Picking your own stocks

If you have insider information you're better off picking your own stocks, but if you don't have insider information or a computer network doing calculations you're basically playing a game of complete chance so you should go with etfs to minimize risk.

>>1007183
Worked for me.

>If you have insider information
I don't, I just read the fiscals and the analysts reports from experts in the industry I was thinking of investing in.

30% anual book value. However bear in mind I bought my positions in the shmitah when they were massively underpriced in relation to the DCF's and Graham Nr.s (not necessarily below it, but near them) and in my understanding that is what you have to seek for while value investing, the "sales".

Might as well ask here. How do I start investing? What to read, where to do it, etc? I've never had any education on the subject and I'm from a medical course, so I've had absolutely 0 contact with this subject during my whole life and don't know where to turn to.

>>1007242
>read
the book OP posted

>watch
investopedia and gurufocus webinars worked for me. I also have absolute no academical background in the financial sector.

>>1007246
Thank you, friend!

>>1007232
What is the best way to hedge against risk in the market while keeping pace with inflation? Bond yields just don't do it. Should I look at REITs? I don't like the idea of having all of my investments tied down in the stock market.n

>>1007232
Also, who do you use as a broker? Who is the best in terms of fees? I use BoA so I was thinking Merrill edge for convenience.

Best be sure your putting at least 7% of your income in a 401k, IRA or a simple 3-fund index portfolio before you attempt to actively manage your speculative investments. I suggest forming a company for this purpose.

>>1007183
Yes, it is completely feasible for an ordinary person to spend a lot of time doing their research, learning about finance and the economy, developing their critical thinking skills and do slightly better than a typical fund. As long as you avoid memes like bitcoin, forex scams and dodgy microstocks and aren't a gambling addict. Trade paper for a while and you will make all the mistakes you were warned about in literature, you can then work on your psychological discipline before putting real money on the stock market.

The reason it is different from say getting an MBA is that the economy is constantly changing and investors are constantly competing with each other to price in market fluctuations, announcements and events before each other, meaning there is no university with static courses that can teach you to beat the market. It is ultimately up to someone to monitor the economy themselves and learn new things on their own.

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>>1007183
Ask yourself this:

If Ivy league graduates who have decades of experience under their belt, unlimited funds at their disposal, analysts working for them 24/7 etc etc. cannot consistently outperform their relevant index, what makes you think you can do it?

The exception to the rule is dividend growth investing, because you don't give a single fuck about stock prices and just concentrate on building passive income. I am personally using a combination of DGI and Indexing.

>>1008453
i already have a sole proprietorship that i never did anything with. what advantage does that give me?

>>1007242
Check out the Boggleheads guide to Investing.

>>1007258
By far Vanguard is the best for minimizing fees. Self educate and you won't have to pay someone to handle your money

>>1008505
>cannot consistently outperform their relevant index
Warren Buffett does ;)

Dont try to pick your own stocks, i did that once and got burned.

Fuck.

>>1008505
Ask yourself this:
Why do you have to be an Ivy league graduate to be educated on investments?

All of the textbooks and lectures these ivy league students are shown are available for free on the internet.

I agree with dividend growth investing bit, but you shouldn't dissuade others from attempting to learn subjects just because many who make up the profession dealing with the subject are ivy league grads. This isn't someone attempting to become a doctor here.

>>1008639
while it is possible to consistently outperform say the sp500 almost no one can except the greatest investors in the world so chances are you won't be able to.

>>1008639
>Warren Buffett does
Buffett has outperformed in bear markets, but underperformed in bull markets. His long-term track record is very good, but no he's not exactly consistent.

>>1008629
>By far Vanguard is the best for minimizing fees
Schwab and Fidelity are essentially equivalent to Vanguard on index fund and ETF fees.

Vanguard is superior because (a) its funds are investor-owned; and (b) it has the best selection of low-cost actively-managed funds to complement its index offerings.

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>>1008654
I never said it was impossible to consistently outperform the index, but there are very few individuals who can do that in a 40-50 year timeframe. If you feel you can do it, go right ahead. It's just way more likely that you will fare better with a low-cost index fund while investing a lot less time.

You're better off with Index Funds. 99% of funds fail to beat the market average. Ben Graham even admitted at the end of his life that his approach doesn't work anymore.

>>1008505
You're right about the first part but there's no outperformance from dividend stocks to the index.

>>1008759
I never implied there was. The point of DGI isn't to outperform the market, it's to build a passive income stream.

>>1008505

>DGI

What does that stand for?

>>1007183
Do you have a fucking edge?

If not, buy an no-load/no-fee index fund from vanguard. Every fucking month. Market goes up. Buy. Market goes down. Buy. Market stays flat. Buy.

You want to make money, right. So learn as much as you can and make more fucking money.

Work your fucking ass off.

>>1008765
>it's to build a passive income stream
Why? Doesn't your job cover your living expenses? If not, you need a better job.

Income always comes with a cost. Unless you need that income -- and you shouldn't until you retire -- you shouldn't be seeking it out.

>>1007252

Options, nigga.

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>>1007242
TastyTrade.com is completely free and discusses derivatives, which are cheaper and safer than stock when properly used. It is a free website with tons of archives and intro programs for newbs. They also have a section on starting small, which I've never seen on any other site.

Generally they have the opposite view of the intelligent investor. and bogleheads. Which is trade small trade often. Its in intelligent investor, as well that the only two people who succeed are Good Value traders, and High frequency pros. Its the people in between who he noticed get screwed. Consistent value investors are very rare. There are many more high frequency traders who do very well. Graham and his followers have also renounced this books methods saying they are poorer markers than they were 50 years ago.
Even if you do not choose to follow the strategy, it is important to understand it as a counterpoint, and firm up your strategy.

https://www.tastytrade.com/tt/shows/you-gotta-be-kidding-me/episodes/biggest-misconceptions-around-passive-investing-11-13-2015

https://www.tastytrade.com/tt/shows/market-measures/episodes/beating-the-best-05-22-2015

I believe that a complete practicum of the securities sector is important. Without knowing all the tools in your toolbox, all you can do is hit things with hammers and pray it works.

>>1008942

>video links

How fucking hard is it to just write things down in text so people can read at their own pace instead of having to be read to by some slow-talking faggot?

>>1008942
Stop shilling your shitty site. You've been warned before.

>>1008947
Post something better. I'll drop them in a heartbeat.

>>1008946
okay, there are a ton of extra fees baked into "no-load" funds that you don't see on the sticker price.
overall you could afford several commission fees for the same price doing the same strategy and stocks on your own.

and video 2 says using simple options strategies you can consistently and substantially reduce risk during market crashes and increase gains during up markets. and its easy to beat the market.

>>1008960

>video 2 says using simple options strategies you can consistently and substantially reduce risk during market crashes and increase gains during up markets

Isn't that advice pretty much "buy puts to cover your gains during a downturn" and "buy calls during an upturn?"

>>1008505
>If Ivy league graduates who have decades of experience under their belt, unlimited funds at their disposal, analysts working for them 24/7 etc etc. cannot consistently outperform their relevant index, what makes you think you can do it?

Because some guy, somewhere said that he is better at investing than me.

>>1008910

Yeh this

Best way to increase your stock earnings is to increase your initial stake i.e. save/work more

Buffett invests with the long term in mind, professionals tend not to have that luxury. A better statistic to look at would be retired professionals who actively manage their own wealth, though that said it's probably just as dire.

>>1008505
>If Ivy league graduates who have decades of experience under their belt, unlimited funds at their disposal, analysts working for them 24/7 etc etc. cannot consistently outperform their relevant index, what makes you think you can do it?
Because they can make easy money charging high fees to fools. The investments don't really matter to them.