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Our financial groin has been getting stomped on by the coronavirus. Since 2/19/2020, our net worth is down $289,000. And for this month thus far, our net worth is down a staggering $175,000. Check it out.
And, yet, Mrs. Groovy and I smile. Stocks are on sale and we’ve already exchanged $90,000 worth of bonds for stocks. If the Wall Street sale continues, we’ll happily buy more stocks. It’s just what you do when you got a big monstrous pair dangling between your financial legs.
But Mrs. Groovy and I are hardly the only bloggers with a big monstrous pair. Surely, there are other bloggers who have suffered a greater ding to their net worth and who have thrown more money at stocks. And I want to know who. So I’m issuing the Coronavirus Challenge. The numbers to beat are $289,000 and $90,000. If your net worth is down more than $289,000 and you have bought more than $90,000 worth of stocks during this selloff, I’ll happily concede that your pair is even bigger and more monstrous than our pair. Peace.
| Blogger | Net Worth Drop During Coronavirus Crisis | Amount of Stocks Bought During Coronavirus Crisis Sale | Coronavirus Challenge Score | As of Date |
|---|---|---|---|---|
| Root of Good | $673,000 | $100,000 | $773,000 | 3/18/2020 |
| Steveark | $550,000 | $200,000 | $750,000 | 3/18/2020 |
| Retire By 40 | $400,000 | $250,000 | $650,000 | 3/16/2020 |
| Retirement Manifesto | $433,000 | $130,000 | $563,000 | 3/18/2020 |
| Freedom Is Groovy | $289,000 | $90,000 | $379,000 | 3/17/2020 |
I would suggest that cojones size is relevant to total holdings. If your net worth is $1m, then being down $300k and going in $200k requires bigger cojones then having a net worth of $5m, and then being down $400k and going in $300k. I’d even argue the same if the proportion where the same $5m, 1.5m 1m, because the first million is so much less discretionary than subsequent millions.
Great point, Colleen. And you’re absolutely right. I decided to go the less accurate way because going the accurate way would divulge one’s net worth and a lot of bloggers–including yours truly–are understandably reticent about sharing their net worth.
Love this idea so I crunched my own numbers. As of today I am down $347,363. As of Today (literally just today March 20th)I put back in $57,565. I still have another wave of $55,000 ready to pounce but want to wait a bit longer. Hard to predict an unpredictable scenario.
Thank you for sharing, OthalaFehu. I love your style and I’m adding you to our table. Cheers.
So what is everyone buying??
same as before the crisis: VTSAX. Neither of us are Benjamin Graham and though we might gamble that Disney will be Just Fine, it’s a sure thing that for every company that goes bankrupt there’ll be another company who’ll snap up cheap assets from the receivers. Whodat? Idunno, but if I own VTSAX I’ll own it.
Agreed. You can’t go wrong with a total stock market index fund.
VTSAX and a mix of similar funds in other accounts (Schwab/Fidelity) plus an appropriate smattering of international and bond indexes with low fees.
Chris@TTL recently posted…Buying the Total US Stock Market: VTSAX vs VTI and Alternatives
Love your style, Chris!
I’m a Boglehead all the way. Mrs. Groovy and I have only two stock funds. Vanguard’s total stock market index fund (VTSAX) and Fidelity’s total stock market index fund (FSKAX). We’ve just been selling total bond market funds and buying total stock market funds.
I no longer count as a blogger — more of a commenter now. After reading this yesterday, it’s been on my mind.
Does it take bigger cojones to buy into a falling knife or to have held from the top and continue to hold and hold and hold, and still do nothing?
The true bottom comes when the last FI blogger can’t take it anymore and does what? Sells.
That’s not going to be tomorrow, or anytime soon. I’ll wait. Time will tell which of us actually has the cojones.
Susan @ FI Ideas recently posted…You’ve Always Gotta Have an Exit Strategy
Very insightful, Susan. There are some awfully gritty investors in the FI blogosphere. If someone as tough as say, Steveark, capitulates, we’ll be in some pretty deep shit. Ouch.
As usual, I’m just mediocre, you and many others have me well and truly beat. From the end of January I’m down around $200K, I guess it would be a bit more if I found the figures from their peak in February but I can’t be bothered to try to find them😀
I haven’t bought any new stocks, still sticking with the 70% stocks / 30% bonds for some reason that probably makes little sense. On the other hand, the bigger part of our money is in rental properties which will either be a decent hedge or not. Who knows, but I’m relaxed, not stressing and still enjoying my early retirement, well that’s apart from being in lockdown, but at least the sun is shining today.
David @iretiredyoung recently posted…Snapshot of early retirement life in today’s Covid-19 world
Mediocre? Maybe compared to Steveark, Fritz, and Joe. But compared to the average American? Or the average inhabitant of this earth? You’re far from mediocre, my friend.
Down $550K net worth. $200 moved from cash and bonds to stocks as of today. In process of moving another 150-200K to stocks. Also funding 2020 Roths today.
I bow before you. Bravo, my friend.
My strategy of 100% VTSAX with hedges in rental real estate and loads of cash seems downright prescient. I will survive, but I’d rather win: I am considering temporary de-retirement to provide cash to buy more equities at this discount.
“I will survive, but I’d rather win.”
Best quote thus far to emerge from the coronavirus maelstrom. I’m stealing that one.
Net Worth: -$433k
Purchases: $100k
Executing another tranche for $30k today, will bring me to $130k of buys.
Joe @RetireBy40 has me beat, but I’ve got more dry powder so we’ll have to redo the math in a few more months! Crazy times. #HaveAPlan
Awesome! Keep us posted on future tranches.
Not more, but still –
Down 100K+, and going further down today (as of this message). At the beginning of the year, my goal was to buy as soon as there was a 1% drop – I stuck to that, and ran out of funds a long time before the big drops started.
I’m pleasantly surprised that I’ve been so calm. To that end – thanks for sharing numbers as always. And now the more than we needed to know. To that as well. Why not?
“I’m pleasantly surprised that I’ve been so calm.”
This says so much. I love it. As Mike Tyson quipped, “Everyone has a plan until he gets punched in the mouth.” Well, you’ve just got punched in the mouth and you shrugged it off like it was nothing. Bravo.
Yours are definitely bigger than mine.
I’m doing some regularly planned dollar cost averaging but waiting for the bottom before I think about placing more cash in the market. There’s a lot of uncertainty as we contemplate national lockdown and other unprecedented events to affect our global/digital economy. I’m curious how these events will affect highly-leveraged companies that are publicly-traded?
As my wife and I are self-employed, we’re just rolling with the punches and focusing our efforts on investing in ourselves during this season.
Josh recently posted…8 Ways We Financially Thrive On $35,000 a Year With a Family!
One can never go wrong with dollar-cost averaging. Glad to see you and the misses have a plan. But I expect nothing less from an investor of your caliber. You’re an inspiration, my friend. Cheers.
I personally am enjoying the radio silence coming from the fire community and all these “I retired at 30 with $500,000”. They have been running around telling everyone they were doomers if someone suggested retiring in your 30’s might not be the best idea. I expect many will be heading back to work, if they can find it because unemployment will be going up, for half the pay they were making.
Nailed it, Jimmy. Retiring at 30 with $5 million–okay. Retiring at 30 with $500,000–give me a break. Shutdown your blog and get back in the cubicle. Start the blog again when you’re 50.
Retire by 40
net worth: -$400,000
stock bought: $250,000
3/16
I’m starting to get scared, though. Who knows how far it’ll drop.
Joe recently posted…How to Survive A Stock Market Crash
There’s a reason why you’re one of my FI heroes. Bravo, my friend.
Net worth down $550,000. Moved $200,000 from cash and bonds into the market. 3/18/2920.
Haha! Your cojones dwarf mine.
I greatly admire your icy calm of investing while others are frantically panic selling! You will be in a fantastic position when the markets begin to recover.
Wish I was in your position to capitalize on this opportunity instead of watching it behave like an out-of-control yo-yo. Especially those industries hardest hit such as the airlines and cruise lines.
Shannon@RetiresGreat recently posted…Will Your Marriage Survive Retirement? Or Not?
“Wish I was in your position to capitalize on this opportunity instead of watching it behave like an out-of-control yo-yo.”
Thank you, my friend. Out-of-control yo-yo! Best description of heard of our current market. I love it.