Wednesday, August 6 Gambling/investing

Post 1251, Day 218 of 2014
- 1,314 days since I started this blog -

Aug 2, 2014

Daily Comment

Last year I had a discussion with Brother Andy about investing in the stock market. We had, at the time, differing points of view. He said it was gambling, I said not so much, since there was more than the element of luck involved in investing.

Today, I've come around to his point of view. Here's why:

Although I continue to feel that you can mitigate risk in many ways, I am still 'betting' my investment dollars that forces I cannot know or control will give me a return. 

And that return is not guaranteed in any way. Not in how much, not even that it won't go negative. As long as I am invested, there is nothing preventing me from losing money.

I mitigate the risk in many ways, and as much as I can. 

I invest in a diverse group of companies as far as industry and geography. In the last three-and-a-half years (from the founding of my current portfolio, investing the 401K funds from the company that had just laid me off), which includes approximately 880 trading days, there have only been three days where every stock moved in the same direction. 

I only invest in stocks that pay dividends. If none of my stocks cuts their dividend, the  portfolio will provide 6% increase. Of course this doesn't affect the stock prices, but it does reduce the base price of the stock, adding to my returns or cutting my losses. And, since I reinvest the dividends, it is compounded. 

Also mitigating the risk, I have a long time horizon. This means I have a chance to recover from any big negative events. I will not be cashing in my portfolio when I retire. My investment portfolio is not funding my retirement, so I can leave it lie (until I reach age seventy, when I will stop reinvesting my dividends and withdraw them add a hundred and fifty dollars a month in after-tax income, aka more money for entertainment).

Finally, any event that totally wipes out my investments would be a global catastrophe. Loss of my investment portfolio in that scenario would be a lesser problem. All my income sources would be gone - we're talking about the end of Western civilization. No Social Security and pension checks. Because there's nothing I can do about it, now or ever, I don't consider it any more than I do earth-asteroid collisions.

So, yes, while I am gambling, I am not gambling with money that will, in the foreseeable future, be needed. I believe my bet is prudent.

Nothing in this world is a sure thing. With every action, there is something to gain, something to lose, and never any real certainty. So, too, with this gamble I make with money that is mainly 'just in case'.

Ain't life grand!

 Please leave a comment if you visit my blog. Thank you!

 Food and Diet Section

2014 Daily Weight

Today's Weight:          210.6 lbs

Previous Weight:         211.2 lbs

Day Net Loss/Gain:       - 0.6 lbs
     
Diet Comment

Good direction.

Food Log 

Breakfast
Skipped.

Lunch
A cocoa-hemp-kale protein shake (almond-coconut milk, kefir, kale, large organic egg, whey powder (24g protein), hemp seeds, hemp protein (7g protein), raw organic cacao powder, chia gel, moringa leaf powder, celery, cinnamon and stevia-inulin blend.

Dinner

Bacon with shrimp sauteed in bacon grease and tomato oil, with a balsamic reduction sauce, and cole slaw

Snack

Pepperoni, and celery with home-made mayonnaise.

Liquid Intake

   Coffee:  28 oz.   Water: 104+ oz. and a shot of Jameson's Irish whiskey

Please leave a comment if you visit my blog. Thank you!