pip
Posts: 542
Likes: 725
|
Post by pip on Jan 10, 2020 14:00:16 GMT
I have recently adopted a life lesson, partly inspired by P2P. 'Avoid putting yourself in positions where I will have to deal with the consequences of other peoples issues'.
In P2P I realised I am exposing myself to the stress of dealing with lots of other peoples/businesses issues. Diversification in theory should have made individual issues so insignificant as to not be a real issue. Trouble is with platform risk now seeming to trump loan default risk as the biggest issue this isn't the case. I can't be bothered any longer putting myself in a position where I have to deal with the consequence of a platform being poorly run or regulated.
I am out and aiming to de-stress my life.
What do other people think of my life lesson, I think it can be applied to many situations.
|
|
ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,156
Likes: 4,830
|
Post by ozboy on Jan 10, 2020 14:15:07 GMT
Good move, whack it all into and evenly amongst a Tracker/s, Fundsmith and/or Similar, Vanguard and/or Similar, and some Gold in case of Total Collapse, then get a life.
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,744
Likes: 3,136
Member is Online
|
Post by jonno on Jan 10, 2020 14:16:14 GMT
Whilst I fully understand your feelings on this I fear that to fully comply, I would never be able to leave the house My "life lesson" leans more towards never assuming anyone else has the same standards, ethics, morals etc as myself. Unfortunately when it came to P2P, while I stayed faithful to this, I wrongly assumed that security,diversification and authorisation would adequately dilute the malfeasance of "others".
|
|
iRobot
Member of DD Central
Posts: 1,657
Likes: 2,450
|
Post by iRobot on Jan 10, 2020 14:29:42 GMT
A very useful post, pipI've been thinking for a while that what could be a really useful outcome of the current crop of platform demises is awareness of the effect it has had - and will continue to have - on those that are the sharp end of this particularly sh!tty stick. There'll be those, like yourself, who'll find it all very stressful. There'll be others who'll will experience short term financial difficulties And others still who'll suffer permanent financial loss and ongoing hardships. If your - and their - stories can be distilled as a lesson for caution to those who may be entering into P2P (or any speculative investment) with their eyes less than wide open to the very real risks, then at least some good may have been served.
|
|
|
Post by Deleted on Jan 10, 2020 14:39:55 GMT
Diversification in theory should have made individual issues so insignificant as to not be a real issue. Trouble is with platform risk now seeming to trump loan default risk as the biggest issue this isn't the case. This is actually an important lesson about the true nature of diversification, and the missing ingredient - Correlation. This failure underpinned the 2008 financial crisis as well - all those baskets of loans claiming 'diversification', when in fact all the loans were strongly correlated and behaved exactly the same in a collapse. With P2P platform risk, you've discovered a nasty correlation between those so-called 'diversified' loans on a platform. And yet another nasty correlation when investment dries up for multiple platforms based on the actions of a few bad apples.
|
|
|
Post by bracknellboy on Jan 10, 2020 16:09:16 GMT
Good move, whack it all into and evenly amongst a Tracker/s, Fundsmith and/or Similar, Vanguard and/or Similar, and some Gold in case of Total Collapse, then get a life. I recommend putting it with Neil Woodford, he has a great track record so should allow you to sleep soundly at night. Oh, hang on a minute....
|
|
hazellend
Member of DD Central
Posts: 2,361
Likes: 2,179
|
Post by hazellend on Jan 10, 2020 16:44:53 GMT
I have recently adopted a life lesson, partly inspired by P2P. 'Avoid putting yourself in positions where I will have to deal with the consequences of other peoples issues'. In P2P I realised I am exposing myself to the stress of dealing with lots of other peoples/businesses issues. Diversification in theory should have made individual issues so insignificant as to not be a real issue. Trouble is with platform risk now seeming to trump loan default risk as the biggest issue this isn't the case. I can't be bothered any longer putting myself in a position where I have to deal with the consequence of a platform being poorly run or regulated. I am out and aiming to de-stress my life. What do other people think of my life lesson, I think it can be applied to many situations. Avoid BTL as well, Stick with equity index trackers
|
|
keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,870
Likes: 2,308
|
Post by keitha on Jan 10, 2020 18:01:47 GMT
Good move, whack it all into and evenly amongst a Tracker/s, Fundsmith and/or Similar, Vanguard and/or Similar, and some Gold in case of Total Collapse, then get a life. Total collapse, shouldn't we be hoarding tins of beans etc, and buying guns and ammunition, me I'd happily stockpile garden tools and veg seeds
|
|
travolta
Member of DD Central
Posts: 1,458
Likes: 1,167
|
Post by travolta on Jan 11, 2020 9:06:24 GMT
no man ( or any blend of125) is an island entire unto himself...
|
|
|
Post by Deleted on Jan 11, 2020 9:36:37 GMT
However what ever you invest in, is portals, do load all of the fatal into an analysis portal like ii, HL wishlist etc.
While you may have spread your money across say 20 funds, share etc. Your core holding could be 100% apple, for example.
|
|
|
Post by Deleted on Jan 11, 2020 9:38:07 GMT
The other life lesson is set objectives for any holding, not buy or sells, but clear objectives, say by end 2020 I want this up by 10%. Then manage the achievement.
|
|
macq
Member of DD Central
Posts: 1,924
Likes: 1,192
|
Post by macq on Jan 11, 2020 13:23:31 GMT
The other life lesson is set objectives for any holding, not buy or sells, but clear objectives, say by end 2020 I want this up by 10%. Then manage the achievement. it maybe people saying i want a guaranteed 10% each year that got them stuck in P2P in the first place
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on Jan 11, 2020 16:52:38 GMT
I've never learned a life lesson myself, yet, but there are two quotes that I have internalized.
One is general and strategic. It comes from Mahatma Gandhi:
"First they ignore you, then they laugh at you, then they fight you, then you win."
I didn't always make it through all four states, but it did often provide certainty were one stands.
The other one is a tactical one by George Bernard Shaw
"I learned long ago, never to wrestle with a pig. You get dirty, and besides, the pig likes it."
So, keep smiling and a Happy New Year to all of you.
|
|
agent69
Member of DD Central
Posts: 5,599
Likes: 4,184
|
Post by agent69 on Jan 11, 2020 16:56:38 GMT
"First they ignore you, then they laugh at you, then they fight you, then you win." Sound like my recent dispute with my travel insurance provider.
|
|
keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,870
Likes: 2,308
|
Post by keitha on Jan 12, 2020 9:48:25 GMT
However what ever you invest in, is portals, do load all of the fatal into an analysis portal like ii, HL wishlist etc. While you may have spread your money across say 20 funds, share etc. Your core holding could be 100% apple, for example. 100% apple wouldn't have done badly over the years, Apricot on the other hand...
|
|