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Old 06-04-2014, 12:05 AM
 
Location: New York
757 posts, read 1,100,998 times
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I own FGD, VONE, and LUV and so far this year I have a 6% which is better then I thought I'd have considering it's my first year investing. I was wondering, are these good long-term investments (6-10 years) and if not what are some stocks/ETFs I should be considering?
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Old 06-04-2014, 01:13 AM
 
30,876 posts, read 36,854,288 times
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Originally Posted by Jonathanp219 View Post
I own FGD, VONE, and LUV and so far this year I have a 6% which is better than I thought I'd have considering it's my first year investing. I was wondering, are these good long-term investments (6-10 years) and if not what are some stocks/ETFs I should be considering?
The first two are good. I generally don't believe most people should invest in individual stocks. Doubly true for airline stocks, which are high cost, low profit businesses.

I'm concerned you have a very short term mindset, though. The fact that you're up 6% this year is actually meaningless. The time frame is just too short to be an indicator of anything. But I do think those 2 ETFs you have are solid. I'd also say add some bonds to the mix. Most people can't handle the volatility of a 100% stock portfolio.

I'd recommend putting at least 15% of your portfolio (maybe sell LUV and put it into DODLX) in Dodge & Cox Global Bond DODLX (a new fund, but all of their other funds are solid performers with low expenses). Its returns won't be exciting, but it will offset your stock ETFs when stocks are down and it has more growth potential than a bond fund that invests all or mostly in U.S. bonds.
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Old 06-05-2014, 09:08 AM
 
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VONE is perfectly aligned with S&P 500, FGD moves along with S&P 500. Both of these ETFs should be ok as long as we have positive market. Keep your eye on the S&P 500 and Russell and you should be ok.

LUV is in the strong up-move since September 2011. Be careful with it. I would not hold it without trailing stop. Either this company extremely good and growing with high speed or somebody is "pumping" it. You can make good % on it as long as it continue to run up, however, you may lose even faster when it starts to drop. It can make easy another 10-20%, but you have to understand that the higher profit comes with higher risk.
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Old 06-05-2014, 11:21 AM
 
Location: New York
757 posts, read 1,100,998 times
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Quote:
Originally Posted by viktorka View Post
LUV is in the strong up-move since September 2011. Be careful with it. I would not hold it without trailing stop. Either this company extremely good and growing with high speed or somebody is "pumping" it. You can make good % on it as long as it continue to run up, however, you may lose even faster when it starts to drop. It can make easy another 10-20%, but you have to understand that the higher profit comes with higher risk.
I did a case study on Southwest Airlines in school a few months ago. They've generated growth for 30+ years, they have low turnover rates, healthy cash flow, has maintained a great P/E growth ratio, they've committed to only one type of plane etc. Amongst one of the only safe bets compared to other airline stocks, but still, I;, considering selling it soon. Are there any individual stocks that are good long term investments??
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