Author Topic: How I invested my money the last 2 years  (Read 2436 times)

Magclaw

  • 5 O'Clock Shadow
  • *
  • Posts: 33
How I invested my money the last 2 years
« on: September 03, 2014, 01:15:18 PM »
First of all I own about 35 different stocks, and yes I know I should be buying index funds, but all of us make mistakes don't we. I have been moving money from cash into my stock account for 2 years and slowly buying up different companies.
Well I ran some numbers to see what percentage gains i have averaged and that is why I am posting. Mind you I could have plopped all this money into my stocks right from day 1 but I was new to stock trading and wanted to do it slowly (about 1000/month the first 6 months, 2000/month the next 6 months and then doubled that the next year). My gains were 16.3%/year taking into account how long each batch of deposits were invested.

Now this shocked me in that had I simply invested in VTI I would have realized 44% returns for 2 years. Instead some of my deposits have only been invested for a few months and returning much lower %.

Again I just wanted to put myself out there as an example, and express my regret for not taking the advice I have read on here.

Oh I forgot to mention I had been selling some in the money covered calls, which lowered my potential gain, but provided some level of protection.

I have another stupid mistake (with my retirement account but I will save for another topic)

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28108
  • Age: -999
  • Location: Seattle, WA
Re: How I invested my money the last 2 years
« Reply #1 on: September 07, 2014, 08:51:28 PM »
It's always a good time to learn from your mistakes.

Glad you've found an investing strategy that you're happy with now.

Thanks for sharing your experience/numbers!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Roland of Gilead

  • Handlebar Stache
  • *****
  • Posts: 1912
Re: How I invested my money the last 2 years
« Reply #2 on: September 07, 2014, 09:17:04 PM »
Meh, you can't always pick the winners, but some years will be better than others.   I only did about 20% in one account last year, 10% below the index funds but this year I am up 70% in that account vs what, about 10% for index funds?

RyeWhiskey

  • 5 O'Clock Shadow
  • *
  • Posts: 83
Re: How I invested my money the last 2 years
« Reply #3 on: September 08, 2014, 11:20:00 AM »
Thanks for sharing!

As the above poster offers, some years will be better than others. I believe that the general point is that in the long run stock picking will almost always underperform a low cost index. The earlier we learn this the better.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28108
  • Age: -999
  • Location: Seattle, WA
Re: How I invested my money the last 2 years
« Reply #4 on: September 08, 2014, 11:29:55 AM »
I believe that the general point is that in the long run stock picking will almost always underperform a low cost index. The earlier we learn this the better.

+1!  Sounds like the OP learned it after only two years, which is quite quick.  :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.