New To Investing Thread

[steve dave]

No one really needed any more confirmation of S&P 500 index funds, but here's the world's greatest investor (and all around superb human) endorsing simply buying S&P 500 index funds.  I am definitely just an average "most people" that he's referring to. 

“In my view, for most people, the best thing to do is owning the S&P 500 index fund,” Buffett said at Berkshire’s annual meeting. “If you bet on America and sustain that position for decades, you’d do far better than buying Treasury securities, or far better than following people  ... Perhaps with a bias, I don’t believe anyone knows what the market is going to do tomorrow, next week, next month, next year,” Buffett said.

https://www.cnbc.com/2020/05/04/buffett-isnt-buying-but-says-one-stock-market-bet-still-makes-sense.html

I read somewhere that recommended taking the same approach but investing in the global markets. The US-only introduces more risk and assumes we're just naturally better than the rest of the world which I don't think is the wisest.

Of course I'm pretty sure I read this either on Betterment's website or in a discussion in support of Betterment.

Historically the US performs better and with more stability. And as mumped up as the US seems to be at the moment it’s still much better than most regions re. political stability and negative reactions to other markets.


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[michigancat]

I think this was what I read

https://www.betterment.com/resources/home-bias-and-the-risks-of-not-diversifying/

[steve dave]

Oh, yeah. They aren’t saying all global funds, just a portion. I’ve got about 20% international.


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[ben ji]

Lets share our portfolio breakdowns

50% - SP 500 Index Funds
20%- Bonds (Was Yolo'n at 0% until last year so I'm glad I decided to add bonds)
15%- International Index Funds
10%- Industry specific funds/small cap
5%- Individual Stocks

[treysolid]

59% US funds
4% US bonds
24% International funds
1% International bonds
9% Real estate and commodities
3% Cash

Owning so much International stock has only ever dragged me down below the performance of the S&P 500 the last decade. Especially emerging markets (woof!)

[Cardiac Cats]

25% 500
25% Value
10% MidCap
10% SmallCap
10% REIT
20% Total International Stock

Used to be all in on Bernstein's Four Pillars (below).. but decided to "Yolo at 0%" 4 years ago and adjusted to the above. Probably based on some other book at the time. I know, I know, pick one and stick with it.

40% Total Stock Market Index
30% Total International Stock Index
20% Total Bond Market Index
10% REIT Index Fund

[Spracne]

100% Bitcoin

[DaBigTrain]

100% Bitcoin

[Spracne]

100% Bitcoin

Like a Peregrine Falcon, swooping in 16 seconds later.

[Pete]

90% S&P Index
10% Bond Index

I am due to move to 15% bond index within the next year or so, due to my advancing age and old balls.

[Pete]

Don't get me wrong, If I had a ton of cash beyond maxing out my 401K and stuff, I'd buy Amazon and Berkshire individual stonks.  Hardly anything else tho.  I'd don't have the risk tolerance for it.  Tho, I supposed my risk tolerance might get better if I had a ton of cash. Funny how that works.

[steve dave]

I’m going to buy a bunch of Disney stock pretty soon after the nice crap kicked out of itself’ing it has rightfully taken.


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[steve dave]

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[Pete]

HECK YEAH!

[kim carnes]

The S&P has been held up by tech for years.  So just cut the deadweight and buy tech etfs. 

[steve dave]

The S&P has been held up by tech for years.  So just cut the deadweight and buy tech etfs.

Not a bad play. I own a lot of VGT.

[Purple Derpathy]

80% SP500 Index
10% Bitcoin
5% Tech Index
5% Growth Index

[steve dave]

The S&P has been held up by tech for years.  So just cut the deadweight and buy tech etfs.

Not a bad play. I own a lot of VGT.

counterpoint: the S&P is pretty close to a tech index already.

[DaBigTrain]

https://www.bloomberg.com/news/articles/2020-05-07/paul-tudor-jones-buys-bitcoin-says-he-s-reminded-of-gold-in-70s

[sys]

59% US funds
4% US bonds
24% International funds
1% International bonds
9% Real estate and commodities
3% Cash

Owning so much International stock has only ever dragged me down below the performance of the S&P 500 the last decade. Especially emerging markets (woof!)

i have no real idea what my % international is, but i think it's probably a good bit more than that.  or at least it probably was 3 months ago.  the market may have rebalanced me down closer to 24% (woof).

[steve dave]

REIT is going to take a long term ass kicking coming out of this thing.

[Pete]

59% US funds
4% US bonds
24% International funds
1% International bonds
9% Real estate and commodities
3% Cash

Owning so much International stock has only ever dragged me down below the performance of the S&P 500 the last decade. Especially emerging markets (woof!)

i have no real idea what my % international is, but i think it's probably a good bit more than that.  or at least it probably was 3 months ago.  the market may have rebalanced me down closer to 24% (woof).

Do you have the quarterly auto-rebalancing feature?  I use that thing.

[ben ji]

59% US funds
4% US bonds
24% International funds
1% International bonds
9% Real estate and commodities
3% Cash

Owning so much International stock has only ever dragged me down below the performance of the S&P 500 the last decade. Especially emerging markets (woof!)

i have no real idea what my % international is, but i think it's probably a good bit more than that.  or at least it probably was 3 months ago.  the market may have rebalanced me down closer to 24% (woof).

Do you have the quarterly auto-rebalancing feature?  I use that thing.

I have a 401k/IRA/Roth IRA/HSA so once a year (typically in December) I add them all up and rebalance all my equities to my desired allocation. 

[ben ji]

Lets share our portfolio breakdowns

50% - SP 500 Index Funds
20%- Bonds (Was Yolo'n at 0% until last year so I'm glad I decided to add bonds)
15%- International Index Funds
10%- Industry specific funds/small cap
5%- Individual Stocks

Now that I think about it the 50% of the SP 500 allocation is incorrect, alot of of it is in ITOT or VTSAX which encompass basically every stock out there.

For allocation purposes though I treat them all the same. 

[Spracne]

Thing I started doing this year: set 401K contribution to 100% of salary. Max it out as early in the year as possible. Over time: profit.