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that is speculating not investing .betting so much on the whims of a particular company or so few companies means you are introducing a whole other element of risk. individual company risk as well as market risk .
that is speculating not investing .betting so much on the whims of a particular company or so few companies means you are introducing a whole other element of risk. individual company risk as well as market risk .
I'm willing to take that risk MJ.
It's not like I'm betting on some no name company on the OTC boards.
Tech companies are the future, I see a 95% chance of making money on these 2 companies over time.
There are probably other good ones as well. Oracle for one. Facebook I've had and made money on. GOOG also looks good over time as does AMZN and PCLN but all 3 of these are much higher priced. In theory that doesn't matter but I'd rather buy lower priced stocks, just a personal preference.
your money , but unless it was just my fun money i would stick to diversified funds . then i would bet the ranch on the few i think would excel with the fun money . i trade all the time and swing for the fences but not with my serious dough .
I'm thinking about putting 1/3 of my retirement fund into these two stocks and letting it ride for a couple of years.
Thoughts on either one of these, good or bad?
The choices are good, but I like to keep at least ten balls in the air.
Quote:
Originally Posted by mathjak107
that is speculating not investing .betting so much on the whims of a particular company or so few companies means you are introducing a whole other element of risk. individual company risk as well as market risk .
1/3rd of his portfolio means that 1/6th is in any particular stock. To call INTC and CSCO a spec and not an investment is just wrong. AMD ( chip competitor ) is a spec. JNPR ( network competitor ) is a spec.
As long as he's got the other 2/3rds somewhere outside of tech, his company risk is fairly minimal.
Remember that buying the SPY and QQQ and such he's also buying the crappy stuff and being exposed to a lot more company risk.
I like specs too. I have four IRAs with five positions in stocks, not funds. Each positions is 10-25% and one is always a spec. I like to pick-em. You can't get good at it by just reading about it and practicing with fake money. You have to lose some of your own money.
I've read ( but I can't find it any more ) that 5 stocks has 80% of the lower volatility that 100 stocks has. When you go up to ten stocks, it's virtually identical.
If MrGeek wants to put 1/3rd of his portfolio in INTC and CSCO and it keeps him interested, then he'll be fine. It's the person who sticks their money in some fund and loses interest and doesn't keep putting money away that loses.
I know lots of people who made a lot more money than me who are going to be fooked in retirement because they weren't interested in investing. By the same token, I know people like mathjak that are not at all interested in picking ( unless it's "fun money" with GLD or KMI ) and keep interested in watching their statement balances climb.
Cisco is horribly managed and hasn’t grown revenue in quite a while. Nothing new in the pipeline. They are a has been. We get 15% off their stock and sell the next day. It’s a go nowhere company, they are being replaced with newer start ups.
Those companies aren't the future, this isn't year 2000.
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