan]

I've bought and held proven performers, and money makers. Insurance companies, defense subcontractors etc. Also others. Some will not really change in price, I invested for their returns which are reinvested. Insurance companies will (usually) always make money. Cigna is the one I bought. I saw the stock split twice before I bought, once since then, but stock price rose from @$50 per share to close to $300 now. Only regret was not buying more when covid hit and it dropped (very temporarily) to $75.
Point is, returns are a factor in investing to consider, above stock price increase.
Everyone will have an opinion, different strokes for different situations...

 

[ultrarunner]

Someone said buy what you know and what does an 18 year old know?

Not a single person in my family owned stock since 1929…

I bought Coleman Camping, Pizza Time Theater, Credo Petroleum and LDP stocks.

Only sold one stock and that was Apple… sold it in 1982

 

[shooterdon]

Do not waste your time picking stocks or timing the market. Unless you have insider information, it becomes a crap shoot.

My advice is to look at the Vanguard 500 S&P Index Fund. It has very low management fees and has performed well over time. Worst 3 year return was 7.5%...last 5 years it has averaged over 14%

https://finance.yahoo.com/quote/VFINX/performance/

I have most of my investments with Fisher and they have done well (averaging 12%), but you need a minimum of $500,000 to become a client. I have inherited some money and currently looking at the Vanguard Fund or something similar.

 

[bigtiller]

I got in during the .com bubble of the late 90's and stayed in during the .com bust of the early 00's.

Never mind today's price, just get in, stay in, and contribute regularly. You'll be fine.

 

[2manyrocks]

Duration and diversification in quality stocks are key. An ETF tied to the S & P could work. Don't invest in something you don't understand that someone pitches to you.

Investing in an exchange transaction fund instead of a regular mutual fund will help insulate you from getting taxed on capital gains while you hold the fund, but you will have capital gains taxes when you liquidate your holdings.

 

[JasperFrank]

Just get an indexed stock Vanguard or Fidelity and don't look at it. The small investor can't "play the market." No matter how smart you think you are, there are smarter people out there just trying to screw you.

 

[LittleBill21]

can't buy cheap if the market doesn't drop (2020 was the last big one, and only for short while.) just invest it as it becomes available

I do this with M1 Finance, where you can build your own "mutual fund" i picked out 8-9 stocks I like, then I do percentages into those, where i throw a bit of money at it weekly where it spreads out based on those percentages.

you have to decide your end goal here, for my parents, I favor only dividend funds, so they get money at the end of the month they can just blow.

if your looking for set and forget, fidelity offers a variety of no fee funds, that would be perfect. I don't know why anyone does bonds, the rates were always worse then a HYSA

 

[ultrarunner]

Work offers target date funds and mine is over half in bonds

HR said it’s prudent and automatic based on age…

I could pull it all for a Treasury Fund or stick with target date.

I’m not seeing returns anything close to what is posted here.

At one time the plan also offered a cash account that would never be below 5%… that fund ended when rates dropped to never return.