The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: Magclaw on September 03, 2014, 01:15:18 PM

Title: How I invested my money the last 2 years
Post by: Magclaw 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)

Title: Re: How I invested my money the last 2 years
Post by: arebelspy 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!

Title: Re: How I invested my money the last 2 years
Post by: Roland of Gilead 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?

Title: Re: How I invested my money the last 2 years
Post by: RyeWhiskey 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.

Title: Re: How I invested my money the last 2 years
Post by: arebelspy on September 08, 2014, 11:29:55 AM

Quote from: RyeWhiskey on September 08, 2014, 11:20:00 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.  :)