Which Stock Should I Put The Last Of My IRA Cash In ?

[ownyourfuture]

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)

 

[Fedup]

How about AMAZON? What the heck, just one share. It's like putting red on Roulette in Las Vegas.

 

[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.

 

[aja8888]

Ford (F) and hope the new CEO can make the stock move.

 

[Whisper66]

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.

 

[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.

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.

 

[Fedup]

What about BITCOIN? I know it sounds crazy but I read bitcoin turned $100 to more than $20 million. You never know.

 

[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.

 

[aaronc879]

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.

I agree with this but if I were forced to choose between the 4 then I would choose "T" for the reliable large dividend.

 

[sengsational]

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.

 

[jimnjana]

Sell UAA, and buy CVS.

 

[Fedup]

Since it's a small amount, I think you should go for moon shot type of stocks.

 

[LiveBelowMeans]

CRWS. Pays over 4 % dividend, no debt, will cash in on coming Millenial baby boom. Small conservative company flying under the radar. JMHO

 

[ownyourfuture]

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.

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.

 

[ownyourfuture]

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.

If only I had done this..................about 3 weeks ago when NVDA went under 100$ for whatever reason!

 

[ownyourfuture]

How about AMAZON? What the heck, just one share. It's like putting red on Roulette in Las Vegas.

I've considered that.

 

[ownyourfuture]

I tend to dump dribbles / drabs into whatever I own that happens to be taking a dip when I am looking to invest it.

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.

 

[ownyourfuture]

What about BITCOIN? I know it sounds crazy but I read bitcoin turned $100 to more than $20 million. You never know.

I saw that too. Amazing!

 

[bloom2708]

Buy VTSAX (Total US Stock Market Index fund @ Vanguard)

3,575 stocks. Buy them all!

 

[Golden sunsets]

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%.

.

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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[ownyourfuture]

Well I finally pulled the trigger today.
Instead of adding to one of the stocks, funds, ETF's, reits, I already own, I put the money in a new stock. Five Below (FIVE)

The reason ?
Over the past 30 years or so, investing in 'newer' stores opening in my hometown have done very well.

Chipotle
Panera
O'Reilly Auto
Olive Garden
Applebee's
Kohl's
Home Depot, Etc

Yes, the retail sector scares me due to the Amazon effect, but what the heck, it's only a thousand bucks!

And speaking of Amazon, someone here recommended buying 1 share, & I considered it, but it's north of 1000$ now!

Thanks for all the reply's/suggestions.