Friday, June 27, 2008

Why I'm not a stock broker

While sitting on my deck Wednesday night, I bought DIA at $117 a share "feeling" the market had bottomed. Now two days later it's $113. This is why I'm not a stock broker and will most likely always drive used cars. Dammit!


bosshart said...

How is the index fund going?

Mac Noland said...

Hey Bosshart! Glad you asked. To be honest, it's going terrible. The one index fund I own outside of my 401K/IRA is DIA which follows the DOW. Given the DOW is down 500 points in the past two days, I'm getting f*cking screwed.

What really pisses me off is that I bought more of DIA two nights ago. And as it turns out, the damn market goes to hell. I guess that is why I'm a lowly engineer.

bosshart said...

Yeah, being an engineer isn't nearly as glamorous as I expected.

I didn't realize DIA was the index fund. It is still probably doing better than TRI. At least we're young, we have a lot time to let the market recover.

I just inherited a small amount of money and was thinking about picking a few stocks... then again, I may let the pros at T.Rowe Price handle it.

Mac Noland said...

Hey bosshart, I'd do what Buffett says and stick in in an index fund with low fees. See here for a bet that Warren has with some Fund guys. Warren has always said that index funds are the way to go. I had a finance professor at the U that said this as well. He basically ripped apart managed funds with heavy loads.

LangsWildRide said...

If you're really serious about making money with managed funds, check out the St. Paul firm Mairs & Power...I've heard really great things about them, and they're local.

I'm heavily vested in the market, along with a managed fund for a Roth's a Dodge and Cox International fund, and although one would think that International Stocks could muster a little chutzpah right now, it's not the case...I'm still below my original investment even though in late 2006 I was up about 18%...those were the days.