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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: jvincen2 who wrote (2752)	5/15/2024 7:24:54 AM
From: cemanuel	2 Recommendations Recommended By chowder jvincen2 Respond to of 22054

Chowder, I can still recall one thing that had me read you more often way back. it was that "play portfolios" using imaginary money were something you never did. I also never understood why anyone would do that either and think the very best lessons, ones you always remember start out with real money. When I was first starting there were sites where you could set one of those up. I tried it on a couple, gave it up pretty quick. As you say, it just isn't the same when you aren't using real money. It's part of the reason why, for the first 2-3 years in stocks I always considered my first buy the equivalent of a first date, a tentative look. I just didn't look at a company hard enough until I owned some. It was the 2nd buy that meant a commitment. I've gotten past that stage now but I recall it quite distinctly. No matter how hard I told myself to, I just never dug deep enough until I had some skin in the game.

To: jvincen2 who wrote (2752)	5/15/2024 7:46:13 AM
From: chowder	3 Recommendations Recommended By ArsenalFC cemanuel jvincen2 Read Replies (1) \| Respond to of 22054

Re: it was that "play portfolios" using imaginary money were something you never did. It was back in 1999 or 2000 where CNBC had sixth graders competing against money professionals and actually beating them. The kids simply picked dot com whomever while money managers had a fiduciary duty to invest responsibly. I remember when Warren Buffett sold MCD I think it was, and my daughter who was 8 or 9 said why would anyone sell MCD? The kids turned out with the correct call, but who is going to invest their money with a sixth grader? There's no risk with play money, there's no emotion with play money, and if there is one thing that is prevalent in the investing world, it's emotion. Mikee over on SA, back in the day, asked for 10 of us to put together a 50 holding portfolio for a buy and hold strategy. His DG 50 experiment. I participated as a courtesy but never again. His rule was no selling, no portfolio management, simply buy and hold. That's not how I manage a portfolio. So the exercise was useless to me. A lot of the companies selected, people also clearly stated they wouldn't buy at the time due to valuation. So, a number of those companies would not show up if dealing in real life scenario. Mike will argue he put real money to work, but it was only $25K. No way he was going to do $500K or $1MM into his DG 50. So, showing how a real portfolio is managed is the only way to go. You get to see the strength and weaknesses of the way the portfolio is managed, you get to see the correct calls and the mistakes, and we all make mistakes. Dealing in reality is the only way for me to truly learn anything about portfolio management. Others may differ, and that's fine by me, but this is how I roll.