Investing

Couch potato investing for the last 14 years - tracking my progress

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Member
Jul 30, 2012
416 posts
404 upvotes
JimboD wrote: Thank you! This was what I was looking for. As someone already mentioned, more risk to take on. Great to know!
Winking Face Your welcome...Yes, any investment with a 7+% yield return has to be scrutinized. It is usually a result of added risk. These are not necessarily bad investment products but one has to understand the mechanics both downside and upside.
Deal Addict
Jul 8, 2013
1441 posts
1621 upvotes
Red Deer, AB
Germack wrote: Even the smartest and brightest can fail to beat a simple index portfolio:


Endowemnet funds.png
Well said. And these funds employ some of the brightest minds of the world.

Yet here we are, many of us here at RFD still trying to beat the market. :D
TFSA: XAW | RRSP: VEQT + VAB | Non-Reg: XIC

It's really that simple.
Sr. Member
Sep 29, 2007
603 posts
122 upvotes
No posts for weeks. I sincerely hope people took my advice and ditched this strategy. Even look at the last few weeks since the last bottom....XAW about 5% return versus simple QQQ at 10%...that is a 100% underperformance folks lol. But hey you all own so many fractional shares!!
[OP]
Deal Addict
Oct 1, 2006
2108 posts
1702 upvotes
Montreal
retireat50 wrote: No posts for weeks. I sincerely hope people took my advice and ditched this strategy. Even look at the last few weeks since the last bottom....XAW about 5% return versus simple QQQ at 10%...that is a 100% underperformance folks lol. But hey you all own so many fractional shares!!
Cool story, bro.

A broken clock is more often right than your predictions.
retireat50 wrote: Anyone expecting a positive return on CCP this year is delusional. Your beloved XAW will get hammered with rising CAD$ (fairly obvious why oil will rip higher in the next 3-9 months). US markets still very over-valued and bonds will decline with 1-3 rate hikes in 2019.
Deal Fanatic
Jan 21, 2014
5059 posts
2683 upvotes
retireat50 wrote: No posts for weeks. I sincerely hope people took my advice and ditched this strategy. Even look at the last few weeks since the last bottom....XAW about 5% return versus simple QQQ at 10%...that is a 100% underperformance folks lol. But hey you all own so many fractional shares!!
You want to look at early 2000's and see how QQQ was doing back then. I think you either were too young or not invested yet to see that if you were invested in QQQ at the high in 2000, it took almost 15 years to get back to the same high
Member
Jul 30, 2012
416 posts
404 upvotes
retireat50 wrote: No posts for weeks. I sincerely hope people took my advice and ditched this strategy. Even look at the last few weeks since the last bottom....XAW about 5% return versus simple QQQ at 10%...that is a 100% underperformance folks lol. But hey you all own so many fractional shares!!
mkl38s wrote: You want to look at early 2000's and see how QQQ was doing back then. I think you either were too young or not invested yet to see that if you were invested in QQQ at the high in 2000, it took almost 15 years to get back to the same high
Markets allow us to repeat the same investment mistakes because it is usually a different demographic making them. Most think they are "smarter" investors, than their predecessors. Investors pre-depression were "smarter" than those who held back, Pre-1987 Crash investors were "smarter" than those who held back, Pre-2000 Tech Bubble investors were "smarter" than those who avoided, Pre-2008 Real estate investors were "smarter" than those who avoided nose-bleed valuations, etc.

The issue isn't "if" market corrections occur, but "when". All corrections I have experienced (or studied) are a result of Fundamental over-valuations. Being a student of financial history can help one identify market susceptibility to downside risk. If one is truly evaluating current Macro/Micro data, it's fairly obvious we are in peak valuations in a number of sectors (i.e. Tech, Renewable Energy, Real estate). Like cyclical corrections before, there are a number of "smarter" investors playing Momentum casting reasonable asset / cashflow valuations aside.
Member
Jan 25, 2012
209 posts
75 upvotes
NORTH YORK
retireat50 wrote: No posts for weeks. I sincerely hope people took my advice and ditched this strategy. Even look at the last few weeks since the last bottom....XAW about 5% return versus simple QQQ at 10%...that is a 100% underperformance folks lol. But hey you all own so many fractional shares!!
Yup, agreed. Last week I bought a lottery ticket and won 70million. 1400000000% return. Honestly, I don't even know why indexers even bother to invest. You know all the data from endless papers published by these loser economists is just fake news.
Member
Jul 30, 2012
416 posts
404 upvotes
retireat50 wrote: No posts for weeks. I sincerely hope people took my advice and ditched this strategy. Even look at the last few weeks since the last bottom....XAW about 5% return versus simple QQQ at 10%...that is a 100% underperformance folks lol. But hey you all own so many fractional shares!!
shiangsta wrote: Yup, agreed. Last week I bought a lottery ticket and won 70million. 1400000000% return. Honestly, I don't even know why indexers even bother to invest. You know all the data from endless papers published by these loser economists is just fake news.
Huh? You might want to use some of your lottery winnings on investment advice. QQQ IS AN (ETF) INDEX. There are a number of ways to Index invest that aren't just about "Buy & Hold". 80% of most investor returns is dictated by sector / 20% by individual stocks. I do a mix of ETFs & Stock picking because I do Fundamental & Secular investing. I'm happy to have made 200% off the QQQ's but no interest at this level due to underlying valuations. Nasdaq valuations were much different 5 years ago and could be justified on Growth rate(s). Not so much today. Only way to understand this is doing your own Quant/historical analysis.

That said, there are many ways to be an "indexer" and "beat the index(s)".
Member
Jan 25, 2012
209 posts
75 upvotes
NORTH YORK
DealRNothing wrote: Huh? You might want to use some of your lottery winnings on investment advice. QQQ IS AN (ETF) INDEX. There are a number of ways to Index invest that aren't just about "Buy & Hold". 80% of most investor returns is dictated by sector / 20% by individual stocks. I do a mix of ETFs & Stock picking because I do Fundamental & Secular investing. I'm happy to have made 200% off the QQQ's but no interest at this level due to underlying valuations. Nasdaq valuations were much different 5 years ago and could be justified on Growth rate(s). Not so much today. Only way to understand this is doing your own Quant/historical analysis.

That said, there are many ways to be an "indexer" and "beat the index(s)".
I was being sarcastic mate lol sorry the joke was poorly executed.
Member
Jul 30, 2012
416 posts
404 upvotes
shiangsta wrote: I was being sarcastic mate lol sorry the joke was poorly executed.
Just got it, lol... Lost In (my) Translation, Winking Face
Sr. Member
User avatar
Jan 26, 2005
916 posts
49 upvotes
Germack wrote: Cool story, bro.

A broken clock is more often right than your predictions.
Thanks for sharing. I am wondering. In order for this to work. I have to keep 'investing'. Right ? How much 'should' i keep investing? 20% of total income ?? or more ??? Thanks
Deal Fanatic
Mar 24, 2008
5996 posts
2254 upvotes
Toronto
helphelp911 wrote: Thanks for sharing. I am wondering. In order for this to work. I have to keep 'investing'. Right ? How much 'should' i keep investing? 20% of total income ?? or more ??? Thanks
You should invest 0-100% of your income, however much you can save. Put it on autopilot and forget about it for a couple of decades.
Illegitimi non carborundum
Deal Addict
User avatar
Feb 1, 2012
1348 posts
1774 upvotes
Thunder Bay, ON
helphelp911 wrote: Thanks for sharing. I am wondering. In order for this to work. I have to keep 'investing'. Right ? How much 'should' i keep investing? 20% of total income ?? or more ??? Thanks
Saving is deferred spending. Investing is saving with higher risk and higher expected return.

It's hard to give definitive answers because we don't know your life situation, income, age, current assets etc. Consider using a 50/30/20 budget. Of your after-tax income, 50% goes to non-discretionary expenses like housing, food, transportation, clothing. 30% goes to discretionary spending like vacations, sports, hobbies, dining out. 20% goes to long-term retirement savings.

For retirement, save 20% of your net income, which depending on your tax rate will be about 15% of your gross income. That includes anything that you and your employer put into a workplace pension.

This is a good basic investing guide. The author says more in 15 pages than many authors say in hundreds. The investments he writes about are US based, but you can get similar results by substituting Canadian ETFs.
If You Can : How Millennials Can Get Rich Slowly

Finiki, the Canadian Financial Wiki is a great Canadian resource for all things financial:
https://www.finiki.org/wiki/Main_Page
https://www.finiki.org/wiki/Getting_started
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.
[OP]
Deal Addict
Oct 1, 2006
2108 posts
1702 upvotes
Montreal
helphelp911 wrote: Thanks for sharing. I am wondering. In order for this to work. I have to keep 'investing'. Right ? How much 'should' i keep investing? 20% of total income ?? or more ??? Thanks
Yes, that's right. In order for this to work you have to buy and hold no matter what. Buy and hold is a very dull strategy, but it has one big advantage. It works, very profitably and very consistently.

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