So if you had $50K to invest, where would you put it?

[XutvJet]

Originally Posted by Masterplan

I'm trying to build a longer term portfolio.

If you're really trying to build a long term portfolio, you shouldn't be wasting any time with stocks. The odds are completely against you in the long term. You need to spread risk and diversify. If you want want to build a solid long term portfolio and are shooting for $1M-2M by the time you retire, the formula is very simple. Depending on your age and risk tolerance:

80%-90% in low fee S&P 500 index funds
10%-20% in low fee short-term government bond funds

You will beat 98%+ of investors trying to time and guess the market over the long term (20+ years). That's a fact. I promise you, if you stick with it, your portfolio will snow ball.

Once you get to around $500K-1M, then start thinking about playing around with $10K-50K every year in a stock or two that spark your interest. Once you get to $3M or so, then you might want to consider the help of a professional and perhaps start looking into other investment vehicles like real estate, REITs, etc.

Yes, the plan I note (which comes directly from Warren Buffett) is simple and boring, but it works. Period.

If you have the funds right now, it is a great time to think about getting in.

Right now, I've got a significant amount in my cash "war chest" and I'm eyeballing Tesla.

[3798j]

^ No argument there. Long time Jack Bogle fan...totally pleased self directing myself among the Vanguard family of mutual funds...indexed and managed.

[XutvJet]

Originally Posted by 3798j

^ No argument there. Long time Jack Bogle fan...totally pleased self directing myself among the Vanguard family of mutual funds...indexed and managed.

Exactly. It's so freaking easy to manage it yourself. I made the mistake years ago of having a financial adviser (Morgan Stanley) provide investment direction and management. He was the same adviser that manages my parents accounts. I was in all sorts of high fee funds because I didn't know better. The way they buried their management fees was impressive too after I figured out where they were. Over the course of 15 years, I estimate I lost out on about $150-200K in growth by staying in those high fee funds (many of which did not even match the performance of the S&P 500) and the cost of having MS manage my portfolio.

I left MS in 2014 and moved everything Vanguard. In 5 years, my portfolio grew in value by 30% without me adding a dime to it, only reinvestment of dividends and such. That even includes me taking money out to buy my wife her current car ($38K), putting a healthy down payment on my M235 ($15K), and building a $12K deck. Granted I've got other things than S&P 500 index funds and short-term bonds now, but it's still quite heavy towards those two funds.

[Yapakanichi]

Buy oil...

[M3SLOW]

I would invest in a shop if I had the right partner.

[Our03z4]

Originally Posted by Yapakanichi

Buy oil...

I thought so too, apparently a bad plan. I bought USO a few days ago and I'm going to bounce before I take a loss. I screwed up and didn't do my normal research before buying. There isn't really a good way to buy it with out taking a big hit, even if you buy something like Exonn/Mobil

[premier3is]

Originally Posted by Yapakanichi

Buy oil...

In what world is this a good idea right now? Lol

[smyles]

Originally Posted by premier3is

In what world is this a good idea right now? Lol

BP made me few $$, why?

[Masterplan]

Originally Posted by XutvJet

If you're really trying to build a long term portfolio, you shouldn't be wasting any time with stocks. The odds are completely against you in the long term. You need to spread risk and diversify. If you want want to build a solid long term portfolio and are shooting for $1M-2M by the time you retire, the formula is very simple. Depending on your age and risk tolerance:

80%-90% in low fee S&P 500 index funds
10%-20% in low fee short-term government bond funds

You will beat 98%+ of investors trying to time and guess the market over the long term (20+ years). That's a fact. I promise you, if you stick with it, your portfolio will snow ball.

Once you get to around $500K-1M, then start thinking about playing around with $10K-50K every year in a stock or two that spark your interest. Once you get to $3M or so, then you might want to consider the help of a professional and perhaps start looking into other investment vehicles like real estate, REITs, etc.

Yes, the plan I note (which comes directly from Warren Buffett) is simple and boring, but it works. Period.

If you have the funds right now, it is a great time to think about getting in.

Right now, I've got a significant amount in my cash "war chest" and I'm eyeballing Tesla.

Sorry, it was a poor way of saying I wasn't day trading and looking over the longer term.

On your advice regarding the long term, I've 'kinda' been doing that over the last 10 years using tax free allowances here in the UK. Seems to be working out but time will tell!

[Jordan's World]

Pending sale of my car, am planning to aggressively invest these next few years while I'm young. Interest rates are historically low, real estate prices should come down nicely in the next 18 months.

Have been looking to buy property around my alma matter and rent out bedrooms individually since freshman year.

During this difficult time, I think there can be tremendous opportunity for those who are prepared.

[3798j]

This morning, one of my longtime, conservative favorites, Verizon, was kindly reviewed by GoldmanSachs...
"Goldman Sachs added Verizon to its “Conviction Buy” list, saying it offers investors the most attractive combination of total return and risk, thanks to the stability of its wireless business."
Verizon is one of those boring, high dividend (4.8%), stable stocks. Plus, you don't need a brokerage account to purchase. They have both a direct buy program ($250 buy in) and a dividend reinvestment plan. I've owned it for decades now...bought the baby Bell, NYNEX, which subsequently became Verizon. It's been a winner, has manageable debt, good management, and a solid future.
https://www.verizon.com/about/invest...owner-services

[aerostar]

Originally Posted by 3798j

This morning, one of my longtime, conservative favorites, Verizon, was kindly reviewed by GoldmanSachs...
"Goldman Sachs added Verizon to its “Conviction Buy” list, saying it offers investors the most attractive combination of total return and risk, thanks to the stability of its wireless business."
Verizon is one of those boring, high dividend (4.8%), stable stocks. Plus, you don't need a brokerage account to purchase. They have both a direct buy program ($250 buy in) and a dividend reinvestment plan. I've owned it for decades now...bought the baby Bell, NYNEX, which subsequently became Verizon. It's been a winner, has manageable debt, good management, and a solid future.
https://www.verizon.com/about/invest...owner-services

Serious question.

Comparing VZ to something like SWPPX (Schwab Index Fund for S&P), wouldn't I make out better in SWPPX? Or no? Compared it from 2003 until now.

[e90335e36m3]

Originally Posted by aerostar

Serious question.

Comparing VZ to something like SWPPX (Schwab Index Fund for S&P), wouldn't I make out better in SWPPX? Or no? Compared it from 2003 until now.

That's a loaded question. With VZ the likely return is greater than SWPPX, but so is the risk. If you're willing to take the greater risk, by all means go with VZ.

I'm only buying ETFs for now, not willing to take the greater risk with individual stocks with such volatility in the market.

I did buy BA at $90, couldn't pass that up.

[3798j]

Originally Posted by aerostar

Serious question.

Comparing VZ to something like SWPPX (Schwab Index Fund for S&P), wouldn't I make out better in SWPPX? Or no? Compared it from 2003 until now.

A good question...low fee index S&P 500 funds like SWPPX can't be beat long term...and with the S&P getting whipped it's a great time to put money in one.

[MisterF80M3]

Can't go wrong with VOO/VTI.

[e90335e36m3]

Not to say the rational behavior is expected during times like this, but the market is reacting completely irrationally. +6.6 million unemployment claims, CV could potentially kill between 100-240K people, layoffs at major corporations, yet markets open neutral.

[FuriouslyFast]

Originally Posted by e90335e36m3

Not to say the rational behavior is expected during times like this, but the market is reacting completely irrationally. +6.6 million unemployment claims, CV could potentially kill between 100-240K people, layoffs at major corporations, yet markets open neutral.

It's all just a big manipulated scam by the folks at the top with all the $$$

[Littlebear]

Originally Posted by e90335e36m3

Not to say the rational behavior is expected during times like this, but the market is reacting completely irrationally. +6.6 million unemployment claims, CV could potentially kill between 100-240K people, layoffs at major corporations, yet markets open neutral.

I think the market predicted, digested & reacted to these figures for the last two days, going down sharply. The moneyed folks are trying to be in front of any figures coming out in the next few days.
I can't find any rational behavior in this market. Hard to set & buy on even a sector that won't flop around wildly, let alone individual stocks.

Murf

[smyles]

Is market manipulated short term? Absolutely, especially intraday. But long-term, fundamental still apply, so prices reflect those expectations. For example, oil won't be this cheap forever, and even if it does, companies will adjust. Covid will end sooner than later, and society will return to normal, albeit adjusted, consumption. Etc etc.

[e90335e36m3]

Thanks Donny, my limit sell orders got triggered for VTI and VOO on the Saudi/Russia deal, nice little $1000 gain.

[Nuckle]

How do you guys decide when to sell? Do you have a percentage in mind or is it more of a guess based on research? I am up 30%+ on USO right now. I keep thinking sell it but I bought it with the idea it may climb even higher.

I am a noob on single stock purchasing.

[Zara]

Originally Posted by Nuckle

How do you guys decide when to sell? Do you have a percentage in mind or is it more of a guess based on research? I am up 30%+ on USO right now. I keep thinking sell it but I bought it with the idea it may climb even higher.

I am a noob on single stock purchasing.

Depends on your goal. Whether this is a long term investment that you want to hold onto and grow over the years or if you're just in and out for a quick dollar. Just know that the market is very volatile right now and if you're even making 7%+ returns annually then you are doing well.