So I have no idea on how to pick stocks. The more I read the more I think it is just gambling. So I tought of putting all my saved money (100K CHF) into SDY - SPDR S&P Dividend ETF. It has some nice dividends, some increase in value. My only concern is that I am living in Switzerland and using CHF which is much better than the dollar. I really want the most boring and safe investment which is not a bond, and not some shitty 1% interest savings account.
Is this a good idea Veeky Forums ? do you have a better suggestion? Shall I just keep my 100K CHF as cash?
Picking stocks is probably going to be really hard if you don't know anything about the sector you're looking at or business in general really. Do you? If not then it is pretty much gambling.
Noah White
i have most of my portfolio in boring, "safe" investments: a couple of dividend ETFs, a bond ETF, a total US market ETF, and a total "world" market ETF (excludes US market).
then i have a bit in an energy ETF... that one is a bit more risky, but sort of diversified w/ coal, oil, ng, elec. producers, distributors, etc.
and then... the smallest portion is in single stocks. this is the 'fun' portion that i am willing to lose entirely.
anyway, here's warren buffet's advice for the trustee of his wife's estate when warren dies: "What I advise here is essentially identical to certain instructions I've laid out in my will. One bequest provides that cash will be delivered to a trustee for my wife's benefit. (I have to use cash for individual bequests, because all of my Berkshire shares will be fully distributed to certain philanthropic organizations over the ten years following the closing of my estate.) My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers."
Aiden Martinez
cool, so you are thinking like me. I also planned to put the rest I save in stocks (like 5%-10% of portfolio)
What do you guys think about the Swiss Franc? A lot of my colleagues just keep their money (CHF) as cash.
Dominic Butler
Bmup
Isaiah Thomas
If you're not sure what you're doing, your best bet is to invest in almost entirely index funds. It's a proven fact that even professional fund managers consistently under perform the market.
Cooper Peterson
Hi iHaz. For the millionth time this is only after they take their cut. Their returns on their own money is consistently higher than that of the market.
Lucas Carter
Pick 10 very different funds instead and your money will be safer long term.
Daniel Wilson
If you want boring and safe, why not just buy some Berkshire Hathaway B?
I'd be a little worried about market timing. If you buy into something across the index around an all time high, you have the potential to lose quite a bit in a crash, and spend a few years before any profit.
Maybe put 20k in once a quarter?
Do you know the tax treatment for dividends would be? There could be a triple tax (corporate, American and then Swiss)?
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Parker Richardson
If you're in Switzerland, just put half your money into Nestle. Probably one of the safest, highest quality businesses in the world. It only pays a dividend once a year though.
Carter Jones
How do dividends work like that if for example >buy stock 5 days before dividend payout do I still get the full dividend?
Ryder Bell
bump
Dylan Hughes
You are like a child wandering into a movie theatre asking "what's going on?"
Look up the definition of ex dividend date and be gone
Jason Cook
True. But pick 500 and you will be even better off.
Want to do better than that? Choose a fund with several thousand companies and gain exposure to various factors.
Jaxson Howard
Apologies, read stocks where you said funds so you already got the idea fleshed out.
Parker Cooper
Look up discounted cash flows to figure out cash flows and overall value of a stock. Understand net present value and time value of money. Read accounting books, understand assets = liabilities + equities, even then this stuff will probably seem a bit hard to "price" a stock. You make buys based on expectations of the future, so find stocks that have big releases planned, or that you can see doing continually well.
Example: oil industry at 30$ a barrel is practically a steal, no matter how you look at it. Look at oil stocks since then. Up 100-200% since the bottom. Timing is key but don't suffer analysis paralysis where you keep over thinking stuff.
Thats all I got, gl user.
Logan Allen
You only put a little bit of your portfolio in bonds because they generally don't have as good of ROI as common stocks.
Juan Young
My only aim is not losing money. I do not care if I only make 3% per year. That is also great for me. That is why I thought of buying a Dividend ETF.
Or maybe Dividend stocks. As for Berkshire Hathaway B as soon as Warren Buffet dies I guess the stock will tank.
Maybe anybody would recommend any swiss stock in CHF? Meanwhile I am doing my own research for a stock with nice prospects and dividends. Thanks for your help so far.
