OT. I do not particularly like any ETF or index. When I look at funds of sectors that I have studied (reit fund, utility fund, industrials) I cringe at certain ETF holdings. With the big indexes like S&P I do not want their industry weightings. I agree with Paul here, but I am avoiding excitement. I know what my companies are worth.
It's about not trusting one or two or even three indices. About not wanting to give up control in making individual buy/sell/weighting decisions. It would be about giving up the excitement/challenge of the hunt
No bragging, but this is instructive and a bit shocking. I track my gains vs NYSE. even though my objective is not to beat anything. And I beat the NYSE long term. 13.6 to 6.2 Here's what is surprising to me.
To calc the CAGR (comp annual growth), obviously, I start with $100 and multiple it by (1+i) each year.
$100 * 1.122 * 1.069 * 1.170 * etc = $333 for the NYSE calculation. That $333 final number calcs to 6.2% compounded when you start with $100.
When I do it with my percentages, the final $ is $1,276 and 13.6%
It surprised me that the final balance is 4x, $333 vs $1,276. A huge difference in the value of the portfolio. HUGE!
Conclusion for me.
One does not need 50% gains to make it.
Compounding works wonders at 10% or so.
Have patience and don't put too much pressure on yourself.
my situation:
Even with 1.8 MM of withdrawls since 2004, my $1.3 MM 2004 portfolio has grown to $6.4 MM.
With $286K of 2024 annual dividends expected -- only 1/3 taxable.
And I only own 35 diff stocks and 2 ETFs.
And starting RMDs this year. :o(
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