tag:blogger.com,1999:blog-5465015914589377788.post1792291669513829675..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: The “Explore” Part of a PortfolioMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-84776133640761247832021-04-26T17:40:49.807-04:002021-04-26T17:40:49.807-04:00Agree with what you write. With yearly contributio...Agree with what you write. With yearly contributions, would be difficult to figure out. I've also not kept track of what was bought when. And sometimes I was reinvesting dividends and sometimes I wasn't. And yes, of course I'm a genius. ;-) My RSP portion, which contains more than 75% of my retirement funds is in index funds. Marteauhttps://www.blogger.com/profile/18392211414551200362noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-41151150513784633512021-04-26T12:23:49.593-04:002021-04-26T12:23:49.593-04:00Hi Marteau,
Depending on when you made the contri...Hi Marteau,<br /><br />Depending on when you made the contributions, your result may be better or worse than an index. You'd have to go back and simulate equal investments in an appropriate index at the same times to be able to tell.<br /><br />Another thing to consider is that everyone feels like a genius in a bull market. I remember this well in the run up to the year 2000. The next substantial and long-lasting stock crash will bring more realism.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-5526438856430216672021-04-26T12:14:42.629-04:002021-04-26T12:14:42.629-04:00Hi Robb,
All human biases I'm aware of that g...Hi Robb,<br /><br />All human biases I'm aware of that get pointed out by behavioural economists serve us well in some contexts.<br /><br />I find it interesting that someone who would never risk $100 on a hand at a blackjack table has no problem risking $10,000 on some stock. Not that I recommend playing Blackjack, but the risk of loss is much greater on the 100x "investment" in the stock.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-14115607073266407332021-04-26T12:09:24.867-04:002021-04-26T12:09:24.867-04:00I use my TFSA for the fun/speculative/stock pickin...I use my TFSA for the fun/speculative/stock picking portion of my retirement plan. I mostly have dividend stocks in there. Taking into account that I've contributed the max up to now ($75,500) and that my TFSA is worth $126.5K (~70% gain), I'm happy with selections. I've been lucky/fortunate with my picks. I've got 13 individual stocks: ENB and GCL are my only "losers". BLX and CP are my biggest winners.Marteauhttps://www.blogger.com/profile/18392211414551200362noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-49331841585631006222021-04-26T12:06:57.869-04:002021-04-26T12:06:57.869-04:00This is one instance where mental accounting has s...This is one instance where mental accounting has served me well (I think). I've wasted all kinds of money throughout my life, no doubt. But if I've gone to the trouble of contributing money to an investment portfolio, I want all of that money put to work in a low cost, globally diversified, and risk appropriate portfolio. That leaves no room for speculation. I could not fathom allocating 5% or 10% of my portfolio to speculative bets just to scratch an itch (especially in my RRSP or TFSA where I'd lose that contribution room if my picks lose money).Robb Engenhttps://www.blogger.com/profile/15407037246871878906noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-39094452025695693502021-04-26T11:55:28.796-04:002021-04-26T11:55:28.796-04:00Unknown,
If that works for you then great. You&#...Unknown,<br /><br />If that works for you then great. You're definitely in the minority.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-18782514334123104652021-04-26T10:19:48.560-04:002021-04-26T10:19:48.560-04:00For me, having a tiny portion of my portfolio rese...For me, having a tiny portion of my portfolio reserved for "exploring" ends up acting as a confimration bias. I have had a few great winners but mostly moderate losers in the explore portfolio. To me this confirms that I cannot beat the market consistently. Suffering slightly below market returns on the explore portion helps stay focused on the long term strategy of low-cost, globally-diversified index funds.Bobhttps://www.blogger.com/profile/14500261278529012152noreply@blogger.com