Reply to Do many households here have $15 M net worth or more?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Has anyone noticed that in DCUMlandia nobody has EVER picked a stock loser?!?

This place is magical. [/quote]

This.

I'm one of the PPs who is worth >$20M in our mid 40s (husband is in finance). He routinely is asked by friends which individual stocks they should invest in. His response? Index funds, index funds, index funds. His position is that he does it for a living and it's incredibly hard - you'd be a fool to risk your life savings on individual stock investing. Wanna play around and have fun? Go for it, but earmark a small amount for that and otherwise - index funds. He practices what he preaches, and our nest egg is invested accordingly.

Yet so many single stock winners here![/quote]

PP here. That's good advice for the average joe. But I'm not a single stock winner....more like a multiple stock winner with some losers here and there.  I would never put all my eggs in one stock basket. And just because you work in finance doesn't mean you know how to pick stocks. Doesn't make them anymore qualified. I have lots of friends in finance and they don't know any more than the next guy about picking individual stocks. They say the same thing as your husband. Anyone can learn to read a P&L statement, balance sheet, perform discounting cost models, listen/watch earnings calls (body language & voice inflection can be very telling by the way), perform channel checks, talk to experts in the industry, etc. Those things are helpful for more mature companies but not companies in their early stages.  You don't need a fancy degree to do that when it can be all learned online for free if you have the time and the desire. But in the end, do as Buffett says, invest in what you know and diversification is for people who don't know what they're doing. I bought a lot of stock in a boring non-tech company called AutoZone back in 2002 around $75/share because I repair the two cars I own and always buy parts there. Thought it would make a great investment. I'm sure you've heard of it. Good management, good cash flow, profits, expansion, management repurchases stock, etc. And car owners are keeping their cars much longer than before especially during and post-COVID thus driving up the need for car parts. The stock now trades for about $3790 for almost a 5000% gain and has made me a deca-millionaire. The S&P500 index in the meantime is up about 600% in the same timeframe. Boring stock for a company that I knew was growing and has made me wealthy. You don't have to pick the next great tech stock. Think out of the box. If you want to go with the flow and take minimal risk then sure go with index funds. [/quote]

I know one person whom lost their savings twice on individual stocks. So you were just incredibly lucky, nothing more. Most people would prefer to double their starting capital every 7 years in index funds  over loosing everything [/quote]

Nope. There was some luck for sure in the beginning but continuing to hold for 25+ years seeing the trends in the industry was not.[/quote]

If you’re truly so skilled you should be running a multi billion dollar HF.

Nothing like the longest bull market in history to produce this kind of hubris. [/quote]

The longest bull run in history was from 1982 to 2000. I bought boring AZO in 2002 (during the tail end of the dot com bust) and am now up 5000% since then even holding through the 2008 financial crisis that saw markets slashed by almost 54% from October 2007 to March 2009. Keep trying to put me down though. Having online conversations with uninformed people like you is exhausting but it does provide some entertainment.

in AZO even after  Keep trying. You’ll get there. [/quote]

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