I put it all in Disney in October 2012...and I got a lot of grief from memebers

[Dawg52]

Some people have made a fortune by investing primarily in one company. There are a couple of forum members here who did this through their employer. Not quite the same as they had stock options etc, but a concentrated portfolio nonetheless. I made some hefty bets in my early days and it seemed easy at times, but there were plenty of icebergs that got in the way too. I'm too old for all that. Not enough med's to ease the pain.

 

[utrecht]

And also; I use Yahoo finance or google the Asian market news, which is reported around 9:30pm every night, to gauge what will happen in the morning with our markets, so far so good. If a crash is coming over night you will see it in Asia and in after hours trading news.

What good is that going to do you? If a "crash is coming", the stock will gap down at the open and you will get killed. The only thing watching Asia and pre market trading will do for you is you will see the bullet racing towards your head. You still wont be able to stop it.

 

[dmpi]

I don't see this as all that bad. If you're young and can handle the risk of your investments getting chopped 50% why not aim for the stars. However if you're 40+ and saving for retirement, life already has enough risks and uncertainties and you don't need to add yet another one.

 

[HillCountry]

I don't think you read my post above, I have a sell stop, to make sure that does not happen. And I'm not a hog or a pig, whichever it is. I have no problem pulling the trigger to sell. I'd much rather regret less profit then regret a loss.

I am not sure how the sell stop going to help you. There are always gaps when stocks open for trading. And for a company like that, it is required that news is reported when market is not active.

But I see you point, and I did that.

I watched my $300K stock went down to less than $10K. And that was my major holding, 95% of my NW.

Then I rode another single stock many times back.

But do plan to lose your shirt. So consider that part of folio as funny money.

Good luck.

 

[HillCountry]

Nowadays, I sell my ESPP and stock options pretty much immediately to lock my gain.

My company stock went up 4 time since I joined 3 years ago.

I am leaving lots of $ on the table, and I am happy with that.

 

[oldnews]

I think the risk of losing 50% of DIS in a 24 hour period is minimal. If the stock were to drop even 15% I have the STOP/SELL order to lock gains, and I continually adjust it upward as the stock moves to continue holding onto gains. The after hour tradings give me an idea of what to expect, but the plan is already in place.

The market crash of 2007-2009 occurred over months/years. That, I think, is the only type of crash which will affect this stock, it's not like they have a patent expiring or competition. My only regret is leaving my money with that stupid fund prior to moving it to Schwab, when DIS was at 16$ a share.

 

[Texas Proud]

Thanks for the posts. As mentioned above, I view DIS as a mutual fund without any fees, and they pay a dividend.

Not even close to a mutual fund....

The market cap is only $121 bill.... and a small dividend... currently at 20X earnings...

As mentioned, you have done very well on your bet... and you talk about protecting your downside which is good.... but what you are doing is speculating, not investing... don't get me wrong, plenty of people have made plenty of money speculating... but it seems like you are fooling yourself into thinking you are investing....

But you have drank the cool-aid and nothing will change your mind....

Best of luck...

 

[FIREd]

More than half of my gains since 2000 have come from a single stock so I can't really fault you for doing what you're doing. But if you want to stay ahead, you better know when to cut and run. Best of luck to you.

 

[haha]

I do have a sell stop in place to lock profits, but I doubt it will ever be needed.

That is likely true. As we know, Disney stock has never gone down.

Go get 'em tiger!

Ha

 

[oldnews]

That is true. Disney stock has never gone down.

Go get 'em tiger!

Ha

Words of wisdom...not...of course DIS has gone down previously, but I don't think their growth period is up yet. And if everyone would pay attention...I have a STOP/SELL to keep the gains. But I do enjoy the posts.

 

[Chuckanut]

Thanks for the posts. As mentioned above, I view DIS as a mutual fund without any fees,

You are, of course, entitled to your own views. And I hope you continue to prosper. But, I think viewing one stock as a mutual fund, be it Disney, GE, or whatever is a mistake. Just my 2 cents.

 

[haha]

.of course DIS has gone down previously, but I don't think their growth period is up yet. And if everyone would pay attention...I have a STOP/SELL to keep the gains. But I do enjoy the posts.

I hope to see your continued progress. But as you may or may not realize, the passage I quoted from your post is a non sequitur. As to your mandate that we pay attention, we have, we have.

Ha

 

[F4mandolin]

Damn.....a buddy of mine said "Mex telecom"....years ago....and it was as usual great (luckiest damn guy in the world, he could get arrested and come out ahead)......could have got in.....but no...got into things that lost me money instead....poop....just going to index and hope the world doesn't end....just so long as they don't stop making beer.....that would be horrible....and of course....if I lose control of my slice.....even worse.....

 

[oldnews]

I hope to see your continued progress. But as you may or may not realize, the passage I quoted from your post is a non sequitur. As to your mandate that we pay attention, we have, we have.

Ha

Sorry, not following what you're implying. And I think everyone, including you, understood exactly what I said...DIS is on a run currently which I'm riding until it's over. And NO I don't think you're the smartest kid in the room, but keep 'em coming.

 

[Gumby]

Sorry, not following what you're implying. And I think everyone, including you, understood exactly what I said...DIS is on a run currently which I'm riding until it's over. And NO I don't think you're the smartest kid in the room, but keep 'em coming.

How about if we disagree with each other without becoming disagreeable?

 

[Sarah in SC]

I keep thinking of our good forum guy VA Collector when I read stuff like this. Thank goodness for being able to learn from collective wisdom.

 

[REWahoo]

I keep thinking of our good forum guy VA Collector when I read stuff like this. Thank goodness for being able to learn from collective wisdom.

+1

Of course there is a huge difference between "being able" and actually doing so...

 

[photoguy]

But I'm laughing all the way to the bank so far, so neaww.

What type of discussion did you hope to have by posting this?

 

[clifp]

I keep thinking of our good forum guy VA Collector when I read stuff like this. Thank goodness for being able to learn from collective wisdom.

+2
I was thinking the same thing.
Back in early 2000, on the Motley Fool Early Retire board (the one that John Greany aka Intrcst was active on) there was guy in his early 30s who worked at Apple. He decided to retire early but kept his portfolio almost entirely in Apple stock. At the time Apple stock was ~$30 and IIRC his networth was ~$1 million. Fast forward a couple of years and Apple in now ~$10. His portfolio was under $300K and he had to go back to work. The irony of course is that $10 stock he was selling to pay for living expense is now worth $450.

Which gives new meaning to the phrase that "market can remain irrational longer than you can remain solvent."

 

[LRDave]

But I'm laughing all the way to the bank so far, so neaww.

Have you tried posting this over on Bogleheads? That would be an entertaining thread as well, albeit shorter.......

 

[heeyy_joe]

When it comes to Disney, I do like Goofy.

 

[Jmo1969]

Sell stop orders do not lock in the price you sell a stock.

 

[REWahoo]

Sell stop orders do not lock in the price you sell a stock.

 

[oldnews]

Anyone else got something smart to say?

 

[NW-Bound]

The OP wrote "I put it all in Disney in October 2012...and I got a lot of grief from members"...

Lemme see...

From Oct 5, 2012 to Oct 25, 2013, DIS is up +30.75%.

I do not own DIS, but how does it compare to some stocks that I own? I am talking about the ones on top of my list, not the ones at the bottom of course. For the same period, the performance of some of my stocks is as follows.

MEOH (Methanex): +95.29%
NAV (Navistar): +74.59%
GT (Goodyear): +74.33%
AMAT (Applied Material): +59.07%
CMI (Cummins): +47.20%
etc., etc...

I will stop now.

So, DIS is up a measly 30.75%? Did I look it up wrong?

Of course I did not put everything I owned into any single one of the stocks that I listed above, and no way I would!