Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
YES. Hundreds of thousands of dollars should be diversified among 5-10 mutual funds at leastand/or several ETFs. If you're choosing individual stocks, no more than 3-5% in any one stock - which means, if you're investing $200k, you need at least 20 stocks, not two.
What is your goal? Are you hoping these two stocks will make you a billionaire in 20 years??
Otherwise, a good diversified $200k portfolio earning 8% will provide about $1,000,000. There are other portfolios averaging 12% which may grow to over $2,000,000.
Mathjak mentions Fidelity Monitor & Insight newsletter (not affiliated with Fidelity). In their growth model, you'd be seeing an annual return over a long period of 11-12%. Weekly newsletter tells you what to buy/sell, how much, etc. A few people here are following those models.
I subscribe to this newsletter, but have not yet set up a model portfolio. I have a Roth IRA at Schwab (PRBLX) that's done unusually well (for that fund) this year, which I'm thinking of moving to Fidelity in 2018 specifically to set up the growth model.
For now, I don't have an acct at Fidelity, am not following that model, so my total portfolio, which has grown over 20% this year, is broken down like this:
21% - VWINX - Vanguard Wellesley - conservative, low volatility - YTD 9.67%
19% - PRBLX - Parnassus Core Equity - Lg cap moderate risk lower volatility - YTD 17.16%
13% - TRBCX - Blue Chip Growth - Lg cap growth - YTD 37.29%
12% - PDGTX - Dividend growth - Lg blend - YTD return 19.49%
10% - PRGTX - Global Technology - global technology - YTD 48.88%
3.6% - PRSCX - Science & Technology - technology - YTD 40.20%
3.5% - PRMTX - Media & Telecom - communications - YTD 33.14%
3.4% - PRNHX - New Horizons - small growth - YTD 31.74%
14.5% - CASH
Fwiw, I am a 75 y/o retiree. If you are still working, you can take more risk.
Lastly, get investment advice if you can't figure it out. Do NOT - repeat NOT - put all your money in two vehicles.
I so understand this thread and post. Some would see your age and portfolio and wonder why. I see and understand it is a blessing. Starting the first of the year I am going back to the newsletter and cutting back on passive funds. Going to run two run three or more of the newsletter portfolios between the wife and I. That is tax sheltered money. Have a TRowe Price account with a taxable and Roth that I will leave as invested. It includes New Horizons which I have had for ever. My new playground is Vanguard brokerage which I am pouring new money into. Turning seventy this year so I am finally adapting to our current reality which is good.
i am only running the newsletter models . just using the income model and growth and income model at this point . after the big equities run up i reduced them more in to my target and comfort range . i have not been trading much in my fun money because the lack of volatility in the things i trade has had me lose interest for now .
the 2 together are about like a wellesly with 40/60
These two stocks averaged 35% annual return in the past 5 years with all the normal individual stock fluctuations. Having that return in the future would be really nice...
I just think their charts look extremely consistent.
Because these 2 stocks are up 35% annually over the past 5 years is a good reason NOT to invest all of your money into these companies. Sooner or later they will revert to the mean or worse. Even if you have 20 years to wait out the bad years. A good example to study would be GE. 20 years ago GE was king of the industrial stocks. They had double digit growth every year with a huge dividend. Look at them now.
The two companies just look so strong. I have more than 20 year investment horizon, house is paid for. Do you think putting hundreds of thousands into these 2 stocks is too much risk?
How do you mean "strong"?
FB has a wonderful gross profit margin. But you are paying 500 billion dollars (market capitalization) for a company that generates 10 billion in profit. Sounds waaaaay to high for me.
With GOOGL you are buying a company for 700 billion and you are getting 20 billion back.
There are lots of ways to evaluate a company, but I don't think looking at a chart is one of them. I am not opposed to investing heavily in a couple of stocks, but maybe if you are going to put ALL your assets into the effort you would be better off with a stocks that pay a solid dividend and have a history of increasing that dividend.
These two stocks averaged 35% annual return in the past 5 years with all the normal individual stock fluctuations. Having that return in the future would be really nice...
I just think their charts look extremely consistent.
These results have not been occurring in a vacuum - i.e., an exceptional market - which means past performance is not a guarantee of future results. There are always black swan events, the unknown and the newer, better thing. When the market corrects and/or crashes, and it will, they will not be immune.
Another option, if you must do this, is take PART of your money and go overweight into Google & FB for a while. First, calculate what you feel your minimum retirement nest egg should be. Then determine how much principal needs to be invested at a realistic overall rate of return of 9% over 20 years to achieve that. Put the remaining principal in FB and Google. Then whatever happens to either of them won't negatively your way of life.
I so understand this thread and post. Some would see your age and portfolio and wonder why. I see and understand it is a blessing.
It is indeed a blessing, as I don't have anywhere near a multi-million dollar portfolio, so I need to be more aggressive and less defensive, imo.
My view has been with each passing year, my money needs to last one less year. I've got about 40-50% in reasonably stable assets and enough cash to cover a two year downdraft. So, even if the market crashes, I've got a two-year cushion and don't need to disturb anything. At that point I'm two years older. Further, using 2008, VWINX recovered in two years. I would be withdrawing any cash needs from the most conservative investment which should have another three-four-five years withdrawals in it. At that point I'm another three-four-five years older. Over that period of time, I don't see a lot of total wipeout risk - like the market crashes and never recovers - and do want to leave as much as I possibly can for my son/dil. It was never my intention to spend down this fund, just to withdraw the minimal necessary from earnings and grow it, if possible. I'm also doing Roth conversions annually to keep RMDs to a minimum - which, the longer I continue to do this, the smarter I think I am.
Last edited by Ariadne22; 12-22-2017 at 03:56 PM..
It is indeed a blessing, as I don't have anywhere near a multi-million dollar portfolio, so I need to be more aggressive and less defensive, imo.
My view has been with each passing year, my money needs to last one less year. I've got about 40-50% in reasonably stable assets and enough cash to cover a two year downdraft. So, even if the market crashes, I've got a two-year cushion and don't need to disturb anything. At that point I'm two years older. Further, using 2008, VWINX recovered in two years. I would be withdrawing any cash needs from the most conservative investment which should have another three-four-five years withdrawals in it. At that point I'm another three-four-five years older. Over that period of time, I don't see a lot of total wipeout risk - like the market crashes and never recovers - and do want to leave as much as I possibly can for my son/dil. It was never my intention to spend down this fund, just to withdraw the minimal necessary from earnings and grow it, if possible. I'm also doing Roth conversions annually to keep RMDs to a minimum - which, the longer I continue to do this, the smarter I think I am.
Bada Bing for you. Age changes our perspective in many ways
If you're committed to this why not buy the Powershares NASDAQ Internet (PNQI) which has slightly over a quarter of total assets in FANG and get the diversity/safety of a larger basket but with a heavy exposure to your picks.
FANG Exposure (% of total assets):
FB: 7.90%
AMZN: 8.13%
NFLX: 3.66%
GOOGL: 8.26%
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
