How do all of you invest your money?

[southbayrider]

how do all of you invest or reinvest your money besides your business? stocks, bonds, mutual funds?

 

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[av1atic]

I've been stacking gold and silver for a while now. Been in and out of the stock market, but am currently reading every book about investing/finance that I can get my hands on before re-entering.

 

[southbayrider]

sick! which stocks did you hold onto? i'm actually doing crazy research as well. i'm 25 and feel like i'm late into the whole investing deal. what do you do for a living av1atic?

 

[dknise]

There was another thread recently where I talked about being a full time day trader. I chose to take that cash and invest in myself and ideas, because the potential is so much higher. When you really get into stocks, you realize it's not actual investing at all, it's pure speculation.

It's pretty rare to hear about a stock trader who went from $30k to millions. Theoretically you could do it in a matter of days, it's just really really really hard work. But unlike real work, there's no utility that you're bringing to the table.

 

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[av1atic]

Nothing to brag about haha, mostly just luck. I was 18, without the slightest of knowledge, I got into IRBT, AAPL, MPEL in the summer of 2010 and sold everything last summer. Made some awesome profits, but looking back and even writing this response, I realize how lucky and foolish it was to just buy with no research. Was fortunate enough to inherit some gold that started my precious metals stack that I continue to grow. I mainly help run my dads security company and am going to school for finance and spending every free hour learning the market.

There's plenty of brilliant members on here with a wealth of information, so we've come to the right place to ask any questions.

 

[Rickson9]

Individual stocks and real estate. Buy and hold both. I have still have stock and real estate that I bought in the late 90s.

 

[Skys]

Gas money, healthy food and a sauna once in a while

 

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[Anthony_44]

Individual stocks and real estate. Buy and hold both. I have still have stock and real estate that I bought in the late 90s.

How do you pick your stocks for long term growth? Are there any key characteristics that you look for? I have always been interested in doing this, but technology scares me in some regards. With the rapid advancements in some fields I feel that it is hard to predict long term stability

 

[MJ DeMarco]

How do you pick your stocks for long term growth? Are there any key characteristics that you look for?

He did a substantial "AMA" (Ask Me Anything) on the INSIDERS forum ... I doubt he will repeat the answer here.

https://www.thefastlaneforum.com/insiders-forum/43994-my-method-investing-u-s-stocks-ama.html

As anyone that's read my book, I don't use the stock market for wealth acceleration, I use it for capital deployment to effect a passive income. In other words, I use the market to generate income and liquidity. If I buy a stock, it's usually based upon speculation. I actually trade options more frequently than stocks.

 

[Kak]

I have kind of dropped the ball on this. I just handed it over to JP Morgan to be managed. I have not realized any losses and I can see the account growing. I just have not really calculated any annualized percentages.

 

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[Toao]

At the moment I buy shares mostly from bluechips on different continents (Europe, US, Asia, South America, Russia) to cover a little bit of anything and avoid risks. Plus I have something in the major currencies if I need it some day. They should have nice dividends and a business that is easy enough for me to be understood. With a small piece of money I play with high risk shares after they had a huge drop in price. So far it worked out pretty well. But I am with MJ that you should use shares and stock options only for generating some passive income and hold your money liquid. You can face huge drawbacks if you want to get rich trading.

 

[southbayrider]

Rickson 9 can you briefly explain how exactly you choose your long-term investments. The link provided by MJ DeMarco is only for INSIDERS only and would really appreciate your insight and expertise.

 

[The-J]

He did a substantial "AMA" (Ask Me Anything) on the INSIDERS forum ... I doubt he will repeat the answer here.

https://www.thefastlaneforum.com/insiders-forum/43994-my-method-investing-u-s-stocks-ama.html

As anyone that's read my book, I don't use the stock market for wealth acceleration, I use it for capital deployment to effect a passive income. In other words, I use the market to generate income and liquidity. If I buy a stock, it's usually based upon speculation. I actually trade options more frequently than stocks.

brb buying a subscription

EDIT: Done

 

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[SeanKelly]

I mainly invest profits back into my current venture. However, I'm slowly accumulating silver because I think that it has a strong potential to rise in price. I've never experimented with the stock market, but would like to at some point during the upcoming year.

 

[DeletedUser2]

ickson 9 can you briefly explain how exactly you choose your long-term investments. The link provided by MJ DeMarco is only for INSIDERS only and would really appreciate your insight and expertise.

buy the subscription.
its worth it.

 

[southbayrider]

how so

 

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[The-J]

how so

Rickson9 told us exactly how he became a millionaire, and you wouldn't pay $30 for it?

 

[Jonleehacker]

But unlike real work, there's no utility that you're bringing to the table.

That is probably the least accurate statement I've seen in a long time.

Stock trading or speculating, on one hand, is competitive, so does a professional chess champion, or golfer who makes millions, provide "utility" to society? It's debatable, but if you are the best at something that a lot of people compete in, you deserve to be paid.

Secondly speculators play a massively important role in society. Every farmer, or commodity producer or commodity consuming company (almost any company that actually produces a physical product) uses speculation and hedging to stabilize their earnings and expenses. If traders didn't provide liquidity, this would not be possible and to put it bluntly, the economy would collapse.

While it is a little bit more abstract in the case of stocks and bonds, the principle is the same.

Speculation is an essential part of the economy and society, and countries that have tried to control it or limit it, have gone straight to ruin.

The speculator, in this definition, does not hope to profit by processing and distributing the commodity he is buying and selling, as does an oil refiner or flour miller. He simply hopes to make a profit based on the changing prices — up or down — of oil or wheat.

It is said that speculators are buying oil now and therefore driving up the price. That’s probably true, and it illustrates one of the beneficial services that speculators provide: they reduce volatility in prices. If speculators are correct and the price of oil spikes sometime soon, the present buying by speculators makes the spike less steep. It also induces consumers to conserve.

Writing about speculation in food markets, Walter Block explains the beneficial effects:

First, the speculator lessens the effects of famine by storing food in times of plenty, through a motive of personal profit. He buys and stores food against the day when it might be scarce, enabling him to sell at a higher price. The consequences of his activity are far-reaching. They act as a signal to other people in the society, who are encouraged by the speculator’s activity to do likewise. Consumers are encouraged to eat less and save more, importers to import more, farmers to improve their crop yields, builders to erect more storage facilities, and merchants to store more food. Thus, fulfilling the doctrine of the “invisible hand,†the speculator, by his profit-seeking activity, causes more food to be stored during years of plenty than otherwise would have been the case, thereby lessening the effects of the lean years to come.

If the spike in prices does occur, what will speculators do? They will sell their oil, and that action will drive down prices, making the spike less steep. Here the speculator makes a profit by providing the service of making the oil shortage less severe. His hoarding of oil, bought when prices were low, makes it available in times of need, and less expensive, too. The speculator is rarely given credit for that in public, although this is how the speculator earns a profit.

 

[andyredsox]

Buying new properties would be a good investment.

It could be a house, land or another business.

Others would invest with furniture or jewelries.

Some just put it in their bank accounts.

It's all up to you and how much money you want invested.

 

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[Jake]

Gold (and some other metals lying around), stocks, and stuff.

Interested in direct investments in startups for equity but haven't really been actively looking.

 

[cdrag]

Does anyone here invest in tangible items, such as cars, graded coins, collectibles, artwork, antiques, etc?

I buy/sell a decent amount on ebay and tend to take some of the profits I make and invest in key comics. The comic industry has exploded in the past few years and has gone mainstream.

 

[Warchild]

I tend to pile money back into the business to grow my cash that way. I dont trust other people with my money so I dont invest in the stock market as i have no control over the businesses i have stocks in.

Other than that its property where my pension fund sit.

 

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[dknise]

That is probably the least accurate statement I've seen in a long time.

To each their own.

Stock trading or speculating, on one hand, is competitive, so does a professional chess champion, or golfer who makes millions, provide "utility" to society? It's debatable, but if you are the best at something that a lot of people compete in, you deserve to be paid.

So because someone is the best at bullshitting or begging they deserve to be paid? That's the least accurate statement I've seen in a long time. You sound more like a union employee than an entrepreneur.

Secondly speculators play a massively important role in society. Every farmer, or commodity producer or commodity consuming company (almost any company that actually produces a physical product) uses speculation and hedging to stabilize their earnings and expenses. If traders didn't provide liquidity, this would not be possible and to put it bluntly, the economy would collapse.

While it is a little bit more abstract in the case of stocks and bonds, the principle is the same.

Speculation is an essential part of the economy and society, and countries that have tried to control it or limit it, have gone straight to ruin.

Thank you for explaining speculation and hedging to me. I was completely unaware of these terms or their existence.


In all seriousness, the stock market allows for companies to fund and raise money for growth and development without having to give any control up of their company. It's the original source of crowd funding! IPO's or events where companies sell shares are moments where you are providing the company with an investment. It's investment to you is entirely speculatory.

 

[johnp]

Casin0. I'll sit down at a baccarat table and pull out a larger return on my investment than I will ever make in the stocks. Then I'll get up and go home. Most people can't do that though - win and go home at the right time.

I'll get involved in stocks at some point. But I learned a lot about investing from the casin0. I learned all about hedging, stop-losses, etc...The problem is that it's so risky and you can't do it from home in the US.

 

[odihost]

I've put my 80% more of my money into stock. Stock is the best investment in the world. We have Warren Buffet as an example. My target is 30% a year, and i'm currently about 28% this year. I live in Indonesia now, so it's easier to find company that grows 30% per year and there are a lot more that grows 20%. When I say 20% that means on average they grow 20% in 5 years.

 

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[dknise]

I've put my 80% more of my money into stock. Stock is the best investment in the world. We have Warren Buffet as an example. My target is 30% a year, and i'm currently about 28% this year. I live in Indonesia now, so it's easier to find company that grows 30% per year and there are a lot more that grows 20%. When I say 20% that means on average they grow 20% in 5 years.

Warren Buffet... is a true investor. If you use him as an example, you would be investing your money in people, ideas, and businesses rather than the stock market haha.

 

[MJ DeMarco]

We have Warren Buffet as an example.

LOL.

Poor example and an apples-to-oranges comparison.

Warren Buffet invests in stocks that he can control and/or assert policy. He isn't on his eTrade account buying stocks.

Carl Icahn does the same thing.

These billionaire stock investors all share a common investment strategy --- GET CONTROL where INFLUENCE can be ASSERTED. (Via large share ownership, voting blocks, and seats on the board of directors) -- in other words, they seek to influence company policy to THEIR WISHES to effect shareholder value.

CAN YOU DO THAT? Commandment of Control anyone?

When you light up your eTrade account and buy a stock, you have no control. No influence. No decision making power. (I wouldn't call your shareholder voting power particularly influential)

Sorry, but when you invest in a stock, determining when to buy or sell is the only control you have.

 

[Jake]

He also has the power to influence government and taxpayers in his favor.

Buy company> tell everyone the world will collapse if company does not receive a bailout> company gets billions> profit.

 

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[odihost]

MJ, not all Buffet strategy we can use. He can buy cheap company in order to liquidate it. Buying company which is worth 10 and sell it for 15. I don’t use that strategy. You can’t follow all his strategy. I’m not investing in stocks, but in business. Business that is proved to grow in the past. This does not mean they will keep growing in the future. When buying business that means, you are not buying stock today and sell it tomorrow. A lot of people do day trading and think they are already investing in stock. For me they are not investing, they are just trading.

You don’t need to have control of a company. There are many strategies that Buffet use. There is a strategy that needs to have control of the company so you can liquidate it. And there is strategy that you don’t need to have control. The companies already run by it self or it has a great management, a great CEO. When I buy a stock that means I trust the management to grow business. I don’t need any control.

 

[odihost]

BTW, I don't trade stocks. I invest in it, meaning I don't buy it this week and sell it next month. I have stock that is currently gaining 90% and have stock that is losing 20%. Both are still open. Currently my portfolio has gained 28% this year. The only reason I sell if I found another better stock or the company's fundamental has changed.