High risk investments in your portfolio?

lightspeed · 05-24-2007, 03:40 PM

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.

tryan · 05-24-2007, 03:55 PM

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.

brewer12345 · 05-24-2007, 04:33 PM

About 11% in options and warrants.

haha · 05-24-2007, 07:12 PM

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

megacorp-firee · 05-24-2007, 08:12 PM

37 days to FIRE
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.

pedorrero · 05-24-2007, 08:48 PM

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.

Moemg · 05-25-2007, 05:22 AM

.05% in penney stocks .They are interesting and volatile !

BUM · 05-25-2007, 05:50 AM

I have 1000 shares of BDSI (I'm hoping they'll send me a free sample.). Thats it. Everything else pretty normal.

semtex · 05-25-2007, 09:03 AM

All our IRAs, my wife's and mine, are in penny stocks.

cute fuzzy bunny · 05-25-2007, 09:06 AM

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.

**Want2retire** · 05-25-2007, 09:12 AM

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).

Zathras · 05-25-2007, 11:00 AM

7 shares of CMG (Chipolte) when they IPO'd. Wish it had been a bit more

brewer12345 · 05-25-2007, 11:28 AM

Quote:

Originally Posted by brewer12345

About 11% in options and warrants.

Down to about 7% now. Taking $$$$ off the table.

jIMOh · 05-25-2007, 12:30 PM

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

FIREdreamer · 05-25-2007, 12:48 PM

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.

kcowan · 05-25-2007, 02:05 PM

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.)

Spanky · 05-25-2007, 03:38 PM

My highest risk investment is a penny stock (CAMH.OB) which is no longer a penny stock since it has been trading at $4.

kumquat · 05-25-2007, 10:32 PM

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

megacorp-firee · 05-25-2007, 10:37 PM

Quote:

Originally Posted by kumquat

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?

kumquat · 05-25-2007, 11:08 PM

Quote:

Originally Posted by megacorp-firee

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.

05-24-2007, 03:40 PM	#1
lightspeed Dryer sheet aficionado Join Date: May 2007 Posts: 38	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.

05-24-2007, 03:55 PM	#2
tryan Thinks s/he gets paid by the post Join Date: Mar 2005 Posts: 1,454	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. __________________ FIRE'd since 2005

05-24-2007, 04:33 PM	#3
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,224	About 11% in options and warrants. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

05-24-2007, 07:12 PM	#4
haha Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Apr 2003 Location: Seattle Posts: 8,391	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 __________________ "Show 'em just enough to win the turkey."- Former KY Governor Bert Combs

05-24-2007, 08:48 PM	#6
pedorrero Recycles dryer sheets Join Date: Dec 2006 Location: East Butt Plug, FL Posts: 216	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. __________________ I've got nothing against an honest day's work, provided that someone else does it.

05-24-2007, 08:12 PM	#5
megacorp-firee Thinks s/he gets paid by the post Join Date: Apr 2007 Posts: 1,085	37 days to FIRE 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.

05-25-2007, 05:22 AM	#7
Moemg Thinks s/he gets paid by the post Join Date: Jan 2007 Location: Sarasota,fl. Posts: 3,030	.05% in penney stocks .They are interesting and volatile !

05-25-2007, 05:50 AM	#8
BUM Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 1,548	I have 1000 shares of BDSI (I'm hoping they'll send me a free sample.). Thats it. Everything else pretty normal. __________________ In a panamax down by the river.

05-25-2007, 09:03 AM	#9
semtex Recycles dryer sheets Join Date: Jul 2006 Posts: 181	All our IRAs, my wife's and mine, are in penny stocks.

05-25-2007, 09:06 AM	#10
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	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. __________________ Many an optimist has become rich by buying out a pessimist

05-25-2007, 09:12 AM	#11
Want2retire Moderator Join Date: Jan 2007 Location: New Orleans Posts: 6,027	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). __________________ Dreaming of retirement.... " - - my greatest skill has been to want but little - - " (Henry David Thoreau, in Walden)

05-25-2007, 11:00 AM	#12
Zathras Full time employment: Posting here. Join Date: Jun 2006 Posts: 615	7 shares of CMG (Chipolte) when they IPO'd. Wish it had been a bit more __________________ "We do not inherit the earth from our ancestors, we borrow it from our children. (Ancient Indian Proverb)"

05-25-2007, 12:30 PM	#14
jIMOh Thinks s/he gets paid by the post Join Date: Apr 2007 Location: Milford, OH Posts: 1,182	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 __________________ Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.

05-25-2007, 12:48 PM	#15
FIREdreamer Thinks s/he gets paid by the post Join Date: May 2007 Posts: 1,293	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.

05-25-2007, 02:05 PM	#16
kcowan Thinks s/he gets paid by the post Join Date: Jul 2006 Location: Pacific latitude 20/49 Posts: 1,539	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.) __________________ For the fun of it...Keith

05-25-2007, 03:38 PM	#17
Spanky Thinks s/he gets paid by the post Join Date: Dec 2004 Location: Minneapolis Posts: 2,778	My highest risk investment is a penny stock (CAMH.OB) which is no longer a penny stock since it has been trading at $4.

05-25-2007, 10:32 PM	#18
kumquat Full time employment: Posting here. Join Date: Nov 2005 Posts: 805	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 __________________ Life's a bitch and then you come back - Hindu proverb

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