MMM-053: Buy and Hold Now, Boy!
I ENCOURAGE you to Download this show thru iTunes!
but, if you just can’t possibly deal with that then go ahead and
Play show 53, right now
Buy and Hold Now, Boy!
lyrics by Paul Douglas Boyer
sung to the tune Rhinestone Cowboy, by Larry Weiss
made popular by Glen Campbell
I’ve been picking these stocks so long
Investing it all so wrong
I know every crook on these dirty sidewalks of Wall Street
Where hustlin’s the name of the game
And traders get washed away like the snow in the rain
There’s been a load of compromisin’
On the road to my retirin’
But I’m gonna be where there’s light
Expenses and fees
I like buy and hold now, boy!
Setting out on a course with an index portfolio
I like buy and hold now, boy!
Owning all of the stocks in the companies I don’t even know
And the turnover ratio’s so low
Well I really don’t have to explain
Picking stocks is a really big pain
And you’re down if you’re ridin’ with Cramer, that’s taking the wrong way
And I dream of the things I’ll do
When I go and retire with a lot more money than you
There’s been a load of compromisin’
On the road to my retirin’
But I’m gonna be where there’s light
Expenses and fees
I like buy and hold now, boy!
Setting out on a course with an index portfolio
I like buy and hold now, boy!
Owning all of the stocks in the companies I don’t even know
And the turnover ratio’s so low
I’m proud to be sponsored by Index Funds Advisors at ifa.com. I’m going to help you go through each of the 12 Steps for Active Investors with snippets of the author Mark Hebner’s own podcast.
Charles Kirk of the Kirk Report comes out and says he is actually a Lazy Investor too!
Our Tool helps you determine your RetirAbility.
Mark Hebner of IFA.com discusses Jim Cramer’s recent pronouncements regarding index funds. Jim said index funds hold a bunch of bad stocks. Mark counters that those stocks often considered bad stocks turn out to actually more likely be good stocks. Jim said only buy ONE mutual fund. Mark says look at this Table. You’ll see how different indexes change leadership. Own ’em all! Jim said buying individual stocks let’s you control your taxes better than mutual funds. Mark points out that buying into an index portfolio means that the only times you should sell from your portfolio are either, one, when you need the money or, two, when you lose faith in capitalism. That way, it is extremely tax efficient.
By the way, Mark thinks that there is no reason that any of our money should be considered “Mad Money.” We work hard for it and every dollar is precious and shouldn’t be gambled away picking stocks.
Our Guru has the answer to the question, “What one thing would you advise an investor just starting out?”
David’s podcast Fast Money Machine covering the stock picks of Fast Money is rising up the charts fast in iTunes.
NevSta from Down Under says Bonsai! and wants another giveaway. Don’t wait! Buy and Read Now, Boy!
Please Digg Me! Please? This moves the MMM up in the Digg list of business podcasts.
Also, sign up for the Mad Money Machine email newsletter.
Todd Good of Waterfront Roasters can get you your own personalized coffee. Makes a great gift or giveaway.
Quintin from NH thinks maybe Dollar Cost Averaging might be the way to move cautiously into an index portfolio. Schwab thinks otherwise.
Buy GOOG? No, VTI. Buy Limited? No, VTI. Buy IBTY? No, VTI. (I own some VTI).
I review the status of the Portfolio Smackdown (before today’s big market drop). I update the status of that daily.
Next Mad Money Machine show to be released Tuesday, March 13th. Call me with your investing question and we will provide The Answer.
Email me, or comment, or Call me on the Mad Money Machine voicemail line at 206-734-4763
I tell you all the secrets that Jim Cramer doesn’t want you to know as I review the book, Trading with the Enemy by Nicholas Maier.
I review Chapter 3 from Jim Cramer’s Mad Money: Watch TV, Get Rich
My book: Paul Douglas Boyer’s Mad Money Machine: Play Video Games, Get Rich
Chapter 1: Take the Risk Capacity Survey. Then play video games.
Chapter 2: No need for homework. Set up your portfolio allocation. Then play video games
Chapter 3: No need to buy in stages. Buy it when you have the money. Then play video games.
Download the show directly MMM-053.mp3
Music from music.podshow.com
Runaway Train – Under Feather
Money – Theory in Motion
Monster Patrol – Van Davis
Next Time Around – Asymmetry
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Thanks for immortalizing me in the world of podcasts. Check out those leaders on the smack down. How do they do it?
Hey Paul,
Thanks for another great show
Now that you have all these songs like, “Buy and Hold Now, Boy” “Stock Picking Blues” and the 12-step musical. When is the “Mad Money Machine” album gonna come out?
H
OK,
VTI, VTI, and VTI, what about CWI and the other ‘total market’ ETF’s?
What is the difference?
Jim, thanks for the question.
Wow, you guys are really listening after all. I’m going to work up a response to this and report to you on the next show. But here is the essence of it…
When designing a portfolio, one must include some US Large Cap stocks, no? Also some small cap, micro cap, international, emerging markets, REITs, etc. Usually, when people talk about owning large cap they talk about something like the SPY, which mirrors the S&P 500, to do that. I prefer to own VTI as it owns the large cap stocks, sure, but also owns some mid and small cap stocks too. That brings me to the key: our equity portfolios should own all of the stocks available, but should emphasize small cap and value stocks. If we were to just buy VTI and stop there, the amount of small cap stocks would be infinitesimal to our holdings and would have no impact to our returns. So buying JUST the VTI wouldn’t do. We need to add a small cap US fund also. Then, adding some Value spice to the total mix should also help over the LOOONG run (20 years or more).
I like VTI because it ALREADY owns the S&P 500 stocks even before they get added to the S&P 500 (generally). With the pure S&P500 funds, they have to buy the stocks AFTER they get added to the index, usually after the prices have risen.
More later, gotta go watch TV and get rich…
That would be watching the TV while playing Pacman on the X-Box…no?
🙂