Comments by "Magic Beans" (@Magic_beans_) on "You Suck at Investing." video.

  1. Footnoting the Mr. Consistent example: Dividends help, but over a long timeline it’s going to be close no matter what, because whenever it is that you invested in that first year, you’d stay invested for all subsequent years. To use a more dramatic example let’s say you bought Microsoft at some point in 2015. Depending on your timing you would have gotten in somewhere between $40 and $57. As of this writing it’s trading around $370. Granted that’s a 40% difference in entry price, so you could be sitting on anywhere from a 550% to 825% gain. Still, you’re in great shape no matter what because you were there for all of 2016, 2017, 2018…
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  2. For sure. If you’re not really interested in owning a sliver of 20ish businesses and keeping tabs on those businesses, just drop that cash in an index fund and let it do its thing. Average returns over a long timeline are still great returns. Speaking of which, there’s a lot of buzz about exchange-traded funds (ETFs), but if you want to be Mr. Consistent, mutual funds have a really helpful trait: automatic investment. My IRA is invested in ETFs, so every couple weeks I have to log in to my brokerage and say “See that $250 I deposited? Use that to buy [ticker]. With a mutual fund I could just set it up once and not worry about it. Deposits get added to the fund at whatever that day’s price is, and I could just pop in every few months (or less) to make sure everything’s okay.
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