Great questions. I believe stock market "rebels" are rebels because the look outside the square. I wouldn't consider myself a rebel. Instead I'd like to suggest I notice stuff that most don't.
On that note I've shared 3 screenshots below. These screenshots are of my youngest son and my two grandchildren's Portfolios, that I set up. I started them all out with $100, and put $5 In every week, plus a bit more on birthdays and Christmas. Started the sons one later, that's why his portfolio is smaller.
But as you look at the pics below you will quickly note that some investments in the same stocks have significantly different returns. You will probably also get brain freeze over the diversity of stocks I have them in. But that's another story.
So getting to the point. I manage my portfolio and my child's and two grandchildren. Oh and I also help out other family and friends. So let's say I'm hands on with about 10 peoples portfolios. I'm not an investment advisor, and I take not cut of anyone's Portfolios. Just done the DD myself and happy to pass on that knowledge.
So, I help out, invest in different stocks that I understand, based on different risk tolerance and time frames. But one thing has become very obvious. A stock I own can be down 10 to 20% in my portfolio, yet up the same magnitude in their portfolios. Seems crazy, it's the same stock.
Wait are you one step ahead? Time in the market beats timing the market. I think when you run multiple portfolios and deeply understand certain stocks, well you can time the market. Notice that the three portfolios below all have buy orders pending on poor performance stocks to date. So I timed it wrong, for them short term. But now they are great buys according to my analysis. So I will DCA them down. And time in the market will pay off.
A win in the stock market is not about a day, a week or a month. For me it's about, truely understanding where a stock is going long term. Perhaps getting it wrong on a tiny $5 position short term, but knowing. Every week I invest in the ones that are down, knowing they will be up soon enough.
Obviously I get it wrong sometimes, but look at the returns to date In those three portfolios. Five bucks a week tiger team! and I've pulled 1/3rd of the money out already on all their portfolios. Only because that's my risk mitigation strategy. Play with profits not personal capital.
Does all this make me a rebel? Not sure. I'm just doing stuff that seems to work for now. If it doesn't work, I'll adapt.
I'd love comments on this and all other articles I write. Really appreciate feedback.
As an aside you will notice, all my kids/grandkids have bank and investment bank stocks. Very solid performance there. It was called the banking crisis about two years ago. for me it was a simple David/BG value investment Play. Easy money
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- Emotional Investor·01-08I’m from New Zealand so I use Sharesies as my brokerage, the brokerage also is available to Australian investors. It’s dead easy to set up accounts for minors, just need a tax number and their birth certificate. And it’s under their name but is a subsidiary account within your account. No tax issues cause none of them earn incomeLikeReport
- Ragz·01-08Your plans are great! I have been trying to open a minor account that doesn't involve too much of taxation hassles. Can you go into greater detail on how to open one? Which brokerage do you use and was it opened under their names or yours?LikeReport