Comments on: My Not So Diversified High Rate of Return Portfolio http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-portfolio/ Personal Finance Beyond Credit Cards and Balance Transfers Thu, 08 Jan 2009 21:11:48 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Tom Clemmer http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-portfolio/comment-page-1/#comment-5396 Tom Clemmer Thu, 27 Mar 2008 23:00:35 +0000 http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-porfolio/#comment-5396 Back in the 80's when I was in my 20's I joined an investment club and a wise old guy told me to take a stock I had faith in an hold on to it for 10-20 years. I had 10K to invest. Make sure the company had room for a lot of growth and might domainate the market. Maybe a product you see everyday. Well, I picked NIKE and did well on that first 10K. It was very hard not to sell and take a profit...just keep the Buffet approach of buy and hold I was told. Another guy in the club bought a mutual fund with about the same about of money. Today his account is worth about 85K after ten years and he is very happy. Of course my investment is worth much more...these are the chances one has to take to make fortunes in the stock market. If I had to start over and pick single stock I don't know what I would pick - solar, retail, gaming, heathcare, biotech a lot looks good to me now. But, now that I have money and am older and looking at retirement in 15 yrs. I favor taking an ETF...with a trailing stop of about 10%. But, if I was back in my 20's I'd look at single stocks...small cap growth. Pick a winner and hold on to it. Back in the 80’s when I was in my 20’s I joined an investment club and a wise old guy told me to take a stock I had faith in an hold on to it for 10-20 years. I had 10K to invest. Make sure the company had room for a lot of growth and might domainate the market. Maybe a product you see everyday. Well, I picked NIKE and did well on that first 10K. It was very hard not to sell and take a profit…just keep the Buffet approach of buy and hold I was told. Another guy in the club bought a mutual fund with about the same about of money. Today his account is worth about 85K after ten years and he is very happy. Of course my investment is worth much more…these are the chances one has to take to make fortunes in the stock market. If I had to start over and pick single stock I don’t know what I would pick - solar, retail, gaming, heathcare, biotech a lot looks good to me now. But, now that I have money and am older and looking at retirement in 15 yrs. I favor taking an ETF…with a trailing stop of about 10%.

But, if I was back in my 20’s I’d look at single stocks…small cap growth. Pick a winner and hold on to it.

]]> By: Raymond http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-portfolio/comment-page-1/#comment-1511 Raymond Wed, 02 Jan 2008 02:34:17 +0000 http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-porfolio/#comment-1511 I am in my late 20's, so yes my investment approach is likely much more aggressive than would be recommend for someone closer to retirement. Rather than focusing on asset preservation, I'm locked in on growth right now. I am in my late 20’s, so yes my investment approach is likely much more aggressive than would be recommend for someone closer to retirement. Rather than focusing on asset preservation, I’m locked in on growth right now.

]]> By: norak http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-portfolio/comment-page-1/#comment-1508 norak Wed, 02 Jan 2008 01:49:22 +0000 http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-porfolio/#comment-1508 This does seem aggressive. How young are you? If you want to be even more aggressive you can borrow to invest in a geared fund that invests in emerging markets. This does seem aggressive. How young are you?

If you want to be even more aggressive you can borrow to invest in a geared fund that invests in emerging markets.

]]> By: Raymond http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-portfolio/comment-page-1/#comment-97 Raymond Wed, 19 Sep 2007 14:38:39 +0000 http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-porfolio/#comment-97 I appreciate the advice. You're right, unlike the Nasdaq, both the Dow and Snp 500 have managed to recover since the dot com bust. Rather than re-shift my current holdings, I'm going to start increasing positions in SnP 500 type indexes. I don't want want to be writing here years from now wondering why I didn't listen to those people who told me to diversify and limit the risky portion of my portfolio. :) I appreciate the advice. You’re right, unlike the Nasdaq, both the Dow and Snp 500 have managed to recover since the dot com bust.

Rather than re-shift my current holdings, I’m going to start increasing positions in SnP 500 type indexes. I don’t want want to be writing here years from now wondering why I didn’t listen to those people who told me to diversify and limit the risky portion of my portfolio. :)

]]> By: JMS99 http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-portfolio/comment-page-1/#comment-96 JMS99 Wed, 19 Sep 2007 13:31:48 +0000 http://www.moneybluebook.com/my-not-so-diversified-high-rate-of-return-porfolio/#comment-96 I had similar thinking with my 401k back around 1999, and had almost all of my money in aggressive growth funds. I had fantastic returns for a year, but ended up losing about 80-90% of my retirement savings. If I had stuck with a more sensible asset allocation, I'd have had all that extra money earning compound interest the last 8 years or so, which would have made me much better off. If I could correct my past mistake, I would have limited the high risk portion of my portfolio to about 20%, and put the rest in the S&P and Western European indexes. I still would have lost a fair amount, but those indexes recovered after a few years. I had similar thinking with my 401k back around 1999, and had almost all of my money in aggressive growth funds. I had fantastic returns for a year, but ended up losing about 80-90% of my retirement savings. If I had stuck with a more sensible asset allocation, I’d have had all that extra money earning compound interest the last 8 years or so, which would have made me much better off. If I could correct my past mistake, I would have limited the high risk portion of my portfolio to about 20%, and put the rest in the S&P and Western European indexes. I still would have lost a fair amount, but those indexes recovered after a few years.

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