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Which Stock Should I Put The Last Of My IRA Cash In ?
05-23-2017, 12:59 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,548
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Which Stock Should I Put The Last Of My IRA Cash In ?
My IRA is small, just under 39k
I have just under $1,000.00 in cash, which is earning next to nothing.
Of the following 4 I already own, which would be the best one to add to ?
If you have no feeling for, or just plain don't like any of the following 4, I'm open to any and all suggestions.
I've actually considered buying one share of Google
EMERSON ELECTRIC (EMR)
GILEAD SCIENCES (GILD)
AT&T (T)
UNDER ARMOUR (UAA)
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05-23-2017, 02:57 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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How about AMAZON? What the heck, just one share. It's like putting red on Roulette in Las Vegas.
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05-23-2017, 03:30 PM
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#3
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Full time employment: Posting here.
Join Date: May 2017
Posts: 796
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I'd rather have 7 shares of NVDA than 1 share of Google. Google has already had it's major run up. NVDA is in the midst of its.
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05-23-2017, 03:59 PM
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#4
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,593
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Ford (F) and hope the new CEO can make the stock move.
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*********Go Astros!*********
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05-23-2017, 04:05 PM
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#5
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Full time employment: Posting here.
Join Date: Apr 2014
Location: Houston
Posts: 957
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That $1000 is 1/40th of your total portfolio so will have very little impact. Just stick it in anything you own that you like. I tend to dump dribbles / drabs into whatever I own that happens to be taking a dip when I am looking to invest it. My feeling is it's more important to get it invested and earning something than it is to put it in exactly the best investment.
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05-23-2017, 04:43 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
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The good news and the bad news here is that you are not diversified, which means that if one of your stocks does well or tanks, it will significantly affect your overall portfolio value.
Statisticians tell us that something in the 40-60 count of stocks spread over the market (not all one sector, for example) is what it takes to diversify out individual stock effects and reduce your risk to the overall market risk.
One "prudent man" rule used by fiduciaries is that no more than 15% of a portfolio may be invested in a single asset. Some use 10%.
If you're just playing around, have fun. If you are seriously investing for the long term, the statistical data says that a reasonable approach is to put everything into two low-cost total market funds, one US market and one international market. 50/50 gets you a portfolio with performance that is roughly equal to the average of all investible assets worldwide. I have seen an analysis from Vanguard that says 70/30 minimizes volatility. There are also currency-related arguments for some home country bias, principally that you are going to be spending dollars eventually, not euros or lira, so you do not need the exchange rate risk of being too heavily into non-US investments.
Not what you wanted to hear, probably.
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05-23-2017, 04:46 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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What about BITCOIN? I know it sounds crazy but I read bitcoin turned $100 to more than $20 million. You never know.
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05-23-2017, 04:52 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,939
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I do not go for any individual stocks. I would put new investment money into a market index ETF like VTI or SPY. Personally, I would put the old money into one of them too.
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05-23-2017, 04:56 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,339
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Quote:
Originally Posted by DrRoy
I do not go for any individual stocks. I would put new investment money into a market index ETF like VTI or SPY. Personally, I would put the old money into one of them too.
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I agree with this but if I were forced to choose between the 4 then I would choose "T" for the reliable large dividend.
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05-23-2017, 05:35 PM
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#10
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Moderator
Join Date: Oct 2010
Posts: 10,622
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GILD, hands-down. It has a low P/E ratio that also has been achieving high returns on capital. AT&T ain't horrible, but the other two, don't make it, in my book.
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05-23-2017, 05:54 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Feb 2008
Location: Indialantic FL
Posts: 1,330
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Sell UAA, and buy CVS.
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JimnJana
"The four most dangerous words in investing are 'This time it's different.'" - Sir John Templeton
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05-23-2017, 10:34 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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Since it's a small amount, I think you should go for moon shot type of stocks.
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05-24-2017, 09:27 AM
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#13
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Recycles dryer sheets
Join Date: May 2013
Location: Sarasota
Posts: 259
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CRWS. Pays over 4 % dividend, no debt, will cash in on coming Millenial baby boom. Small conservative company flying under the radar. JMHO
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05-24-2017, 01:35 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,548
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Quote:
Originally Posted by OldShooter
The good news and the bad news here is that you are not diversified, which means that if one of your stocks does well or tanks, it will significantly affect your overall portfolio value.
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My bad, I should have pointed this out in the original post.
In addition to the 4 stocks I listed, I have 3 other stocks, 2 REIT's, 2 ETF's. & one mutual fund.
I have $1500.00 or less in the 4 I mentioned. That's why I was considering adding to one of those.
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"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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05-24-2017, 01:37 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,548
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Quote:
Originally Posted by brokrken
I'd rather have 7 shares of NVDA than 1 share of Google. Google has already had it's major run up. NVDA is in the midst of its.
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If only I had done this..................about 3 weeks ago when NVDA went under 100$ for whatever reason!
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"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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05-24-2017, 01:41 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,548
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Quote:
Originally Posted by Fedup
How about AMAZON? What the heck, just one share. It's like putting red on Roulette in Las Vegas.
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I've considered that.
__________________
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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05-24-2017, 01:50 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,548
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Quote:
Originally Posted by Whisper66
I tend to dump dribbles / drabs into whatever I own that happens to be taking a dip when I am looking to invest it.
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I did exactly the same thing in my taxable brokerage account for about 12 years leading up to my retirement in 2015.
I bookmarked 3 month technical charts for all my core holdings.
JNJ-MMM-KHC Etc,
Anytime I had extra cash available, & any or all of those holdings was at or near the bottom of the three-month chart, I'd add 10 or 20 shares.
It worked out very well. Of course if the commissions weren't so low relative to what they were back in the day, that might have been a losing proposition.
__________________
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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05-24-2017, 01:52 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,548
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Quote:
Originally Posted by Fedup
What about BITCOIN? I know it sounds crazy but I read bitcoin turned $100 to more than $20 million. You never know.
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I saw that too. Amazing!
__________________
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"
Shown @ The End Of The Movie 'Runaway Train'
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05-24-2017, 02:26 PM
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#19
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Full time employment: Posting here.
Join Date: Nov 2016
Location: Fargo
Posts: 981
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Buy VTSAX (Total US Stock Market Index fund @ Vanguard)
3,575 stocks. Buy them all!
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Which Stock Should I Put The Last Of My IRA Cash In ?
05-25-2017, 03:38 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 2,518
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Which Stock Should I Put The Last Of My IRA Cash In ?
Quote:
Originally Posted by OldShooter
One "prudent man" rule used by fiduciaries is that no more than 15% of a portfolio may be invested in a single asset. Some use 10%.
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I disagree with this statement. 15%, heck even 10% violates the principle of concentration of risk. I would and do use a much lower threshold. My own rule is 2%. At most , I think 5% should be the max.
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