Investing

Peter Lynch - Trying to kiss all of them

  • Last Updated:
  • Jan 19th, 2021 2:49 pm
[OP]
Deal Addict
Jul 12, 2008
4329 posts
1252 upvotes
GTA

Peter Lynch - Trying to kiss all of them

Peter Lynch Quote
“ You don't have to "kiss all the girls." I've missed my share of tenbaggers and it hasn't kept me from beating the market.”

What are your strategies when it comes to fomo - Bitcoin, Spacs, Biden plays?
I try to get a piece of any action that looks good but some people go all in.
16 replies
Member
Dec 17, 2009
496 posts
200 upvotes
Could have made 10x on bitcoin, ether, tsla, aapl, Canadian R.e. (With leverage), gold stocks, wmt long enough go, shop, weed, and more.
And there will be more. Have a thesis, believe in it, don’t invest in things that have already gone vertical.
Sr. Member
Jun 2, 2020
998 posts
1064 upvotes
V5y1v1
Just myself but 2% to bitcoin, 0.5% to eth. I’m mostly skipping EVs except for some metals miners, I’ve bought a handful of SPACs that are getting some buzz and haven’t had a merger target definitively announced in a ratio of 4 shares to 1 warrant and am selling far OTM CCs to fund the warrants. It’ll be short holds for me until a merger then I’ll sell the stocks and keep the warrants. Using 5% of my portfolio for this. The rest are in value stocks or stocks guided by my interpretation of the macro picture. Currently up ~10% in the last 2 weeks.

Considering MSOS calls but thinking I may be too late.
Deal Addict
Jul 23, 2007
4680 posts
3606 upvotes
Two main pieces of advice from Peter Lynch I use full blast.

From John C. Bogle's book "The Little Book of Common Sense Investing" Page 51.

Here's what Peter Lynch had to say in Barron's in retirement.

"The S&P is up 343,8 percent for ten years, That is a four-bagger. The general equity funds are up 283 percent. So it's getting worse, the deterioration by professionals is getting worse. The public would be better off in an index fund."

"Beating the Street" by Peter Lynch 1993 Page 49.

"As companies grow larger and more profitable, their shareholders share in the increased profits. The dividends are raised. The dividend is such an important factor in the success of many stocks that you could hardly go wrong by making an entire portfolio of companies that have raised their dividends for 10 or 20 years in a row."

The above are basically the only two modes of investing I do. Global balanced index funds in the registered accounts and individual Canadian dividend growth equities in the non-registered. I tend to keep investing simple.
Deal Addict
User avatar
Aug 4, 2014
3963 posts
4716 upvotes
Toronto, ON
I recently found out that our friend’s son lost 300K+ last year. She didn’t divulge the details and probably didn’t even know or understand them. It was sad enough that he’s married with two babies, and they had to sell the house and move in with wife’s parents. And then buy a cheaper house far, far away..

It’s easy to feel like a loser on this board if you’ve “only” made 10% last year. We don’t hear much about losses and gambling addiction problems. Sometimes I get excited and want to kiss a frog who might turn into a prince. So we have an agreement with my husband to not have more than 5% of the overall portfolio in “risky plays”, and I wouldn’t throw more than a few K to just try something out.

So I know my limit and play within it :) I usually look at how much I’m willing to lose and if it’s worth playing. It’s not just the potential gain that attracts me, but also how interesting it would be. And how much extra fees and hassle it would cause. So USD and penny stocks in the non-registered account didn’t attract me because it’d be 1) not that interesting and 2) cost extra fees & hassle. Yet crypto currency fascinated me enough to keep studying non-stop for a week. But I’m mindful of the extra hassle when this obsession passes (I mean, when I lose interest, but will still have to deal with record keeping for tax reporting) So yes for ARKK, MSOS (have CURA) and crypto, no for HCLN (have NFI), Spacs and penny stocks.

The majority of the portfolio keeps chugging along, mostly boring as a proper investment was believed should be :)
Member
Jan 25, 2016
228 posts
212 upvotes
Ottawa
I only go high risk with 5% of my portfolio. There's lucrative plays every day in the OTC markets. Look at AITX - a 50 bagger if you bought November 23rd.

Do your research and go for it, high risk is high reward. Or high loss. Mitigated by the 5% rule.
Sr. Member
User avatar
May 31, 2018
953 posts
2443 upvotes
Saskatchewan
Currently looking at 1% in crypto, 0% in all else. Assuming a crash/correction/buying opportunity arises thinking of a percent or so in each of VMO, HCLN, ARKK also. Like many, 5% seems to be a good tolerance level for this sort of thing...not to win or lose bigly but enough to keep things interesting.
Deal Fanatic
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May 11, 2014
5206 posts
6758 upvotes
Rankin Inlet, NU
I have zero in weed, crypto, fairly limited technology plays and exposure and fairly consistently beaten or met general indices. Sure these multibaggers are nice, but what are many of thembased on? Some of these companies are not even profitable, yet they are being treated as if they all are. At what point is is sustainable? Funny too as people seem to have forgotten crypto when it crashed from $20kish to $3-4k and marijuana had a similar crash. And only when it has another jump is when people start paying attention again.
I've run into people who jump in with random notions and no strategy. I've met a dentist who lost a few hundred thousand dollars on Aphria Aurora. Knew a nurse who put everything into bitcoin during the huge boom 2-3 years ago, and had lost pretty much everything, (he couldn't HODL as much as he claimed he could). Knew a housekeeper who used credit cards to rack up on Bitconnect and bitcoin etc.

At the end of the day, what is the most important? Are you meeting your financial and investment goals? Are your gains you are achieving sustainable?

Speculation in itself isn't a bad thing. There are many companies out there creating new industries and making profitable businesses. There are promising technologies that could revolutionize the world. You could make a ton of money on these things and as long as you have some way to control for crashes or avoid too much exposure or leverage, that is fine. But these are not guaranteed. Revolution is not necessarily profitable. And if everyone is doing it, there is a good chance there is a ton of speculation or bubbles. My strategy has always been to look where people aren't and this has proven itself to be much more resilient than the crypto and marijuana booms and busts. I don't need 100-200% gains,(although I did get close to this is 2018 and 2019). Knowing that I do not need to speculate to achieve my desired financial goals and exceed them is more than enough for me to be happy but also feel secure with my money.

I'm not one to diss cryptocurrency, tech start ups or marijuana. Rather how the valuation of these industries , currencies and companies are derived at generally do not make sense to me, therefore I don't buy. The fact that most people that invest in many of these plays can't even tell me the business plan, the earnings metrics or how valuation is derived troubles me and suggests the price to buy these at are not sustainable. Who knows, there could be some that catch my eye later, but probably only when these calm down.
Last edited by xgbsSS on Jan 16th, 2021 7:49 pm, edited 2 times in total.
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Deal Fanatic
Jan 22, 2006
5308 posts
2781 upvotes
Northside
I've learned the hard way, to be honest, and I'm glad threads like these exist so thank you OP for creating this.

I was lucky enough to exit out of crappy positions by breaking even and have now invested mainly in blue-chip companies in my RRSP but have some heavy baggers in my TFSA that I hope I can eventually exit from. I also have a second TFSA and RRSP account with Wealthsimple through their Invest platform.

Do you guys have any tips on some index funds that I can add to my TFSA/RRSP portfolio? Thanks in advance!
Deal Guru
User avatar
Sep 21, 2007
10636 posts
8642 upvotes
Winnipeg
Profit is profit. Never look back on how much you could have made if held. Forward looking.
Don't invest in things you don't know.
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Sr. Member
May 2, 2019
656 posts
865 upvotes
Vancouver
badmus wrote: some people go all in
Just don't see them as smart, no matter what the result was.

For rich people, it's rather obviously stupid to bet their whole lifestyle on one risky proposition. No bet will be certain enough.

It's more understandable when the amount is small, or the bet is not really "all in". Such as, if they have a high earnings potential / pension elsewhere.
Problem is, people can learn bad habits from one lucky win. Allowing yourself to gamble (excessively) one time is a kind of no-win situation. Either you lose, or your future self becomes more prone to failure.
Member
User avatar
Sep 18, 2016
446 posts
411 upvotes
I learned the hard way, just take the gain you have and not the gain you want.
Take profits even in dividend stocks.
Don't be greedy
"Do not allow yourself to become resentful, deceitful or arrogant"
Jordan B. Peterson
[OP]
Deal Addict
Jul 12, 2008
4329 posts
1252 upvotes
GTA
1Ogiku2 wrote: I learned the hard way, just take the gain you have and not the gain you want.
Take profits even in dividend stocks.
Don't be greedy
Of recent taking profits has been hard for me, a stock can easily double a month after you sell it in this market. I don’t like leaving anything on the table but I understand your point.
Deal Addict
Jul 23, 2007
4680 posts
3606 upvotes
My favourite years have always been the ones where I don't feel I have to sell any of my dividend paying companies. Doesn't happen too often unfortunately but in a taxable portfolio I try my best to keep turnover as low as possible.

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