Tigerbait, while I jumped in the LVVV discussion in this thread, I’m onboard with the others who have recommended sticking primarily to broad market index funds. That was the biggest lesson I learned from ‘A Random Walk Down Wall Street’. I think the stat I hear repeated most is that a simple 3-fund portfolio (total U.S. stock market, total international stock market, and total U.S. bond market index funds) outperforms 85% of actively managed funds. I just use the Vanguard Target Date funds, which is actually a 4-fund because it also adds the total international bond market fund as well. Set it and forget it - don’t try to time the market.

Here are some stats I pulled from a Fortune article:

quote:
Over the longest span, the numbers were particularly brutal. The S&P 500 outperformed more than 92% of large-cap funds over the last 15 years. Mid- and small-cap funds fared no better over the time period, with their benchmarks besting them 95.4% and 93.2% of the time, respectively. Overall, 82.2% of all active funds were outperformed over the 15-year period.

LVVV is my plaything. Aside from that one particular venture, my entire investment strategy revolves around a 3-4 fund portfolio.

This post was edited on 2/6/19 at 9:36 am

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Posted by SouthMSReb

Member since Dec 2013

4415 posts

Posted on 2/6/19 at 9:49 am to Tigerbait1998

quote:
I currently own about 8000 in Conoco Phillips, 6000 in tesla, small amount of LuLu Lemon (pays a decent dividend and returns profit). the rest is in various mutual funds. My question is this, what should I purchase now to diversify?

I wouldnt mind having about $1000-$3000 in Tencent. Great time to buy.

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Posted by Tpayne99

Da Bayou

Member since Jan 2019

1028 posts

Posted on 2/6/19 at 1:02 pm to SouthMSReb

I’m in for LVVV. I’m already up 7%!!

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Posted by Fat Bastard

coach, investor, gambler

Member since Mar 2009

72543 posts

Posted on 2/6/19 at 1:18 pm to Twenty 49

quote:
In the mid-90s, when I was in my 20s, I bought $5,000 of Fidelity Blue Chip Growth mutual fund and have let it ride ever since. Never added a penny except the automatically reinvested dividends.

oh man the tech boom really helped the market. i doubt we ever see returns on mutual funds like that again.

late 90s is when the DOW first cleared 1k. i was in JANUS TWENTY and i got over 100% return on it in just a short time maybe couple years? it was around 40 something and hit 100 NAV if i recall correctly. so many other funds then were easily hitting 30, 40 and 50% returns. shite i ran the numbers back then and IF you had put 10k into any fund that returned 18% annually and only put 100 a month into it for 40 years you would have a million bucks. however those rates quickly died down and killed that notion but it was doable if you got 18% a year for 40 years.