Quote:
Originally Posted by XutvJet
Quote:
Originally Posted by Masterplan
I'm trying to build a longer term portfolio.
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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!