The "I have XX money to invest, where should I put it?" Thread

Well, I guess there's a thing called active investing.

But if you're not into that. There's also a thing called diversification. Alot of peeps have their shit in bonds and stocks, and then think that is diversified, quote, un quote. Thats not reallllly diversification, cause the two are correlated. If there's a major downturn in the market, which ever one, the other will be effected on some level, because the investor will flock to a stable assets, such as, but not including, precious metals, etc. My favor stable ASSet is baseball card because the shorts are just so short. But I digress. What was the question?

Or just throw it in the SP500, have great liquidity, just need to have half a brain to ride out the bad runs.

This guy sounds like a live 1/2 no limit player ^^^

If everyone is just throwing it on SP500 wheres my edge? (maybe someone could provide some information to give us an edge)

They dont even know if they are going to beat the index or not

i worked for a company that ipo’d about 6 months after i left and right around then i started getting flooded with hedge fund interview requests offering $500 an hour to talk shop

they couldn’t talk to current employees so they scrape linkedin, find people who left 6+ months ago, and line up calls. before every call i had to review compliance docs about what i could and couldn’t discuss and pass a short quiz. they’re extremely careful. not once was i asked for insider info and even if they did i legally couldn’t give it

so what were they paying $500 an hour for? generic industry color. stuff you could piece together from public filings and google if you really grinded it out

this happened about a dozen times over a year. then they moved on to more recent former employees and the calls stopped

why does this matter? because this is the level of diligence professional firms operate at. they have teams doing deep research and then still pay random former employees like me $500 just to make sure they didn’t miss anything before putting millions to work

you are not competing with that. even if you’re smart. even if you “know the industry.” you don’t have the time, the network, or the information flow

that’s why you buy the s&p instead of pretending you have an edge. sure sometimes you’ll hit something like pdex and feel like a genius
https://forumserver.twoplustwo.com/30/bu...

but most of the time you’re just guessing against people who are vastly better resourced

Are you talking about yourself? I played mainly 5/10 live for some time as a marginal winner and before played MTTs only at a 110 ABI as one of the biggest winners in those games. The SP500 has averaged a 15% return over the past 10 years with 2 losing years, 2022 being the worst of it. Historically it's returned 10.4% over the past 70 or so years - the one caveat is it does have losing years somewhere around 20% of the time so you need to be able to stick with it. It's the most braindead investment that outperforms any other braindead investment - the trade off is variance.

I wasnt talking about stocks, i meant you could invest in anything else out there to achieve a better ROI and have more liquidity/capital

Its okay grandpa

oh right, you were saying we should be opening lemonade stands - thanks kiddo

I think investing in an S&P 500 fund is reasonable, but you shouldn't put all your eggs in one basket -- even if it's a huge basket with room for 500 eggs.

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Would love to hear what has a higher ROI and better liquidity - I'll make the popcorn.

Ok where else would you put it?

Other index funds, real estate or BTC, for instance.

BTC? Real Estate? BTC isn't really an investment - it's a super swingy massive speculative buy with no confirmation that it'll go up in value over the next couple years. Real estate is proven but has terrible liquidity, one tenant stops paying and destroys the place will wipe out profits for years, and requires work every week. RE is picking up a part time job type of investment - I wouldn't compare the two.

Wouldn't pay off the mortgage when you can get double that in an ETF. Would just stick it in an SP500 fund like QQQ or VOO if you want to be safer. You have plenty of income so just contribute to it every month and be a multi millionaire in 20 years.

do people still use 2p2 much?

Just thinking that here is where I learned to play poker, and learned about trading, and it was the first place I read about Bitcoin. Is 2p2 still relevent? are there other high quality ahead of the curve discussion board? is everything just on discord or private gcs now?

edit: just noticed my account is 20 years old - christ.

Not really