Comments on: My investing advice if you have $1000 to $10000 http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/ A site to share my tips, tools, and humble thoughts on the journey to wealth Mon, 15 Mar 2010 20:01:54 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: frugal http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/comment-page-1/#comment-1153 frugal Wed, 30 Aug 2006 12:32:00 +0000 http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/#comment-1153 The easiest way is to find the equivalent class of mutual fund from Vanguard or another company, and compare their historical performance on a 5-year chart (maybe using Yahoo finance). Read "Four Pillar of Investing" in my book list. It will tell you why Vanguard is good because of its low expense ratio. The easiest way is to find the equivalent class of mutual fund from Vanguard or another company, and compare their historical performance on a 5-year chart (maybe using Yahoo finance).

Read “Four Pillar of Investing” in my book list. It will tell you why Vanguard is good because of its low expense ratio.

]]> By: Wins http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/comment-page-1/#comment-1150 Wins Wed, 30 Aug 2006 06:37:19 +0000 http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/#comment-1150 What do you think about Fidelity funds? Do you think they usually underperform comparing to other similar funds? I currently have an international fidelity fund (again with the being long term/aggressive while-i'm-young formula), but seems like everyone in the neighborhood is talking about vanguard funds (which i can also get through fidelity, though i think it's most load fund) Thanks! Awesome site! What do you think about Fidelity funds? Do you think they usually underperform comparing to other similar funds? I currently have an international fidelity fund (again with the being long term/aggressive while-i’m-young formula), but seems like everyone in the neighborhood is talking about vanguard funds (which i can also get through fidelity, though i think it’s most load fund)

Thanks! Awesome site!

]]> By: frugal http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/comment-page-1/#comment-1144 frugal Tue, 29 Aug 2006 22:25:20 +0000 http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/#comment-1144 On Warren Buffett's old age, I think a mini-sell off when he dies is unavoidable. But I personally believe that drop from such event will not exceed 10%. If it exceeds 10% or close to it, I will be buying. If you have read any of Buffett's annual letters to shareholders, you should get the feel of how he manages his company. Most of the different businesses are headed by excellent managers, one of the crucial criteria for Buffett to invest or buy their business in the first place. So Buffett's death will definitely not become a collapse in Berkshire Hathaway's business. Furthermore, the vice, Charles Munger has been working with Buffett for long, and his investing philosophy is very close to Buffett's. I believe Charles Munger can continue Buffett's empire without a problem. Maybe a bit less stellar, but definitely well-above average. The only other concern is his huge personal stake in BRK, and since he has donated <a href="http://www.cbsnews.com/stories/2006/06/27/earlyshow/main1754378.shtml" rel="nofollow">majority of that to Gates' Foundation</a>, I'm sure certain proper arrangement has been done not to affect share price of BRK. The Gates' foundation most likely will only be selling out BRK very slowly and very gradually. Any big sale will certainly be pre-arranged with big buyers. I don't think anyone needs to worry about that, since Buffett has always been a thoughtful investor. At last, I want to disclose that I don't have any personal holdings in BRK/A or BRK/B. I have been looking at BRK for a long time however, maybe more than 2 years. Since my investment style is top-down, rather than bottom-up (I pay more attentions to sectors than individual stocks), I have been putting my money into other sectors that I believe to be more exciting and interesting. But I'm certain that BRK should stand the test of time. If QQQQ or SPY or Dow Jones falls 40% overnight, I will be selling every "regular" stock, and buy BRK. BRK may be slow and bulky, but it will be the most steady that you can find in a big turbulent stock market. On Warren Buffett’s old age, I think a mini-sell off when he dies is unavoidable. But I personally believe that drop from such event will not exceed 10%. If it exceeds 10% or close to it, I will be buying.

If you have read any of Buffett’s annual letters to shareholders, you should get the feel of how he manages his company. Most of the different businesses are headed by excellent managers, one of the crucial criteria for Buffett to invest or buy their business in the first place. So Buffett’s death will definitely not become a collapse in Berkshire Hathaway’s business. Furthermore, the vice, Charles Munger has been working with Buffett for long, and his investing philosophy is very close to Buffett’s. I believe Charles Munger can continue Buffett’s empire without a problem. Maybe a bit less stellar, but definitely well-above average.

The only other concern is his huge personal stake in BRK, and since he has donated majority of that to Gates’ Foundation, I’m sure certain proper arrangement has been done not to affect share price of BRK. The Gates’ foundation most likely will only be selling out BRK very slowly and very gradually. Any big sale will certainly be pre-arranged with big buyers. I don’t think anyone needs to worry about that, since Buffett has always been a thoughtful investor.

At last, I want to disclose that I don’t have any personal holdings in BRK/A or BRK/B. I have been looking at BRK for a long time however, maybe more than 2 years. Since my investment style is top-down, rather than bottom-up (I pay more attentions to sectors than individual stocks), I have been putting my money into other sectors that I believe to be more exciting and interesting.

But I’m certain that BRK should stand the test of time. If QQQQ or SPY or Dow Jones falls 40% overnight, I will be selling every “regular” stock, and buy BRK. BRK may be slow and bulky, but it will be the most steady that you can find in a big turbulent stock market.

]]> By: frugal http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/comment-page-1/#comment-1143 frugal Tue, 29 Aug 2006 21:18:52 +0000 http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/#comment-1143 I usually like most of the Vanguard funds. But for majority of the dividend investing in the "normal" investment world, the yields are too low for my taste. My dividend investings are not for everyone because it is individual stock-based. There is an entire dividend investing series on the left column. I wouldn't invest everything, or not even 40% of my money into dividend stocks. They are an essential component for the portfolio, but definitely not the entire picture. I usually like most of the Vanguard funds. But for majority of the dividend investing in the “normal” investment world, the yields are too low for my taste.

My dividend investings are not for everyone because it is individual stock-based. There is an entire dividend investing series on the left column.

I wouldn’t invest everything, or not even 40% of my money into dividend stocks. They are an essential component for the portfolio, but definitely not the entire picture.

]]> By: garrett http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/comment-page-1/#comment-1142 garrett Tue, 29 Aug 2006 21:02:37 +0000 http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/#comment-1142 frugal, What are your opinions on fidielies of vanguard's dividend stocks.? Of course for long term investing.. frugal, What are your opinions on fidielies of vanguard’s dividend stocks.? Of course for long term investing..

]]> By: frugal http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/comment-page-1/#comment-1140 frugal Tue, 29 Aug 2006 16:49:31 +0000 http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/#comment-1140 It's a valid concern, and my concern in the past. I will respond later. It’s a valid concern, and my concern in the past. I will respond later.

]]> By: Chuck http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/comment-page-1/#comment-1138 Chuck Tue, 29 Aug 2006 15:37:15 +0000 http://www.1stMillionAt33.com/2006/08/my-investing-advice-if-you-have-1000-or-a-bit-more/#comment-1138 I guess my biggest fear with Berkshire Hathaway, whether rational or not, is what is going to happen to the stock when Buffet dies? He is almost 76 now, and his leadership has been crucial to their success. Will there be a huge selloff and price drop when this happens? I guess my biggest fear with Berkshire Hathaway, whether rational or not, is what is going to happen to the stock when Buffet dies? He is almost 76 now, and his leadership has been crucial to their success. Will there be a huge selloff and price drop when this happens?

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