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re: New to Individual Stocks

Posted on 5/26/26 at 2:05 am to
Posted by SlidellCajun
Slidell la
Member since May 2019
16759 posts
Posted on 5/26/26 at 2:05 am to
It sounds to me like you’re more interested in Trading than investing.

If trading is your objective, I suggest you allocate only a portion of whatever money you have as it can be more risky than investing. My suggestion is to allocate no more than 20% of your money but that depends on your age. If nearing retirement age, I would discourage trading unless you have enough to spare.



Posted by LSU82BILL
Fort Lauderdale, FL
Member since Sep 2006
11041 posts
Posted on 5/26/26 at 11:53 am to
quote:

Don’t. Index funds are the king and you won’t beat them


Index funds are pretty safe but it's not hard to beat them. Every good portfolio should have a mix of blue chip stocks and ETF's.

Posted by Everyday Is Saturday
Member since Dec 2025
2568 posts
Posted on 5/26/26 at 12:04 pm to
quote:

it's not hard to beat them


Now do after tax returns over long term (>20yrs), as risk sensitivity heightens (to/thru retirement).

A black swan event will teach you that invincibility mindset will hurt you.
Posted by LSU82BILL
Fort Lauderdale, FL
Member since Sep 2006
11041 posts
Posted on 5/26/26 at 1:21 pm to
quote:

Now do after tax returns over long term (>20yrs), as risk sensitivity heightens (to/thru retirement).


Since it's hard to go back 20 years, how about I just do my own holdings over the past 5 years and all time?


State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) 47% (5Y) and 548% since 1998 (28 years)

State Street SPDR S&P 500 ETF Trust (SPY) 79% (5Y) and 1,604% since 1998 (28 years)

Vanguard 500 Index Mutual Fund (VFIAX) 79% (5Y) and 453% since 2000 (26 years)



Berkshire Hathaway Inc. (BRK-B) 69% (5Y) and 2,080% since 1996 (30 years)

Alphabet Inc. (GOOGL) 225% (5Y) and 15,366% since 2004 (22 years)

Apple Inc. (AAPL) 144% (5Y) and 241,341% since 1980 (36 years)

Microsoft Corporation (MSFT) 65% (5Y) and 468,575% since 1986 (40 years)

Amazon.com, Inc. (AMZN) 61% (5Y) and 215,809% since 1997 (29 years)

Walmart Inc. (WMT) 151% (5Y) and 559,35% since 1970 (56 years)









Posted by Everyday Is Saturday
Member since Dec 2025
2568 posts
Posted on 5/26/26 at 8:25 pm to
You are not one of those casino winners that only tells the winning stories are you? Kidding.

Those are definitely winners.

Congrats for never having picked a stock that underperformed the S&P 500 after tax returns for 20+ years.
This post was edited on 5/26/26 at 8:26 pm
Posted by RollTide4Ever
Nashville
Member since Nov 2006
20318 posts
Posted on 5/27/26 at 6:27 am to
I subscribe to a few stock newsletters and it's been working well.
Posted by LSU82BILL
Fort Lauderdale, FL
Member since Sep 2006
11041 posts
Posted on 6/2/26 at 7:28 am to
I’ve bought my share of losers too. Some of them were risky small caps but some were actually blue chips like Disney, Boeing and UPS that I held onto for far too long. IMO, buying nothing but index funds is a lost opportunity for diligent, vigilant investors.
Posted by Jax-Tiger
Vero Beach, FL
Member since Jan 2005
28162 posts
Posted on 6/2/26 at 8:08 am to
quote:

quote:
Conviction in a few names and resisting the temptation to sell after 30% can produce generational wealth in this kind of cycle.



Agreed. When my portfolio of growth stocks gets too "diverse", I have trouble keeping up with everything. I do better when I have only a handful of stocks in my portfolio - ones that I really believe in and where there is a real demand for the product and the company is positioned well to get marketshare.

I don't "day trade", per se. I'll make an opportunistic short term trade, if I see one, but I look for growth stocks that I believe will be successful long term, and hold them. I don't log on and research where I'm going to make money TODAY. I want stocks that I believe will be much higher 6 months or a year from now, and I don't care too much about what happens between now and then (they are growth stocks, after all, and will be volatile).



Posted by Jax-Tiger
Vero Beach, FL
Member since Jan 2005
28162 posts
Posted on 6/2/26 at 9:35 am to
quote:

You realize even the best financial planners still won’t beat the market right?


And yet Nancy Pelosi does it regularly.
Posted by Everyday Is Saturday
Member since Dec 2025
2568 posts
Posted on 6/2/26 at 10:23 am to
quote:

IMO, buying nothing but index funds is a lost opportunity for diligent, vigilant investors


I think you are correct.

Am curious, how do think about cost when taking investing decisions? Not only capital gains but your personal time & effort spent researching, etc? Presume you are not a financial trader professional and are doing so on your personal time.

If love it / good at it, salute! For me, I started to value time very differently (and ironically) once I turned 40. Just curious how you think about it. Thx!
Posted by LSU82BILL
Fort Lauderdale, FL
Member since Sep 2006
11041 posts
Posted on 6/3/26 at 1:35 pm to
quote:

I think you are correct.

Am curious, how do think about cost when taking investing decisions? Not only capital gains but your personal time & effort spent researching, etc? Presume you are not a financial trader professional and are doing so on your personal time.

If love it / good at it, salute! For me, I started to value time very differently (and ironically) once I turned 40. Just curious how you think about it. Thx!


It's stupid to spend so much time and effort researching companies. Hell, a company can have a great earnings call and beat every metric necessary to get analysts to jack up their target price but if they project weak guidance, sometimes that will trigger a sell off. I watch a lot of Bloomberg and CNBC and online content on Yahoo Finance. I'll listen to all these executives, fund managers, analysts and economists opinions and when almost every person thinks highly of a company, who the hell am I to disagree? Just go on Yahoo Finance and look up a company - it will have a few drop down menus until you get to "Analyst Insights". A company will have been analyzed by numerous professional analysts. Google, for instance has 64 total analyst recomendations with 43 of the being "Buy" and 14 of them being "Strong Buy". The rest are "Hold". Nobody recommends selling. That's good enough for me. I've given and gotten great tips from friends, family and brokers.

I've given and gotten horsehit tips from friends, family and brokers. I've learned that I'm not as smart as I think but I firmly believe that a strong mix of blue chips is better than index funds over the long haul. And patience can't be overstated.
Posted by GeauxTigers123
Member since Feb 2007
3820 posts
Posted on 6/3/26 at 1:45 pm to
quote:

That’s your rationale for telling someone not to invest in individual stocks?


It goes deeper than that, but I was using a simple example of the difficulty of investing in individual stocks.
Posted by RedlandsTiger
Greenwell Springs, LA
Member since Jan 2008
3213 posts
Posted on 6/3/26 at 2:16 pm to
Diversify in tech and buy SMH ETF. It's up 160.65% in the past year. If you had invested $10k in it ten years ago, it would be worth $260k today.
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