Financial Addictions

Is there anything within the financial discipline that you have an unhealthy obsession with? For me, it is using highly leveraged instruments to avoid putting my entire net worth into one idea even though I have blown up my portfolio doing so before due to my excessive level of narcissism.

Looking forward to seeing the responses.

26 Comments
 

I know a number of people chasing FIRE who seem to trading their 30's for their 60's. Don't get me wrong, I save/invest a lot of my income too, but there's something to be said for living life.

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Agreed, we save/invest a good amount of our monies, but as the saying goes "you can't take it with you" and I certainly have no wish for us to live so frugally that we're saving everything for retirement. Vacations, events and such have to be, for me and mine, a part of now, not stuff that's way down a long tunnel. Add to that, having lost a number of friends who were in their 50's... it's a sobering thought that reminds you we are not promised to even see retirement and all the efforts we put into it

Balance is so key in virtually every aspect of life.

 

being conservative. I sometimes wonder if my religious focus on quality should be loosened a bit, but then we get a time period like Q4 2018 and my friends who were just bragging about stocks I'd never touch are licking their wounds.

shorting, never done it, I don't think I have the stomach to do it

options, I'm exclusively long only, no derivatives, but would like to dabble in covered call writing

hell, I probably won't change anything, if it ain't broke...

 

How do you handle the wide spread and small market of micro cap? I am interested in them but always worried about those aspects.

Cash and cash equivalents: $138,311 Financial instruments and other inventory positions owned: $448,166
 

I learned to live with the crazy volatility of the stocks even if there is no news on why they are moving up or down. I started understanding how important the management team is for these companies and trusting if you identify a management team that has "been there done that" in terms of growing a small company to a large company you are more likely to have a winning stock in this space.

It is also interesting for me that these companies are small enough you can get in touch with their CEO's and schedule calls with them to ask questions, etc. A lot of posters on microcapclub.com have monthly dialogue and post updates on the threads regarding their calls.

 

A little bit of both. A lot of these microcaps aren't covered so you can find some bargains that trade significantly lower than book value. Other stocks are pure idea/potential for future growth stocks.

Some of the stocks I really like if you want to take a look at what I am in now is BMRA (pharma company that is in phase 2 for a bowel syndrome drug), JYNT (Joint Company, a roll up of chiropractic centers), and OPXS (my favorite stock of the bunch, have already made a good amount of $ off this one but think it still has a lot of runway).

 

What I do is find a list of companies within a few weeks of releasing their quarterly earnings. Don't even look at them just take a brief glance at their previous quarterly performance and their current industry. These are all companies that you would hold either way, so if you get fudged you can probably take your time to research if you should exit or not without worries.

Best ROI comes from not diversifying.

 

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"Son, life is hard. But it's harder if you're stupid." - my dad
 

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Cash and cash equivalents: $138,311 Financial instruments and other inventory positions owned: $448,166

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