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Post by steadyeddy on Jul 5, 2023 11:36:32 GMT
Curious what the forum members use re: index-based equity investments...
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Post by steadyeddy on Jul 6, 2023 3:00:34 GMT
With 21 voters and 53 votes, focus appears to be the US stock market - and S&P500 leads the list. I am surprised that active equity investing only got 2 votes (so far).
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Post by roi2020 on Jul 6, 2023 3:17:00 GMT
With 21 voters and 53 votes, focus appears to be the US stock market - and S&P500 leads the list. I am surprised that active equity investing only got 2 votes (so far).
I use both active and passive investments.
There wasn't an option available for this scenario.
I selected S&P 500 and Other although most of my funds are active.
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Post by steelpony10 on Jul 6, 2023 10:42:17 GMT
steadyeddy , Even the pros can’t beat the indexes. If posters are sharp enough to have a portfolio I think most realize the futility of “only” using individual stocks. I think the traders are just dabbling for something to do, a hobby, hopefully not a gambling one. Besides a motive like that I think Buffet is correct* *I’ll add though early investments in AAPL, MSFT and INTC made our retirement. I luckily was guided by seasoned investors from the 60’s into the late 80’s. Core and explore might be a good method for young investors to dabble and learn.
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Post by mnfish on Jul 6, 2023 12:06:10 GMT
steadyeddy , Even the pros can’t beat the indexes. If posters are sharp enough to have a portfolio I think most realize the futility of “only” using individual stocks. I think the traders are just dabbling for something to do, a hobby, hopefully not a gambling one. Besides a motive like that I think Buffet is correct* * I’ll add though early investments in AAPL, MSFT and INTC made our retirement. I luckily was guided by seasoned investors from the 60’s into the late 80’s. Core and explore might be a good method for young investors. Bingo! So why wouldn't a retiree continue to be invested in the single stocks of good companies? Maybe kathiel could reply as well. |
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Post by mozart522 on Jul 6, 2023 12:29:45 GMT
Why is total stock market like VTI not in the poll?
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Post by steadyeddy on Jul 6, 2023 12:58:08 GMT
Why is total stock market like VTI not in the poll? , good catch. It was an oversight on my part. I should have included both total US market, and total world market as well in the options list. Apologies. For now, I guess one can pick both S&P500 and US Extended Market options to get the US total stock market. |
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Post by steadyeddy on Jul 6, 2023 13:02:27 GMT
steadyeddy , Even the pros can’t beat the indexes. If posters are sharp enough to have a portfolio I think most realize the futility of “only” using individual stocks. I think the traders are just dabbling for something to do, a hobby, hopefully not a gambling one. Besides a motive like that I think Buffet is correct* * I’ll add though early investments in AAPL, MSFT and INTC made our retirement. I luckily was guided by seasoned investors from the 60’s into the late 80’s. Core and explore might be a good method for young investors. Bingo! So why wouldn't a retiree continue to be invested in the single stocks of good companies? Maybe kathiel could reply as well. Some have successfully owned and built portfolios with individual stocks. It takes a certain discipline and fortitude to bear/enjoy the swings of the price volatility. I for sure do not have those attributes and thus I do not own any individual stocks. |
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bruce
Lieutenant
Posts: 56
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Post by bruce on Jul 6, 2023 13:44:12 GMT
With 21 voters and 53 votes, focus appears to be the US stock market - and S&P500 leads the list. I am surprised that active equity investing only got 2 votes (so far).
The results attest to how well-informed and experienced the forum members are. |
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Post by win1177 on Jul 6, 2023 13:54:23 GMT
VTSAX and VEXAX are two that are major holdings for us, Vanguard Total Stock market index and Extended Market index Admiral respectively. Cover the whole US market, can use the extended market to increase volatility/ potential returns.
We also started out going heavily into individual equities, have done very well holding wide moat dividend growers for the long run. Many of these we will continue to hold, pass to heirs to (hopefully) get step up in basis.
Win
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Post by steelpony10 on Jul 6, 2023 18:06:26 GMT
mozart522 , Well VTI is about 80% the S&P 500. I just voted there. mnfish , steadyeddy , Individual stocks are thought to be way more risky then funds, indexes, bonds etc. Again I lucked out early being told don’t try to choose the winners just invest in the suppliers like the gold rush. So during the start of the internet the suppliers were MSFT, AAPL and INTC. Believe me I just crossed my fingers. The ones I were listening to had 30 years experience and I was still scrambling for dollars with a wife and young kids.
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Post by bigseal on Jul 7, 2023 9:51:54 GMT
With 21 voters and 53 votes, focus appears to be the US stock market - and S&P500 leads the list. I am surprised that active equity investing only got 2 votes (so far).
The results attest to how well-informed and experienced the forum members are. I wouldn’t jump to that conclusion. Many people collect funds which is total nonsense. Just because they own an index fund doesn’t mean it is a really meaningful part of their total portfolio. |
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Post by steelpony10 on Jul 7, 2023 11:04:09 GMT
bigseal , A basic way to invest in my opinion is from research, choosing an investment or investments that will do the job long term based on managements ability to maneuver under a variety of market conditions. In our case I’d develop a list of options to challenge that assumption and as I got more experience or my goals change we would see if that continues to work long term. It’s hard to beat investments in either VOO or VTI/VTSAX long term because they are made up of the most profitable and innovative companies in the world and many operate overseas providing TR over continents if that is ones goal. Adding further customization to that core holding to meet your needs should do it. As an income investor we chose a bond product to counter the 3 of 10 years when equities don’t work well trying to avoid overlap. Some may collect funds because investing is a pastime or hobby in retirement. Maybe that meets a need other then monetary.
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Post by steadyeddy on Jul 7, 2023 11:57:23 GMT
S&P500 and Dividend Index(es) are standing out so far based on 70 votes by 28 voters. I can see why as steelpony10 explained in the post above. That is statistically significant. This poll will auto-close on 7/15. |
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Post by steadyeddy on Jul 7, 2023 12:10:54 GMT
The results attest to how well-informed and experienced the forum members are. I wouldn’t jump to that conclusion. Many people collect funds which is total nonsense. Just because they own an index fund doesn’t mean it is a really meaningful part of their total portfolio. , you DO have a point. I am one of those folks that in the past believed in holding a large number of funds, but I have been cutting down to a much smaller number in the recent years. More to go... |
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Post by Chahta on Jul 7, 2023 13:06:05 GMT
I wouldn’t jump to that conclusion. Many people collect funds which is total nonsense. Just because they own an index fund doesn’t mean it is a really meaningful part of their total portfolio. , you DO have a point. I am one of those folks that in the past believed in holding a large number of funds, but I have been cutting down to a much smaller number in the recent years. More to go... I believe the equity market can be captured in 2-3 funds. However bond funds are a different matter to me. Yes you could own BND but that severely limits income potential. Maybe 4 bond funds are better than 1 "eggs all in one basket". |
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Post by steadyeddy on Jul 7, 2023 19:53:18 GMT
bigseal , you DO have a point. I am one of those folks that in the past believed in holding a large number of funds, but I have been cutting down to a much smaller number in the recent years. More to go... I believe the equity market can be captured in 2-3 funds. However bond funds are a different matter to me. Yes you could own BND but that severely limits income potential. Maybe 4 bond funds are better than 1 "eggs all in one basket". PIMIX is becoming my single bond fund of choice. Occasionally I do trade BLV or TLT when fear strikes like it did yesterday. |
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Post by retiredat48 on Jul 8, 2023 16:52:05 GMT
The poll did not provide a choice of actively managed funds...it asked "no indexes/active managed only."
Note this folks. AFAIK still true: ALL (100%) of Vanguard ACTIVELY MANAGED FUNDS have bettered their index counterparts in total return since inception date.
The key is low fees. No need to compare with actively managed universe...index funds do better. But compare with Vanguard low cost alternatives...a different story.
R48
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Post by kathiel on Jul 8, 2023 23:40:15 GMT
Hello, friends,
Sorry I'm rather late to the thread. When I saw this thread, I didn't respond, as I own no indexes, indeed, no mutual finds at all. I have accumulated individual stocks that meet my needs. They are mostly dividend-paying stocks, but I have goodly amount in Apple. While Apple does pay a tiny dividend, I own it for the capital appreciation. (My cost basis is lower than Buffet's)
I rarely make changes in my portfolio these days. My rule is to sell a slice of a stock when it is more than 5% of my portfolio. Apple is above that right now, but I am holding a bit longer before I sell some.
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Post by mnfish on Aug 16, 2023 11:38:45 GMT
Hope this is a good thread to post a quote from Bill Nygren off of a Mstar interview
On indexes -
" But investors, I think, have become blind to how concentrated indexes have become. If you’re investing in a Russell Growth Index or a Nasdaq-100 Index, under SEC rules, you can’t even call that a diversified fund anymore."
"our largest position happens to be Alphabet in Oakmark Fund, but it’s half the weighting at like 3.5% of our portfolio of what the largest names are in the S&P 500. Both Apple and Microsoft (ie: VFIAX)) are roughly twice the level of investment that we have in Alphabet. And ironically, we have to put disclaimers on any of the material we publish that basically say, because we’re so concentrated, the investor needs to realize they’re potentially taking on excess risk. The indexes are more concentrated than we are now, and they don’t have to make that same disclaimer.
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Post by steadyeddy on Aug 16, 2023 12:38:16 GMT
Hope this is a good thread to post a quote from Bill Nygren off of a Mstar interview On indexes - " But investors, I think, have become blind to how concentrated indexes have become. If you’re investing in a Russell Growth Index or a Nasdaq-100 Index, under SEC rules, you can’t even call that a diversified fund anymore." "our largest position happens to be Alphabet in Oakmark Fund, but it’s half the weighting at like 3.5% of our portfolio of what the largest names are in the S&P 500. Both Apple and Microsoft (ie: VFIAX)) are roughly twice the level of investment that we have in Alphabet. And ironically, we have to put disclaimers on any of the material we publish that basically say, because we’re so concentrated, the investor needs to realize they’re potentially taking on excess risk. The indexes are more concentrated than we are now, and they don’t have to make that same disclaimer., good post. Additionally, the concentration is simply in technology sector. That is really troublesome. |
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Post by johntaylor on Aug 16, 2023 14:33:56 GMT
In 1981, NY Times did an article "Next, a Computer on Every Desk" and in 1982 PC Magazine began publishing.
Young investors sensed the opportunity of a lifetime.
But recently noticed an old fund of mine is 9% Microsoft and 7% Apple.
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Post by steelpony10 on Aug 16, 2023 16:12:39 GMT
In 1981, NY Times did an article "Next, a Computer on Every Desk" and in 1982 PC Magazine began publishing. Young investors sensed the opportunity of a lifetime. But recently noticed an old fund of mine is 9% Microsoft and 7% Apple. Hey that was me. Those were our first two (of three) growth stocks. Add in the high percentage in VTI along with our remaining shares and they’re still our largest holdings. |
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