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Ask HN: How do you invest your money?

17 points by vivekseth · 27 comments


7 threads
max_hammer

I am 34 and stilling YOLO-ing in Indian IT without any savings.But I have invested money in experiences. Last year I drove to NE part of country touching China, Nepal, Bhutan and Bangladesh Border.

This made me quit my job without any other offer. I got hike of 35% during peak lockdown of Corona. Money in bank account is just numbers. Invest in yourself and learning.

deanmoriarty

My portfolio is split 50-50: I have $2M in common Vanguard index funds (VTI/VXUS/BND), and $2M in private illiquid equity from a startup I worked for in the past, via options I exercised.

Every now and then someone contacts me interested in buying some shares of that company, which I promptly sell and immediately buy index funds with the proceeds. I liquidated about $1M of those shares already, I wish I could sell the rest, it is so “painful” having so much of your net worth locked up into an incredibly illiquid, risky and unpredictable asset.

I don’t invest in nor own anything else (except a few months of living expenses in a savings account): I’m a happy renter and don’t own a car.

dhruvkar

- 25% Wealthfront (~medium aggressive fund)

- 30% Industrial/Commercial Real Estate

- 5% Crypto

- 40% Cash

I'd like to reduce the cash. Will probably buy gold with about half the cash to align with a more all weather portfolio [0].

0. https://ofdollarsanddata.com/ray-dalio-all-weather-portfolio...

  • giantg2

    Gold is kind of high. I like platinum. It should rise with inflation and also rise as the economy picks up.

kleer001

Lazily and automatically when possible. Also with tiered levels of liquidity. Higher liquidity equals lower interest.

commonturtle

Just index funds for now. ~70% in some Vanguard world index fund and ~30% in bonds. But I'm planning on doing some research on some microcaps as well. For individual investors with sub-$1M portfolios microcaps are one of the few places where we can seek alpha.

  • Shatnerz

    Out of curiosity, how soon do you plan on retiring and and how much longer do you plan on living? Everyone has different allocations, but I rarely see people talk about having 30% in bonds.

    Have you been increasing bond allocation over time or just sticking to a 70/30 lazy portfolio?

    • commonturtle

      I'm 29, following the rule of thumb where you have (your age)% in bonds and (100 - your age)% in stocks.

      Is 30% too much or too little from your experience? I can understand people preferring stocks at the moment because bond yields are so low. But that won't be the case forever :)

      • Shatnerz

        In my experience it is higher than I see people recommend. Yeah, I don't necessarily agree with the people who go 100% stocks. I know some retired, older people who seem pretty stock heavy as well. I guess everyone has their own risk tolerance.

        I probably need to rebalance my money, but I'm a similar age (normal health) and I shoot for 10-15% and that's on the higher end of the people I discuss my finances with.

digianarchist

I'm in Canada. I buy VEQT.

marketgod

TSLA/AAPL and options.

Seriously get in TSLA. It's going to double by March, probably earlier.

I could buy ETFs and do the boglehead/lazy portfolio but the returns are minimal compared to picking market leaders. Also you need to be making serious money for those to be valuable or live a frugal life and then spend when you are dead.

  • rayhendricks

    We could have said this about XOM a couple years ago. Look where it is now.

    • marketgod

      Who is we? I wouldn't have said it. I would have and was saying the same about AAPL though.

      This is where skill really matters.

      • rayhendricks

        Much of the population who invests in index funds. Look at this article from 2013, look at AAPL and XOM performance then, https://www.forbes.com/sites/dividendchannel/2013/01/25/exxo...

        Index funds have allowed me to not have to save for retirement anymore (have enough based on FV calc), and yes buying the FAANG stocks 6 years ago would have yielded much larger returns, but could also have yielded losses if they went the way of Exxon.

        • marketgod

          Definitely. Not saying don't put money in ETFs but the returns aren't as fast and you have to earn a good salary to do so.

          However adding some money into the market leaders would be a wise idea IMO. I.e. TSLA and AAPL. Since you are in the ETF ($SPY) for now then you are already invested in AAPL as it's the largest portion of it so adding TSLA which is going to be $5,000 in a decade would be wise.

  • mikeodds

    Let’s agree a stake. If TSLA has doubled by the 1st of a March this year I will give you 2x, if it doesn’t, you have to me 10x. Deal?

    • marketgod

      And why would I give you 10x if the market is giving me 100x? You should be giving me odds actually because I'm actually taking a bigger bet. Anyways when it cracks $440 on Monday and I get my new options, I will do 100% on those meaning it should be about $500 a share by Friday.

      Also if what I said was so preposterous you should have said, I will give you 10x your return if that happens and give me a 2x if it doesn't.

      • mikeodds

        Well you’ve stated it as an absolute, so it must be sure thing right?

        • marketgod

          There are no guarantees in the market. If there was I'd be a billionaire right now.

          You can place it in an lazy/bogleheads portfolio if you want to reduce risk and even that is not guaranteed.

          The only difference between what I said and an ETF is $TSLA will turn $100,000 into $1M in a decade but the ETF will only turn $100,000 into $400,000 in that same time frame (if the SPY continues its 10-year returns.)

    • AznHisoka

      I don’t understand why people do side bets when it comes to stocks. If you really believe in what you think, go sell some calls expiring in March instead.

      • mikeodds

        Same, I was trying to highlight the absurdity of making absolute statements in regards to future performance of stocks.

      • marketgod

        Well since I am one of if not the best full-time options trader I already do that. I also buy calls for better returns and unlimited upside.

        Play: When TSLA gets over $440, I'm grabbing weekly $450s and looking for $500 targets.

        • mikeodds

          Anyway of seeing a live stream of your trades? Genuinely interested

          • marketgod

            My Discord has live entries, exits and plans. I am considering setting up a small account ($50K) that I will live stream and people can see my clicking live so they can follow it live.

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