Investing Discipline

[Charles West]

I am resisting the rash impulse to jump in further than I already have. I woke up the other morning thinking it would be a good idea to take a sizable position in Coreweave ahead of NVIDIA's reporting on Wednesday afternoon, given that the former has come down in share price by over 50% from its high. Still, it also has a negative price-to-earnings ratio of 27%, although its revenues and order backlog are substantial. Since I am a neophyte in search of a clue, I now think it may be prudent to do an exercise in paper trading first, to see if my intuition is worth a chit. Besides searching for validation, I must admit that I am having fun delving into the topic.

 

[Bobby Bucks]

I’m reading more Michael Burry and Howard Marks lately. Especially Burry regarding AI stocks being in a possible bubble, AI is real whereas much of the dot com hype was fake, but even though AI is real and making money, is it still being over hyped? AI P/E is being exaggerated according to Burry. He made some strong accusations about Palintir regarding this.

 

[Gobears81]

Everyone seems to be an AI expert now, but no one seems to notice the executives treating the companies like ATMs. They'll probably rally soon enough, but a lot of good companies out there that no one wants because of everyone's AI myopia.

 

[Charles West]

I heard something about financial markets, the federal government, and Bitcoin this morning, but I'm not sure what the specifics are. The upshot was that Bitcoin will reverse course after whatever the bottleneck is is cleared.

 

[Elliott]

S&P 500 (suggest a Vanguard ETF). Your investing in big real, established companies, with real employees, making real stuff and services.

 

[Charles West]

S&P 500 (suggest a Vanguard ETF). Your investing in big real, established companies, with real employees, making real stuff and services.

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Good advice. I need to be risk adverse, and ETFs are a good way to spread it out.

 

[Mark K]

If you're still working, open an Individual 401K and max it out every year. Then max out a SEP-IRA, and then max out your individual Roth.

If not working, I'd still max out a Roth and IRA and you can self-direct via Schwab, Fidelity, etc. I'd put about 50% in a Large Cap Growth fund and that will give you exposure to the FANNG+ stocks. An S&P index ETF is also a good place to park some money for the long term. Personally I'm at the age where I like some of the preferred stocks paying 6-8% year after year, and then I have a "Rather than go to Vegas" account where I do some gambling. My Palantir is up 180% in the past 18 months. I bought Nvidia in that account and made over 1,000% in 2 years, and my AES is up 40% in about 1 year. I've lost some $$ on some stocks but overall, my total portfolio has returned an average of 11.5% +/- over the past 35 years.

Develop a strategy that fits you and stick with it in up and down markets. Remember the saying..."Buy when there's blood in the streets...even if its your own blood". I was buying stocks like a kid in a candy shop in '08-'10. I bought good quality stocks and they're up about 400% since then.

 

[Charles West]

At 71, I am looking at a 2 or 3-year horizon before I dip back in for some income supplementation or profit taking. I've got a Fidelity US Tech ETF and I should probably stick with ETFs given my knowledge base. Was thinking another third in an energy ETF and splitting another third into smaller holdings of indexes.

 

[Mark K]

Take a look at some Preferred Stock ETFs for a decent return that you can have re-invested or take the income.

5 of the Best Preferred Stock ETFs for High and Stable Dividends

The best preferred stock ETFs allow you to reduce your risk by investing in baskets of preferred stocks.

www.kiplinger.com

 

[Bobby Bucks]

S&P 500 (suggest a Vanguard ETF). Your investing in big real, established companies, with real employees, making real stuff and services.

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I've got a buddy who is one of those Vanguard "Bogleheads" and he is constantly preaching the Bogle method and S & P. He likes Bitcoin almost as much as you do and we have some fun conversations. He is finally considering putting a small percentage in Bitcoin mining stock and treating it like a tech stock.