Socially Responsible Investing

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Never (attempt to) time the market!

I would try to gain as much money as possible by investing in which ever company is profitable, since you know that is why we invest; then give the excess to a charity or the Church especially if it can make better a (proabably minor) wrong the company did. Much more effective than just not buying a particular profitable stock.
 
Totally agree: NEVER ATTEMPT TO TIME THE MARKET.

As an alternative, use Robert Lichello’s method … when the market goes up, sell a little. When the market goes down, buy a little.

AUTOMATIC INVESTMENT METHOD.

http://www.automaticinvestmentmachine.com

There are web sites that discuss. There is software you can buy for low cost.
 
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that’s nonsense. So if someone had sold when after the election when it started going up, they would have missed out in a nearly 40% gain in a little over a year. Absurd.
 
hoping4more said:
that’s nonsense. So if someone had sold when after the election when it started going up, they would have missed out in a nearly 40% gain in a little over a year. Absurd.
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Cherry picking instances of market behavior does not prove anything. A strategy is based on average behavior.
 
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Looking backward, ANYTHING is possible.

Look forward.

Not so easy.
 
yes, look backward. Means always invest as much as you reasonably can, and don’t play market games. Withdraw when you need money or need to reallocate.
 
The really nice thing about Lichello’s Automatic Investment Method is that it takes all of the anxiety and guesswork out of investing.

Read the book. It’s a very fast read.

You can make your own pencil and paper worksheet from how he lays out his chapters.

And nowadays, you can use Exchange Traded Funds which are very cheap … minimal fees …

And you only trade once a month after you do the simple easy peasy mechanical calculation.

You can complicate it.

But there is no need to complicate it.
 
VSTAX is pretty cheap and you own part of the company, not to mention it simple. make an account, deposit money.
 
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I find these funds to be inane, a waste of your money if you are trying to make a difference. Let me explain:

Investing in the stock market is just gambling. Avoiding certain companies has little to no impact on the company and their sales/profitability. They issued their shares long ago and don’t receive a dime when you buy or sell their shares. However, if the company is doing well and their stock price rises, you missed out on getting a return on your money because you invested based on emotional appeal, not accounting principles.

The one place where you can make a difference is by providing start-up capital to socially responsible business ventures. But even here you need to stay focused on business principles and not just invest based on emotional appeal, or you will lose all your investment.
 
not sure how to do the quote post…

“investing in the stock market is gambling” It is how this countrys wealth is stored. You own part of those rich corporations.

However, if you are trying to pick individual stocks or even some sector, then yeah, gambling.
 
To quote, lft click and drag across the text you want to quote.Then a little quote tag will pop up for you to click, and start your reply, with quote inserted.
hoping4more said:
not sure how to do the quote post…

“investing in the stock market is gambling” It is how this countrys wealth is stored. You own part of those rich corporations.

However, if you are trying to pick individual stocks or even some sector, then yeah, gambling.
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Buying a mutual fund is just paying someone else to do the gambling for you. That our wealth is stored in stock prices doesn’t change that it’s gambling:
  • bonds are very safe with nominal risk and little return. But there is risk from bankruptcy and interest rate fluctuations affecting resell price.
  • blue chip stocks are also safe bets, but more risk and more potential upside
  • etc etc. down to penny stocks which have very high risk.
 
Index funds are just very safe mutual funds, but not the safest. A bond fund is probably lower risk. With these funds you are betting on the overall market trend rather than the prospects for individual companies.

Regarding social responsible investing, to me it’s like having conflicting goals. On one hand you are trying to preserve and increase your wealth. The other hand is trying to make a political statement. Only buying green companies is like playing roulette but never betting on black numbers, you’ve cut your odds down significantly in making money and other investors will gladly take the opportunities you’ve ignored, and even sell you some overpriced green shares.

I’ve seen the movement against apartheid brought up as evidence, but I don’t think it applies. Coke and other companies officially left South Africa because it was hurting their brand, and people were maybe buying less of their product in their major markets. They didn’t leave SA because green funds weren’t buying their stock, for moral reasons. Most companies are stuck in their industry, a coal company can’t just become a solar energy company. If many people stop buying a coal companies shares, but they are still a strong business, then a Carl Icahn will spot the undervalued stock and buy them up on the cheap, at your loss and his gain.
 
Looks like a really good idea, I pray it never gets corrupted :pray:t2::pray:t2::pray:t2:, for love of money is the root of all evil
 
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Anyone into chart technicals? It gets almost mystical but I think it taps into mass psychology or something.
 
Shakuhachi said:
Anyone into chart technicals? It gets almost mystical but I think it taps into mass psychology or something.
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That’s a good description, it’s psychology that drives the market. Accounting numbers have a role, but they don’t explain it well. Below is a simple Price/Earnings chart over time.
 
How about Fibonacci and Elliot Wave? Head and shoulders? Cup and handle? It seem to me a lot easier to point the out afterwards. P/E and rolling averages make more sense.
 
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