You know you've gotten old when excitement comes in the form of a bag of mystery bulbs. We start of our tale in the best of all possibly places... Chinatown. Your plucky heroine had a hankering for wonton noodles that needed to be appeased. Having escaped from babysitting duty, I made my way through the post-Thanksgiving crowds, browsing the open air markets for any goodies that might be on offer. Throughout the market, I noticed a few places offering what looked to be little, mesh bags of small onions. We're talking about something the size of a small shallot, but not as long. At one stall, these little bulbs were just laid out on take out containers, and had started to sprout. Very intriguing! On my way back home, wonton dreams realized, I circled back to the market hoping to get some answers. One very confusing exchange later in which no information was gained, I ended up with a bag full of bulbs. Mystery bulbs for the win! I asked the little old lady what the bulbs...
For years, I stayed away from investing in individual stocks. Sure, I could do index funds and bonds, no problem! The moment I had my first $5,500 saved up after graduate school, I opened a retirement account.Wham, bam, boom and suddenly, I was an investor with a diversified portfolio! YAY! *spirit hands waving* It was the smartest way I could invest money without a degree in finance and an encyclopedic knowledge of investing, or so I thought at the time. (Probably true, I was a bit of an idiot.) In 2007, Warren Buffett (who's basically the living Buddha of value investing, which is what most people think of when contemplating stocks) famously bet 1 MILLION BUCKS that an index fund would out perform a collection of hedge funds over the course of 10 years. Guess what? Despite a ton of people trying, Buffett won (surprise, surprise) and a charity named Girls, Inc. won, cause Good Guy Warren donated that million dollar prize to them. That was the philosophy I subscribed to for...