#TheIntelligentInvestor #BookReport
So today is going to be Ch 4 - "General Portfolio Policy: The Defensive Investor." Will try to keep this one shorter as it is a school night.
"The rate of return sought should be dependent, rather, on the amount of intelligent effort the investor is willing and able to bring to bear on his task. The minimum return goes to our passive inestor, who wants both safety and freedom from concern. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligence and skill." (Rev Ed p88)
For 90% of my money at this moment ... I want to be the passive investor. With my 10% of speculative money, I am hoping to finish off 2021 with the knowledge and tools to chase after the maximum return. Until then I will stick w/ my tried and true of DCA w/ ~80% of my funds and buy dips w/ my ~20% on hand.
"Furthermore, a truly conservative investor will be satisfied with the gains shown on half his portfolio in a rising market, while in a severe decline he may derive much solace from reflecting how much better off he is than many of his more venturesome friends. While our proposed 50-50 division is undoubtedly the simplest 'all-purpose program' devisable, it may not turn out to be the best in terms of results achieved." (Rev Ed p91)
I have really enjoyed the authors humble approach to investing and the way he seems to factor in that we as humans are emotional creatures. He seems to understand when the market suddenly drops that the vast majority will panic sell ... and I think this is reflected in his suggestions by creating a 50:50 Stock to Bond ratio that he states should not shift past 75:25 either way depending on risk tolerance/market conditions. The rest of the chapter then went into granular details of different types of bonds ... which I will just skip for here 😵😴.
P.S.: I think I am probably going to stick to 80% - Stock, ETFs, REIT, and Dividend Stocks; 15% - High grade bonds w/ a dabble in Gold; and 5% Crypto. What does your breakdown look like?
#BookClub #TheMoreYouKnow #DefensiveInvestor
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Caleb Caporale@calebcc33
So far about 70% stocks, 15% CDs/bonds, 15% crypto
@calebcc33 I saw the 70% and I was like 🤔 conservative portfolio ... but then I got to the far right and saw 15% crypto. More power to you! I do think Crypto is entrenched at this point ... but I just can't handle these swings.
👍 I like the strategy.
Caleb Caporale@calebcc33
@ctsshah I’m invested in Bitcoin since 2019 so I sold half and split it up between a bunch of other cryptos when it hit 60k earlier this year. I’m fairly confident in my portfolio here balancing out any major losses from crypto, but who knows 🤷
So the goal, which I can’t really do right now financially, for me is to have a long term section of my portfolio. Adding slowly over time to the stocks that I feel have small but steady gains year after year. Small but regular amounts added consistently until my targets are reached for each of the long term goals. But also I plan to have those short term flips where the goals are definitely not a…See more
@calebcc33 nice! When I started investing in crypto my dad essentially made the joke that he could teach me all I needed to know by just giving him all the money instead of losing it all ... 😜 I think I will get the last laugh on that one
@bgdknkccp do you have a balance or strategy in mind for yours?
@Bigeasyartist Nice! There is definitely room to play both. It is just a matter of risk tolerance.…See more
Since I'm pretty new, I'm most stocks right now, but I have a retirement 403b that is mostly ETFs and some bonds, through Fidelity. The hospital matches 6%. That account is going on 12 years with me putting in about 10.5%. I'm not really sure of percentages between Public, Fidelity, and Acorns accounts I have.
@nursekev That sounds like a nice, well balanced portfolio if you ask me! Your hospital has a very nice match and glad to see you are taking advantage of it 😁
Right now I am at 90% real estate, 5% stocks/ETFs/ Roth and 5% crypto. I am looking to open a self directing Roth and putting in everything not real estate. I will also put most of my profits into stocks and precious metals. I am looking to get close to 30-30-30 in my investments.
@Timt6940 oh man! coming out swinging with real estate! Teach me your ways 😁 I'm new to real estate and REITs
@ctsshah I am ignorant about bonds... I have a couple in my other portfolio. what are some good bonds I should watch & learn on to maybe add down the road? It is my weakest area
@ctsshah I love stocks that overlap the distinctions... $CCI & $AMT are REITs, but also 5g but also infrastructure. $BLOK & $RIOT are crypto connected but stocks & somewhat tech. Stocks like that .. really appeal to me. Also sometimes the picks & shovels of a heavily favored them are some I like. I have ETF’s, REIT’s, stocks pretty evenly distributed 75% crypto& crypto connected & precious metals/ m…See more
@Arkygirl43 I am also ignorant about bonds. I felt this was my biggest deficiency and hence trying to get up to speed. Currently I put 15% of my Roth IRA in $FBNDX which is a mutual fund but I am looking to maybe convert to $FBND as it is an ETF and I don't like mutual funds anymore
@ctsshah I’m reallly new to this whole scene so I’m keeping an open mind. So far I have invested in 2 strong players on their downslide another one that’s more risky with a low market cap that I read should really start to produce in a few years. And one more so far just starting out. I’m keeping a long term (moderate risk) mindset but I’m also paying close attention to the the more aggressive play…See more
@bgdknkccp I think having a clear plan ahead of time is important and then remaining flexible as things happen. Periodically it can help to reassess and see how you performed and then set new goals or rebalance your portfolio for more or less risk. It is an evolving process and sounds like you are thinking things through
@ctsshah thank you for the affirmation and feedback. I really look forward to what I learn from post like yours.
😁 i've learned a bunch on here to just from poking around everyone elses trades and posts. It is a great little ecosystem they have created here. Surprised I had never heard of it outside of Graham Stephan's YouTube channel ... I had heard a lot about WeBull and Robinhood but strangely never Public
@ctsshah I will post some info about real estate later when I get off duty.
BTW, I love all of the information that you put out!!
@Timt6940 that would be awesome my friend 🙏🏽👍🏽🙌🏽 Just trying to get the ball rolling on free sharing of information and expertise
@Ctsshah I agree. Knowledge is power. What are you studying?
@Timt6940 so I'm a cataract surgeon in real life and just do investing and this as a fun hobby. But right now I'm trying to build out posts for 8/16-20 - M - Averaging Down, T - Averaging Up, W - MLPs, Th - BDCs, F - TIPS. 😁
Very cool!! Love this. ❤️
@bgdknkccp had the day off and reading chapter 5. 😁
Incredibly inspiring.
😁 too kind
