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Old 02-11-2011, 07:45 PM   #21
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We are about 62% funds and 38% individual stocks. I am comfortable with this mix.
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Old 02-11-2011, 08:09 PM   #22
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About 50% individual stocks, mostly Berkshire. No funds now, but may transition to that later so DW does not have to keep up with it, if I ever kick the bucket.

How about that optimism!?!
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Old 02-11-2011, 08:22 PM   #23
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I only have 2% now but I used to have 30% and that 30% represented one ( lucky ,great ,winner ) stock .
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Old 02-11-2011, 09:01 PM   #24
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18% individual stocks. Overall allocation to equities with funds.......23%.
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Old 02-11-2011, 09:10 PM   #25
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All mutual funds. I decided a long time ago that I didn't have the time or energy to do the research so funds were an easy way out. I did have a broker way back who pitched individual stocks to me, he had some early winners, some losers and a spotty track record overall. I was just never convinced that anyone I knew had that Bernie Madoff magic, so funds were my path of least resistance.
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Old 02-11-2011, 10:10 PM   #26
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.........Well, it's got a low PE ratio (now that it's lost 2/3) AND it's paying over 5% dividend....... .
OK, but is that 5% based on the current (reduced by 2/3) stock price or some other price (i.e. what is your basis in the stock)?
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Old 02-11-2011, 11:16 PM   #27
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OK, but is that 5% based on the current (reduced by 2/3) stock price or some other price (i.e. what is your basis in the stock)?
I'm not sure at this point it matters what the basis is (except for tax purposes - on the shares outside the 401(k)). In other words, basis or no, it's worth what I can sell it for. On the basis of what I can sell it for, the stuff is making me over 5%. On that basis, it's something that seems (to me) worth holding on to. It has a good upside potential (PE below 10 on a stock that's had a PE over 30 for quite some time) and the dividend goes up a few percentage points every couple of years (since memory fades).

But, since you ask: The basis on the stock in my 401(k) is about 2/3 what the stock is worth, so I'm still "ahead" even though I passed up the chance to make a killing on it when it was worth 3 times what it's worth now. My bad.

The basis on the stock outside the 401(k) may take my accountant to figure. I "paid" almost exactly half what the stock is now worth, but then I had to pay regular taxes and (bloody) SS on the difference between the value at that time and the stock price at the time. Since that time, the value of the stock has fallen by about 35%. My best SWAG is that my basis is just about what the stock is worth without going back and calculating what I paid in taxes/SS.

If you have a take on this that would suggest whether I should keep this stock or sell it (based on my 'basis') I would be interested. I'm thinking simply in terms of what I could make with the money I would free up by selling it. I know my investment "style". I would not buy something more risky and in fact I can't think of anything with better upside potential with 5+% "interest" to put the money in. I'm relatively risk averse - all evidence to the contrary based on my history with this stock. In this case, I was paralyzed by my 401(k) plan back when the stock was worth 70+% of port. Later, I was probably paralyzed by inertia to my detriment. But now, keeping the stock actually seems to make sense to me. If it takes off again, I'm probably going to sell it - or not.
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Old 02-11-2011, 11:26 PM   #28
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I doubt this will meet with anyone's approval:

25% cash/CDs
25% Index Funds
25% Individual stocks
25% (and rapidly rising) vested, un-exercised options from former mega-corp
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Old 02-12-2011, 03:43 AM   #29
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Not fixed. Currently individual equities outweigh funds 2:1.

I prefer individual stocks but will buy index funds (i) for markets which I want to invest in but cannot access directly (e.g. China A shares) and (ii) at times when I have spare cash to invest but do not have the time to do the research (I'm still a wage slave) and (iii) to pad out the diversification a little bit further.
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Old 02-12-2011, 06:04 AM   #30
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Used to be 100%----over the years I have gone completely to TSM type index funds.
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Old 02-12-2011, 07:58 AM   #31
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Far less than 1%. Individual stocks for me are not what I consider part of my portfolio. They are part of my play money, for fun, to see where I can score a good return on money I can afford to lose. So far I've only won, but I know individual stocks are a risk and play the game anyway.
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Old 02-12-2011, 09:12 AM   #32
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Interesting; so far it looks like most of us are at one end or the other, only a few folks have a roughly equal split between individual stocks and MFs.

Just wondering - is there a correlation between personality type and willingness (or lack of) to "bet" on your own stock picking prowess?
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Old 02-12-2011, 09:23 AM   #33
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Mostly funds for me too. Cluck cluck cluck

I do have some very small miniscule stakes in CELG, HK, and BKR.B just for fun. Less than 3% of portfolio overall.

Total equity allocation = 32% including individual stocks
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Old 02-12-2011, 09:38 AM   #34
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Originally Posted by BOBOT View Post
So I'm wondering, what % of your port is individual stocks, and how do you feel about it?
0%, the reasons are many

1) I made a living researching companies, but my employer prohibited me from investing in the companies I covered professionally
2) When you spend 60-70 hours per week researching companies, you tend not to want to do more of it on what's left of your free time
3) As a professional investor, I saw how hard it was to get an edge on the market even when you spent every waking moment tracking a handful of companies and had countless other advantages individuals don't have. What edge do part-timers really think they have?
4) As a professional investor, I saw how poorly the investment decisions of other highly educated and highly motivated professional investors turned out. Why would the decisions of people who spend less time and resources be better?
5) Now that I have the free time and freedom to research companies for my personal account, I don't believe the potential payoff is worth the time and the aggravation relative to what an index fund provides. And besides, what edge does a part-timer like me really think he has?
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Old 02-12-2011, 09:47 AM   #35
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Have been 100% individual stocks in the past but over the last few years have moved to mostly ETFs, except for one stock which is around 6% of investments. I do trade a bit with what I consider play money.
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Old 02-12-2011, 10:24 AM   #36
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Quote:
Originally Posted by BOBOT View Post
Interesting; so far it looks like most of us are at one end or the other, only a few folks have a roughly equal split between individual stocks and MFs.

Just wondering - is there a correlation between personality type and willingness (or lack of) to "bet" on your own stock picking prowess?
Either you believe the statistical evidence that stock picking adds no value or you don't.
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Old 02-12-2011, 10:53 AM   #37
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0%, the reasons are many

1) I made a living researching companies, but my employer prohibited me from investing in the companies I covered professionally
2) When you spend 60-70 hours per week researching companies, you tend not to want to do more of it on what's left of your free time
3) As a professional investor, I saw how hard it was to get an edge on the market even when you spent every waking moment tracking a handful of companies and had countless other advantages individuals don't have. What edge do part-timers really think they have?
4) As a professional investor, I saw how poorly the investment decisions of other highly educated and highly motivated professional investors turned out. Why would the decisions of people who spend less time and resources be better?
5) Now that I have the free time and freedom to research companies for my personal account, I don't believe the potential payoff is worth the time and the aggravation relative to what an index fund provides. And besides, what edge does a part-timer like me really think he has?
This should be a sticky...

< %1 in individual stocks for us. Left overs from DRIP programs.

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Old 02-12-2011, 10:58 AM   #38
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This should be a sticky...
Sure, but then you have the "I have outperformed the market in 10 of the 11 years I have been invested solely in individual companies" types who refuse to believe they aren't smarter than everyone else.
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Old 02-12-2011, 11:11 AM   #39
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11% for entire portfolio(tax acct, ira, roth). All pay dividends of 4-8%.
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Old 02-12-2011, 06:12 PM   #40
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I'm not sure at this point it matters what the basis is (except for tax purposes - on the shares outside the 401(k)). In other words, basis or no, it's worth what I can sell it for. On the basis of what I can sell it for, the stuff is making me over 5%. On that basis, it's something that seems (to me) worth holding on to. It has a good upside potential (PE below 10 on a stock that's had a PE over 30 for quite some time) and the dividend goes up a few percentage points every couple of years (since memory fades).

But, since you ask: The basis on the stock in my 401(k) is about 2/3 what the stock is worth, so I'm still "ahead" even though I passed up the chance to make a killing on it when it was worth 3 times what it's worth now. My bad.

The basis on the stock outside the 401(k) may take my accountant to figure. I "paid" almost exactly half what the stock is now worth, but then I had to pay regular taxes and (bloody) SS on the difference between the value at that time and the stock price at the time. Since that time, the value of the stock has fallen by about 35%. My best SWAG is that my basis is just about what the stock is worth without going back and calculating what I paid in taxes/SS.

If you have a take on this that would suggest whether I should keep this stock or sell it (based on my 'basis') I would be interested. I'm thinking simply in terms of what I could make with the money I would free up by selling it. I know my investment "style". I would not buy something more risky and in fact I can't think of anything with better upside potential with 5+% "interest" to put the money in. I'm relatively risk averse - all evidence to the contrary based on my history with this stock. In this case, I was paralyzed by my 401(k) plan back when the stock was worth 70+% of port. Later, I was probably paralyzed by inertia to my detriment. But now, keeping the stock actually seems to make sense to me. If it takes off again, I'm probably going to sell it - or not.
I do have a take, but it's purely personal choice, IMO. I have the opposite situation and I'm trying to decide what to do.
A stock that I purchased for $60 with a 4% yield is now trading at $100 and pays the same dividend amount, so the current yield is "only" 2.4%. While I might sell to capture the gain, I won't sell just becuase the dividend payout is 2.4% If I sell, I would try to find another stock that pays around 4%.
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