Best Long Term Stock Ideas

[gfp927z]

Derf, >> cumbersome to sell AND you can quickly exit <<

The stock allocation is divided into two roughly equal parts -

1) Individual stocks (lots of them) and some sector ETFs

2) S+P 500 ETF


#1 is too cumbersome to sell, while #2 is easy to sell. So if a 2008 or 2020 type market meltdown is looming, you can quickly sell #2, and if necessary can also use the proceeds to hedge your #1 market exposure. So a 25% stock allocation can be instantly reduced in half, and then if desired, reduced to zero via an inverse ETF like SH. Even if you don't actually do it, the fact that it's available provides considerable peace of mind.

As John Bogle said, investors make the bulk of their profits by sitting tight and riding the stock market's long term uptrend. The key is to somehow manage the angst side of 'staying the course'. Buffett said the key to investing success isn't intellect, but temperament, ie managing one's emotional side. So that's what this system tries to do.



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