Boiler Room: The Official Stock Market Discussion

[Reign X]

How Much Cash Should You Keep in Your Portfolio?

Buffett is fond of saying cash is like oxygen—everyone needs it and takes it for granted when it's abundant, but in an emergency, it's the only thing that matters.

- I’m a bit over 10% now, maybe I’ll try and get to 15%. 20% would be more ideal but I don’t wanna miss out on too much gains.

 

[FabTrey]

Yeah BRKB has underperformed the S&P over the last decade, and Buffett’s likely to miss out on a lot of these growth stocks because he only invests in things he understands (although they did scoop up SNOW’s IPO....im sure that was someone else’s call). But 20% is a number only a small percentage of investors have achieved over the past few decades.

I’m up triple digits on the year, but I’m keeping a level head because I know a few of the exploits in the market right now won’t last forever. If Cathie decided to not make ARK’s trades transparent a lot of geniuses in this market would take a hit.

youtube and internet has changed the game. it's no longer a rocket science. FE picks his own stocks and so far so good. cathie da gawd is great. ARK is truly a gift from heaven.

 

[KalKal]

how many times i have to explain to yall.

it's much easier to return 20%+ when you don't deal with billions of dollars because you can have much higher risk tolerance.

just look at buffet's portfolio. it's almost impossible to return 20%+ if you are this diversified. he has almost zero risk tolerance if you ask me.

if you are investing in 40, 50, 60 stocks then you might as well just invest in S&P.


and bear market is the greatest thing that happened to investors. that's when you load the boat. i have money ready to be deployed when the market crashes. i'm ready to dollar cost average at any market climate. bear market only means i'm building my position. let's say BYND never grows and keeps trading between $120-$150 for next 5 years and still they are growing and expanding like how Tesla was between 2012-2019. i would load the boat if it happens. my % in that stretch may say nothing. but i know there will be a day when it will break out like a mofo.

and honestly, i hate this bull market. everything is so damn expensive. I can't buy any of these expensive stocks. you can find undervalued stocks, but there aren't many out there.

my biggest wish list is a 20% crash next year. and year after that. hell please make it happen every year. i'm ready to load the boat.

But let's say one of those stocks starts dropping, and keeps dropping. Do you dollar cost average all the way down to $0?
What if ALL of them drop at the same time?

 

[FabTrey]

But let's say one of those stocks starts dropping, and keeps dropping. Do you dollar cost average all the way down to $0?
What if ALL of them drop at the same time?

I'll know when the stock no longer has the future. I got out of CCL and sold at $22. Took a major loss.

You can't hit a homerun every time. There's gonna be a plenty of fail.

My goal is to find a 10x stock and build a position early and often. That way I can just sit back and relax because I know I got in early while it's under valued.

but the long hold doesn't mean I'll hold forever.

I'm ready to jump ship anytime.

 

[winb83]

this was Apple's return every year
AAPL stock yearly return - TradingNinvestment

returned over 25% past 10 years.

to get 20% average, you can't be too diversified. you need several APPLs and couple of explosive growth stocks.





that's s&p. so in order to do 20% average you have to beat the market convincingly.

like how TSLA investors are doing. like how APPL investors doing for past 15 years. AMZN investors.

if you pick a right stock long term 20% is achievable.

If you pick the right numbers you would win the lottery and become a millionaire overnight. If you start the right business you could be a billionaire. Just because something is possible doesn't mean it's likely. Maybe you're willing to invest the majority of your money in a single company and hope it averages 20% growth for a decade. Even just that willingness doesn't mean it will happen. You could pick a dud.

For every AAPL, TSLA, and AMZN investor that hit it big on those companies there are probably far more examples of people who invested and got modest gains at best and probably many more who bet it all on a company and lost everything. It's easy to look at people's results in hindsight and say that success of that level can be reasonably expected but those results aren't typical.

I wouldn't let the fact that you could have done something fool you into thinking that you will do it.

 

[winb83]

Yes. We live in a different era now.

People aren't factoring in options in the equation. Most people are speaking from the Buy & Hold antiquated strategy. Options adds so many elements to the game, you can 50% a year off of a sideways stock. Not to mention growth stocks that break out like TSLA.

If I do options on ARK-Series, a 20% yearly stock inflation would be 100-200% a year.

Stock options have existed for a long time. They just didn't pop up recently.

 

[Kyle C. Barker]

Is anyone here holding any REIT shares?

 

[Koli_Kat]

Is anyone here holding any REIT shares?

Yes, through fundraise.

 

[Kyle C. Barker]

Yes, through fundraise.

Is fundraise the name of the reit?

And if so how often do they disperse a divergent for you?

 

[NkrumahWasRight Is Wrong]

Is anyone here holding any REIT shares?

Nrz

 

[Panther]

Is anyone here holding any REIT shares?

O and APTS

i've also been looking at spg

 

[Kyle C. Barker]

Nrz

O and APTS

i've also been looking at spg

Good looking out.

Have the two of you been satisfied with the dividends?

And how do you feel about real estate investment through these channels versus straight up buying property?

 

[Koli_Kat]

Is fundraise the name of the reit?

And if so how often do they disperse a divergent for you?

It's the name of an app that invests in commercial and residential reits. Helps separate my reits from my stock portfolio.

 

[Reign X]

Ark Investment's Cathie Wood: Ahead of the Curve - CoinDesk

just read this, it was worth it. Arkk is averaging 30% return since inception in 2014. Their goal I saw in another video is 20%+.

most of us missed out on not loading up on Tesla early. I don’t know if we’ll see something that easy again (post bankruptcy fears from trying to scale and pre stock sky rocketing, that specific period of time).

the market won’t always be as fun as it has been now. Doubling or close of portfolios in a year is rare. It’s been a fun time, maybe it continues a few months. Read some supposed good analyst expect stocks to go up rest of this year and then a 5-10% pull back early next year. I don’t try to time the market though, will sit back and watch.

I’ve been slacking on getting some exposure to bitcoin. Goal is to end that by Tuesday.

 

[IrateMastermind]

But let's say one of those stocks starts dropping, and keeps dropping. Do you dollar cost average all the way down to $0?
What if ALL of them drop at the same time?

This is an inquisitive post not an argumentative post.

who was the last person you know with a diversified portfolio that woke up with no money by buying shares.

I get using margins but the only person I know that took a stomach turning loss was my coworker in 2009. He said he had over 1 mil before the recession and he still had a little less than 400k. He was in his late 40’s and wasn’t planning to retire soon so he shrugged it off. I’m sure he recovered by now.

what am I missing? What do people expose themselves to to get to zero? Even a portfolio of sears, wachovia and gm in 2008 would’ve turned into a decent portfolio of Wells Fargo and gm shares.

I’m seriously asking to avoid whatever it is people do to end up negative or zero.