Financial Addictions

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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.

Comments (26)

 
Jan 24, 2019 - 1:44am

For awhile, dividend aristocrats and REITs. Was obsessed with safe-haven assets as a whole for awhile, hoping for any signs of a downturn like we saw in 2018. The latter didn't perform so well when rates were first rising, but have since appreciated as yields retreated and the market has convulsed.

Array
 
Jan 24, 2019 - 9:04am

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.

Commercial Real Estate Developer
 
Most Helpful
Jan 24, 2019 - 1:00pm

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.

 
Jan 24, 2019 - 1:05pm

I continuously put 70% - 95% of my net worth in high risk early stage companies. It's worked out well though... :)

 
Jan 29, 2019 - 5:35pm

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...

 
Jan 29, 2019 - 6:24pm

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.

 
Jan 30, 2019 - 10:37am

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).

 
Jan 29, 2019 - 9:32pm

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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