Anonymous wrote:

Anonymous wrote:
They sound insufferable and are clearly losing money on some of their ventures. I hope for them that the rest of their investments compensate for their mistakes.

We have shared with our close friends that we don't rely on our meager research scientist salaries alone to fund our lifestyle, and that some lucky investing in stocks have helped us along the way. We are considering diversifying in real estate as well. However, beyond that initial information, we have not talked about it.

I think some smart people think passive investing via index funds is boring. They think -- well ANYONE can do that, and I'm smarter than just anyone. That's when they start putting their money into more "interesting" things -- whether it's stock picking; or giving money to an investment manager who they are sure is "in the know" etc. I have a colleague like this. We work at a place where we're somewhat limited in what we can invest in (though practically any fidelity/vanguard fund/ETF is fair game) and she constantly complains about how she's missing out on TONS of private placement opportunities bc she is working there.

Anonymous wrote:Confidence is often inverse of actual skill or ability.

Anonymous wrote:Yes. Usually they haven't been investing very long, and started in a bull market.

Or else they just aren't informed, and live in a glowy bubble.

Either way, I just nod and smile at their espoused "wisdom."

Anonymous wrote:

Anonymous wrote:And acts like their way of investing is the only way - but then they invest in questionable stuff?

I don't talk to people about money in real life bc it's personal, but I have a friend who talks about her investments constantly. She and her DH view themselves savvier than the rest of us "peons who just invest in index funds." Their words. But then they'll tell you they gave 100k to some out of state financial advisor who put it all in energy w/o even talking to them and now he isn't even beating the S&P. Or they'll decide one weekend that they should have an investment property and then go put an offer on one in an over developed area without any real research re is it rentable, how much would it rent for etc and then they'll consider buying said property with an exotic mortgage product so that the property debt isn't just secured by the property itself but also by their other assets. In a way it's impressive that they can throw 100k here and there but in another way it's like - really - are these good investments or just a way to tell friends about your wealth? Anyone run into this?

They: Stupid.

You: Jealous.

Grow up.

Anonymous wrote:And acts like their way of investing is the only way - but then they invest in questionable stuff?

I don't talk to people about money in real life bc it's personal, but I have a friend who talks about her investments constantly. She and her DH view themselves savvier than the rest of us "peons who just invest in index funds." Their words. But then they'll tell you they gave 100k to some out of state financial advisor who put it all in energy w/o even talking to them and now he isn't even beating the S&P. Or they'll decide one weekend that they should have an investment property and then go put an offer on one in an over developed area without any real research re is it rentable, how much would it rent for etc and then they'll consider buying said property with an exotic mortgage product so that the property debt isn't just secured by the property itself but also by their other assets. In a way it's impressive that they can throw 100k here and there but in another way it's like - really - are these good investments or just a way to tell friends about your wealth? Anyone run into this?

Anonymous wrote:Define savvy.

A lot of very good investors believe that investing in index funds and being disciplined enough to let it sit there avoiding the temptation to "chase the dragon" is a very savvy move. You tend to avoid outsmarting yourself.