@wa3more wrote:Mong,
you are smart enough to know your limitations and realize that you can beat them at their own game by keeping it simple.
It is just so hard to believe that wall street is crawling with some of the smartest people in the world, with MBA's from these big ivy league schools making millions of dollars every year and they can't beat the market. And they keep plugging away every year and underperforming every year.
In addition to not being able to beat the market , they are also charging you up to 5x time the expense ratios. Am using an vanguard TR fund that has everything with an very respectable expense ratio.
@ptilda wrote:Argh! Feeling a little bit underwater again.
First, expense ratios. Mine seem to be manageable (under 0.1% and some at 0.02%). I think I'm ok there.
Because I work for Comcast & can get the 15% off deal, I have a lot of Comcast stock. I am looking at other stock to grab onto in the next couple of years as my portfolio grows. I had thought of investing in a couple of steady performers (Apple, Waste Management, etc) in addition to Comcast and then keeping the others as index funds. Once I can get $2,500.00 available, I might play with some mutual funds because, this is fun for me, and I'm not frightened to take some chance and try new things.
Thanks for your input all, I really enjoy reading these posts. Even though my understanding is partial, I feel it's helping me to prepare for the next few years.
Expense ratios lower that.2% is fine. I am not fan of picking individual stocks too hit or miss
@Jazzzy wrote:
@wa3more wrote:Warren Buffett is a big fan of concentrated portfolios, owning the best 5 or 10 stocks, the ones that you know the most about. He says you can't take a whole bunch of girls to a dance and expect to get to know any one of them very well. Also, diversification is insurance against ignorance.
Rothchild used to say.. put all your eggs in one basket and watch that basket closely.
The main point is to know what what own or understand what you are investing in. That's why for 9 out of 10 people, index funds are the way to go. But people watch Cramer of listen some guy on CNBC and think they can pick their own stocks and beat the market. Then they lose their shirt.
Picking good stocks and sticking with them is not impossible....it just takes a little more work and a little more nerve. My biggest holding is Apple. I have had it for years. I also own a homebuilder that has done very well for me. I have other smaller holdings, but these are my two largest. I also have some funds, but I like the challenge of investing in some individual stocks. I sold Netflix after a 42% gain....and then it just kept going up. I should have held it.
Individual stocks aren't for everyone, but it keeps things interesting.
Stocks aren't for everybody especially those that don't check stocks multiple times an day imo. For me i have an basic TR vanguard fund for my roth ira, its easy i don't really have to do anything other than put money into it. I am going with an more aggressive asset allocation but its good enough for me :-)
I would love for stocks to "be for me," but I don't have the time OR the focus 
@ptilda wrote:I would love for stocks to "be for me," but I don't have the time OR the focus
Too risky for me :-)
I put my assets into a mix of real estate, index funds, bond funds, and a small amount in precious metals. Most financial planners will diversify you in stocks and bonds but don't like real estate or metals. Basically, the idea of diversificaion is to reduce volatility in asset classes by investing in a wide variety that countermove. The younger you are the more heavily weighted you should be in stocks which tend to rise more over multiple decades. As you get older the stock portion should decrease gradualy.
