Financial Independence Daily FI discussion thread - Thursday, January 28, 2021 |
- Daily FI discussion thread - Thursday, January 28, 2021
- Remember all those scary post about "Passive Investing taking over the market and killing all growth opportunity"?
- Space in a conservative FIRE portfolio for high risk investments?
| Daily FI discussion thread - Thursday, January 28, 2021 Posted: 28 Jan 2021 02:00 AM PST Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Posted: 27 Jan 2021 09:23 PM PST The Big Short's Michael Burry Explains Why Index Funds Are Like Subprime CDOsEvery so often someone would post here some article or column about how the fact that "everyone is moving into index investing and how that would kill the market", as there would be no untapped value stocks and no opportunity for growth . There would be long discussions why this was or was not the case that would drag for days. Do you guys remember that? I think this whole Wall Streets Bets and Gamespot brouhaha kinda of settled this discussion, at least for the time being. It seems that the market is nowhere near being "overtaken" by Index Funds and passive investors, quite the contrary in fact. What do you guys think? [link] [comments]  |
| Space in a conservative FIRE portfolio for high risk investments? Posted: 28 Jan 2021 12:42 PM PST I've been following the FIRE mindset fairly conservatively, building my portfolio largely with index funds and, indeed, that has served me very well. In the past few years, I've also branched out into real estate syndicates, but even then I only pull the trigger on the deals that seem like pretty safe bets. As a result, I haven't lost any money on any of them (not even during this pandemic) but I also don't see the huge returns. After all, risk and return tend to be pretty closely tied. Lately, though, I've been wondering if I should have a portion of my portfolio dedicated to very high risk investments that have the possibility of mega returns. These might be "win big or lose everything" style deals. The deal that really triggered this thought process was funding a high profile lawsuit that could return as much as 65x my principal but could just as easily wipe out my principal if, say, the plaintiff loses. I would normally not even give such a "lottery style" investment a second glance... but should I? These Wall Street Bets fights with the hedge funds is another example. The idea of investing in a meme stock would normally be ludicrous to me, but I'm no longer so certain it should be. For the record, I have already surpassed my original FIRE target of $1.5M (just passed $2.1M last month) if that matters. What about you? Do you have a portion of your portfolio allocated to hail mary bets? If so, what's your rationale behind how much? [link] [comments]  |
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