Comments on: How is Investing and Owning a Small Business Related?

By: Investor Junkie

Investor Junkie — Tue, 30 Mar 2010 19:02:17 +0000

Hi Damilola,

Thanks for visiting. I'm not saying indexing is bad. Quite the opposite, I believe index should be done by most people. In my case most of my asset allocation is indexed based. Partly because of 401k, also because I believe you should have at least 80% into index based funds. For specific stock picking no more than 10% of your assets should be used.

By: Damilola

Damilola — Tue, 30 Mar 2010 14:47:58 +0000

I can see why you advocate stock-picking . . . you're also an entepreneur. Both like to hedge their bets. Not saying that is wrong, but that's something for me way down the line.
In the meantime, I'm still in the mutual funds (at least until graduation comes). Great post @ Consumerism Commentary

By: Investor Junkie

Investor Junkie — Sun, 21 Mar 2010 00:43:49 +0000

Good point about the weird anomalies! I never directly thought of that but you are correct as that's part of my research when looking at the SEC filings.

By: Monevator

Monevator — Sun, 21 Mar 2010 00:37:56 +0000

Just to play devil's advocate, one thing you learn when you run your own business (and I'm sure you've noticed this) is how weirdly the profit and loss and balance sheet of your own business look.

It's like looking at your shadow, rather than yourself, and gives a really interesting insight into how as an investor it's hard to truly sense where the money is going from the accounts. Certainly why I tend to favor a combination of simple ratios, cashflow, and looking for weird anomalies when I do invest in individual stocks (echo the favoring in general of indexing!)

By: Investor Junkie

Investor Junkie — Sat, 13 Mar 2010 16:27:00 +0000

Yea RE has other issues cons with, though believe in RE also myself. I plan on picking up more RE in the next 5 years.

By: @mslorax

@mslorax — Sat, 13 Mar 2010 13:45:26 +0000

Hi IJ:
This was a great post. I am preparing a post on my blog about sucking as a stock picker using APPL as an example. I am very successful in real estate.

By: Investor Junkie

Investor Junkie — Wed, 10 Mar 2010 19:30:45 +0000

Right! That means after BRK-B split it was a better deal right? If this were the case I'm gonna go buy some penny stocks.

By: Financial Samurai

Financial Samurai — Wed, 10 Mar 2010 19:06:37 +0000

The best is when people think a $3 stock is good value vs. a $200 stock. Ahhhhhhh, sometimes ignorance is bliss!

By: Investor Junkie

Investor Junkie — Wed, 10 Mar 2010 01:13:51 +0000

Hey Money Funk. Yes you are correct. Investing in specific stocks is not for everyone. Investing in indexes don't require as much skill and it's more about proper asset allocation.

By: Money Funk

Money Funk — Tue, 09 Mar 2010 23:40:50 +0000

I've heard that about index investing and that it can beat many of the active mutual fund managers in the process. And at one time, I was investing in the S&P500. But I stupidly got money hungry, took the tax penalty, and spent the funds. It wasn't much, but it was a start. I plan to invest in the S&P500 again, but the time is not yet right for me. Soon.

By: Investor Junkie

Investor Junkie — Tue, 09 Mar 2010 20:07:35 +0000

Hey Evan,

See:
http://investorjunkie.com/about

No the business is not related to investing. It's technology based. In due time more about me. In the end though it's not about me, it's about being a better investor.

By: Evan

Evan — Tue, 09 Mar 2010 20:03:28 +0000

Do you have a business now? Is it related to investing? I want more info about IJ, besides that he has a pretty kick ass blog roll