Stricktly +EV for a Young Investor

[bet2win]

lol your whole post is a contradiction

when you are new buy blue chips, when you feel more confident have a look at some mid caps and eventually some small caps

also at mid cap stage look into options and margin lending (only with a small risk)

basically you just want to educate yourself and get experience in the market with certain types of stocks

dont blindly follow stock reports

[mittman84]

[ QUOTE ]
If he has 25,000 now and is making 60,000+ a year currently.........he should be completely retired in 5-10 years if he has half a brain.

Learn how to gamble and find investments against the norm.

-FH-

[/ QUOTE ]Thats me, please show me the way.

[Uglyowl]

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I guess another big question, is what does everyone think of the S&P reports?

I just bought some Intel and Mcdonalds recently, rated well in these reports

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Personally I like the S&P reports, I have got some good recommendations from them. A free source with very good information!

[calmB4storm]

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He wants to be very aggressive and only cares about making the most +EV choices w/ his investments.

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This is an oxymoronic statement. There is no EV possible for stock market investments. To be +EV he needs to be in T-bonds or the like, where it's not possible to lose money.

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This is a moronic statement.

[maxtower]

I'll take a shot at explaining what is going on here:

1. Higher returns are possible by picking a single stock than by buying the index.

2. Buying a single stock picked at random (or picked by someone without skill) is not higher EV than buying the index.

3. Based on the OP, buying an index is the most +EV for you.

[jively]

The EV of a single stock is generally the same as the EV for the index. It would be the same with 5 stocks, or 20 stocks. The big difference is the standard deviation.

The standard deviation of 1 stock might be 50%. The stock can easily double or triple, but it can also be cut in half or in a third. The standard deviation of the index may be only 20%. It is less likely to double or triple, but it is also less likely to be cut in half or in a third. The EV would be the same 8-12% average per year.

(This whitepaper (PDF, 1.2MB) is well written, and has pretty good capital market assumptions: how much different categories of stocks and bonds should average with what standard deviation over any future 30-year period.)

I think John Bogle from Vanguard had a quote about investment research. Don't know it exactly, but basically the value of the research is zero.

-Tom

[Thremp]

[ QUOTE ]
[ QUOTE ]
If he has 25,000 now and is making 60,000+ a year currently.........he should be completely retired in 5-10 years if he has half a brain.

Learn how to gamble and find investments against the norm.

-FH-

[/ QUOTE ]Thats me, please show me the way.

[/ QUOTE ]

Don't get married, live in a hovel. Ship it.

[DcifrThs]

[ QUOTE ]
[ QUOTE ]
He wants to be very aggressive and only cares about making the most +EV choices w/ his investments.

[/ QUOTE ]

This is an oxymoronic statement. There is no EV possible for stock market investments. To be +EV he needs to be in T-bonds or the like, where it's not possible to lose money.

[/ QUOTE ]

do you mean there is no EV in active management for an individual like the op?

can you clarify what you mean here?

thanks,
Barron

[PRE]

Please don't listen to the posters in this thread who are telling you index funds are always better than actively managed funds, because there couldn't be anything further from the truth. Take some time to research funds out their with great track records, relatively low costs, and have a min. fee that meets your requirements.

[DcifrThs]

[ QUOTE ]
Please don't listen to the posters in this thread who are telling you index funds are always better than actively managed funds, because there couldn't be anything further from the truth. Take some time to research funds out their with great track records, relatively low costs, and have a min. fee that meets your requirements.

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index funds in conjunction with a well constructed portfolio has always done better and will in all likelihood will always do better than actively managed funds.

Barron