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Re: opinions of a few individual stocks ?
Old 10-12-2006, 04:38 PM   #21
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by JohnEyles
Which reminds me of something I've been meaning to ask: should REITs be considered
part of one's stock or bond allocation ?
If you have to choose between stocks and bonds, they would be stocks. Some folks treat them as a separate asset class or lump them in with other real estate holdings.
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Re: opinions of a few individual stocks ?
Old 10-12-2006, 05:22 PM   #22
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by JohnEyles
which do you think are so solid you'd keep them as part of a mostly-index-fund
stock allocation, and which would you get rid of ?

AMKR, A, BC, CISCO, GE, HD, HPQ, HRP, INTC, JPM, JNJ, KO, NKE, NT, NXL, PG, PEP ?
I try to invest only in top quality (IMO) stocks. The overlap between my universe
of stocks and yours is GE, HD, JNJ, KO, PG.
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Re: opinions of a few individual stocks ?
Old 10-12-2006, 05:35 PM   #23
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Re: opinions of a few individual stocks ?

Since I follow REITs closely, I will offer an opinion on the 2 you mentioned.

HRP has been a major underperformer for many years. They are among the
last of all equity REITs that I would ever own.

NXL used to be a solid blue chip (called NPR), and I used to own them. They were
a solid, conservative, lower-but-solid growth company. Then they merged with
Excel, a rapid-growth, developement oriented REIT in an attempt to grow faster.
The 2 diverse management styles did not mix well, and if I remember right much
of the Excel expertise soon left. NXL has been trying to recover ever since, with
some success. I would still not own them at this time.
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Re: opinions of a few individual stocks ?
Old 10-12-2006, 07:29 PM   #24
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by CyclingInvestor
HRP has been a major underperformer for many years. They are among the
last of all equity REITs that I would ever own.

NXL used to be a solid blue chip ... I would still not own them at this time.
Make it so !
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Re: opinions of a few individual stocks ?
Old 10-12-2006, 08:40 PM   #25
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by CyclingInvestor
Since I follow REITs closely ...
Ok, you asked for it. I feel that I need to make a significant move into REITs -
simply because at least a 10% portfolio share (if not more) seems to be
almost universally recommended, and because I have nothing now (after
dumping the two turkeys you just mentioned, which only amounted to 0.5%
of my portfolio anyhow).

So ... how do you feel about making a major move into REITs at this point in
time, given their massive recent run-up ? Not to try to time the market or
anything like that I suppose I could DCA into it. Any problems with using
VGSIX/VNQ as my vehicle, or perhaps ICF (I'm trying to keep things simple) ?

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Re: opinions of a few individual stocks ?
Old 10-13-2006, 03:26 AM   #26
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Re: opinions of a few individual stocks ?

except for my speculating fun i no longer use individual stocks for my model portfolios...I Realized a long time ago Im not smart enough to buy just the right stock , at just the right time, in just the right industry, at just the right time in the market cycle.

And even if i got the above correct i still dont know what the competitors have on the drawing board and lets not forget the best part: WHEN TO SELL IT. you know just before it misses earnings by a nickel and the markets punish it severly.

NO THANKS! ill just stick to good ole market risk and no individual company risk to any great extent with my diverse universe of funds and my 13% annual average returns over the last 20 years.

I dont know the statistcs but id bet most individuals who buy stocks and not funds barely beat a money market long term if at all. Unless you got enough dough to really buy enough individual stocks to absorb those devasting blows when they happen.

I still love the excitment of individual stocks for my speculation part of my portfolio but i wouldnt committ very much anymore to doing it.
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Re: opinions of a few individual stocks ?
Old 10-13-2006, 09:34 AM   #27
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Re: opinions of a few individual stocks ?

I use large cap individual stocks for dividend income. The aren't the only thing I invest in, but they are an important part of my income stream.

As for needing to be able to figure out when to buy, sell, etc. I don't worry about it. I only invest in large companies with a good history of dividend growth (and yes Math, I have beat MM funds ). If they miss quarterly earnings by a nickle it is a buying opportunity as the dividend yield goes up. The stock price means little, as long as the dividend yield doesn't loose ground.

Diversification is important, so I wouldn't suggest ONLY having a few individual stocks. But I like having a few (6-8) for income.
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Re: opinions of a few individual stocks ?
Old 10-13-2006, 01:41 PM   #28
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by JohnEyles
Ok, you asked for it. I feel that I need to make a significant move into REITs -
simply because at least a 10% portfolio share (if not more) seems to be
almost universally recommended, and because I have nothing now (after
dumping the two turkeys you just mentioned, which only amounted to 0.5%
of my portfolio anyhow).

So ... how do you feel about making a major move into REITs at this point in
time, given their massive recent run-up ? Not to try to time the market or
anything like that I suppose I could DCA into it. Any problems with using
VGSIX/VNQ as my vehicle, or perhaps ICF (I'm trying to keep things simple) ?

John,

If you're truly diversified you'll own some asset classes that have done really well and some that haven't. If it makes you feel better to DCA into your asset allocation, then by all means go right ahead. Whatever helps you stick to your AA. However, be warned that whether or DCA or do it all at once, you're going to look back months and years from now and kick yourself for not doing "X" 'cause "geez, all the signs were there." There is really no way to avoid this.

Also, note that while REIT prices [and yields] are at all time highs [lows], stock prices are at all time highs as well, and bond yields are pretty low, so there is really nowhere to hide.

btw - have you looked at TIAA Real Estate for real estate exposure, unlike the REIT funds, which hold REIT stocks, TIAA RE takes your money and buys commercial, residential, and industrial properties. And where as REITs are generally leveraged [meaning the REIT borrows money], TIAA RE is unleveraged. something to consider.

- Alec
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Re: opinions of a few individual stocks ?
Old 10-13-2006, 02:26 PM   #29
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Re: opinions of a few individual stocks ?

I am mostly an indexer as well, but I have a portion of my portfolio in income-generating stocks that I plan to hold/add to for 20-30 years. From your list, they include HD, KO, and PG, and I also own INTC (bought around $19, but as you said, not that it matters here). I also own PFE, but have been thinking about starting JNJ instead of more investment there.

Karen
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Re: opinions of a few individual stocks ?
Old 10-13-2006, 03:24 PM   #30
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by JohnEyles
So ... how do you feel about making a major move into REITs at this point in
time, given their massive recent run-up ? Not to try to time the market or
anything like that I suppose I could DCA into it. Any problems with using
VGSIX/VNQ as my vehicle, or perhaps ICF (I'm trying to keep things simple) ?
I agree with ats5g in that it is impossible to time the market, and if you want to have
an X% exposure to an asset class, you should have it. VNG is certainly cheaper than
ICF (.12% to .35%) as a vehicle. While I think that REITs are somewhat overvalued
at this time, I still have a substantial investment in them.
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Re: opinions of a few individual stocks ?
Old 10-15-2006, 08:19 PM   #31
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by CyclingInvestor
VNQ is certainly cheaper than ICF (.12% to .35%) as a vehicle.
I wonder ICF is gradually outpacing VNQ ?

Check it out:

http://finance.yahoo.com/q/bc?s=ICF&...&z=m&q=l&c=vnq
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Re: opinions of a few individual stocks ?
Old 10-15-2006, 08:27 PM   #32
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by JohnEyles
I wonder why ICF is gradually outpacing VNQ ?

Check it out:

http://finance.yahoo.com/q/bc?s=ICF&...&z=m&q=l&c=vnq
To answer my own question, perhaps these yahoo graphs are not total return
(do not take dividends into account) ? The current yield on VNQ is higher.
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Re: opinions of a few individual stocks ?
Old 10-15-2006, 08:35 PM   #33
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Re: opinions of a few individual stocks ?

Quote:
Originally Posted by JohnEyles
To answer my own question, perhaps these yahoo graphs are not total return
(do not take dividends into account) ? The current yield on VNQ is higher.
Yes, you are correct - the Yahoo charts are price only, not total return.
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