Picking stocks to invest in is hard. Last week, Carl Icahn, a brilliant billionaire investor, sold Occidental petroleum. Warren Buffett, a brilliant billionaire investor, bought Occidental petroleum. Who’s right?
Me? I bought Chevron🙏🏻
[OP]
Contributor
Picking stocks to invest in is hard. Last week, Carl Icahn, a brilliant billionaire investor, sold Occidental petroleum. Warren Buffett, a brilliant billionaire investor, bought Occidental petroleum. Who’s right?
Me? I bought Chevron🙏🏻
Dennis
Moderator
Monkeys and darts.
I’d bet on Buffet though. He’s a pretty smart monkey and is the least unlikeable of the billionaires.
Moderator
The vast majority of folks probably would be challenged to effectively invest in individual stocks, unlike "back in the day" when things were less complicated, less volatile and without the immediacy that electronic trading has brought to the game. Things were more "long haul" in previous times. In today's market, I'll stick to mutual funds... That said, people like Icahn and Buffett have the capital to do things that mere mortals cannot even consider and in many cases, can turn a "loss" into a "gain" because of tax benefits and other factors. Sometimes, there may be an element of "controlling something" or "controlling outcome" that is also what they are willing to risk a few shekels for up front.
--
The most expensive tool is the one you buy "cheaply" and often...
Member
Unless you know the full story, there is no way to tell. Maybe they are BOTH right? Each for their own reasons. And just maybe it's having little to do with any actual ownership position in Occidental?Originally Posted by dennis thompson
Me? Diversify. If you like Chevron (::O&G), buy all the O&Gs. And solar. And maybe wind and biofuel and hydro, too. They are all in the energy sector; maybe a sign industrial production will recover (and so energy demand). And maybe skip nuclear, since there hasn't been a new permit in the USA in ...what? ...40 years?!?
Maybe.
Folks responding pretty well have it covered. The reason for any buy or sell is an ingredient in an investment strategy recipe. Both moves are right. We just don't know why one bought and why one sold. Most assuredly it was for some advantage for the given portfolio.
"A hen is only an egg's way of making another egg".
– Samuel Butler
Contributor
Then rules have changed a little bit with no fees to buy or sell but very few managed funds do better then the overall market. Get a very low annual fee ETF index fund fee below 0.05%, and you will do better then you can unless you watch things 24/7/365. Almost all managed funds have a lower return then the index funds after you deduct the fees.
A one percent fee will have cost you about one half million dollars when you retire.
Dividends are taxable income unless they are in a IRA or mutual fund. Same for any gains from selling a profitable stock to buy another.
Bill D.
California taxes long term capital gains like regular income, no tax break of any kind.
https://www.nerdwallet.com/blog/inve...avings-impact/
Last edited by Bill Dufour; 03-08-2022 at 10:27 AM.
Contributor
Warren Buffet averages 8.75% growth over 25 years.
US stock market 9.26%
So buy a low fee index fund unless you can do better then the most highly regarded investor, who does it full time, with a staff, for pay.
Bill D
http://www.lazyportfolioetf.com/comp...-vs-us-stocks/
Last edited by Bill Dufour; 03-08-2022 at 10:34 AM.
Member
Or you could just buy Berkshire Hathaway which has returned 10.8% on average over the past 25 yrs. The suggested Warren Buffet portfolio referenced in the article is not what Warren implements for himself.
Contributor
Who knows. Maybe Carl Icahn had too much OP and Warren Buffet had too little.
Carl might need to raise some cash and Warren will sit on cash for years until he spots something he thinks might be a value.
Me? I'll just sit here holding my index funds and ride the waves.
Contributor
Warren Buffet has a policy of only buying into things he understands. That is why he doesn't invest in many technology stocks. He supposedly often says at meetings, "I only buy what I know. It makes it easier to explain my mistakes." Personally Warren Buffet is of interest to me.Who knows. Maybe Carl Icahn had too much OP and Warren Buffet had too little.
Carl Icahn's investment style is unknown to me.
Comparing growth may not include dividends. It might also be much of the extra 0.51% growth involved market sectors in which Buffet does not feel comfortable investing.
jtk
"A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty."
- Sir Winston Churchill (1874-1965)
Member
Alibaba is cheap right now, could be another one I miss
Contributor
Carl Icahn has a BAD HABIT of investing in companies and them bleeding them to death, ruining both other investors and employees lives. Warren Buffet on the the other hand is in it for the long term. What other portfolio owns a railroad (BNSF?) If Icahn owned it it would be a former railroad, liquidated for his personal gain at the expense of others.
Contributor
How much longer can warren buffet give stock advice? Will his company do as well after he is gone?
Bill D
Contributor
I avoid the stock market since I don't understand how best to avoid paying taxes on money I might make playing the market.
I'm a firm believer in the fact that any idiot can make money. The true genius comes in hanging on to what you made.
Icahn & Buffet - doing the exact opposite thing - obviously have different strategies towards the goal of putting as much money in their pocket as they can.
(It's taken me decades but - I finally got it across to my wife that you can go deep in debt to save money & you can lose money to make money & how being debt free isn't the best course of action for us at this stage in our lives...((our "Golden years")).<<---proof that there is no one size fits all when it comes to savings & investments.
Last edited by Rich Engelhardt; 03-09-2022 at 7:39 AM.
"Life is what happens to you while you're busy making other plans." - John Lennon
Contributor
If the money invested in the market is in a Roth account you won't pay any taxes on money made in the market. The taxes are paid on the money invested not the money made.
Confidence: The feeling you experience before you fully understand the situation
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