Originally Posted by oldnews
Thanks for the posts. As mentioned above, I view DIS as a mutual fund without any fees, and they pay a dividend. They own the only sports network which just got exclusive rights to a college football playoff which will be bigger than the Super Bowl in my opinion. They are opening a Shanghai park which will service the worlds largest population and introduce them to their products. They own the most successful and profitable movie franchises ever made with new films on the horizon. I expect shares to hit 75$ this year and up to 95$ next year.
Prior to this move I had 300K in a diversified fund with a manger for the prior 2 years, made about 5-7% in a market which doubled during that time, and I paid him fees. No more of that.
So I moved it all to a Schwab account and did my due diligence. Bought 5500 shares of DIS and 15000 shares of CELGZ which should pay very well in the very near future. I think the best line I've ever heard is from Warren Buffett, "if you're going to take a swing, try to hit a home run". Since I'm still in my 40's with my finger on the sell button if things go down, then yes, I took a chance.
Good luck to you all, I'm hoping this thing continues to pay off.
+1 ...for calling out the total waste of fee-paid managers
+1....the reference to Warren Buffett's view of concentration
I'm new to this board and searched for and landed on this topic of concentrated investing. While I am not going to dismiss broad diversification if it's in one's comfort zone, being a concentrator myself, I would ask that people not dismiss this approach either.
Concentration has worked for many, many people. In fact, many m(&b)illionaires got there through concentrating their money, like owners of farmland, small business, real estate etc. They owned and operated their own concentrated investments and reaped $$ success. Warren Buffett has been appealing to our investing senses that buying a piece of paper called stock should be treated the same way, that is you buy it (lots of it) and own forever. The important difference is that since you don't "operate" the business like farmland, investment real estate or small business, you still behave like you own the whole thing. This is why it is really important to buy into businesses that operate like true owner-operators and
also treat you as a true partner. When you find a business that has a long history
of running a successful business this way and you
thoroughly understand the business and are comfortable with your
understanding of it's prospects and risks, go ahead and concentrate. The dumbest thing you'd be doing is to go on trading your fractional ownership just because someone (Mr. Market) else says the business is worth something now and something else later.
If someone got burned by concentrating their money on the wrong business, the responsibility lies with the person(not understanding the business), not the business or the approach of concentration.
I should add that businesses that pass my qualification for extreme concentration are very, very few in number. Berkshire Hathaway is one for me. What concentration has allowed me is to spend my limited time on understanding what I own and on hobbies. I sleep very well at night!