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High risk investments in your portfolio?
Old 05-24-2007, 03:40 PM   #1
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High risk investments in your portfolio?

Just wondering what % of your net value is in something you would consider high risk? It would help to know where you are on the road to FIRE if you have an answer. I am realistically 5-10 years away from being fully retired, but have a silent partner opportunity in a new start-up.
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Old 05-24-2007, 03:55 PM   #2
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hmmmm .... 75% of the wad is in rental real estate. Most would call that high risk (down 10-15% within a year). And the lack of liquidity quickly becomes an issue in a downward trending market.

But I fire'd on the rents (Oct 2005) and fell less confident with anything else. Sooo onward we go.
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Old 05-24-2007, 04:33 PM   #3
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About 11% in options and warrants.
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Old 05-24-2007, 07:12 PM   #4
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Hi Folks,

I have nothing useful to say right now, but Andy just helped me to get back on and I want to be sure I can post.

BTW, often we find what is high risk after the fact of it crashing.

ha
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Old 05-24-2007, 08:12 PM   #5
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0% in High risk....
... but then again what is your definition of high risk?
I am in no hedge funds... no naked options, no futures,
some preferred funds, index funds ... .I guess the highest risk is my 20% international index funds or 6% REITs,
.... also sitting on a pile of cash that I want to get back into more index funds ... so cash could be relatively high risk to be out of market during this bubble upswing.
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Old 05-24-2007, 08:48 PM   #6
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I do this to a degree: a form of asset allocation -- a blend of the conventional (bonds, cash), the pretty conventional (stocks -- currently very volatile, micro-caps = speculations), and the unconventional (gold coins). Particularly volatile by themselves: small stocks, or gold, or [insert favourite roller-coaster investment here], but in the proper proportions, tend to hedge the other investments quite well.
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Old 05-25-2007, 05:22 AM   #7
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.05% in penney stocks .They are interesting and volatile !
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Old 05-25-2007, 05:50 AM   #8
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I have 1000 shares of BDSI (I'm hoping they'll send me a free sample.). Thats it. Everything else pretty normal.
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Old 05-25-2007, 09:03 AM   #9
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All our IRAs, my wife's and mine, are in penny stocks.
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Old 05-25-2007, 09:06 AM   #10
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Sort of a two phase question: define what you think is high risk, then describe what you have that fits that description.

What keeps Haha awake at night is probably what helps me sleep.
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Old 05-25-2007, 09:12 AM   #11
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The highest risk that I maintain is about 25% in international index funds such as Vanguard's european stock index fund (VEURX). That is not very high risk! But then, my retirement horizon is about 3 years.

As you consider whether or not to invest in this new start-up, I'd suggest also considering how much (if at all) it would bother you to have to delay your retirement for several years in case it comes to that. Five years is awfully close to retirement for a high risk tolerance (for me, anyway).
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Old 05-25-2007, 11:00 AM   #12
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7 shares of CMG (Chipolte) when they IPO'd. Wish it had been a bit more
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Old 05-25-2007, 11:28 AM   #13
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About 11% in options and warrants.
Down to about 7% now. Taking $$$$ off the table.
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Old 05-25-2007, 12:30 PM   #14
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high risk to some might be eating at taco bell
high risk to others could be eating chinease at a restaurant next to a pound
high risk to some could be S&P 500 index
high risk to others could be treasuries
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Old 05-25-2007, 12:48 PM   #15
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Our riskiest investment (or at least the most volatile) is probably my wife's employer's stock which we hold in our 401K (match), as well as in the form of restricted stocks and stock options. It's a small cap, very volatile, with frequent +/- 4% intraday moves. We try to sell part of that stock some time to time so that it never exceeds about 5% of our porfolio. Our second riskiest investment would probably be our commodity holdings.
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Old 05-25-2007, 02:05 PM   #16
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5% of our equity portfolio is in speculative stocks. Another 45% is in volatile stocks that can lose 30% of their value and then double, e.g. $85 to $50, now $110 (AAPL) so we have become accustomed to the volatility. And this one started out in speculative then graduated. Retired 4.5 years.

(Pension, funds and other fixed income not included in the above.)
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Old 05-25-2007, 03:38 PM   #17
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My highest risk investment is a penny stock (CAMH.OB) which is no longer a penny stock since it has been trading at $4.
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Old 05-25-2007, 10:32 PM   #18
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Dunno if it's a high risk investment, but I have between 20 & 30% of net worth in a single stock. I think it's more a high risk strategy, and hope to reduce as it climbs.

Edit for spelling
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Old 05-25-2007, 10:37 PM   #19
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Dunno if it's a high risk investment, but I have between 20 & 30% of net worth in a single stock. I think it's more a high risk strategy, and hope to reduce as it climbs.

Edit for spelling
hmmmm buy and hold ... diversify ...
ok ... nevermind .... but what if it sinks instead of climbs?
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Old 05-25-2007, 11:08 PM   #20
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hmmmm buy and hold ... diversify ...
ok ... nevermind .... but what if it sinks instead of climbs?

Guess I'll switch from premium to generic kat-food.

On a serious note, this is my top pick in another thread, and I have been averaging out. Seems everytime I sell some it goes up and screws up my asset allocation. I'd like to get down to about 10% and hold for the forseeable future.
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