Individuals Dodging Taxes

This is getting weird. So you own 3 stocks? Wow. And you should have hung on to that AMD and you'd have made another 14k. That's just bad luck man. Sorry.

 

I think he should pay about the same rate you do. Between 2014 and 2018 his net worth increased by about 100 billion dollars. In that time he paid about a billion dollars in income taxes. So he paid about .25% per year in taxes on his increase in wealth. I'm sure you pay a lot more than .25% in federal income tax. What rate do you pay?

 

“Plenty of people” making 100x on bets. Lol. Yeah, sure bud.

Assuming you are talking about day trading options or crypto leverage or some nonsense. Good luck with that. If you are going to lie at least make it believable. I’m sure plenty of us have gotten lucky to have a position increase 2x or 5x or 10x over a few years or a decade. Basically anyone that held NVDA or META or traded some of the other tech stocks. But of course that is usually offset by other moves that underperform the market or simply perform with the market. Even the “expert” portfolio managers can’t outperform dart throwing monkeys over the long term, so the idea a typical investor should make “concentrated bets” is pure folly. Gaurantee you it’s far more common for overconfident “concentrated bet” investors to lose 90% than it is gain 1000%. You suggested 10,000% returns as commonplace occurance, which is pretty much laughable/preposterous.

 

Are you claiming to only pick winners or something?

Why isn’t Goldman or Blackrock paying you at least $100m to make investment decisions for them?

 

Not speaking of anyone here specifically. But anyone can make good money in a bull market, just about everything is up. The question is how they do when it turns.

I will also say that different people are in different positions. Someone who has 100k saved at 50 for example is probably having to be far more aggressive than someone who has a million. When you switch from accumulation to protection mode that’s another large risk change. Point being, some people don’t have to take the on the increased risk of actively trading if they don’t want to. Some choose to anyway, which is fine. It’s their money. But someone with a good income, patience and discipline can get a long long way through passive investing with far less risk.

 

Ok bud. Crypto those gains are typical in what are referred to as shitcoins. I invested 2k in one 6 months ago that ran to 220k. I’m a small fish in that large pond of crypto investing.

I also never said someone should make a concentrated bet. We can get into a point for point about investing if you’d like. You will lose.

 

If you think buying dogecoin = investing you’ve already lost this argument.

I sincerely hope you aren’t claiming to be any type of financial professional or offer any sort of client advice on investing. Even your terminology is horseshit. “Concentrated bets”. WTF is that? If you were a certified professional and lost clients money with “concentrated bets” in random crypto you’d be sued for malpractice in about 2 minutes. I guess we’ll have to take your word that you managed to pick winners in the universe of shitcoins. Perhaps you should join that other poster in offering your services to Blackrock?

Considering my career was in auditing financial systems and financial statements (UF finance grad with a later masters in information systems and professional level certifications), please tell me more about what I don’t know. I don’t claim to be an expert in investing myself (different field), but certainly I know enough to spot nonsense. I used to use my knowledge of financials to pick individual stocks on the side and listen in to conference calls to gain insight before “picking” a stock. But even someone such as myself that has worked with corporate level filings is unlikely to outperform the market. Why? Because all other professionals and daytraders have access to the exact same information and there are irrational aspects to investing (technicals/momentum).

 

Something like 97 percent of day traders lose money over the long term.
Only about 10 percent of fund managers have beaten the market over time. And those are the supposed professionals.
So to anyone taking that path…Good luck.

 

Nah it’s all just luck…..

 

No I don’t just own 3 stocks. I could have posted MRVL, ALT, GE, BA AAPL or the 5% CDs I have.

You asked for some of my recent buys, suggesting I didn’t know what I was talking about(because I’m a PA).

Yeah I could have held onto AMD but being up almost $100/share it was time to take profit and get out.

So I post results from some with rather decent gains and you still try to demean and disparage.

Egg is on you now.

 

Agree with this and as you get older taking risk should only be done with what you can afford to throw away.

They say it’s best to buy what you know hence I’ll be more “speculative “ in pharma companies where I can read and understand their study read outs. In the case of VKTX they has a mid phase study read out that had lots of dropouts, the market too it as bad. Trouble was the people dropping out were placebo subjects who weren’t losing weight. With the GLP1 craze it made sense to take a position for a super cheap position. These things happen all the time if you’re looking close enough.

 

Never claimed that man.
Funny though Blackrock has big positions is some of those companies.

It was suggested since I’m just a PA I couldn’t know what I’m talking about.

Of course I have some stocks that haven’t panned out like those. PINS has been dragging for years, BA as well.
Got some MLPs that pay a great yield but the share price has sat for years.

Part of the argument is much of it is luck. I beg to differ.

 

Yep, reminds me of when gamblers would tell me that they won $100 on slot machines, without mentioning the losses.

 

Blackrock has big positions in just about every company. That is the point. They don't really pick.

 

I rarely sell for a loss, My time horizon is long so I can wait it out.
Unless something fundamentally changes with the company there isn’t a reason to. Take a small position if it goes down and you still like it buy more.

I’ve been sitting on Blink for a while and I’m under water, if the EV revolution is really gonna take hold then they should turn around.
Same with PINS, sitting even waiting until they get bought or get their crap together, if it takes 4 years to make 100% I can wait.

Semiconductors are an easy cyclical trade, they run up and then run down. When everyone hates them that’s the time to buy.

 

Again, those are bets. You are betting that the market doesn't realize that Blink is really worth a lot. The market has priced the way it has due to the myriad risks. You don't seem to be accounting for them, but maybe you are better than the market or just lucky. So, could it increase? Sure. Could it decrease more? Sure. It is more likely to go up than down, because the market is growing. But there is an opportunity cost as well. And that increases as the market grows.

 

Certainly it’s a bit of a speculative stock. That’s where you get big returns.

Half the market is driven by fear, so many people don’t understand it and are afraid so they can go get 5-6% per year and hope their advisors are good.

But to just say someone is lucky is not totally understanding what moves markets and individual stocks.

 

I’m more impressed with the one person who agreed with this post. lol.

 

Yeah a lot of it is.

 

Yes, if you bet on 17 on roulette instead of red, you make a bigger return if it hits. To say it isn't luck when the 17 hits is to misunderstand markets and how they price in risk. The market sets a price in anticipation of expected future returns. Puting money on one side or the other of the price is to bet that the market got it wrong in assessing the risks or the potential of a company in the future. Unless somebody systematically knows more than markets, that is just hoping you guessed right (or alternatively, that the things you didn't know that the market knew that caused you to make the bet that the market was wrong were themselves wrong).

BTW, most active trading isn't driven by fear or any other enotion. It has no emotion. It is based on algorithms at this point. Cold, rational algorithms with a lot more data and a lot more insights into how money is made.