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My Confession: It's Better When No One's Looking
Published about 2 years ago • 4 min read
Presented By: The Early Bird from MarketBeat
Official Affiliate Partner: The Early Bird from MarketBeat
I've got a secret...
I've made investments because I knew people would be watching!
When cranking out financial content, you can't just be interesting. No way. You gotta go full WWE! I'm talking Vince McMahon levels of spectacle.
Entertainment. Fireworks. Faking your own death.
(Okay, maybe we'll skip the part where Vince faked his death in a limo explosion.)
George Soros said: "If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring."
Man, that hits home.
I've been there...Take AT&T (T), for example. I scooped up shares because it was the stock every "serious" dividend investor owned. I even made videos recommending it!
But here's the embarrassing part - I didn't realize this stock has been a total dud for decades. Even with dividends reinvested, it's been flatter than a pancake run over by a steamroller.
Seriously, check it out—AT&T (T) and Verizon (VZ) have 10Y total returns of around 50%, while the S&P500 is +200%!
T, VZ, SP500 10Y total return on SeekingAlpha.com
It's like we're all part of this massive self-inflating bubble. Someone whispers about a stock or ETF, and then we "Finfluencers" start yapping. More people catch wind, and we buy in to say, "Look at me! I'm putting my money where my mouth is!"
There's a saying that "you pay attention to what you pay for," so buying a small exploratory position isn't all bad. But instead of thinking, "Why do I want more?" we should ask, "Why do I want to get rid of you?"
And when we have very few good reasons to dump a stock, it might be a great time to add more.
I sold some stocks in my Self-Directed IRA recently, leaving me with about $10K in cash.
But now, instead of frantically looking for the next big thing, I'm doing something crazy: I'm slowly buying VTI.
VTI is like buying a microscopic slice of every publicly traded US stock. As of now, we're talking 3,600+ companies. It's not just the big "Mag Seven" —VTI has way more small and mid-cap stocks than the S&P500 (VOO).
But check this out—while VTI's 241% 10-year total return is slightly less than VOO's 261%, it is still impressive!
VTI vs VOO 10Y total return, on SeekingAlpha.com
One ticker symbol. No research. No earnings calls. No annual reports. No potential lawsuits keeping you up at night.
It's the super-boring, super-easy button that ANYONE can smash.
I know, I know. "But the 1.32% yield is so low! It's not as much fun!"
You know what is fun? MORE MONEY!
For now, I'm gonna try something a little different: start investing like nobody's watching.
It won't be easy, but no peacocking. No WWE moves—just boring, beautiful gains.
And who knows? That could be the real money-making spectacle, after all.
Your Turn
Do you think "Finfluencers" make moves just because they know people are watching what they do? How do you feel about that? Hit reply and let me know your thoughts!
😁THANK YOU to everyone who responded to the last newsletter!!
🤑Rick Stambaugh from Orange Mountain Financial brings you ‘Grow Retirement Income.' He’s a seasoned pro with over 30 years in trading and a passion for guiding folks to a prosperous retirement.
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