Anyone else buy in when they are 20% down...
Discussion
There are some very generalised answers here and that you need to be careful of. No one can deny that over the longer term the market won't go up but it can have periods of no growth or decline. The problem is that Blue Whale is not the market but a fund, he was punted heavily a few years ago but the telegraph etc but recall he was tech biased and ago looking at Netflix etc, that can get bumpy.
If one buys an ETF that tracks the S&P, then if your horizons suit, it would seem sensible to buy when cheap but a specific fund, I read about Long term Capital management, a fund run by Nobel prize maths guy's, it couldn't fail but it did.
I wish to god someone 15yrs ago had told me the obvious because I'd be much better off but I guess one needs to learn themselves. I now do my own investing in resources and spend time on specific stocks and the rest is in Market ETF's.
My view is that everyone has biases and all's well until it's not and unless you know intimately why an investment is held, blind panic or blind faith will take over and neither is going to end well
If one buys an ETF that tracks the S&P, then if your horizons suit, it would seem sensible to buy when cheap but a specific fund, I read about Long term Capital management, a fund run by Nobel prize maths guy's, it couldn't fail but it did.
I wish to god someone 15yrs ago had told me the obvious because I'd be much better off but I guess one needs to learn themselves. I now do my own investing in resources and spend time on specific stocks and the rest is in Market ETF's.
My view is that everyone has biases and all's well until it's not and unless you know intimately why an investment is held, blind panic or blind faith will take over and neither is going to end well
Netflix has been free falling since late last year, and with the latest Qtr performance news, it dropped a further 24.8% after trading hours. The price drop may seem excessive, but then I am not the market so what do I know (enough to not touch this stock 
) !
Anyone fancy a punt / buying back 30%?
In my best Dirty Harry accent: "Do I feel lucky, well do you Punk?"
) !Anyone fancy a punt / buying back 30%?
In my best Dirty Harry accent: "Do I feel lucky, well do you Punk?"
DaveA8 said:
I read about Long term Capital management, a fund run by Nobel prize maths guy's, it couldn't fail but it did.
Many chose not to invest.https://athenarium.com/a-man-for-all-markets-edwar...
"Thorp for example recalls turning down the opportunity to invest in Long Term Capital Management (LTCM) for three reasons. Firstly, LTCM’s founder, John Meriwether, had a reputation for risk taking at Salomon Brothers, which he didn’t like. Secondly, the Nobel laureates on LTCM’s ‘dream team’, Myron Scholes and Robert Merton, were theorists that lacked “street smarts and practical investment experience”. Finally, LTCM’s strategy relied on a dangerous amount of leverage (anywhere from 30:1 to 100:1!!). He didn’t think LTCM was a fat pitch."
Mr Spoon said:
I'm happy with blue whale so far. Not that I can claim much knowledge of the financial markets.
I was interested to see if others buy more shares when their "portfolio" value has dipped.
Depends. Netflix pays no div. And the payback is supposed to be growth instead of divs. But seeing as Netflix lost subscribers they aren't even a growth company anymore. I suspect this might have been the dot com bubble for these streaming services now that more and more are coming on line.I was interested to see if others buy more shares when their "portfolio" value has dipped.
Derek Chevalier said:
DaveA8 said:
I read about Long term Capital management, a fund run by Nobel prize maths guy's, it couldn't fail but it did.
Many chose not to invest.https://athenarium.com/a-man-for-all-markets-edwar...
"Thorp for example recalls turning down the opportunity to invest in Long Term Capital Management (LTCM) for three reasons. Firstly, LTCM’s founder, John Meriwether, had a reputation for risk taking at Salomon Brothers, which he didn’t like. Secondly, the Nobel laureates on LTCM’s ‘dream team’, Myron Scholes and Robert Merton, were theorists that lacked “street smarts and practical investment experience”. Finally, LTCM’s strategy relied on a dangerous amount of leverage (anywhere from 30:1 to 100:1!!). He didn’t think LTCM was a fat pitch."
I like his style, a proper risk manager i.e. assess risks/drawbacks to determine investment suitability.
(Unlike the typical retail investors who invest based on the promotional crap sprouted by the investment firms who hints at higher than normal return or growth based on past performance, plus sexing up factsheets with popular buzz words like "disruptive innovation" (copying ARK!
). Oh yeah, they do put out the obligatory risk warning "your capital is at risk" hidden somewhere in the factsheet though..).
I find it easier to buy more of an index when it's tanking versus an active.
Problem with an active is history is littered with previously good actives that have become wealth destroyers, whilst indexes have tended to go up over time. As such buying more of a bit of everything always makes sense, buying more of something that could be a bad bet may be a disaster.
I actually think Blue Whale is a bit of a dog. It's a tech fund pretending it isn't. If you compare it to the Nasdaq or the L&G Global Technology Index tracker (which have similar risk from a sector/valuation and volatility perspective) it's vastly underperforming. All whilst taking massive fees for doing so....
Problem with an active is history is littered with previously good actives that have become wealth destroyers, whilst indexes have tended to go up over time. As such buying more of a bit of everything always makes sense, buying more of something that could be a bad bet may be a disaster.
I actually think Blue Whale is a bit of a dog. It's a tech fund pretending it isn't. If you compare it to the Nasdaq or the L&G Global Technology Index tracker (which have similar risk from a sector/valuation and volatility perspective) it's vastly underperforming. All whilst taking massive fees for doing so....
The argument would be that if you believe in the fund/company at "X" price then it's even better value at the lower "Y" price.
This assumes you did due diligence in the first place and your original confidence to invest wasn't misplaced/miscalculated, and also that between your original purchase and now, nothing fundamentally has changed?
From a quick google it has a
+70% USA
55% Tech
weighting, 27 total holdings, so you could perhaps do some general research those areas (or the top 10 holdings which it also lists?)
I googled for a commodity fund (60 holdings?) and it's up year to date, so you could look in future to have a few funds?
https://fundresearch.fidelity.com/mutual-funds/sum...
So you have funds of huge sector, geographical and holdings variance and so lots of funds aren't diverse in many senses.
This assumes you did due diligence in the first place and your original confidence to invest wasn't misplaced/miscalculated, and also that between your original purchase and now, nothing fundamentally has changed?
From a quick google it has a
+70% USA
55% Tech
weighting, 27 total holdings, so you could perhaps do some general research those areas (or the top 10 holdings which it also lists?)
I googled for a commodity fund (60 holdings?) and it's up year to date, so you could look in future to have a few funds?
https://fundresearch.fidelity.com/mutual-funds/sum...
So you have funds of huge sector, geographical and holdings variance and so lots of funds aren't diverse in many senses.
Gassing Station | Finance | Top of Page | What's New | My Stuff