One word:
GameStop!!!!!
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I still have about $1,000 tied up in the ol' tried and true diversified way of doing things. Just as an homage to my investing past.
What's the difference?Benjamin Graham wrote:There is intelligent speculation as there is intelligent investing. But there are many ways in which speculation may be unintelligent. Of these the foremost are:
- speculating when you think you are investing
- speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it
- risking more money in speculation than you can afford to lose
Benjamin Graham wrote:An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.
Based upon the expert witness, i.e, Graham, that Jack Jones has presented ... the court rules in Jack Jones's favor!Jack Jones wrote: ↑Fri Dec 06, 2024 1:06 pmWhat's the difference?Benjamin Graham wrote:There is intelligent speculation as there is intelligent investing. But there are many ways in which speculation may be unintelligent. Of these the foremost are:
- speculating when you think you are investing
- speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it
- risking more money in speculation than you can afford to lose
Benjamin Graham wrote:An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.
I’ll be back to risk parity when I switch to the withdrawal phase!
HiJack Jones wrote: ↑Sun Nov 24, 2024 4:20 pmFrugal, I'm glad you're still out there. Would you please give us one random fact about you?
Despite being the OP of this thread, I now believe it's only appropriate for the VP.
Hellodualstow wrote: ↑Mon Nov 25, 2024 7:37 amSeconded, and we already know you’re from Portugal (I think?), Frugal, so that detail doesn’t count.Jack Jones wrote: ↑Sun Nov 24, 2024 4:20 pmFrugal, I'm glad you're still out there. Would you please give us one random fact about you?
Despite being the OP of this thread, I now believe it's only appropriate for the VP.
As you know, Harry has passed, so there’s no bitcoin in the HBPP. But, if bitcoin continues to take hold I wouldn’t be surprised if guest portfolios with the stuff start showing up at Tyler’s Portfolio Charts.
Nice blast from the past seeing you!
I don't know which economic regime that bitcoin can be expected to do well in: prosperity, recession, inflation, deflation? How can I place it in the PP if I cannot definitively answer that question? I sometimes hear bitcoin referred to as a form of "digital" gold. Other times I hear bitcoin referred to as a "risk on" asset. I pay for things in units of US dollars, and the price of bitcoin has been rather volatile in dollar terms, so I do not consider it like cash. If bitcoin interests you enough to hold some, I would say consider it part of your variable portfolio.
Does this affect anything?
Nicecoasting wrote: ↑Thu Jan 09, 2025 5:55 pmI don't know which economic regime that bitcoin can be expected to do well in: prosperity, recession, inflation, deflation? How can I place it in the PP if I cannot definitively answer that question? I sometimes hear bitcoin referred to as a form of "digital" gold. Other times I hear bitcoin referred to as a "risk on" asset. I pay for things in units of US dollars, and the price of bitcoin has been rather volatile in dollar terms, so I do not consider it like cash. If bitcoin interests you enough to hold some, I would say consider it part of your variable portfolio.
Bogleheads on Investing Podcast Episode 71 features Rick Ferri interviewing Matt Hougan, the CIO of a cryptocurrency index ETF. I found this amusing as cryptocurrency/bitcoin is a "forbidden" topic on the bogleheads.org forum! Anyway, I recall Matt Hougan sees the value in bitcoin by viewing it as a service. A service that offers two key attributes:
1) no central authority (e.g. government, company, institution, etc.)
2) the ability to be quickly transferred to anywhere in the world
I can see both points. For attribute 1, gold already serves that role for me. For attribute 2, I acknowledge how that could be important to a lot of people. But I also consider a potential downside to this attribute: is bitcoin too easy to move around. I think there is something to be said for the friction involved in moving physical gold from one place to another. The vast majority of the time, I want my gold to just sit there and remain in specific secure vaults. If it moves, it better be because of my instructions, and I accept that some time and planning are required to accomplish this. For that matter, my stocks/bonds/cash also better stay with whatever custodian/broker/bank I've selected. And if I choose to change institutions, this process should take some time with various checks and balances to ward off fraudulent activity.
Maybe 5% is correctJack Jones wrote: ↑Mon Jan 27, 2025 10:32 am You have to figure that out yourself. VP is for money you can afford to lose. Everything else goes in the PP, according to HB.