Jerry buss paid $67 million for the lakers in 1979

[Java]

And they sold 46 years later for $10 billion   Once of the great investments of all time you might think?

not so fast.  If Jerry had invested the $67 million in the S& P 500 instead. That sum would be worth $13 billion instead of the $10 billion.

What I do in the market is not magic.  I have picked lots of Grocery Sticks.  Losers.   But being in the market.  You have  to be in the game to win the game.  Makes a big difference.  Even  when it dips.

I even used to be a value stock guy. Still am to a degree.  Live w P/E ratios.  Earnings reports.  Don’t like buying stocks at their all time highs.  Or after a big rally.  Like bargains.  Always used to like steady boring predictable industries.

the only change I have made is that about 20 years ago I became generally more favorable to tech.  Nasdaq over Dow.  Felt tech was the future and while I missed out on the early stages of the net by guessing wrong and being broke.  I felt the tech boom wasn’t over and that the new millennium had lots of Internet cell phone. Mini computer and bio tech money to be made.  So when in doubt I’ll park my money in tech and Nasdaq rather than a Pepsi or caterpillar or utility as I would have previously.

Not a major revelation.  Picked a bunch of duds.  Hit gold 2-3 times.  Didnt shove it up my butt. Invested more.

all of this today that Jerry buss may be a legend but those sorts of returns are available to you and me

[San Clemente]

it doesn’t work like that, shit for brains.

You have to pay taxes on all those dividends full boat on the s and p all the way up. Every year. But you wouldn’t know that.

maybe if you had a broker instead of a bookie you would understand how money works.

You bragged you don’t even have a roth let a lone a retirement plan . That defines being a financial retard. sc

[Java]

my Lord are you stupid.

You state  the obvious with such a sense of discovery

I have no idea where you got the idea that investing in an index fund forces dividends on you every year

go look up TQQQ  and let me know the massive dividend hall it produces that you have to go pay taxes on.  this will be fun

each time you open your mouth, we get to be like dentists  staring deeply into the chasm of your ignorance

 

as an outsider. What are your views on intelligence?

 

 

• This reply was modified 1 month, 1 week ago by Java.

[RWC]

I would not let a taxable dividend of only 1.07% be a deterrent to invest. In fact the S&P 500 or the Total stock market fund are both considered really tax efficient and what you want to use in a taxable account.
You’re right Buss would have paid the dividend tax each year, but he also would have gotten the step up basis reinvesting those dividends. The monster gain in the index over the years far outweighs paying the dividend tax on the way up. It’s in the very end when you finally have to pay the long term capital gains tax on 46 years of unrealized gains is when you have to get out the check book. At that point does it really matter when you got $13 billion.

[Java]

You actually answered the troll as if he posed a thoughtful question

apparently my Schwab rep is named Mel.  Not Brandon.  I guess Brandon must serve guys who Live in San Clemente

Mel called me. Kind of shocked me that Schwab was on the phone so I picked up the phone  Wanted to announce he was back from paternity leave  Didn’t have the heart to tell him I was not aware he had left

While he was on the phone, I asked him about missing out on SpaceX. Not that I was horribly upset since it came back down and will assuredly give more opportunities in the future  But I’m curious about some of the upcoming AIIPO’s like open AI  And the other one that begins with a that’s coming up algorithm or alchemist or something like that Anyway, apparently there’s a place on my app where I go to trades and IPOs and if I just hit the right sequence of tabs, it takes me to it and it shows me all the upcoming ones. He says that because I am a high roller I’ve got that on my account so Yahoo apparently I missed out because of my own ignorance. Boo-hoo

I asked why he was calling. He said I was up 48% so far this year he said I was at 48% last year  He said he manages 400 clients and that performance Put me in the top 1%

incredibly impressed I asked if I got a medal he said no I asked if I got a teddy bear. He said no I asked if being in the top 1% got me a free toaster he said no  By now he is laughing  he said if I was a hedge fund manager and had that performance it would have got me about $100 billion of inflows Into the account

I told him that was nice  but my houses were paid for   My kids had plenty of money and my pick up truck was under a year old   So I didn’t really see myself changing anything   And besides   It all came from a few than ran up and they are due to run down a bit   And I can live with that too   So thanks for the call

 

don’t think I’ve ever sounded so much like my grandpa  hahahahaha

 

[BigBalls]

What a run you/we/us have been on the last few years. My returns aren’t far from yours but Schwab hasn’t called me. I’m still traumatized from touching the hot stove in 2008-09. That PTSD caused me to diversify heavily in real estate versus stocks. I’m guessing you have a lot more in Schwab than me. They treat me like I’m a muni bond investor. Or CD fraidy cat.

Well, actually I was at a Schwab office two weeks ago to open my nephews brokerage   accounts and I got free coffee. Boom.

I pulled stock market profits to invest in real estate up until a few years ago when California real estate got expensive. Very hard to find deals that make sense. I still have a significant amount in stocks, profits build fast and I don’t have many real estate transactions to fund. Let’s keep the party going!

 

[BigBalls]

Invest early and invest often. That is the advice I give the young ones in my pride. Then I make sure they take that advice and use it. Just do it. When you start investing early even 8% returns turn into a lot of money over 10-15 years.

[Java]

8% doubles every 9 years

[Author]

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