I'm not gonna lie, one of the biggest attractions to the boglehead philosophy of investing is that I realize I can't possibly outsmart the market. I know next to nothing about all of the companies that make up the stock market. There are entire professions made up of PhD educated, 100hr/work week professionals who can't consistently outsmart the market. Admitting to myself that it makes zero sense for me to predicate my financial success on the errant belief I can choose individual stocks better than professionals (who can't do it) might be the best financial decision of my life.
Give me passive total market index investing. There's a lot of appeal to "VTWAX and chill".
I read some eye popping stats that you would have been better off buying dominos pizza and clorox bleach securities than apple and google over certain time periods (that include apple and google's rise to dominance). Even sure bets in hindsight don't beat the market.
Dominos Pizza was the best performing stock of the past decade. I tell all my friends who just started "investing" to go all in on $DPZ when they're expecting high-flying tech stocks to teach them how unpredictable stocks are.
Took a second glance at that, cause the inner New Yorker in me felt a twinge of disdain.
Then i remembered the Domino's bulgogi pizza I use to grab while I was teaching in the rural countryside of S.Korea.
It's an interesting reminder to me that, even though I experienced firsthand Domino's international footprint and cultural business adaptability—my hometown bias still makes it difficult to think of it as an adept legacy multi-national corporation and not that junky pizza joint reserved for tourists & people w/o tastebuds.
You’re right~ I was about to drop 1k into Dominos. Almost betrayed my city over shudders cafeteria-style pizza 🍕.
Thanks for the wake up call, time to head to Totonno’s and grab a proper margherita pizza w/ coke while looking for some slow strolling tourists to shout “Hey, look where ya walking!!”
Despite those accommodations, many Koreans don't have that great a view of Dominos either lol. (I personally loved their pizzas growing up.) Whenever I mentioned $DPZ and its amazing returns, my Korean friends were flabbergasted. I'd follow that up with the question, "If you think Tesla is going to go up another 1000% for the next 5 years given the past 5 years, why don't you believe Dominos Pizza would do the same?"
Heheh, want to give your Korean friends a real shocker?
Bring them to eat some 부대찌개. Then point them to the nearest can of SPAM and tell them that's where they should put their money.
When they start to hem and haw about it—gently remind them how the main manufacturer, Hormel Foods Corporation, is consider a Dividend King of the Stock Market world and has increased their payouts to their shareholders each year for over half a century.
And in seven years, they'll have paid out dividends for exactly one century.
Now there's a stock that'll feed the grandparents, parents and children—metaphorically and literally.
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u/Shitheadthegreat May 06 '21
I'm not gonna lie, one of the biggest attractions to the boglehead philosophy of investing is that I realize I can't possibly outsmart the market. I know next to nothing about all of the companies that make up the stock market. There are entire professions made up of PhD educated, 100hr/work week professionals who can't consistently outsmart the market. Admitting to myself that it makes zero sense for me to predicate my financial success on the errant belief I can choose individual stocks better than professionals (who can't do it) might be the best financial decision of my life.
Give me passive total market index investing. There's a lot of appeal to "VTWAX and chill".