Where to invest my money?

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Brorthopedic said:
This has been a super interesting thread to read. I'm currently a medical student, but I want to start gaining some experience with stock investing. I have ~$1000 sitting around and would rather use this money to start learning the trade. I don't care much if I lose it, I just want to learn. Where do you guys think I should begin?
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Read a Basic book like the Bogleheads' Guide to Investing and if you are still interested then BERNSTEIN is the man. 3-4 books by Bernstein and you will be much better educated on the topic. Swedroe has good books on Bonds as well as Alternative Investments. Ferri is also anther good author worthy of praise for financial advice.

If after reading a few books by these authors you are still convinced that you can beat the market then take a look at Call Options for American Express.;)
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Book Review From Amazon.com:

Essential Reading for Graduating Students & Residents
ByDJ Ileumon April 22, 2017
Format: Paperback|Verified Purchase
Absolutely essential read for any young medical student or resident. I'm so glad I read this in the last few months of fourth year. The book provides honest candid advice specifically tailored to the medical professional. I found that to be a great way to introduce me to the word of finance and investing. From here I hope to branch out and read some others like Bogleheads. The White Coat Investor even suggests a list of other publications readers should look at.

I couldn't think of a better gift that becoming aware of how important it will be to manage my money and wealth properly over the next ten years. Thank you WhiteCoatInvestor.

The White Coat Investor: A Doctor's Guide To Personal Finance And Investing Paperback – January 9, 2014
by James M Dahle MD (Author)
 
dr doze said:
You don't learn by opening a brokerage account and buying something and obsessively checking the price, and then wondering if you should have bought something else... You learn by reading and treating finance and investing as an academic discipline worthy of serious study. White coat investor, Bogelheads, Anything written by William Bernstein, (a physician turned financial writer), Larry Swedroe, Rick Ferri. For now, Hold on to your cash. Maybe payoff a debt.
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BLADEMDA said:
Read a Basic book like the Bogleheads' Guide to Investing and if you are still interested then BERNSTEIN is the man. 3-4 books by Bernstein and you will be much better educated on the topic. Swedroe has good books on Bonds as well as Alternative Investments. Ferri is also anther good author worthy of praise for financial advice.

If after reading a few books by these authors you are still convinced that you can beat the market then take a look at Call Options for American Express.;)
Click to expand...


Just ordered a few books then, I appreciate the responses fellas.
 
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A couple of others not mentioned worth perusal.
  • David Swenson, Manager of Yale's Endowment Portfolio, "Unconventional Success."
  • Bill Schultheis, "The Coffeehouse Investor: How to Build Wealth, Ignore Wall Street, and Get On with Your Life"
  • Some Book Summaries by Taylor Larimore, boglehead advisor. link: Taylor's Gems,
  • Fun to plug numbers into this, Portfolio Visualizer
  • Also, Don't buy a house...Why your house is a terrible investment
 
Brorthopedic said:
This has been a super interesting thread to read. I'm currently a medical student, but I want to start gaining some experience with stock investing. I have ~$1000 sitting around and would rather use this money to start learning the trade. I don't care much if I lose it, I just want to learn. Where do you guys think I should begin?
Click to expand...

Read a few books (2-3 should do it) during 4th year after the Match. These will be the best books to read post match.

Plan on a Roth IRA if you can manage it as a Resident. If you can put away just a few thousand each year that would be great. But, I do understand today's Residents are strapped for money due to high student loan debt.


average-debt-768x492.png
 
TimesNewRoman said:
After the 100th E. coli outbreak at chipolte, my wife now refuses to eat there. Ipso facto, I do not eat there and haven't tried the queso.
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I went to Chipotle once and I got a 'burrito' that was mostly rice wrapped in a tortilla. Where I come from burritos don't have rice, and certainly aren't mostly cheap filler/rice, so I've never been to Chipotle again and have no intention of returning, even if there is some nasty new cheese.
 
nolagas said:
I went to Chipotle once and I got a 'burrito' that was mostly rice wrapped in a tortilla. Where I come from burritos don't have rice, and certainly aren't mostly cheap filler/rice, so I've never been to Chipotle again and have no intention of returning, even if there is some nasty new cheese.
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Can we just agree that eating Chipotle is not the foundation of a path to wealth and financial independence?
 
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but maybe investing in things that are not the foundation of a path to wealth and financial independence is itself a path to wealth and financial independence!!
 
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BLADEMDA said:
Read a few books (2-3 should do it) during 4th year after the Match. These will be the best books to read post match.

Plan on a Roth IRA if you can manage it as a Resident. If you can put away just a few thousand each year that would be great. But, I do understand today's Residents are strapped for money due to high student loan debt.


average-debt-768x492.png
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I know a resident who's husband is a newly minted FM doc. They have combined 500k student loans. They have no idea how much extra call that's going to take to make a major dent in that amount of money. They will need to memorize White Coat Investor and truly live like a resident (they won't).
 
BLADEMDA said:
I'm assuming a 2.5-3% withdrawal rate for 30 years with 30% allocation to equities. At a 2.5% withdrawal I'll leave a nice cushion for my kids/grandkids to inherit a good sum of money. In addition, I prefer to maintain my equity exposure to less than 50% at all times during retirement even if I use the Glidepath method as discussed in this thread.

Most of the evidence points to a 3.0-3.25% withdrawal rate as being a safe approach during retirement. I've seen numbers as high as 3.5% if one's equity exposure is in the 60-70% range but that's too high an exposure for me.

The Ultimate Guide to Safe Withdrawal Rates – Part 19: Equity Glidepaths in Retirement
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Thanks for the clarification. This is my general plan also. I will have probably no more than 30% equities as I near retirement. Great advice Blade.
 
GA8314 said:
I know a resident who's husband is a newly minted FM doc. They have combined 500k student loans. They have no idea how much extra call that's going to take to make a major dent in that amount of money. They will need to memorize White Coat Investor and truly live like a resident (they won't).
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Their advantage is that they are a dual income couple. This situation is much different than one with a stay at home spouse and a bunch of kids. They can live on one income while putting the other toward debt and knock it out in a few years. I live in a high cost of living metro area and know several couples who were in similar situations and have seen it done. Not only do they not take extra call but after a few years they give away calls and take a lot of fancy vacations. Picking a high income spouse is a smart financial decision.
 
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nimbus said:
Their advantage is that they are a dual income couple. This situation is much different than one with a stay at home spouse and a bunch of kids. They can live on one income while putting the other toward debt and knock it out in a few years. I live in a high cost of living metro area and know several couples who were in similar situations and have seen it done. Not only do they not take extra call but after a few years they give away calls and take a lot of fancy vacations. Picking a high income spouse is a smart financial decision.
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Yeah, that helps a lot. Being able to easily take one persons net income and put it all to debt payoff (and then play money or investments or both) sure is huge.
 
68PGunner said:
My portfolio doesn't comprise of one stock. However, based on my valuation, CMG is one of the biggest steals available on the stock market right now. There's no reason not to spend my every month saving on a steal that I will now will be 14-15x the current price in 10 years. I had a strong finance background before starting medical school, so I'm quite comfortable with my decision.
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You got another buying opportunity today.
 
urge said:
You got another buying opportunity today.
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Ecstatic right now... Christmas has come early!!! I bought my first batch at around $305-306. I'm going to wait for about $270-275 to lock in a second batch.
 
68PGunner said:
Ecstatic right now... Christmas has come early!!! I bought my first batch at around $305-306. I'm going to wait for about $270-275 to lock in a second batch.
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270's now. Binge on.
 
urge said:
270's now. Binge on.
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I wouldn't go long on chipotle. Here is my reasoning. Chipotle has been plagued in the past two years by food poisoning outbreaks and these have turned many customers off for good. Second, it's pricey and many of the ingredients will become more expensive with any threatened changes to importation and immigration proposed by the current administration. Overhead will surge and profit margins will be thin. It's products are also very high in fat and calories and we have started to make a turn in our society, although at an extremely slow pace, toward more health conscious foods. Overall, I am not optimistic about chipoltes long term outlook.

If you want a stock the will perform long term then buy amazon in the sometime between January and March; then hold it for several years. It is likely the stock splits at some point in the next three years and then rises again.
 
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I have been "advised" to start investing in oral fluid drug testing companies as that is most likely going to be the future of drug testing in 10 years. I however am a poor intern, so won't be doing much investing in the near future.
 
MirrorTodd said:
I have been "advised" to start investing in oral fluid drug testing companies as that is most likely going to be the future of drug testing in 10 years. I however am a poor intern, so won't be doing much investing in the near future.
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On the bright side, being too poor to invest means you can’t lose much money on bad stock tips from doctors who think think they coulda shoulda been ibankers.
 
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MirrorTodd said:
I have been "advised" to start investing in oral fluid drug testing companies as that is most likely going to be the future of drug testing in 10 years. I however am a poor intern, so won't be doing much investing in the near future.
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What are some examples of such oral sampling companies?
 
PainDrain said:
I wouldn't go long on chipotle. Here is my reasoning. Chipotle has been plagued in the past two years by food poisoning outbreaks and these have turned many customers off for good. Second, it's pricey and many of the ingredients will become more expensive with any threatened changes to importation and immigration proposed by the current administration. Overhead will surge and profit margins will be thin. It's products are also very high in fat and calories and we have started to make a turn in our society, although at an extremely slow pace, toward more health conscious foods. Overall, I am not optimistic about chipoltes long term outlook.

If you want a stock the will perform long term then buy amazon in the sometime between January and March; then hold it for several years. It is likely the stock splits at some point in the next three years and then rises again.
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I agree with you. I am not a Chipotle investor. But, I know several people here are. Today is the lowest price in 5 years to get in if that is what people want.

I don't see how Chipotle can sustain growing exponentially like it did for the past several years. They would have to keep opening even more stores year after year and I just don't see that working that great. Their focus on exponential growth is what plagued them with so many food safety issues IMHO. Even if you assume they can grow internationally I rarely see Mexican food when I travel abroad. Plus, we are talking about non authentic burritos after all. Anybody can jump in on that bandwagon.
 
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MirrorTodd said:
I have been "advised" to start investing in oral fluid drug testing companies as that is most likely going to be the future of drug testing in 10 years. I however am a poor intern, so won't be doing much investing in the near future.
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As someone in the pain business who knows something about these tests let me advise you to NOT invest in such companies. These tests are pretty unreliable and they must be confirmed by the "gold standard" of mass spec from a urine sample. Also, you will soon see that insurance companies will stop paying for POC drug testing because it is linked to the current opioid epidemic and instead prescribers will be forced to eat the cost and it will become a means to deter from opiate prescribing.
 
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Are you guys watching Intel? Slowly but surely it is breaking out. Could this be the NVDA of 2018?

I'm holding both.
 
facted said:
And the issue with this is...? My chances of picking the winner between Nvidia, Intel, and AMD is the same as a monkey with a dart board. Why not own all 3?
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There's so much misinformation regarding this. Only a monkey would pick AMD, a company with horrible fundamentals and poor technical indicators over INTC or NVDA.

Analyzing a stock is not gambling, no matter what people with no knowledge about the subject would have you believe.

What do you think Buffet does to determine that a company is valuable? Do you believe that he reaches that conclusion by osmosis?

If you arm yourself with a little bit of knowledge about fundamental and technical analysis you would do yourself a favor.

I would recommend you start with Trend Following by Michael Covel.

Of course you are free to invest on index funds. Probably not a bad strategy given that it literally requires no labor on your part. But is it the best strategy? Probably not.

My $0.02.
 
PlutoBoy said:
There's so much misinformation regarding this. Only a monkey would pick AMD, a company with horrible fundamentals and poor technical indicators over INTC or NVDA.

Analyzing a stock is not gambling, no matter what people with no knowledge about the subject would have you believe.

What do you think Buffet does to determine that a company is valuable? Do you believe that he reaches that conclusion by osmosis?

If you arm yourself with a little bit of knowledge about fundamental and technical analysis you would do yourself a favor.

I would recommend you start with Trend Following by Michael Covel.

Of course you are free to invest on index funds. Probably not a bad strategy given that it literally requires no labor on your part. But is it the best strategy? Probably not.

My $0.02.
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Comparing yourself to the greatest investor of all time. For starters, he has access to investment opportunities and information that the average investor simply doesn't.

There are COUNTLESS individuals and companies that believe they can pick winners more than the next guy. They INVARIABLY cannot over the long term and something tells me you can't either. Luckily, we can watch your predictions now and see if we should follow.
 
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facted said:
Of course. Chart analysis. I spent a summer helping my dad with this a bunch of years ago. The concept you can pick a stock on chart analysis is the biggest crock of s@@t in the investing world.
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Sure. Many have become millionaires by investing on index funds. This is the same reason why so much money, manpower, and research is done on the subject.

The average investor, meaning people like you or with even less knowledge (I assume that you are of above average intelligence), is better off putting their money on index funds. This is correct. But this doesn't mean that hedge fund managers and investing firms need to go out of business. Last time I checked, they are doing pretty well.

Or did Soros get his money from index funds?
 
PlutoBoy said:
You should pay attention.
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But I do. Just not to every (printed) snake oil vendor. I love me Buffett, Munger, Marks, Klarman, Pabrai, Spier etc. I even believe in behavioral psychology. I just don't think anybody can be successful long-term without fundamental analysis.
 
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