Current value of a hypothetical $10k invested in each company that advertised in the first quarter of the 2013 Super Bowl

[christianauger]

@simon84 This is even more fascinating

 

[sergejisback]

@simon84 Huh. So that Buffet guy was right.

 

[jacobs]

@sergejisback Bogle guy you mean

 

[resjudicata]

@jacobs Buffet repeatedly suggested to buy a low cost S&P500 index fund.

 

[sergejisback]

@resjudicata True that.

Buffett has long recommended that investors put their money in low-cost index funds, which hold every stock in an index, making them automatically diversified. The S&P 500, for example, includes big-name companies like Apple, Coca-Cola and Amazon.

Buffett previously told CNBC that for people looking to build their retirement savings, diversified index funds make “the most sense practically all of the time.”

“Consistently buy an S&P 500 low-cost index fund,” Buffett said in 2017. “Keep buying it through thick and thin, and especially through thin.”

 

[eyeswideopen78]

@sergejisback Do as I say, not as I do…

"If you can identify six wonderful businesses, that is all the diversification you need. And you will make a lot of money. And I can guarantee that going into a seventh one instead of putting more money into your first one is gotta be a terrible mistake. Very few people have gotten rich on their seventh best idea. But a lot of people have gotten rich with their best idea. So I would say for anyone working with normal capital who really knows the businesses they have gone into, six is plenty, and I probably have half of what I like best. I don‘t diversify personally." Warren Buffett

 

[sergejisback]

@eyeswideopen78 Well if you think your skills are on par with Buffet, have at it.

But the point remains. The S&P on average performs better for most.

 

[eyeswideopen78]

@sergejisback I wish!

 

[jacobs]

@resjudicata True, famously he put a 5m bet on it right before the financial crisis and still beat the managed fund that accepted the challenge.

 

[eyeswideopen78]

@resjudicata “For most people”

 

[resjudicata]

@eyeswideopen78 Ain’t that you? I’m definitely most people.

 

[eyeswideopen78]

@resjudicata My performance lately would agree!

But..

“Diversification is for the know-nothing investor” - Charlie Munger

 

[niceguycharlotte81]

@simon84 Wow.

 

[damascus]

@simon84 I didn’t see Blackberry on the list

 

[htowncasper]

@simon84 but i want those big winssssss

 

[julieb70]

@simon84 Poor example.

If you dollar cost average that $150,000 over that time, the ROI would be much less.

If we're making stuff up, why not visualize April 2009 to 2023?

How about April 2022 to now?

In 2013, the market was just starting a bull run to account for a lost decade and inflation.

No different in 15 years. The market (S&P) will be 3x from here due to inflation. However, I bet putting money in MSFT, AAPL, AMZN, WMT, GOOG, ADBE, NVDA, TSLA, etc. today will yield > 3x in 15 years.

 

[power543]

@julieb70

If you dollar cost average that $150,000 over that time, the ROI would be much less.

Why are you shifting the goal posts?

However, I bet putting money in MSFT, AAPL, AMZN, WMT, GOOG, ADBE, NVDA, TSLA, etc. today will yield > 3x in 15 years.

Take a look at the S&P 500 leaders and the midfield from the 2000s. Companies rise and fall all the time. Buying the S&P 500 is predominantly buying those companies anyway, but with flexibility to also capture gains from companies not on your radar yet and hedge against a giant losing their edge. It's not always about pure returns, it's about risk adjusted returns.

 

[frankleespeaking]

@julieb70 This is the second time you’ve made this comment. I hope you think about why you’re getting downvoted. It’s not because people are philosophically against buying individual stocks. It’s because you’re making a bad comparison. I hope you take the time to understand why the comparison is not appropriate because this misunderstand is going to lose you a lot of money if you keep doing it.

 

[jeje85]

@taliajo Mars Corp is (and always has been) a private company. So it should not be included in the analysis since its stock does not trade publicly.

Mars Corp is the candy company. Perhaps OP mistakenly used Mars Bancorp ($MNBP), which is a publicly traded bank.

 

[taliajo]

@jeje85 Good call, I did mistakenly use $MNBP instead of Mars Corp. Good catch.