Bill For predicting the stock market’s short-term gyrations I prefer to have Greek priests interpret goat entrails. For an investor, as you note, the key element is tolerance for risk. I consider the biggest danger when the market drops sharply is to sell, unless this is a stock in which you no longer have confidence in its core business…
Bill For predicting the stock market’s short-term gyrations I prefer to have Greek priests interpret goat entrails. For an investor, as you note, the key element is tolerance for risk. I consider the biggest danger when the market drops sharply is to sell, unless this is a stock in which you no longer have confidence in its core business.
I have no clue as to where the stock market will be in five years and which stocks will be winners. (And losers).
I adopted a buy-and-hold strategy over 60 years ago. In early 1960s I decided not to buy/holding manufacturing company stock. Pharma, insurance, several consumer stocks were my core, modest investments. I also saw no advantage in balancing my portfolio between stocks and bonds. Especially in times of high inflation, the redemption value of a bond plummets in real dollars.
One needs guts, stupidity, and luck to stand firm with my investment policy. In real dollars, between Dec. 1969 and February, 1982 basic stock indicators plunged over 50%. On October 28, 1987, in a single day the market plunged 28&. At the start of the pandemic, some stocks fell by over 50%.
My buy-and-hold-strategy, plus luck, has worked out well for me, with some very modest investments 50-60 years ago doing spectacularly. My belt-and-suspenders in recent years has been to include some stocks that pay 3-7 percent dividends. I do not like paying capital gains and have done this rarely. I don’t understand tech stocks, consider Bitcoin Bitcon, and don’t invest in oil or tobacco. I look at the daily stock market much like I glance at sports scores. Of course, being 88 next month, my long-term horizon is shorter than for my kids and grand kids, for whom I intend to provide moderately, after my wife’s and my charitable legacies. CALCULATE YOUR PERSONAL RISK QUOTIENT, DON’T PANIC WITH A SHARP MARKET DROP [since August, 1982 the Dow has gone from 762 to unimaginable heights), AND PRAY FOR LUCK TO COMPENSATE FOR YOUR STUPIDITY.
Bill For predicting the stock market’s short-term gyrations I prefer to have Greek priests interpret goat entrails. For an investor, as you note, the key element is tolerance for risk. I consider the biggest danger when the market drops sharply is to sell, unless this is a stock in which you no longer have confidence in its core business.
I have no clue as to where the stock market will be in five years and which stocks will be winners. (And losers).
I adopted a buy-and-hold strategy over 60 years ago. In early 1960s I decided not to buy/holding manufacturing company stock. Pharma, insurance, several consumer stocks were my core, modest investments. I also saw no advantage in balancing my portfolio between stocks and bonds. Especially in times of high inflation, the redemption value of a bond plummets in real dollars.
One needs guts, stupidity, and luck to stand firm with my investment policy. In real dollars, between Dec. 1969 and February, 1982 basic stock indicators plunged over 50%. On October 28, 1987, in a single day the market plunged 28&. At the start of the pandemic, some stocks fell by over 50%.
My buy-and-hold-strategy, plus luck, has worked out well for me, with some very modest investments 50-60 years ago doing spectacularly. My belt-and-suspenders in recent years has been to include some stocks that pay 3-7 percent dividends. I do not like paying capital gains and have done this rarely. I don’t understand tech stocks, consider Bitcoin Bitcon, and don’t invest in oil or tobacco. I look at the daily stock market much like I glance at sports scores. Of course, being 88 next month, my long-term horizon is shorter than for my kids and grand kids, for whom I intend to provide moderately, after my wife’s and my charitable legacies. CALCULATE YOUR PERSONAL RISK QUOTIENT, DON’T PANIC WITH A SHARP MARKET DROP [since August, 1982 the Dow has gone from 762 to unimaginable heights), AND PRAY FOR LUCK TO COMPENSATE FOR YOUR STUPIDITY.
Your wisdom is stunning. Your humility is refreshing.
Thank you, Professor, for sharing your wisdom and personal experience!