I missed out on the bull market, what can I do for short term gains?

The reason I ignored the hype is become I'm a value investor (who has not actually invested, I mean to say that is what I am well read on). I realised that my 'values' of following Ben Graham got me to miss out on these lucrative opportunities. Well f**** values, as my I would not mind some short term gains.

Does anybody have advice in how you look out for financial instruments that have a prospect to rise exponentially?

 

My name tells you everything you need to know. Godspeed and enjoy the tendies 🍗🍗🍗

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

If you'd bought literally when I said to you'd be up 4x so 🤷

"The obedient always think of themselves as virtuous rather than cowardly" - Robert A. Wilson | "If you don't have any enemies in life you have never stood up for anything" - Winston Churchill | "It's a testament to the sheer belligerence of the profession that people would rather argue about the 'risk-adjusted returns' of using inferior tooth cleaning methods." - kellycriterion
 

one of the least talked about things with Graham is that the majority of his returns weren't from his rigid 10 rule process for finding cigar butt stocks, it was frmo GEICO, a GARP-y name at the time (ditto for Buffett).

everyone should understand value investing, but if that's all you're doing, that'd be like having sex without the orgasm, what's the point

 

I said that value investing is what I am well read on, however, I feel like I have missed out on the bull market and want to find ways of reaping gains in the near-future market volatility. 

Yeah, I agree with your second point though, there's no point in just value investing. What are other investing styles?

 
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first of all - if you want short term gains, go to the S&T forum, that's not a game I play. my minimum time horizon is 3-5y but ideally I'd hold a stock forever, and most money managers if they're honest are the same way. there's a reason why people say "stocks for the long run."

there are always gains you will have missed out on, but the biggest mistake is thinking that you can "make up" for these. rather, find a strategy you are comfortable with throughout various market cycles and aren't constantly all in or all out. for most people, this is passive investing. maybe that's a passive index, maybe it's you just finding a group of money managers encompassing all areas of the market you wanna be in and consistently purchasing shares, I don't care. but too often people get caught up in market timing when they'd be better suited to just put away 20-30% of their money in something passive, not waste their time with trading, and get back to their work/business so their income grows and you have double compounding.

all styles of long investing are essentially value investing. growth investors believe a company is undervalued because of its future potential or some other thing, and they justify this by high returns on capital, high growth rates, etc., what's classified is value investing is typically below market multiples in things like book value, cash flow, earnings, and sales. both are attempting to identify stocks that they believe are undervalued, they just come at it from different lenses.

my personal portfolio has a dividend growth tilt to it, and I underweight sectors I can't understand as well (commodities, real estate, etc.) and don't get involved in many new issues at all, I leave that to professional VC, PE, small cap investors. there are plenty of styles, just find what works for you. there's the dogs of the dow, GARP, low PE, passive indexing, factor investing (value, momentum, size, quality), high dividend investing, and so on. I can't tell you what to do because there's papers that justify all of those styles of investing and true enough, all of them have merits today or have had merits in the past. it's why I think deciding on a strategy that's worked through various market cycles and that YOU understand and YOU can stick with is more important than picking the "best" investment style.

here's a dirty little secret - no one achieves the stated compound return of a specific index, fund, or stock. it could be higher because you kept buying shares as they got cheaper before a rebound, it could be lower because you bailed at the wrong time and bought back in at a high, but often investors have subpar results not because they picked the wrong money manager (though that does happen) it's because they picked the wrong time to buy or sell instead of just sticking with something. my most successful clients are my most patient ones. 

 

I split my money into two things, lead to 30%ish returns each year over the last 5 years. 

- QQQ (Nasdaq 100). (60% of portfolio). 

- Different High Dividend Yield ETF's (swapped em around a few times) (40% of portfolio). -- Reinvest the dividends, obviously.


Again, not claiming to be a genius. But this has produced very solid returns. I feel like I could have gotten in on crypto and regretted it, but I am confident that I will do much better long-term than the retards yoloing on moon stocks just to go bankrupt. 

 
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Did really good on a bunch of entertainment and hospitality shares that all dropped 50% or more at the start of covid. They haven't returned to pre-covid yet, but they're all up about 150% now. Not bad gains after a few months, for what I considered pretty safe picks. Of course, that doesn't help you at all, cuz as you mentioned you already missed that boat.

 

1. Have you ever heard the phrase "don't look for $20 on the group"; basically, if everyone in an internet forum knew where to find exponential growth, or it was that easy, everyone would be in it, the price would be bid up, and it wouldn't offer as much growth. You need to find something that you think no one else is seeing, and go there. As an example, when Facebook first went public, it got down to ~$30, because all the analyst didn't know if it could make money, would there be competition...now look at it.

2. You want to do your research, have core holdings, but you also want to have some higher risk/higher return names in your portfolio. Maybe a small cap, something that offers a chance to multiply. I'd recommend you read the book called "Ground Rules", quick read, talks about how Buffett ran money before Berkshire

 

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