The wealth-building thread

[Chromatischism]

But when reviewing NVDA historical stock performance, it sure looks like recent enormous gains (and losses) were directly tied to cryptocurrency mining:

Some yes, but the entire tech sector was inflated in the last cycle, so there's that, too.

 

[JeffS7444]

Everyone still hanging in there? What a stomach-churning ride it's been since late 2022!

 

[amper42]

Everyone still hanging in there? What a stomach-churning ride it's been since late 2022!

Large rebalance between bonds and stocks in effect until end of June. That will end soon and a more balanced trade will be on the table.

 

[PatentLawyer]

Everyone still hanging in there? What a stomach-churning ride it's been since late 2022!

More money in a money market fund than ever before in my life. Still dollar cost averaging on core holdings. Always looking for real estate opportunities, but little inventory.

Wishing everyone lots of alpha!

 

[A Surfer]

Shame. Real estate, housing specifically should not be an investment. Explains the horrible and devastating housing crisis in Canada for example.

 

[PatentLawyer]

Shame. Real estate, housing specifically should not be an investment. Explains the horrible and devastating housing crisis in Canada for example.

Of course it should. People need to be incentivized to provide goods and services to other people. Unless you’re talking about socialism, in which case you’ve stumbled across the wrong thread.

 

[Triliza]

Of course it should. People need to be incentivized to provide goods and services to other people. Unless you’re talking about socialism, in which case you’ve stumbled across the wrong thread.

Most of the provided goods and services in our world are centered around households. The people that build the houses, furniture, appliances, kitchenware, toys and what not. Then the daily needs of the owners of a house for food, water, electricity, clothes, entertainment etc create enough space for goods and services. What we could live without are the services of someone that see house market as an investment and thus increase the prices even more.

Using -ism in the discussion doesn't usually help that much. The Nordic Region is associated in a way with social practices and policies, it will be interesting if someone with first hand experience from there could explain how the real estate operate.

 

[12Many]

Amazon.com

The hard part is not what to do with the money once you have it. The hard part is having money to invest because of our desire to spend and have nice things, and the high cost of living.

 

[12Many]

Most of the provided goods and services in our world are centered around households. The people that build the houses, furniture, appliances, kitchenware, toys and what not. Then the daily needs of the owners of a house for food, water, electricity, clothes, entertainment etc create enough space for goods and services. What we could live without are the services of someone that see house market as an investment and thus increase the prices even more.

Using -ism in the discussion doesn't usually help that much. The Nordic Region is associated in a way with social practices and policies, it will be interesting if someone with first hand experience from there could explain how the real estate operate.

There were several times in my life where I rented. The people owned the property weren't doing it for free. It was an investment for them. I am thankful they owned and rented the property. I could not have bought. But for them renting, I would have been homeless. I understand your concern, but I feel it has more to do with inflation (high cost of rent and housing), population growth, and wealth accumulation in too few people.

 

[jbattman1016]

Everyone still hanging in there? What a stomach-churning ride it's been since late 2022!

My understanding was never sell (unless the stock is doomed) or something. right?

I just let my money ride the waves.

 

[sdrichard]

First to OP, I am curious where you are compared to where you were when you first started this thread. If you love rollercoaster rides, I'm sure you enjoyed the ride. Haha.

I just stumbled upon this thread. Did not have the patience to read through the 30+ pages of posts, so pardon me if this has all been said.

For me, building wealth is mostly about discipline and time. You did not mention your age and your nest egg in your original thread. These factors objectively dictate your investment strategy. On the other hand, you have your own philosophy about life and how to live it, and that obviously affect your investment style and risk taking.

My wife and I both know that I don't have the patience nor discipline, so she manages 90%+ of our liquid money. She gives me some leftovers to play with. Since this is the money we can afford to lose without sacrificing our current life style, I can do aggressive or even experimental type of investing: risky stocks, angel investing, even small amount of cryptos.

 

[Triliza]

There were several times in my life where I rented. The people owned the property weren't doing it for free. It was an investment for them. I am thankful they owned and rented the property. I could not have bought. But for them renting, I would have been homeless. I understand your concern, but I feel it has more to do with inflation (high cost of rent and housing), population growth, and wealth accumulation in too few people.

I wasn't thinking about renting, although that is a big problem also as the prices have increased way too much. I guess Airbnb doesn't help much the situation, that's why we have seen some cities in Europe (Berlin for example) taking some actions to restrict renting of that type. It's true that inflation has increase the cost of everything.

 

[muslhead]

Everyone should be very careful and consider their risk tolerance when thinking of investing in banks and commercial RE. The bubble has burst within the commercial RE sector and with trillions of debt coming due. Without proper liquidity (fed is pulling liquidity) and improved occupancy rates, the worse is ahead of us. Like the 2008 residential bust, the banks will be a benefactor of the crisis. Of course, not all banks lend to that sector so it requires some homework but usually, even if it were a smaller minority, a falling tide sinks all boats.

 

[PatentLawyer]

Most of the provided goods and services in our world are centered around households. The people that build the houses, furniture, appliances, kitchenware, toys and what not. Then the daily needs of the owners of a house for food, water, electricity, clothes, entertainment etc create enough space for goods and services. What we could live without are the services of someone that see house market as an investment and thus increase the prices even more.

Using -ism in the discussion doesn't usually help that much. The Nordic Region is associated in a way with social practices and policies, it will be interesting if someone with first hand experience from there could explain how the real estate operate.

I don't follow your reasoning for villianizing those who own property and rent it out. As others note, it allows those that can only afford to rent to do so. If it's wrong to own real property for profit, what should we do about the people that grow and/or produce food for profit? I assume they are just as evil, if not more so. What about the home appliances you mention? Those should be the product of non-profit industry? Furniture, kitchenware, toys and the "what not," too? Let us know where profit is acceptable and where it isn't so we can avoid this moral cliff.

If you think socialism is a dirty word, then don't deal in it.

 

[Triliza]

I don't follow your reasoning for villianizing those who own property and rent it out. As others note, it allows those that can only afford to rent to do so. If it's wrong to own real property for profit, what should we do about the people that grow and/or produce food for profit? I assume they are just as evil, if not more so. What about the home appliances you mention? Those should be the product of non-profit industry? Furniture, kitchenware, toys and the "what not," too? Let us know where profit is acceptable and where it isn't so we can avoid this moral cliff.

If you think socialism is a dirty word, then don't deal in it.

I wasn't talking about renting, nothing wrong with renting per se, in some countries having too much real estate property is taxed heavily and that's enough for me. I was talking about buying low - selling high situations. And I don't have anything against social policies, quit the contrary.

 

[levimax]

Is this thread a contrary indicator? Thread started Sept 2021 within a few months of all time high. Thread went silent October 2022 right at the bottom. Thread revived June 2023 after huge rally off October 2022 low......

 

[JeffS7444]

First to OP, I am curious where you are compared to where you were when you first started this thread. If you love rollercoaster rides, I'm sure you enjoyed the ride. Haha.

I just stumbled upon this thread. Did not have the patience to read through the 30+ pages of posts, so pardon me if this has all been said.

For me, building wealth is mostly about discipline and time. You did not mention your age and your nest egg in your original thread. These factors objectively dictate your investment strategy. On the other hand, you have your own philosophy about life and how to live it, and that obviously affect your investment style and risk taking.

My wife and I both know that I don't have the patience nor discipline, so she manages 90%+ of our liquid money. She gives me some leftovers to play with. Since this is the money we can afford to lose without sacrificing our current life style, I can do aggressive or even experimental type of investing: risky stocks, angel investing, even small amount of cryptos.

If you somehow got the impression that I was a thrill-seeking investor, nothing could be further from the truth: I like my investments sleepy, boring, but solid. You can see pretty much exactly how I've done, because I've got my eggs in just two baskets: Berkshire Hathaway stock (practically a mutual fund), and low-cost S&P 500 index funds. I seldom check my porfolio balances or make changes. I did have shares of Nintendo Corp for years but sold it a few years back, though I wish I had held onto a token number of shares in order to justify "checking in on my investment" by buying the latest Nintendo products!

A quote which has been associated with Warren Buffett is "If you don't know jewelry, know your jeweler". And I'll be the first to admit that my investment knowledge is very average, so I rely on the advice of the greats. Never ventured into meme stocks crypto/blockchain, much less AI, unless said stocks are incorporated into the aforementioned investment entities.

 

[sdrichard]

Is this thread a contrary indicator? Thread started Sept 2021 within a few months of all time high. Thread went silent October 2022 right at the bottom. Thread revived June 2023 after huge rally off October 2022 low......

OP brought it back up. That's why I asked how he did after all the market gyration.

We are at a funky time right now. Many industries still could not sort out their supply chain issues. Inflation is high, but unemployment is low. Commercial RE is in a hell hole, but residential RE is still sky high. AI is taking over everything. Etc, etc.

As such, many old theories and models no longer work. It would be very risky for a retired person without substantial net worth to chase any particular sector/industry based on news of the day.

 

[JeffS7444]

Is this thread a contrary indicator? Thread started Sept 2021 within a few months of all time high. Thread went silent October 2022 right at the bottom. Thread revived June 2023 after huge rally off October 2022 low......

It's more of an indicator of my mood

 

[sdrichard]

If you somehow got the impression that I was a thrill-seeking investor, nothing could be further from the truth: I like my investments sleepy, boring, but solid. You can see pretty much exactly how I've done, because I've got my eggs in just two baskets: Berkshire Hathaway stock (practically a mutual fund), and low-cost S&P 500 index funds. I seldom check my porfolio balances or make changes. I did have shares of Nintendo Corp for years but sold it a few years back, though I wish I had held onto a token number of shares in order to justify "checking in on my investment" by buying the latest Nintendo products!

A quote which has been associated with Warren Buffett is "If you don't know jewelry, know your jeweler". And I'll be the first to admit that my investment knowledge is very average, so I rely on the advice of the greats. Never ventured into meme stocks crypto/blockchain, much less AI, unless said stocks are incorporated into the aforementioned investment entities.

Sounds like you know exactly what you are doing! Not many people can beat Buffett and SP500 over the long haul.