I may have 1.8 to invest soon...

Fool Community Help Desk Ask A Foolish Question
1

What advice would you give to someone sitting on 1,800,000.00 and is considering following the Foolish path?

Thoughts:

  • Should one consider buying the last 30 stocks recommended by Motley fool (1.8 million divided by 30 stocks is 60K per investment), and then just sit and wait for sell recommendations? Holding for the recommended 5+ years?

  • Is this the worst time to get in?

  • Does Motley Fool watch for a bottom to the current market and recommend when to get in?

I’m as green as it gets but watch and follow who I think are headed in the right direction.

Joe

2

Don’t, though if you do, be sure to check back here in a year and tell us how much money you lost. Seriously. You need to think about where we are in the business cycle and how well a game that bets on small/midcap “growth” stocks is likely to do going forward.

For sure, allocating some money to the strategy would be A Good Thing To Do. How much? 5% max, as Ben Graham advises, is the max that should be allocated to ‘speculation’, which is exactly what betting on “growth” stocks amounts to, especially as the G BoyZ do it, or Louis Navallier, or any of the dozens of growth-stock tipsters there are out there, all of them promising fabulous results if only you just buy their newsletters and follow their advice about what to buy.

What to do with the rest of your money? That depends on your interests and money management skills, and especially on your willingness to do the work required for whatever gig(s) you choose.

1 Like
3

I’ve been researching REIT’s. These do well in recession and inflationary times. Some have OUSTANDING dividends.

Thoughts? And, Thanks.

4

I was in a similar situation last year. People were advising me to get that money to work right away. But I knew the market was highly valued, and I was afraid of going all in and then having the market drop on me (which is, in fact, what happened). I finally decided there was no way I could time the market. So I came up with a plan to park some of the money in safe (fixed) assets, and buy stocks in installments over time, in my case, a year. It felt stupid in 2021, but now, with the market falling, I’m still making buys on the way down, so I don’t regret my “installment plan.”

I’m also still staring at losses, but I still have more to invest, so I’ll keep buying. For me the hardest part has been the emotional part: sticking to my plan and not watching my overall balance. I love the Motley Fool philosophy of taking the long view. So I try to keep my view fixed on 10-20 years, not today’s balance. I do rely heavily on Motley Fool’s recommendations.

This is just my story, and it may not be right for you. The market’s lower-valued today than when I started out. But it will always be true that no one can say whether the market is going to rise or fall. The “installment plan” let me get in the game without being paralyzed by the fear that I was risking everything at a bad time.

Hope it goes well!

5

Hi CarterOfMars,

You might drop by one of the community boards associated with the service where you subscribe. Here is a link to the Stock Advisor community boards –

https://www.fool.com/premium/stock-advisor/community/

There are lots of ways to invest, but don’t be in a hurry, particularly when you are investing a nest egg.

Vicki

6

CarterofMars, aka JOE

Don’t do what the Pied Pipers whisper in your ear. They have a piss poor performance and batting average. All they want to know is “What’s in your wallet”. Me, I have cobb webs.

Follow along with ExGen’s 32,000 other followers who invest in the 25 stock portfolio and sleep at night.

I have duplicated ExGen’s below 2 million dollar portfolio. If he makes changes, I make the same changes.

Next for sidebar action, stocks to own forever and trade according to Simon Sez III rules are as follows AAPL : MSFT : GDX : SPXL : ETHUSD. Each has about 999 to 1000 percent battering average with 0 losses. Does anybody know what the SA’s battering average is lately?

SPXL is part of the Tetter Totter half with SPXS. Been Swing Trading SPXL from 2006 to 2014 and from 2014 to December 2022 well into 8 figures each. You are welcome to backtrack at your leisure, but, you must use Simon Sez III’s simple 2 rules or your own charts to do the tracking. If the Pied Pipers were to do the Tetter Totter Principle and charge their customers, they would be out of business.

Even my Tetter Totter portfolios can put them out of business. It is FREE. It requires homework, time, patience, and discipline.

https://www.youtube.com/watch?v=2hJ9Qs_Z0d0&t=312s
https://www.youtube.com/watch?v=5Ov6kl5XmUQ&t=160s

Or create an M1 Finance dividend re-invested portfolio all automatically if you wish or have hands-on the portfolio done for you to duplicate https://m1.finance/d7HNu-IgtL0Q

https://www.youtube.com/c/GenExDividendInvestor/videos

Something to ponder,

Quillnpenn - a poor church mouse scratching for a living as a Swing Trader for over 45 years.
------------ Vision - Multi-Millionaire…Goal - earn 1.3% - 2.5% compounded Daily aka 2% theory.

1 Like
7

Assuming that Nigerian prince comes through with your $1.8m (joking), if you are truly as green as it gets, I might seriously consider working with a fee-based financial advisor and not trying to manage such a sum on your own, at least not until you get a little more seasoned as an investor.

I cannot offer you individual or specific investment advice, but you are accurately recognizing Stock Advisor’s basic investment Foolosophy for long-term (3-5 years or longer) buy-and-hold investing.

This is a great time to get into the stock market because prices are down pretty much across the board. However, you may experience a period of lackluster performance as the macroeconomic conditions impacting the economy and markets are not likely to change any time soon. Just as prices are cheap to buy into new positions, it will require patience to give your investments the time they will need to grow.

As for market timing, TMF does not provide buy-in pricing recommendations because our focus is not on the price at which you initiate your position but how long (3-5 years or longer) you hold onto your position. For a majority of your positions, 5-10 years down the road, you won’t be thinking about your cost basis but on how well the company has performed over time.

Fuskie
Who notes how you choose to invest should depend on a number of factors, including your age (and years until retirement), where you are on your investment journey, and your risk tolerance for growth investing over income preservation…

Premium Home Fool: Ask me a Foolish Question, I’ll give you a Foolish Response!
Ticker Guide: The Walt Disney Company (DIS), Intuit (INTU), Live Nation (LYV), CME Group (CME), MongoDB (MDB), Trip Advisor (TRIP), Vivendi SA (VIVHY), Mimecast (MIME), Virgin Galactic (SPCE), Axon Technologies (AXON), Blackbaud (BLKB)
Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
Disassociation: The views and statements of this post are Fuskie’s and are not intended to represent those of The Motley Fool or any other sane body
Disclosure: May own shares of some, many or all of the companies mentioned in this post: https://tinyurl.com/FuskieDisclosure
Fool Code of Conduct: https://www.fool.com/legal/the-motley-fools-rules.aspx#Condu…
Invitation: You are invited to interactively watch Motley Fool Live online television: https://www.fool.com/premium/live/
Call to Action: If you like this or any other post, Rec it. Better yet, reply to it. Even better, start your own thread. This is YOUR TMF Community!

1 Like
8

https://schrts.co/WiaRfKTz

1 Like