Learn From My Investing Mistakes: Don’t Learn the Hard Way!
ฝัง
- เผยแพร่เมื่อ 4 ส.ค. 2024
- It doesn’t matter how experienced an investor you are, it is easy to make mistakes. Recently this has happened to me and it reminded me of three valuable lessons. As Charlie Munger said “One of the best ways to learn from mistakes is to learn from the mistakes of others” So in this video, I'm going to tell you the sad story of where I went wrong so you can avoid making the same mistakes as me
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Take A Look At Some Of My Other Videos
📹 Investment For Beginners playlist • Investing for Beginners
📹 Investing For Retirement playlist • Investing for Retirement
📹Investing With Vanguard playlist • Investing with Vanguard
📹 Portfolio Building Blocks playlist • Portfolio Building Blocks
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All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.
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Ad readings is one thing, but please take a short breather first so they don’t sound like they’re part of the content
@Pensioncraft Ramin , do you think margin of safety applies to index funds? Should we still keep buying index fund if the whole market is a bull and over-valued? Thanks.
Years of fun portfolio have taught me they aren't fun
😂😂
With stockopedia I'll be able to make the same mistakes as you.
🤣🤣🤣🤣🤣
I always look forward to seeing your videos Ramin. Thanks for teaching me how to invest. It's very hard to find a genuine person who will give you good advice these days as everyone is just after your money.
I appreciate that @birenpatel007
Great video. Stories from personal experience are always the best way to learn. Thank you.
My father is vey bright. He spent years learning about stocks, investors chronicle, lots of research and time and effort. In the end he has done very well indeed. But his cumulate conclusion was, don't waste your time. Just put it in a low cost index tracker. I would not waste my time trying to figure the market out. I've got better things to do in life.
So why are you viewing a video on investments?
@@convinth Because it is always useful to keep abreast of what is going on in the market. Even if you don't agree with something you should not close your mind to something you might learn.
A bit too many ads, the critics might be onto smth here.
I just skip the ads. I think it’s ok for him to monetise his channel. 😊
@@gravity-arbor I also skip, but I had to skip a bit too many times this video. It was, what, 3-4 times. The video is not like 30 minutes long even.
Excellent video, very interesting. It is incredible how many factors you must take into account when managing your investment portfolio. Thanks Ramin for sharing. Greetings from Buenos Aires, Argentina!!
Ramin, if you are keeping these stocks in a pie and you really want to rebalance- I’d recommend choose the following: when you fund your pie there’s a fund distribution option - choose “self-balancing”.
Etfs have bid offer spreads as well to be wary of. I think you need to try and find etfs that are large and have a large volume, good liquidity
This was a very educational video!! I appreciated the way you explained the terms and the examples you gave. Thank you.
Glad you enjoyed it @rogerq7369
Great video and great lesson. Congratulations and... many thanks for having warned us about these potential risks.
Our pleasure @AlessandroBottoni
Made many mistakes thinking i am God stockpicker.. not anymore, im all in on ETF's now, leave it alone and let it do its thing
Great video, too many times I've taken 5% thinking I'm beating inflation just for the stock to keep on going. Leaving my garden with nothing but weeds.
Thankfully, the only investing mistakes I have made are missing out on gains because I always stayed too conservative. Now that I am retired, I just put it all in equal parts into Vanguards Wellington and Wellesley. Ends up being 50/50 stock to bond.
Is the bid/offer spread set by the trading company, or the market maker for the shares? Is it the case that ‘free trading’ platforms make margin by extending the bid/offer?
Great video, such rare info.
Glad you liked it @sg9524
Great video!
Glad you enjoyed it @christoph8429
Hello Ramin, most of us who have been investing in stocks have bigger tales of woe...despite doing relatively ok over the long term
Do you invest in an index fund no matter what the price is? Or do you wait for a bear market?
DCA you have to be constant. Buy monthly, weekly etc. When it dips buy more
I made this mistake waiting for a correction right after the covid 2020 surge, ended up losing out on some very large gains.
+1 on the comments above say.
@@mariusmartinsen2064 What about margin of safety then expounded by Ben Graham, Warren Buffet etc? Does this margin doesn't apply to Index fund?
I invest monthly and ignore down time. U could lose 20 to 30% in a crash...just leave it and on recovery u make it all back. Consistent investment...don't touch it. Don't panic sell. Ride out the dips.
Thank you
You're welcome @eclkt
What’s the obsession with diversification? Ramin’s already 90% diversified. Have faith in your knowledge and abilities.
A simple rule to avoid illiquid stocks is to avoid anything greater than a 0.5%/50bp spread. You’ll not have any problem buying and selling then. But on the other hand small caps are where fortunes are made.
The lack of liquidity and wide spreads on small caps is one of several reasons I avoid investing in the UK. The same strategy applied to US small caps might have had a different outcome.
If creating such a screen, where would one draw a reasonable line, regarding the spread?
My approach to investing is different for now. I use the analogy of the “pick axe and shovel salesman” the richest man when gold is found in the man who sells pick axes and shovels.
If AI is they hype. Invest in Microsoft, apple, alphabet etc.
If there’s conflict I’ll invest in LMT, BAE. If housing prices look like they’re going to rise, I’ll invest in caterpillar, etc
If you believe in the initial criteria then stick with it and live with the sector concentration, in this case it’s a by-product of the screening, not part of a diversification strategy - in any case that went out the window when choosing uk market only
I believe a price graph with candlesticks will show poor liquidity much better
Hey there I liked your video
I am glad you enjoyed it @TibetanEntertainment
I try to rebalance never.
Even Munger made mistakes. He laughed at me in 2012 when I went in heavily on BTC
Making it 27% of my investment portfolio. AS far as I know Munger died with the same as his 2012 attitude.
I still have my BTC exposure but it is down to 7% of my portfolio.
Where does the bid offer spread actually go? if the buyer had to pay 288p and the seller only got 228p on that day, who got the other 60p ?
For a small, illiquid stock, there might be literally not enough people willing to buy/or sell the stock at any moment in time. Especially not at the same price and in large amounts.
So a market maker comes in who provides liquidity to the market, so you actually can buy any small stock at any point in time.
They build a position in any stock and then try to offer to buy/sell on their terms.
So they might offer to sell a stock they have for 60 (offer) or to buy it for 50 (bid). If they manage to perform that trade to both buyers and sellers at the same time, they make a profit on the spread.
If there are a lot of buyers and sellers, market makers can’t maintain such a large spread, because people can just find another party to buy/sell the stock to, so the buy/sell price moves closer together.
Really interesting (again). Way beyond my capabilities, although I did follow... Still, must have been fun to do? Illiquidity always reminds me of a certain Mr Woodford! 😊
1. I don’t understand why the ‘fun portfolio’ should be diversified.
2. Bid-offer spreads and trading costs are all very well but isn’t the whole idea of a fun portfolio to pick stocks that do well and cover all the costs of buying, keeping and selling?
If the costs make such a difference to the portfolio, maybe you’re not picking wisely…
And also if he has more than 7 different companies in the fun portfolio he will start to replicate the market, making it harder to actually beat it.
I also sell out of stocks when I consider them to be very over-valued. Sure, they can continue to go up, but there is a high risk of them crashing back to reasonable valuations. Better to take the gains and re-invest into a new under-valued stock.
So you're saying buy low and sell high? Wow, I think you might be really onto something there.
I just invest in indexes. With odd company for a fun chance. Ie amd and Intel.
You need to look at the film the reluctant fundamentalist - really good film where the outcome is unexpected a bit like most fundamentalists get ;-)
Would have thought you would be better off with large-caps given that small-caps have underperformed in recent years.
Where you went wrong is the "UK" bit lol....😂 given the UK is a total mess (fellow Brit myself). That's probably why there's no UK based funds that meet this criteria whereas in the US you have funds like CALF which are performing pretty well relative the IWM. Regarding the bid/offer aspect - this is probably why its best to slowly get in and out of positions and take a longer term view with small caps
Ramin, our ETF-Pro, used to own hundreds if not thousends of stocks bundled into a indexes, goes into individual stocks. And what happens? "Oh no! I'm not diversified!" 😂
I'd expect a fun portfolio to contain meme stocks, stocks in potential bubbles and crypto etfs
No such thing as a fun portfolio when you're losing to the market every year. It just becomes a chore to maintain and dilutes long term compounding when you mess with it.
But Ramin is winning despite his rebalancing mistake.
The guy who profits from the buy-sell spread is the market maker. These outfit's generally make money regardless of the price movement. Waiting for ads next video for itch scratching cream 😂
Stock price don't increase forever, plenty of duds and terrible management
Why didn't you use a limit order? If you were patient you might have got a decent fill.
Because these are probably pension funds without trading tools
@@richardjackson5380 He said he uses T212 in other videos and they have limit orders. I'd suggest he shouldn't be trading illiquid securities without such tools available.
Fun portfolios are dumb you should treat all investment money the same. It just leads to bad discipline.
So why didn't you just do what the lists told you to do and don't pick expensive bid offer prices and start again.
Mistakes are easy to make if you have individual stocks in your porfolio. You must have the patience of a Budda , time and luck. Mistake number one: trying to predict the market.
MISTAKE MISTAKE - All far too complicated and you are wasting your time!! Just buy the BEST of the BEST as per Terry Smith BUT with a focus of 10 stocks max & common sense trading. You will beat the market!!
Yes but his fund fees are not cheap though. I'm invested in that fund. My s&p/world fund is cheaper to run & I'm getting similar if not higher returns.
Diversification is massively overstated with investors, all the big crushers make outperformance with concentrated conviction bets, the retail scared mindset is what keeps them poor, I made all my wealth from essentially two plays. All diversification will do is cost you upside...
Where’s that shirt from
Primark 🥰🥰😘
Marks & Spencer
M&S good call @alexm7310
Taking 10 minutes to do a stock screen is probably unlikely to result in market outperformance
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Such a difficult listen with you plugging stockapedia endlessly but the stockapedia tool was responsible for your poor outcome. Buy. Do nothing. That's the lesson. Stockapedia is not required.
Yawn. Another shilling clip. If you were interested in helping you'd be researching the FCA's real objectives.
Oh man - I thought this video was going to be actual lessons learnt but it’s just an add for stockopedia.. shame!
Beat the market? Buy 90% the market and 10% technology. Wait 5-10 years. Done.
Yes, that worked great in 2000 /s
It has worked well but nobody knows if the outperformence of tech stocks will continue in future. They are at very high valuations now so could under perform over next decade, but the problem is nobody knows. So I guess if you don't want to speculate then just buy the whole market at low cost
@@fredatlas4396 all subject to opinion of course but I believe we're at the beginning of a secular AI bull run that will last 5-10 years. Pullbacks yes, but over the long run tech will continue to outperform. The balance sheets of the biggest companies in the XLK are unbelievable. I pick stocks as well as having an ETF core, but if I was just picking ETF's I'd personally lean more into tech & industrials.
32 seconds in and I'm out. Another advert. You really lower your value so much. Oh well unsubscribed
You do realise ads are primsrily driven by TH-cam not Pensioncraft
I pay for TH-cam now to avoid the advertising! Not expensive at all when you think about it.. I recently heard a saying that if the is something you need and you haven’t bought it then it is already costing you money!
@TheUnluckyGama youtube didn't do the advert lol another paid promotion.
@DavidSmith-do6ji same, it's worth it for the music platform (rather than spotify) and you get the bonus of no ads
Dude it's like a 10 second ad read...
Your papi is hilarious. Low key comedian & your never too old to get scolded by papi for not listening to instruction! 🤣🤣