fixed fee investment advisor

[kumquat]

These types don't frequent this forum. I'd be surprised if any longterm participant here has more than about 5% of their assets in any one stock

I've been here for about a year, so maybe I'm not long term, but I have about 30% in a single stock. Everytime I dump 1/2 it doubles. IIRC Brewer asked me if I was comfortable with it as he was uncomfortable with 2 * 20% holdings in a single industry: http://early-retirement.org/forums/index.php?topic=13942.msg258311#msg258311

DD: I know the industry and company well and I watch it like a hawk. I might bail if we get a 10% decline, but I might not. Know your own comfort level.

 

[Nords]

These types don't frequent this forum. I'd be surprised if any longterm participant here has more than about 5% of their assets in any one stock or what any respectable FA would consider an undiversified portfolio.

I've been here for about a year, so maybe I'm not long term, but I have about 30% in a single stock.

Yeah, we're guilty too-- on both counts.

 

[unclemick]

Nope - But my left handed interpretation of Bernstein's 15 Stock Myth or Ben Graham's Postscript chapter in The Intelligent Investor or even a Monty Pythonesque Quest For The Holy Grail says:

Once you get to 7 figures via hmmm - Psst! Target Retirement or something like that then:

going to 8 figures with one great stock and moving to Margaritaville to really make use of your Jimmy Buffett shirts is ok.

Dreams and hormones!

heh heh heh - :

 

[saluki9]

Nope - But my left handed interpretation of Bernstein's 15 Stock Myth or Ben Graham's Postscript chapter in The Intelligent Investor or even a Monty Pythonesque Quest For The Holy Grail says:

Once you get to 7 figures via hmmm - Psst! Target Retirement or something like that then:

Only problem with that is, have you bothered to see how many asset classes most target retirement funds leave out?

 

[LOL!]

We have the AllianceBernstein target retirement funds in our 401(k). They have a healthy dose of REITs. We get them for no-load, but the expense ratio is a bit high.

 

[saluki9]

We have the AllianceBernstein target retirement funds in our 401(k). They have a healthy dose of REITs. We get them for no-load, but the expense ratio is a bit high.

John Hancock has some really nice ones, too bad they don't have a retail class.

 

[kcowan]

I've been here for about a year, so maybe I'm not long term, but I have about 30% in a single stock. Everytime I dump 1/2 it doubles.

We devote 5% of our equity portfolio to long shots. About one in ten becomes north of a ten-bagger. We sell half on the way up to recoup our initial stake and then let them ride. This violates the asset allocation rules and, like you, we watch them like hawks. The daily variability can drive us nuts but we now have the experience to hang in, e.g.

Stock..Buy...Current
AAPL....13........110
JSDA.....0.88......22
HIT.......5..........70

we are out of HIT now as we think the big hit is over for now. But the others are way outside our allocation rules. And still have great upside. Think MSFT 20 years ago (missed that one). So we have the asset rules for the regular portfolio and then these other rules for 10-baggers.

PS Please let us know when you are planning to sell 1/2 next time

PPS Watch for AAPL to pull back in June-July, and watch for JSDA to tear ahead in the same timeframe. YMMV

 

[FinanceDude]

Yeah, we're guilty too-- on both counts.

Now there's an honest man...........

I guess not all FIREd folks do 100% index funds 100% of the time...........

 

[REWahoo]

I guess not all FIREd folks do 100% index funds 100% of the time...........

You're a hunnerd percent correct on that, a hunnerd percent of the time...

 

[2B]

It looks like I was wrong. There are definitely a collection of roulette players on the forum. I notice that the only ones that posted were the ones holding winners. I have run across a collection of ex-Enron holders. They would have loved to have been fully indexed with their 20/20 hindsight although they were all real happy with Enron until almost the end.

I have been in the active investment game for a long time. I've been suckered into most bad investing methods and styles. When I dump on something it usually is based on a five figure education on the subject. Fortunately, I've been careful enough not to financially destroy myself with any one of them.

I agree that there are lots of "Microsoft Millionaires" running around. The "big one" is also probably the best way to achieve megawealth. Over the years I've learned that my ability to pick the next Microsoft rather than the next Chapter 13 isn't any better than random chance.

My one piece of advice for the people that have found their great mover is to not let it go to your head. I've had a lot of really big winners that were usually followed by a few really big losers. Don't confuse luck with stock picking brilliance. I sure did.

 

[kcowan]

I agree that there are lots of "Microsoft Millionaires" running around. The "big one" is also probably the best way to achieve megawealth. Over the years I've learned that my ability to pick the next Microsoft rather than the next Chapter 13 isn't any better than random chance.

Well in my case, I said clearly that these were one on ten but I did not want to bore you with the other 9. Often these 9 were dumped after losing 25% of their value. The discipline comes from saying good riddance and taking the lumps rather than waiting to get our money back.

And no we never wait for Ch11. We are gone long before that. In fact, if we are convinced that it is headed there, we might go big on the odd short sell.

 

[kcowan]

It looks like I was wrong. There are definitely a collection of roulette players on the forum. I notice that the only ones that posted were the ones holding winners.

Selection of current losers: and YTD down
HMC -15%
ZL -11%
CMH.TO -22%
AAPH.OB -47%

 

[Nords]

It looks like I was wrong. There are definitely a collection of roulette players on the forum. I notice that the only ones that posted were the ones holding winners.

In the spirit of kcowan's disclosure, lemme just say that I brilliantly spent the last three years acquiring Nortel stock to ensure that I wouldn't have to pay cap gains taxes on anything this year.

I successfully used similar brilliant market timing over the last few years with Dolby, Sun Microsystems, and Movie Gallery.

Or as CFB would say, Ow ow ow ow ow ow OW.

 

[cute fuzzy bunny]

Yep, you better put a bandaid on that...

 

[2B]

I was finally cured (or am I just recovering?) when I bought some Enron at 8 because I looked at their assets and decided that just their pipelines (real assets) were worth $12 to 15 per share. I thought I had an easy score for a 50% gain once sanity returned to the market.

I've been a good indexer since then except for my shares of BAC -- a leftover of a very good pick -- Barnett Banks in 9/27/94. It was acquired and the acquirer was acquired. Lots of premium both times. If I'd put a million bucks in that deal, I'd be a rich man today.