Comments on Triaging My Way To Financial Success: The DIY Journey:

Ethan - Really appreciating your contributions to ...

2008-11-10T19:31:00.000-05:00

Ethan - Really appreciating your contributions to the comments recently on my site!

I think any investor who takes a DIY approach needs to be honest in their capacities to invest. The active vs. passive debate is something that I think is an individual choice but the investing approach and fundamentals really don't need to change all that much (if at all).

I choose to not index the majority of my portfolios because I don't have a desire to gain exposure to both good & bad companies - I would much rather own just the ones that fit my style or offer value. Yet asset allocation, global diversification and dollar-cost-averaging are still vital components of any strategy (active or passive).

Most of the time I advocate that an investor begins with a passive approach (index funds & ETFs) and then if/when they have the time branching out into individual equity investments.

I have posts that I'm working on that go indepth into an index approach, but my obvious forte is individual stock analysis.

Often in private conversations with readers I'm very active in promoting a passive style as a starting base as I feel a new DIY investor is able to practice many of the important portfolio management skills they need to invest in equities in the future.

Well said...However there is one thing that is sca...

2008-11-10T19:17:00.000-05:00

Well said...

However there is one thing that is scary to me... the average retail investor engaging in enterprising investing... a very scary thought indeed.

Granted brokers usually are worthless, however taking control of your investments and pursuing an active investing approach is not a great choice either.

The main point being many of us have full time jobs and or families that lie outside the field of finance. Meaning we are handicapped to learn and teach ourselves the various mental models needed to intelligent analyze a business.

If some of us do find this time, more power to us... but most will not and therefore most should pursue a life of passive investment, i.e. indexing.

I think it is wonderful you are sharing your approaches, ideas and pains with pursuing an enterprising investment approach, but remember: most people that stumble onto your blog, should prob. not be pursuing this path.

I have the same problems to face with my video show; everyone is able to make their own choices but I think it is fair we give them enough information and transparency to know just how much the deck is stacked against them.

Finally, amen to the fact that stocks are REAL ownership stakes in a REAL living, breathing business. Understand the business 1st, buy the stock 2nd.

Cheers.

Ethan

That would make my blood boil too- wow! I think t...

2008-11-10T17:42:00.000-05:00

That would make my blood boil too- wow! I think the best business model that I have heard about in a long time is Darwin Gillett's, which he lists in his book, "Noble Enterprise."

10% Jae?!!! That's not financial advice that's ro...

2008-11-10T15:37:00.000-05:00

10% Jae?!!!
That's not financial advice that's robbery! BTW...can you buy stock in the company that sold you those products?

It's true. I started on my own because my financia...

2008-11-10T14:13:00.000-05:00

It's true. I started on my own because my financial advisor was selling me funds with a commision of around 10%!

After fees, I was getting 1% returns on the best of best days. Market was at around 8% at that time I believe.

Boy that got my blood boiling.