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laurence · 05-26-2005, 11:54 AM

Talking about my fun investment account now, not my 4 pillars accounts that have 90%+ of my money:

My poor purchases, ELN and DSCO have now both broken even again, and I have some cash rolled into my etrade account for a total of 6k cash and 6k equities in the above stocks. So I'm looking for ideas. This is an Etrade account, and I'd like to know what y'all would do with this 12 grand. Where would you put 6 grand right now, and would you sell the shares above and stick all 12 in something else? I think this question is geared more towards the WildCats of the board. Hey, maybe I should stick it all in that equally weighted S&P index stock? :

lazyday · 05-26-2005, 12:47 PM

This is IRA money, right? So, you don't lose all your hard-earned alpha to taxes.

I'm anti-Etrade (bad experience) so my first advice is to move to another broker. (just kidding--sort of)

Can't help a lot with stockpicking or if you should sell. Maybe look at your reasons to buy in first place to help decide if should sell.

I realize you weren't very serious about the 500 = weighted, but if anyone wants an = wtd fund, I'd suggest looking into BRLIX, very low ER and probably good execution to avoid hidden transaction costs. Maybe get some internal rebalancing yield.

cute fuzzy bunny · 05-26-2005, 01:44 PM

Yeah I saw your ELN was up a buck or something like that this morning on bloomberg. Remember when I said you should buy extra?

Buy yourself a nice high dividend etf like large cap value, utilities, or something sweet like healthcare or energy. Then forget about it.

laurence · 05-26-2005, 01:51 PM

hmmm, I like the idea, your favorites?

cute fuzzy bunny · 05-26-2005, 01:53 PM

VTV, VFH, VDE, VHT, VPU.

laurence · 05-26-2005, 02:14 PM

Thanks! You think I should just pick one? I'm definitely ready to forget about it.

cute fuzzy bunny · 05-26-2005, 02:23 PM

Well now, why would I tell you if you're only going to forget about it?

laurence · 05-26-2005, 03:23 PM

No wait, dang that came out wrong! I think I like the VTV, I'll snap it up tomorrow, and forget about that account.

charlie · 05-26-2005, 03:40 PM

If this is your "fun" account do you really think you will keep your
hands off? Fat chance! I bet your hormones will whisper in your
ear within 3 months at least. If you want some action, check into
writing covered call options with your play money.....

Cheers,

Charlie

cute fuzzy bunny · 05-26-2005, 03:43 PM

Quote:

Originally Posted by Laurence

No wait, dang that came out wrong! I think I like the VTV, I'll snap it up tomorrow, and forget about that account.

That would be my pick...I like the utilities one but its had a heck of a run-up. Not a lot of fun, but I'll bet it does better than ELN...

wildcat · 05-26-2005, 03:49 PM

ELN - they have some valuable research but every drug they try to produce is high risk high reward, i.e. stands a good chance of not making it to the market. *Just too speculative for me.

Don't know anything about DSCO. *I really try to buy easy to understand businesses. *

High divi stocks are a good bet (esp in so-so mkt environment) and I would stick with one that is moderate 3-4.5%, i.e. no chance of a cut. *Can go with the ETFs for more diversification or roll the dice.

Still like my WWVYE (at 21 or so) but it jumped on me and is less attractive now but yield is not bad.

Call me crazy but I predict a wave of consolidation and/or increasing dividends. *Balance sheets are pretty cash heavy. *Companies that need to buy to expand will and companies that don't will divi up. *Small regional banks in FLA, TX, NV and other attractive markets will be gobbled up as well as utilities. *However, I believe some are moving up in anticipation. *Just a prediction.

wildcat · 05-26-2005, 03:54 PM

Quote:

That would be my pick...I like the utilities one but its had a heck of a run-up

Research I have read indicates utilities are very solid when compared to other sectors in a rising interest rate environment. Wish I could be like Warren and play assets of a utility rather than the whole stock. I'm just severl billion short

Spanky · 05-26-2005, 04:01 PM

Quote:

Originally Posted by Captain Mystery

That would be my pick...I like the utilities one but its had a heck of a run-up. Not a lot of fun, but I'll bet it does better than ELN...

Captain M,

Are you referring to something else (not VTV)? VTV's YTD return is low.

SPanky

cute fuzzy bunny · 05-26-2005, 04:19 PM

Utilities (VPU) is up 30+% in the past year. As a results I'd go with VTV as the yield is good, diversity is decent, although in the past year its up >13%...which isnt THAT low...

laurence · 05-26-2005, 04:42 PM

Quote:

Originally Posted by charlie

If this is your "fun" account do you really think you will keep your
hands off? Fat chance! I bet your hormones will whisper in your
ear within 3 months at least. If you want some action, check into
writing covered call options with your play money.....

Cheers,

Charlie

Yeah, I know, you may be right, but the last bruising I took kind of shook me up, now that it has pulled even I feel like I have a chance to get out easy.

Covered calls, I've thought about it. I wonder if you could write covered calls on ETF's?

MRGALT2U · 05-26-2005, 06:23 PM

Quote:

Originally Posted by Laurence

Yeah, I know, you may be right, but the last bruising I took kind of shook me up, now that it has pulled even I feel like I have a chance to get out easy.*

Covered calls, I've thought about it.* I wonder if you could write covered calls on ETF's?*

When I want some "action" I buy lottery tickets, or visit the casino
with a $40 limit. I get my "action" in other ways.

JG

haha · 05-26-2005, 09:17 PM

Quote:

Originally Posted by Laurence

I wonder if you could write covered calls on ETF's?*

You can on the QQQQ, and probably on many others. That however doesn't say it's a good idea.

Ha

lazyday · 05-26-2005, 10:33 PM

Quote:

Originally Posted by Laurence

I think I like the VTV, I'll snap it up tomorrow

Funny, I own some VUG! Buy VTV, and between us, we'll own the largecap market.

I bought VUG to balance out some value stuff in my portfolio. Am trying to go blend for now, until low P/B stocks get cheaper. I feel that value isn't a great value today.

Maybe in January (taxes) I can sell more of my IJS, dump VUG, and put proceeds in BRLIX. Depending on what markets & earnings do til then.

laurence · 05-26-2005, 10:46 PM

This thread worked out very well for me, and having my disaster stock picks recover and pull me even has put me in a very good mood. I learned my lesson very cheaply!

I just feel fortunate to be in the position to talk about this. DW and I figured our net worth would go up about 70k this year, talk about accumulation phase! Having some control over our destiny, being debt free(other than the house) and seeing the nest egg really start to get rolling makes for happy wife, which pays the best dividends!