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-   -   How much you are able to invest in stock market? (https://www.englishforum.ch/finance-banking-taxation/302109-how-much-you-able-invest-stock-market.html)

jacek 10.01.2021 18:14

How much you are able to invest in stock market?
 
After reading an inspiring thread on topic of investments in:

https://www.englishforum.ch/3245173-post1.html,

it begs many questions of market psychology and individual’s ability of coping with gains and losses. I read that some people on the EF, are willing to invest several hundreds of thousands CHF in the stocks, others like myself would be more comfortable with much lower numbers in the neighborhood of ten thousands. There are also folks who wouldn’t take unnecessary risk and either leave it in hands of professional financial advisors or move to less risky products. Overall, everyone has one’s own limits and adjusts portfolio values accordingly.

Therefore, it would be interesting to make a panel to know of how much you would really be able to invest and what is your main objective and why you think it makes sense?

Disclaimer. Please do not get me wrong. The poll is absolutely anonymous. It’s not intended to share one’s exact financial situation and affordability. It’s about one’s motivation, courage, resilience, ability to stomach the losses and investment sanity.

jacek 10.01.2021 18:32

Re: How much you are able to invest in stock market?
 
Correction: The third choice should read:

Several ten thousands CHF

Mods: Not sure how to correct it after submitting the poll?

roegner 10.01.2021 18:41

Re: How much you are able to invest in stock market?
 
Changed it for you

komsomolez 10.01.2021 18:46

Re: How much you are able to invest in stock market?
 
Wouldn't it make more sense to ask which share of your available finances would you invest in stocks?

jacek 10.01.2021 18:51

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by komsomolez (Post 3261215)
Wouldn't it make more sense to ask which share of your available finances would you invest in stocks?

Thought about it as much but there are also folks who do not mind bragging about numbers.

komsomolez 10.01.2021 18:54

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by jacek (Post 3261217)
Thought about it as much but there are also folks who do not mind bragging about numbers.

True.

>1 MCHF for me then.

jacek 10.01.2021 18:59

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by komsomolez (Post 3261221)
True.

>1 MCHF for me then.

Provided that this is true statement. Can you elaborate why such decision and your motivation to go so high or any concerns with such large holdings in stocks?

roegner 10.01.2021 19:18

Re: How much you are able to invest in stock market?
 
I just invest a certain amount every month and have been doing that for some years. I tend to leave the portfolio mostly as it is, I know a lot of people think that is not the way to do it, but Im fine with it and it works ok for me.

And some times I just invest an additional lump sum (bonus time, after paying taxes......).

jacek 10.01.2021 19:45

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by roegner (Post 3261234)
I just invest a certain amount every month and have been doing that for some years. I tend to leave the portfolio mostly as it is, I know a lot of people think that is not the way to do it, but I‘m fine with it and it works ok for me.

And some times I just invest an additional lump sum (bonus time, after paying taxes......).

I think that I currently apply a similar strategy to my holdings. I haven’t sold my positions yet and view it as a long term investment. However, I don’t put money every month into stocks but rather wait for lump sums to build up first, then study the companies carefully and execute the orders. Alas, due to quite steep fees on the SQ, it does not make sense for me to go for smaller amounts than 1k-2k per company.

The whole process of picking right stocks is very exciting to me. I’m rather cautious investor and besides studying the performance indices, I have to know the company via their products. In the first years of investments, I used to follow my instincts and read a lot. Currently, mu success rate in choosing the right companies is 87%, meaning out of 15 at least 13 are increasing in value. Due to relatively low amounts invested, I can sleep well at night. However, I must admit that gazing at the tables everyday is somewhat addictive. I could improve in this department and make it less of a bad habit.

Having said that, I’m willing to increase my presence on the market in the future but would like to be convinced that it’s really the right choice.

nonnative 10.01.2021 20:26

Re: How much you are able to invest in stock market?
 
I am not an expert in investing, I keep about 5 months of combined monthly salary (spouse and myself) as liquid cash, we have 2 kids. Any amount saved on top of that is invested mostly in stocks , ETF's and bonds(just to beat inflation).

In the past I used to invest in actively managed fund products (Fonds) but I realised that I was paying too much of management/buying/selling fee (>2%) and performance of the fund not so great.

Last couple of years, I use platforms like Degiro and IB when investing myself (very cheap), off late I lost interest to analyse companies ratios and performance , so I setup accounts with Yova, Selma, TrueWealth and Raiffeisen Rio. Their digital platforms do charge a fee, a little less than 1% (depends on the amount you invest).

But I am aware that 1% fee is too much (Especially over time). But on the other hand cherry picking the right stock's and ETF's is not natural to me, so I pay the fees.

Dr Mick 10.01.2021 20:36

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by nonnative (Post 3261282)
Last couple of years, I use platforms like Degiro and IB when investing myself (very cheap), off late I lost interest to analyse companies ratios and performance , so I setup accounts with Yova, Selma, TrueWealth and Raiffeisen Rio. Their digital platforms do charge a fee, a little less than 1% (depends on the amount you invest).

But I am aware that 1% fee is too much (Especially over time). But on the other hand cherry picking the right stock's and ETF's is not natural to me, so I pay the fees.

https://www.ishares.com/ch/individua...s-etf-acc-fund

This should double your money every ~7 years.
And I am not even charging you for the advice, unlike TrueWealth & c. :D

wantone 10.01.2021 21:53

Re: How much you are able to invest in stock market?
 
It obviously depends not only on how much liquid net worth one has but also in the level of sophistication one has.

Personally, I would like one day to be comfortable with investing all of my money in financial securities but this requires lots of experience and constant studying of the economy, companies news etc.

NotAllThere 10.01.2021 22:00

Re: How much you are able to invest in stock market?
 
To me, the question makes no sense. After an initial inheritance, which I used to buy my starting portfolio, I now invest about 2000 a quarter. When you've invested 200K but your portfolio is worth, say, 350, it doesn't say anything about risk aversion.

The chances of an overall +40% fall are remote. And if it does happen, leave it, and eventually recover. If that doesn't happen, then you've probably got more immediate problem than savings...

Urs Max 10.01.2021 22:31

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by roegner (Post 3261234)
I‘m fine with it and it works ok for me.

Quote:

Originally Posted by jacek (Post 3261255)
I can sleep well at night.

These two are key, don't take more risk than you're comfortable with. And by and large what others do is utterly irrelevant, everybody's situation is unique.

HickvonFrick 10.01.2021 22:35

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by komsomolez (Post 3261221)
True.

>1 MCHF for me then.

Where's the option for 10M CHF ? :p

NotAllThere 10.01.2021 22:41

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by Urs Max (Post 3261352)
everybody's situation is unique.

Mine's not.


jacek 10.01.2021 22:44

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by HickvonFrick (Post 3261356)
Where's the option for 10M CHF ? :p

(I'm actually down at c. 600K sadly but I'm only 32)

Like I said, anything above million can be classified in that category. ;)

Would you elaborate more how you feel putting such significant investment in work. Do you have any feelings, nightmares about it or just a sheer swing couple of grants either way wouldn’t have made any difference?

Personally, I discovered that I’m more resilient than I thought. It was in March 2020 when I saw my investment seeing 66% only. I just shrugged it off, invested in my health and wellbeing during the lockdown. Got more fit and quickly my good mood was restored few months later. :D

MusicChick 10.01.2021 22:45

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by HickvonFrick (Post 3261356)
Where's the option for 10M CHF ? :p

Are you Tina Turner?

HickvonFrick 10.01.2021 22:51

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by jacek (Post 3261361)
Like I said, anything above million can be classified in that category. ;)

Would you elaborate more how you feel putting such significant investment in work. Do you have any feelings, nightmares about it or just a sheer swing couple of grants either way wouldn’t have made any difference?

Personally, I discovered that I’m more resilient than I thought. It was in March 2020 when I saw my investment seeing 66% only. I just shrugged it off, invested in my health and wellbeing during the lockdown. Got more fit and quickly my good mood was restored few months later. :D

I just relax knowing there's a high likelihood of the money coming back. Lost c. 60k in March and didn't let it bother me too much. I got a bit stressed as it was my first crash but didn't panic.

Been rewarded with my portfolio increasing from c. 300k chf in January 2020 to c. 600k now. Albeit with new money from salary invested.

jacek 10.01.2021 22:54

Re: How much you are able to invest in stock market?
 
Quote:

Originally Posted by NotAllThere (Post 3261335)
To me, the question makes no sense. After an initial inheritance, which I used to buy my starting portfolio, I now invest about 2000 a quarter. When you've invested 200K but your portfolio is worth, say, 350, it doesn't say anything about risk aversion.

The chances of an overall +40% fall are remote. And if it does happen, leave it, and eventually recover. If that doesn't happen, then you've probably got more immediate problem than savings...

I agree.

However, always is good to have a plan B, C and so on and so forth ... until something works ... or exit strategy.

If this happens then ... let’s hope.

It this doesn’t happen then ... x, if this doesn’t happen then ... y... at some point completely buggered.


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