So, that's where those questions came from... I'm definitely not an average investor yet, being a little under the SPY average 😅 But it seems like I'm working my way back up, after doing exactly what you describe when I started gambling with stocks in 2021. I was lucky that 2022 came around right after, so I got my lesson quickly.
And I actually got a 2000% return stock, PLTR. It's luck that it shot up so high, though, probably not going anywhere but down in the next 5 years. Took quite a few profits, and now have some lying around - I'll need them in 12 years, more or less, and I hope that the company will be paying dividends by then.
Most of my investment is silent, though. Sitting in CDs in several insured cooperativas around here. Since credits are super expensive (cheapest with luck around 14%), the CD's are lucrative, between 8 and 12%, depending on negotiation and knowledge of how the system. That is compounding nicely, though I'm only adding the interest back to the pile every month.
And no, I'm not going to buy land. Yet. There is that dream of buying a piece and regenerating a forest of native trees... one day.
Never express profit or return in percentages, it is a red flag. If you are comfortable, say how much was it $100? $500? $5000? If you are not comfortable in sharing that info, then don't mention it. Otherwise, you are not doing a favor to yourself or the reader.
Yes, if you get 8-12% on CD that is great (it is okay to express CD or bond return or mutual fund/ETF return in percentages, there are no surprises there). However, you have to watch the inflation rate. I just looked up the inflation rate at Ecuador from internet and it is saying 1.5% for 2025. I haven't verified it, and you can correct me if I am wrong. If it is really 1.5% then 8% on CD is absolutely amazing. Begs the question, how are banks doing it?
Regardless, if I get 8% on a CD, which is risk-free and my inflation is 2%, I wouldn't look for any alternative investment. However, that is me personally.
Nothing is risk free, it's Ecuador. But the banks have a working insurance, depending on the segment they're in, either 5k, 13k or 32k are insured, and that insurance has worked nicely on the past, as far as I know.
I review the earnings statements and holdings of the bank before I invest, and though I'm no expert, I can spot a few red flags I think. If there's another banking crash, though, that won't help. So I have to have alternative investments. Then comes the additional layer of being from Germany, so I need a cushion there, too, in case Lily wants to study - that's what the stocks are for, since I can't really invest from Ecuador, I do it from Germany.
About percentage or $ numbers, best would be both I think. If I tell you I made 5000€ on PLTR, but don't tell you the percentage it could either be amazing as I only invested 400€, or it could be terrible if it was 2,000,000€.
Yes 5000€ and the percentage makes sense.
Then, portfolio size also matters I'd say. If my portfolio is 5 Mio., 5k doesn't matter. If it's 25k, 5k is a huge amount. A good display might be:
Initial Investment: 273€ (40 shares at 6,83€)
Profits taken: 1703€
Current position: 20 shares, total worth 2700€, 10% of the portfolio, second largest position.
That gives enough information for those watching or reading the person displaying to form a good judgement.