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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My wife works at a financial profit and I work at the SEC with a 470K in combined income.  Our 3M home in Langley is already paid off.  We have about 10M in savings because I purchased Apple stock in 2001.  We’re very lucky.  I am 56 and DW is 38.  I am going to retire soon.[/quote]

Love this story! A close friend’s colleague bought Apple stock in the late 90s because her kid liked the Apple symbol! Instead of buying a new iPhone in 2015ish I invested that amount in stock and it’s up over 500%. Other than that I have a pension coming plus $350k in a 401k and $50k in multiple brokerage accounts. I 50 now, no kids, and want enough to be comfortable at retirement but know too many people who, sadly, passed at or before retirement to deprive myself today. [/quote]This is an interesting lesson for newbies and older folks like my self. 63.  I was cautious in my early 30s as I was constructing my investment portfolio, picked some dividend payers and a few growth stocks but mostly diversified mutual funds.  So I really never hit a home run on my stock investments.  And while my stock mutual funds have kept up with the market, no clear out performance.  But most of us  don't have the time or inclination like Charlie Munger to do the research to pick quality firms. But individual stocks  clearly have the ability to out perform, or in some cases, one stock can  make you financially independent.  Like Apple, NVDA, AVGO, XOM if bought years ago, etc.... Amazing stories of wealth building with stocks. [/quote]

Y'all really need to read "A Random Walk Down Wall Street."  Low cost index funds as boring as they are have the greatest likelihood to make you rich over time, not much else will.  Sure a few stock picks here and there might make you rich--but they have a greater chance of not panning out.   Charlie and Warren are one of the few analysts who have a track record that beats the market long term--and they are buffered by the fact that they also own companies--and access/information we don't.

I pick individual stocks for about 5-10% of my portfolio--I have had some great gains (I bought NVDA and TSLA years ago) but over a 20 year period my picks haven't beat the S&P500--I usually end up just hovering about .5 percent below when all is said and done--though I have had times where I was 60% above.  Beats my DH who is well below though--and that's all that matters really since we do it as a friendly competition.  We consider it a hobby.[/quote]

+100

Everyone posting about how they got rich off AMZN, AAPL, or GOOG needs to realize they got lucky and are outliers.  Most people - even knowledgeable people - should NOT pick individual stocks.  Even among highly-paid money managers, only 7% beat the S&P in any given year.  And the 7% that do it this year are not the same 7% that do it ten years from now.  Over a 30-year period, fewer than 1% of money managers beat the S&P -- and they are paid millions to attempt it full-time, not half-ass it after they get off their GS-14 job.[/quote]

+1.  Stock market is gambling pure and simple.  Investing by diversification is much better and investing with the mindset that you are growing your money is a good one but the expectation that you'll hit it rich on a poker hand is silly when you're not a pro gambler anyway.  Which is pretty much what you're doing when you do individual stocks.  Cash is king.  My parents were self made businesspeople who definitely invested but their philosophy was always if you need more money work and make more.  Investing is the cherry on top, never going to be your meal ticket. [/quote]

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