My dad is a stock picker, as well as owning some real estate. He is planning to retire very soon, and he keeps trying to pick stocks. I try to tell him that its a bad idea, and he knows the index performs well, but he thinks that picking stocks is a good way to "make gains on his time horizon" (not his words, just my rephrasing since I cant remember). Im not sure how his stocks did in the past -- I share his bank account that he does his stock trading in but they only go so far back -- but I feel like hes not even deterred by his losses, which are pretty substantial from what I can see. In 2020 during covid he made 3x his investment (again, from the timeline I can see anyway) and he lost all his gains at this point, back to the amount he had before 2020. Im not particularly worried about his finances as he has his real estate, though I dont actually know his cashflow and net worth, and I know its his money, but it causes me pain to see him throw around his money the way he does. As absurd as this sounds, I also think he doesnt see unrealized losses as losses. I dont even know how he is able to mental gymnastics his way into that.
I tried explaining why good companies dont necessarily outperform the index (but perhaps in too convoluted a way; my background is in math). What would you all do in my shoes?
I tried explaining why good companies dont necessarily outperform the index (but perhaps in too convoluted a way; my background is in math). What would you all do in my shoes?
Statistics: Posted by Splake — Sat Jul 13, 2024 11:32 pm — Replies 6 — Views 293