High risk investments in your portfolio?

[lightspeed]

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]

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]

About 11% in options and warrants.

 

[haha]

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]

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]

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% in penney stocks .They are interesting and volatile !

 

[BUM]

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

 

[semtex]

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

 

[cute fuzzy bunny]

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.

 

[W2R]

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]

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

 

[brewer12345]

About 11% in options and warrants.

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

 

[jIMOh]

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

 

[FIREd]

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]

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]

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]

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]

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]

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.

 

[megacorp-firee]

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.

OK that's novel ... someone who wants their investment to go down.

Kinda like the guy who [-]p*ss*s and moans [/-]complains about paying too much in income taxes ( ... damn these gold bricks are so heavy, .... darn hundred dollar bills don't fit in my wallet, ... this 3 caret diamond is scratching the glass again ...)

No sympathies here Kumquat ... enjoy your kat chow...

 

[saluki9]

The whole point of owning a "portfolio" of investments is so that I DON'T have to worry about any specific investment. That being said, if there was one I looked at in isolation it would probably be my emerging markets small cap (DEMSX)

 

[unclemick]

The whole point of owning a "portfolio" of investments is so that I DON'T have to worry about any specific investment. That being said, if there was one I looked at in isolation it would probably be my emerging markets small cap (DEMSX)

Emerging Norwegian widow 15% - now that I'm past 62 and into the 14th yr. of ER: 85% Target Retirement IRA, a small non cola pension and early SS have retirement covered.

The widows and orphans old DRIP plans can continue to morph into party animals and individual stock(around 33 nowadays) speculations: exxon mobile, stonemore, chevron, aetna, borg warner, flowers foods, consolidated edison, bank of america, union pacific, verizon, AT&T, eagle bulk shipping, national fuel gas and other wild things.

So instead of the old 80/20 quote - I'm 85/15 or so and still haven't bought a kayak.

heh heh heh

 

[kcowan]

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

I am beginning to think that the only measure of a stock being an excessive asset is when its PE moves outside a range that is unlikely to correct with their next quarter results. We used to try to keep any single stock to $25k for diversification purposes. Now we monitor profit forecasts and market sentiment. For example, in our 2 largest holdings, one is going to suffer this quarter and rebound next quarter IMHO while the other one got hit this quarter and should rebound next quarter. We are trying to smooth this out with options rather than getting in and out.

BTW kumquat, please tell us the next time you reduce as it should be a good buying opportunity IIRC

 

[theoldwizard]

I have about 2% in options (this is likely to grow to 5 or 10%, but it is funds outside of my IRAs and 401Ks).

I have about 60% in international and sector mutual funds, which I consider medium risk.

The rest is CDs.

But I'm only 53, have a good pension and a working spouse !