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Texas, I like most of your choices, although I would dump the C and add it to BAC for the long term, or go with JPM instead. I'm long BAC, JPM, FCX, BRK-B and NPK. I'm also holding AGNC for it's huge dividend, but I think I'm going to sell that one on it's next run up to EX-DIV. Other stocks I like but don't own are CVS, EXC, GWW, SMG, WHR, and XOM (I consider GWW, SMG and XOM to be overpriced at the moment).
Texas, I like most of your choices, although I would dump the C and add it to BAC for the long term, or go with JPM instead. I'm long BAC, JPM, FCX, BRK-B and NPK. I'm also holding AGNC for it's huge dividend, but I think I'm going to sell that one on it's next run up to EX-DIV. Other stocks I like but don't own are CVS, EXC, GWW, SMG, WHR, and XOM (I consider GWW, SMG and XOM to be overpriced at the moment).
Dump C? This stock has been steady in the past year or so.
I am suffering with BAC but I only have 27 shares.
JPM, C, BAC and WF are the big 4.
C is most likely the most attractive under $5 stock but I heard its going to do a reverse split.
Texas - I'm by no means an expert in investing, but here's my take:
You don't indicate whether this is in a retirement account or a taxable account. I assume it's a taxable account. You also didn't indicate if this was a "play money" (play money meaning it's a trading account with speculation money that you can afford to lose) account or a "core" investment account. I'm going to assume it's a "play money" account.
I think you have a fairly decent list of stocks. For the most part, large, dividend paying (C and F will probably start kicking out a dividend again), blue chip stocks. I hope you are reinvesting your dividends? Kind of "boring" stuff - although some would argue C, BAC, and F could be seen as more speculative (imagine being able to go back in time and tell someone that in 2007!). Looks like you've got about 11-12K invested in this account.
First - IMO, with only 11K to invest, I'd personally not go with individual stocks. I personally believe you'd be far better served going with a broad market ETF or mutual fund.
Second - You're not very diversified. You have all of your eggs in the large cap basket. I'd seek to trade into/add some mid-cap and small cap stuff.
Also, although they all have some international exposure (well, some more than others) - these are basically US/domestic stock plays. The US is a stable market - but there are great opportunities outside the US, including developed and emerging markets. I'd seek to include more international exposure.
You could be more diversified in terms of sector exposure. Not sure why you have money split up in 2 banks? Also, my personal rule is to always put money on the top dog or horse in any given race. If I had to choose a bank, I'd probably go with JPM over C and BAC. I know AA, F, and GE are technically in different sectors, but really, they are all tied into materials/manufacturing. These could trade in tandem - which is not what you necessarily want - unless of course you truly believe in these companies and believe they are well positioned should the US economy continue to recover. Again, I'd probably want to include some technology, biotech, energy, consumer/services, REITs, etc. I'd also consider some beaten down stuff - maybe utilities.
Third - If this is your spec/play money account and you have another account with your "core" investments - you should take a look and see exactly how much (if any) overlap there is with that account. If your core account has mutual funds - take a look and see what the top 10 holdings are. If you find that your core account funds/investments overlap significantly with this list of stocks, you may want to consider different stocks to play.
Fourth - I read in another post that you are a long term investor and that you will never sell a stock at a loss. Not sure why? In fact, one of the best strategies to have is to know your exit point before you buy your shares. You need to know exactly at what price you will dump those shares, esp. on the downside. Although I am not a "active trader" I think it is foolish to tell yourself that you will never sell a stock at a loss. You could end up losing your shirt with that attitude. In fact, I'd say that some of the best investors do well because they know when to cut their losses and not let the losers neutralize their winners.
Anyways - just a few thoughts off the top of my head. Hope they help.
Its a taxable account. Its for investment purposes in the long-run. I don't need this money for atleast 5+ years. I don't plan to sell on a loss either.
I do reinvest my divs but those are only few bucks every quarter and still have to pay taxes on. I am buying in a portions of $1,000 so I pay $4.95 on the buy. The principal value will rise as I keep investing it.
Mutual Funds for taxable account have lousy returns though and plus the MER fees.
How do you like my returns so far? Better then average?
I have multiple stocks here with different companies? The markets are different.
I think Japan now has a great opportunity and the Chinese emerging markets.
I plan to sell BAC as soon as I am in the green though. JPM per share price is expensive though. I am getting more shares with C. What do you think?
My other account is Roth IRA and 401K is in my other thread. (All MF's)
The reason I don't want to sell the stock at a loss is because I don't need the money.
I also hold CMCSA and my returns are over 75% so far.
Yes
Quote:
Originally Posted by Beans&Cornbread
Texas - I'm by no means an expert in investing, but here's my take:
You don't indicate whether this is in a retirement account or a taxable account. I assume it's a taxable account. You also didn't indicate if this was a "play money" (play money meaning it's a trading account with speculation money that you can afford to lose) account or a "core" investment account. I'm going to assume it's a "play money" account.
I think you have a fairly decent list of stocks. For the most part, large, dividend paying (C and F will probably start kicking out a dividend again), blue chip stocks. I hope you are reinvesting your dividends? Kind of "boring" stuff - although some would argue C, BAC, and F could be seen as more speculative (imagine being able to go back in time and tell someone that in 2007!). Looks like you've got about 11-12K invested in this account.
First - IMO, with only 11K to invest, I'd personally not go with individual stocks. I personally believe you'd be far better served going with a broad market ETF or mutual fund.
Second - You're not very diversified. You have all of your eggs in the large cap basket. I'd seek to trade into/add some mid-cap and small cap stuff.
Also, although they all have some international exposure (well, some more than others) - these are basically US/domestic stock plays. The US is a stable market - but there are great opportunities outside the US, including developed and emerging markets. I'd seek to include more international exposure.
You could be more diversified in terms of sector exposure. Not sure why you have money split up in 2 banks? Also, my personal rule is to always put money on the top dog or horse in any given race. If I had to choose a bank, I'd probably go with JPM over C and BAC. I know AA, F, and GE are technically in different sectors, but really, they are all tied into materials/manufacturing. These could trade in tandem - which is not what you necessarily want - unless of course you truly believe in these companies and believe they are well positioned should the US economy continue to recover. Again, I'd probably want to include some technology, biotech, energy, consumer/services, REITs, etc. I'd also consider some beaten down stuff - maybe utilities.
Third - If this is your spec/play money account and you have another account with your "core" investments - you should take a look and see exactly how much (if any) overlap there is with that account. If your core account has mutual funds - take a look and see what the top 10 holdings are. If you find that your core account funds/investments overlap significantly with this list of stocks, you may want to consider different stocks to play.
Fourth - I read in another post that you are a long term investor and that you will never sell a stock at a loss. Not sure why? In fact, one of the best strategies to have is to know your exit point before you buy your shares. You need to know exactly at what price you will dump those shares, esp. on the downside. Although I am not a "active trader" I think it is foolish to tell yourself that you will never sell a stock at a loss. You could end up losing your shirt with that attitude. In fact, I'd say that some of the best investors do well because they know when to cut their losses and not let the losers neutralize their winners.
Anyways - just a few thoughts off the top of my head. Hope they help.
believing you wont sell a stock when its down is reason enough not to do what your doing.
buying individual issues with no strategy and random picking with no real research is a helter skelter spin the wheel at best.
taking on individual company market risk and marrying the stock can kill you.
a good investor uses stop losses and right or wrong if things go down he is out of it.
heres the problem doing it your way:
as humans we hate loosing money more then we like making it.
rationally we think we will be able to sort things out in our mind if things drop and make the right decisions to bail or not before we loose to much.
the truth is there is another part of our brain thats used according to research by jason zweig that is totaly not logical at all and makes us do the wrong things at the wrong times.
when markets started to drop in 2008 and we were off our highs at first, no problem ,just a normal market day to us.
then our stocks dropped more.
well we will just wait until things turn around we said then we will take our profits and sell.
stocks drop even more ,well now you dont know if its a general market drop or somethings up with your individual issues.
more drops, well cant sell now im down to much you say.
more drops, your freaking out as not only is the market plunging but there are big problems surfacing in your individual issues.
dont forget nobody ever dreamed that the likes of gm,citi,aig ,ge bank of america, lehman,merryl etc could ever be gone nor had any other problems other then the markets were falling..
well even if there are issues you say they will resolve and ill sell when we come back a bit from these lows.
you only assumed it was a general market drop at first and you would ride it out. now your down big time and your brain wont let you take this loss. eventually those issues are gone and so is your money.
more typically the above is what happens if you have no solid plan for getting out of individual issues .
funds only take on market risk ,sure as the sun rises markets will eventually cycle around and you should be okay. no reason to sell or panic.
your playing with individual stocks is a speculation at best and marrying them makes it even worse. those issues your down in may never come back ,even if markets soar your done for.
the greatest analysts on the planet with the most sophisticated software cant get this stuff right long term , what makes you think your dabbling will ?
Last edited by mathjak107; 04-05-2011 at 03:44 AM..
You're such an aggressive investor and very willing to take risks that other investors won’t take. They invest higher amounts of money in riskier ventures in the hopes of achieving larger returns – either over time or in a short amount of time. GOOD LUCK!
Too heavily weighted in financials,possibly bring some smaller caps in there.A stock that deals with water purification as its main objective,a Nalco,only for example.The developing world needs this technology more than almost anything.The best of luck in your investments.
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