Money Hamster Wheel

[Anonymous]

Anonymous wrote:
I bought AAPL when it was cheap.
It's hard to guess what the next Apple is (maybe there isn't one), but I advise investing long-term in the magnificent 7.

So many people hyperfocus on salary and ignore their investments. You hardly ever get rich with salary alone, OP.

This is why most people should not buy individual stocks: “You should buy the Magnificent Seven at sky-high valuations because they’ve done extremely well in the last decade!”

Do you know what happened the last time tech stocks did extremely well (the dot-com boom)? The same stocks – as measured by the NASDAQ – dropped by 82%! Also, all the trends from the 90s reversed themselves over the next decade: international stocks outperformed US stocks, gold rose by 500% after not doing much previously, etc.

How are you going to feel if your tech stocks drop by 82% over the next few years?

[Anonymous]

Yeah, I stick to SP500. To make it big with a single stock is a big gamble because it still requires outsize investment. I also invested in the Google,Amazon and Apple a long time ago in early 2000s, but it was only about 15K, now it is 200k so nothing life changing. I was young then and did not have any gambling money of significance available, but I doubt that today I would invest a couple 100k in a single entity with uncertain return even though we are comfortable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
I bought AAPL when it was cheap.
It's hard to guess what the next Apple is (maybe there isn't one), but I advise investing long-term in the magnificent 7.

So many people hyperfocus on salary and ignore their investments. You hardly ever get rich with salary alone, OP.

This is why most people should not buy individual stocks: “You should buy the Magnificent Seven at sky-high valuations because they’ve done extremely well in the last decade!”

Do you know what happened the last time tech stocks did extremely well (the dot-com boom)? The same stocks – as measured by the NASDAQ – dropped by 82%! Also, all the trends from the 90s reversed themselves over the next decade: international stocks outperformed US stocks, gold rose by 500% after not doing much previously, etc.

How are you going to feel if your tech stocks drop by 82% over the next few years?

The tech stocks I have won't drop that much. I expect them to fluctuate. But the fundamentals are very strong, and barring an act of God, after which nothing will matter anyway, the technologies I invest in are here to stay, and the companies I picked are the best positioned to get their needle out of the haystack. You clearly don't know what you're talking about, PP. The dot.com bubble was the birth of the commercial internet. It had nothing to do with the products sold by companies, it was the new way of selling (through the internet) that was a wild ride. And it's not the last time tech has done well. Tech has always done well, maybe you weren't paying attention and didn't focus on quality R&D and products.

You've got to have some industry knowledge to invest successfully. I have it, for high tech. I'm not going to invest in something I don't know about, like food conglomerates or freight corporations. And I learned my lesson for biotechs (stay away).

Feel free to rant while I live my nice life.