CH4Ohio
Veteran Member
I see you just answered my question. Thanks!
How are your investments doing?
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I see you just answered my question. Thanks!
Fuddyduddy1952
Super Member
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There are over 280 stocks in one of my funds.
Just now it shows 1,335.47% total gain since purchase of GEV. (Timing?)
Last edited:
Torvy
Super Member
Snobsdds is experienced and has a proven method.
What many don't understand about managed mutual funds is that professionals are doing versions of the same thing working within the rules of that particular fund. Rather than pulling out to cash, they will change the mix and sell some of one stock and buy more of another.
Most of us don't have the time and/or expertise to adequately trade in this way. That's why I recommend a broad fund for most people. Buy and hold.
That doesn't mean I disagree with his methods. They work well, but I'm happy to pay a little to my advisor to deal with the ebb and flow.
I have a lot of shares in funds that focus on businesses that regularly pay dividends, too. The market responds to many things that have zero to do with the profitability of a company. Dividends are more closely tied to how well a business is doing.
For example, if a bank has a problem (losses, regulatory, etc.), the market tends to hammer all bank stocks. In most situations, that is counter-productive. The devil is in the details, but often the missteps by one company leads to more profit for competitors, not less. Of course, because the market isn't rational, you will do better buying any of them after they bottom out.
What many don't understand about managed mutual funds is that professionals are doing versions of the same thing working within the rules of that particular fund. Rather than pulling out to cash, they will change the mix and sell some of one stock and buy more of another.
Most of us don't have the time and/or expertise to adequately trade in this way. That's why I recommend a broad fund for most people. Buy and hold.
That doesn't mean I disagree with his methods. They work well, but I'm happy to pay a little to my advisor to deal with the ebb and flow.
I have a lot of shares in funds that focus on businesses that regularly pay dividends, too. The market responds to many things that have zero to do with the profitability of a company. Dividends are more closely tied to how well a business is doing.
For example, if a bank has a problem (losses, regulatory, etc.), the market tends to hammer all bank stocks. In most situations, that is counter-productive. The devil is in the details, but often the missteps by one company leads to more profit for competitors, not less. Of course, because the market isn't rational, you will do better buying any of them after they bottom out.
Snobdds
Super Member
One thing I have been trying to show is, you make money by buying and selling. You make returns by buying and holding. Those are two very different things.
Most investors have been conditioned to be happy with returns. You need to be happy with profit and to a lesser extent; losses.
I don't know how much louder I can be but, if you have a huge return, sell and bank the profits. Even if that money goes into a short term money market, you have a realized gain. That is what it's all about.
Once you break the mentality of just looking for returns and look for profits, the entire thing will change for you.
riptides
Super Star Member
I think it is a data entry error. You can build custom watch lists and start your position at 0, instead of market rate to observe this behavior.
Since the stock split out of GE proper, I think there is some other factor involved which accounts for this unrealistic percentage increase.
CloverKnollFarms
Super Member
Remember to pay your taxes 
drssg
Elite Member
I wouldn't want to challenge you to be any louder, but I still disagree with your premise that unrealized gains are somehow not real money. If I want to buy something, I can convert it to realized gains quite easily.
I suppose you could have an edge scenario where a stock is absolutely tanking and no one wants to buy it. For people that deal with fairly mainstream investments, I have never even heard of that happening.
I can accept that you might be able to get better returns than a basic buy and hold investor, but people have different needs and goals. I don't know why you keep insisting that anyone who doesn't do what you do is wrong.
Torvy
Super Member
I prefer to take the profit from the sale and move it directly to the next stock or fund rather than putting it in a DDA.
I also don't want to use the years I have left looking to make a killing. I will probably never spend what I have. At present, I am only spending a portion of my profits.
I am sure your methods work well. I just don't think the average person can duplicate your success. You are far smarter than the average person. My oldest is like that. He sometimes doesn't understand how far above average he is. That ends up with him having unrealistic expectations of others.
