Author Topic: I want out of investing - options  (Read 3099 times)

no_free_lunch

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I want out of investing - options
« on: November 28, 2019, 10:23:50 AM »
I find it increasingly difficult / impossible to run my portfolio.  It is simply too time consuming to research individual stocks given how diversified I like to be.  I am looking for options.   I am a Canadian investor.

I know i should buy ETFs but I just don't like how popular they are.  I feel that mutual funds are my best option.  I am hoping someone can provide some good suggestions.   Mawer and Beutel Goodman look interesting.  Are there any other names people like?


buffetteer1984

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Re: I want out of investing - options
« Reply #1 on: November 28, 2019, 10:40:30 AM »
Why not just buy berkshire hathaway and call it a day

Gregmal

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Re: I want out of investing - options
« Reply #2 on: November 28, 2019, 10:42:33 AM »
At first I thought this was another muscleman thread.

Just buy BRK and GOOG. Average in over time. If you really want ETFs or mutual funds, donít be afraid of fees. People these days make way too much of an issue of paying for anything. But a good manager is worth every penny. Although itís easy to see why, after a decade of easy returns, everyone thinks otherwise. Ironically, the number of people who have ACTUALLY realized/achieved easy money returns seems to be dwarfed by the number of people who are in the easy money, donít pay for anything, buy the index fan club.


bizaro86

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Re: I want out of investing - options
« Reply #3 on: November 28, 2019, 11:00:58 AM »
I had a number of Mawer funds in a DC pension plan at my former employer. The performance was strong in both up and down markets, and the stock selection seemed rational and well done whenever I reviewed their holdings and quarterly buy/sells. I would recommend them.

Casey

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Re: I want out of investing - options
« Reply #4 on: November 28, 2019, 11:58:20 AM »
Why don't you like ETFs being popular?

nodnub

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Re: I want out of investing - options
« Reply #5 on: November 28, 2019, 12:22:20 PM »
At first I thought this was another muscleman thread.

Just buy BRK and GOOG. Average in over time. If you really want ETFs or mutual funds, donít be afraid of fees. People these days make way too much of an issue of paying for anything. But a good manager is worth every penny. Although itís easy to see why, after a decade of easy returns, everyone thinks otherwise. Ironically, the number of people who have ACTUALLY realized/achieved easy money returns seems to be dwarfed by the number of people who are in the easy money, donít pay for anything, buy the index fan club.

Hi Gregmal, is your comment from a US perspective.  Key factor is that OP is in Canada.  Many Canadian mutual funds have expenses of 2.5% and higher.  High fees like that on a diversified portfolio of funds WILL have an outsized, negative impact on returns over long periods of time. 


Gregmal

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Re: I want out of investing - options
« Reply #6 on: November 28, 2019, 12:36:54 PM »
At first I thought this was another muscleman thread.

Just buy BRK and GOOG. Average in over time. If you really want ETFs or mutual funds, donít be afraid of fees. People these days make way too much of an issue of paying for anything. But a good manager is worth every penny. Although itís easy to see why, after a decade of easy returns, everyone thinks otherwise. Ironically, the number of people who have ACTUALLY realized/achieved easy money returns seems to be dwarfed by the number of people who are in the easy money, donít pay for anything, buy the index fan club.

Hi Gregmal, is your comment from a US perspective.  Key factor is that OP is in Canada.  Many Canadian mutual funds have expenses of 2.5% and higher.  High fees like that on a diversified portfolio of funds WILL have an outsized, negative impact on returns over long periods of time.

Yes I should have clarified that.

Here in the US itís common to hear people and media pundits(who are themselves promoting index fund products) whining about expense ratios of .5-1% annually which is a joke.

The name of the game is making money in a sensible, risk adjusted way. Not chasing some stupid, man made, basket called an index. Which ironically enough is heavily weighted in a select few companies, whoís pass through expenses ratios far exceed a few basis points. Which is why now many are gaming the system, and just buying the FANGs.


Lakesider

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Re: I want out of investing - options
« Reply #7 on: November 28, 2019, 12:50:02 PM »
I've been thinking the same recently, I've been overweight energy for the past couple of years... OPS! Been running a concentrated portfolio and i'm obviously my own worst enemy.

Thinking about doing a bit of a greenblatt and putting the bulk of my money in an index and then investing in the one or two ideas I have. (got to find some way to under perform  ;)).



 

Liberty

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Re: I want out of investing - options
« Reply #8 on: November 28, 2019, 12:58:06 PM »
If you don't want to think about it, just get low-cost ETF indexes. It's the most sensible thing to do.

Expenses of 1% or 2% are a big deal if you expect the market to return 6-9% a year. That's a huge chunk of your return that you're paying in fees. You can take out your compound interest calculator to see how much the delta widens over 20-30-40 years.

Most mutual funds and hedge funds don't beat the indexes. Would you pay them 10-20-30% of your "profits" each year for trying, money that wont be compounding for decades to come?

Maybe you're really good a picking managers that outperform, in which case, go for it, but since you're asking for recommendations, I'm guessing that picking money managers isn't your specialty, so don't expect to outperform that easily there too. If if was that easy to do prospectively (not in hindsight), everybody would do it.
« Last Edit: November 28, 2019, 01:05:47 PM by Liberty »
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muscleman

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Re: I want out of investing - options
« Reply #9 on: November 28, 2019, 01:35:23 PM »
I find it increasingly difficult / impossible to run my portfolio.  It is simply too time consuming to research individual stocks given how diversified I like to be.  I am looking for options.   I am a Canadian investor.

I know i should buy ETFs but I just don't like how popular they are.  I feel that mutual funds are my best option.  I am hoping someone can provide some good suggestions.   Mawer and Beutel Goodman look interesting.  Are there any other names people like?

You could switch to a technical analysis based approach like I did, and that saved me a ton of time. You can still invest long term, if you use weekly and monthly charts. I find it far more effective to read the charts to find out what others think of the stock, instead of trying to evaluate myself. I am not that good at doing the fundamental analysis anyway, so why bother wasting that time?

Or you can create your own quant model, back test it, and use that to auto pilot your trades.

Or you can invest in index funds and forget about it, if you really don't want to spend any time, and have no interest in beating the market.

However, one thing I have to point out is that no matter what strategy you pick, it takes years to get good at it, and there will still be periods when the strategy doesn't work well. If you keep switching strategies because of your recent lackluster performance, you'll never get good at anything. I switched to technical analysis only because I spent 9 years getting better at fundamentals, read over 100 books, spent countless hours per week on it, and eventually decided that it is not suitable for me. If you only tried it for 1-2 years, maybe you should not give up this easily.
« Last Edit: November 28, 2019, 01:40:16 PM by muscleman »
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