HERE is where we are at this.....IRRELEVANT....short term moment. Stock market news live updates: Stocks mixed, S&P 500 and Nasdaq set fresh record highs https://finance.yahoo.com/news/stock-market-news-live-updates-august-30-2021-113412617.html (BOLD is my opinion OR what I consider important content) "Stocks mostly gained on Monday, extending last week's advances and reaching fresh all-time highs at the start of a busy week for new economic data. The S&P 500 and Nasdaq each edged up to set record intraday levels. The Dow traded flat to slightly lower just after market open. Optimism that the Federal Reserve will not immediately and jarringly remove its highly accommodative monetary policies has helped buoy equities over the past several sessions. Namely, Federal Reserve Chair Jerome Powell said in a virtual Jackson Hole Symposium speech on Friday that an "ill-timed policy move" while the pandemic is still denting economic activity could be "particularly harmful," suggesting the central bank leader was inclined to ensure the recovery was on a steady path forward before changing policies. Still, he noted that "it could be appropriate to start reducing the pace of asset purchases this year" in the Fed's quantitative easing program if the recovery continues as expected. Powell "did three things very, very right, and obviously the markets are celebrating that," Julian Emanuel, BTIG chief equity and derivatives strategist, told Yahoo Finance on Friday, adding that the first was in keeping the speech succinct. "Second thing he did right is, he sent the rest of the Fed governors out over the prior four weeks to basically tell us all that the taper was coming," Emanuel added. "He merely had to reiterate, and reiterate softly, that message, which he did very effectively." "Then the third thing ... is that he really tackled inflation head on. He knew that that's been the preoccupation of the markets for these last couple of months," Emanuel said. "While he didn't give any new real evidence as to why he views inflation as transitory, he did cite the ongoing moderation in commodity prices and the view that past history would indicate that inflation is likely to be transitory." Investors are set to receive more data on the strength of the labor market recovery this week, with the Labor Department's August jobs report due out on Friday. Consensus economists are looking to see that 750,000 payrolls came back during the month, representing an eighth straight month of gains but a slight pullback from July's 943,000. The report will be another important data point in informing the Fed's monetary policy plans going forward. Federal Reserve Governor Christopher Waller told Yahoo Finance's Brian Cheung on Friday that he would support beginning the Fed's asset-purchase tapering process as soon as this fall if the August jobs report shows another strong payroll gain. The Fed next convenes for a policy-setting meeting on Sept. 21 and 22. 10:33 a.m. ET: Dallas Fed Manufacturing Activity index sinks to 9.0 in August The Dallas Federal Reserve's monthly manufacturing activity index dropped far more than expected in August but still held at a level consistent with expansion in the region's goods-producing sector. The headline index reached 9.0 in August, sinking from 27.3 during the prior month. Consensus economists were looking for 23.0, according to Bloomberg data. Beneath the headline index, the production index fell to 20.8, dipping by about 10 points compared to July. New orders, capacity utilization, shipments and outlook indices each also dropped. Meanwhile, the outlook uncertainty index rose to its highest level since May 2020 in August, reflecting fresh concerns over the Delta variant's impact on demand. 10:03 a.m. ET: Pending home sales unexpectedly dropped in July Pending home sales posted a second straight monthly decline in July, data from the National Association of Realtors showed Monday morning, with surging home prices deterring new buyers from coming into the market. Contract-signings for homes dipped by 1.8% in July compared to June, nearly matching June's 2.0% monthly decline. Consensus economists were looking for pending sales to tick up by 0.3% in July, according to Bloomberg consensus data. Over last year, pending home sales dropped 9.5% on an unadjusted basis. By region, pending home sales increased in the Northeast and Midwest, but dropped on a monthly basis in both the South and West. "The moderate slowdown in sales is largely due to the huge spike in home prices," Lawrence Yun, chief economist for the National Association of Realtors, said in a press statement. "The Midwest region offers the most affordable costs for a home and hence that region has seen better sales activity compared to other areas in recent months."" MY COMMENT The above is well and good......BUT......KEEP IT SIMPLE STUPID......it is all about the RE-OPENING of the economy over the next 1-2 years. It is ALL ABOUT.......private business....big and small.
I was pulled away from the markets for a while to meet the fabricator that is going to do the Quartzite on our kitchen counters and backsplash. I was pleasantly surprised that we can get by with only 4 slabs. It will be nice to come in under what I was estimating. We were going to use marble.......a real budget buster......with slabs running $8000 to $10,000 each. BUT......the softness of the stone and the fact that it stains, scratches, and etches makes it unworkable for us. It is just too big of a risk for the price. So we will go with a particular Quartzite that looks like marble.......and.......YEA.......only runs about $3200 per slab. Many of the granite and stone showrooms will not sell to the public.....so you end up paying extra mark-up to the fabricator for the slabs. We have a seller that will sell the slabs DIRECT to us and deliver them to the fabricator. While I was gone....the markets continue their EPIC run up. In my account a few minutes ago......I was ALL green except for NVDA which was basically FLAT at (-0.08%)......I see that it has now turned positive for the moment. My BIG winners so far today......Amazon +2.55%.....Apple +2.37%.....Microsoft +1.31%.....Costco +1.00%.....and Home Depot +1.60%. With Nvidia now being GREEN......my entire account is now green for the day. I assume that this is a BROAD based rally and that ALL or MOST of us are enjoying a really nice open to the day and the week. WE DESERVE IT.....for being the guts of the economy and the people that FUND American business and American jobs as investors. Good to see the recent STRENGTH in Amazon......they really are an ICONIC and AMAZING company. My favorite thing about them is their TOTAL FOCUS on putting facilities and employees and other capital items in place for the future. they are not afraid to spend money for the future of the company. NOW.....if they could ONLY split that stock......oh well, I am a dreamer.
Yup. The rally continues. If you’re sitting on cash go all in now, no telling how much higher it will go until it will meet some resistance but I’m betting that the slowdown will not be considerable compared to what we had in mid feb and may. Amzn is a great buy considering it is only up 5% ytd and because, we’ll, it’s frigging AMAZON. So let’s not be greedy and look to bet on a MUCH RISKIER company with the hopes to get a better yield for the year
I see today that our little neighborhood of 4200 homes NOW has 31 homes actively for sale.....the most in TWO YEARS. Part of that is due to the one builder dumping 10 homes on the market that will be completed in January to March 2022. BUT....a good sign for buyers in what is STILL a big sellers market. The other good news is the fact that the majority of those homes are under $1,000,000 and in the $580,000 to $850,000 price range. When we first came here in 2012......there was ROUTINELY homes for sale in the $275,000 to $350,000 price range. This all changed starting about 4-5 years ago and especially in the past TWO YEARS.
EXACTLY ZUKODANY....I would not bet against this market. It continues to shake off EVERYTHING that they try to throw at it. Although.....I believe there is pretty good potential for those that are going to suddenly get over their fear and jump in with both feet....right now.....to experience the USUAL whipsaw affect. It is after all a very old BULL MARKET and we have not had a significant correction or bear market for a long time....disregarding the pandemic. BUT....any LONG TERM....buyer will be just fine. You are correct......Amazon is probably STILL a good buy at the moment. They are being DISRESPECTED due to the pandemic and the IMAGINED impact of the pandemic on their earnings and future earnings power. I really think their earnings would have been.....just as good.....without the pandemic. I guess we will find out over the next few quarters when we see their earnings. PERSONALLY.....I am NOT into risk when it comes to picking stocks. I prefer to stick with my relatively......MATURE......but still BIG CAP GROWTH companies.....that are the market leaders and will continue to be so.......knock on wood....for many years to come. I will take.....MARKET DOMINANCE....over new, risky, hot-shot.......any-day, all day long.
That is an insanely low number of homes for sale in a neighborhood that size! Whats the bet they get bought up as rentals going forward?
This is an interesting little story.....any PayPal share holders on here? PayPal is exploring a stock-trading platform for its U.S. customers https://www.cnbc.com/2021/08/30/pay...stock-trading-platform-for-its-customers.html (BOLD is my opinion OR what I consider important content) "Key Points PayPal is exploring ways to let users trade individual stocks, according to two sources familiar with the plan, and public details around a new executive hire. As part of that expansion, the payment giant hired a brokerage industry veteran to lead “Invest at PayPal” -- a previously unreported division of the payments giant. The move comes amid a retail trading boom that brought millions of new investors into the stock market, and more regulatory scrutiny for some brokerage firms. After rolling out the ability to trade cryptocurrencies last year, the payments giant has been exploring ways to let users trade individual stocks, according to two sources familiar with the plans, and public details around a new executive hire. The San Jose, California-based company recently hired brokerage industry veteran Rich Hagen as part of that move. After leaving Ally Invest, Hagen is now the CEO of a previously unreported division of PayPal called “Invest at PayPal,” according to his LinkedIn page. Hagen was the co-founder of online brokerage TradeKing, which was bought by Ally Invest. His current job description outlines PayPal’s efforts to “explore opportunities” in the consumer investment business. When reached for comment, PayPal pointed CNBC to CEO Dan Schulman’s comments at the company’s investor day in February where he spoke about the long-term vision for the company and how it may include many more financial services, including “investment capabilities.” PayPal’s move comes amid a retail trading renaissance. More than 10 million new individual investors have entered the market in the first half of this year, roughly matching last year’s record level, according to estimates from JMP Securities. A combination of stay at home orders during the pandemic, government stimulus checks and viral events like the rise of GameStop in January have spurred on new interest in the stock market. Trading has become a booming business for the companies that offer it. PayPal rival Square offers stock and cryptocurrency trading through the Square Cash App, and its CFO has said it drives engagement and revenue per user. Robinhood, which went public earlier this summer, has seen explosive growth with more than 22.5 million customers and doubled revenue from a year ago in the most recent quarter. In order to offer stock trading to customers, it’s possible PayPal partners with or buys an existing broker-dealer as part of this plan. According to one source, PayPal has held already discussions with potential industry partners. Still, one source familiar said it was unlikely that the trading service would roll out this year. Shares of PayPal jumped more than 3% following the CNBC report, while Robinhood shares lost more than 3%. If PayPal did look to get full approval as a brokerage firm alone, it would need to complete a new membership process through the industry’s main regulator, FINRA. That process could take more than eight months. PayPal has more than 400 million accounts worldwide. A PayPal stock-trading launch would come at competitive time for the fintech industry. Square, PayPal, Robinhood, SoFi offer a list of overlapping products and describe the same mission of being a one-stop-shop for finance. Cryptocurrency and stock trading are seen as ways to keep consumers engaged on these payment platforms. While helpful for user growth and revenue, the retail trading boom has also invited more regulatory scrutiny. The Securities and Exchange Commission said last week that it was stepping up its inquiry into “gamification” and how they use technology to interact with their customers. The agency mentioned behavioral prompts used by online brokerages and investment advisors that may encourage investors to trade more stocks and other securities and take on more risks." MY COMMENT YES.....it is coming.....the entry of every company possible into the trading world. There is money to be made and they are ALL going to try to take advantage of their built in account base. We are in the middle of a....VAST EXPLOSION....of new accounts, new traders, and new money mania. This STUFF is going to have a BIG impact on day to day stock prices....ever more reason to invest LONG TERM to avoid all the short term mania. I dont think I will change over from SCHWAB......I like the idea of having an ACTUAL broker that I can reach by phone, in person, or by app. I ALSO like the idea of having a company as my brokerage that has a long history of being in the investing business. I would NOT trust all the companies that are going on jump on this BANDWAGON over the next years.
StockJock-e....yes that is an insanely low number of homes for sale....but.....it is the HIGHEST in the past 2 years. From what I see most of the sales are NOT for rentals. They are owner occupied by buyers being drawn to this area from California and other places by the BIG tech industry here and all the businesses relocating here. A significant number of sales here are STILL for all cash.
I'm with you completely on this one WXYZ, Having a good broker that will answer his phone when you call about questions on: transferring accounts the 30 day rule setting up accounts for family members multiple owner accounts is invaluable in my book. Schwabs platform could use a few tweaks , but it is better than a lot of them out there. Up nicely this morning
YEAh....oldmanram. I am a long time Schwab customer. I wish they had not changed their account performance tool a few years back. I loved the data they had on there.....especially the information that showed you very quickly how each stock was performing in terms of compounding over 5 and 10 years. I used that to compare holdings all the time.
Long, long time lurker here and thank you all for all the effort that goes into this great thread. Back on the subject of diversification or lack of... I'm in the same camp as most here. I like to keep my holdings to 10-15 stocks and funds, find it much easier to stay on top of what companies are performing well. My father recently passed away in June, he lived a long wonderful life. He left the family to split his brokerage account and his IRA, we are all very greatfull for his generosity. His father probably had a lot to do with the structure of his portfolio's being a stock broker himself in Omaha. I'm sure there were some Buffett ties going way back based on the holdings he transferred to us. Walmart Pepsi Illinois Toolworks Microsoft Next Era Energy L3Harris Technology Johnson and Johnson American Electric Power Berkshire B CSX Corp Norfolk Southern JP Morgan And I won't list these but.... 17 different mutual funds! I've let these sit for a month now after having all transferred over to my Schwab accounts, trying to figure out what to do LOL. I now have all these mutual funds and about 35 different stocks but it's so damn overwhelming. Any thoughts would be greatly appreciated..
Hi and Welcome,' My condolences on your loss Just my initial thought, but have you documented the step up in basis on the stocks & mutual funds ? Since you transferred them I'm assuming yes One other question: Has it been split up between the heirs yet ? If yes I would not be in a big hurry to consolidate. You have some good stocks in that list. Take your time, research them, follow their performance over the next few months. Identify where you want your portfolio to go to , is it for your heirs ? Growth ? Maximise income ? I have heard it said that your first step after inheriting stocks & funds is : DO NOTHING the following is an excerpt from the MF 7 Rules for Handling an Inheritance Whatever you do, don't be hasty. Motley Fool Staff Updated: Apr 6, 2017 at 12:07AM Published: Dec 9, 2009 at 12:00AM Unexpected windfalls can be a welcome surprise, particularly when times are tough. But when the money is the result of an inheritance after a loved one's death, it can also be a huge burden. Conventional wisdom states that you shouldn't make any big, life-altering decisions within six to 12 months of a serious loss, but that invites a host of questions: What do I do with the money in the meantime? What about decisions I have to make quickly? How can I assure that those decisions are sound? How do I know if I'm ready to tackle a big decision? Here's some advice to consider if you find yourself in such a situation. Allowing six to 12 months before making major decisions is a guideline, not a universal prescription. Some folks are harder hit by a loss or have other circumstances that complicate the mourning process. Those folks may need to proceed even more cautiously before making life-altering decisions. Get support during your grieving process. Difficulty coping with loss is a normal human reaction, not a sign of weakness. Grief support groups, trained professionals, and even online community resources can be effective in helping you work through this tough time. Consider contacting area churches, hospices, or hospitals to find grief programs in your area. Consult a financial expert. This is one of those times when going it on your own may not be in your best interest. Fee-only planners can help you develop sound strategies for handling your newfound assets, and you won't have to worry that their commissions take a bite out of your inheritance. Visit the National Association of Personal Financial Advisors or GarrettPlanningNetwork.com to see whether a fee-only advisor is available in your area. Be willing to accept help from trusted friends and family members. One sign that you may be making a bad financial decision is if you're afraid to ask a trusted family member or friend for feedback about an idea you have for the money. That's your intuition telling you that your decision may not stand up to reasonable scrutiny. Make rules about how long to consider a big decision before taking any action. You might also want to put a cap on how much you can spend in the aftermath of a loss. Splurging on a new sports car may make you feel better for a little while, but it can get very expensive trying to outrun grief. Avoid major moves for at least a year. Sometimes in the immediate aftermath of a loss, folks think they simply can't live with the constant reminders of their loved one and make hasty decisions to relocate. The truth is, while the reminders are tough, grief will follow you wherever you go, even out of state and into a "new" life. Better to take some time to work through the intensity of the loss before making such a big lifestyle change. Honor the conventional wisdom that suggests you shouldn't mix business with friendship. In the best of times, money issues can complicate or even ruin a perfectly good relationship; during the time after a loss, it can get that much uglier. Again my condolences on you loss
WELCOME HUSKER......and I also say....my sympathy on your loss. I hope you continue as a regular poster along with TireSmoke. WOW....17 different mutual funds. Personally since I am a pretty decisive person.....If it was me.....I would sell ALL the mutual funds and simply put that part of the account into an SP500 Index ETF.....till I decided what to do with it. Of course.....if there is a fund or two that you happen to already own and like.....I might keep it. The individual stocks.....I would simply either keep each one or get rid of each......according to whether or not I had any interest in owning that company. If I was a sucessful investor my plan would be to incorporate those funds into my NORMAL investing plan as quickly as was right for me. You basically have a FREE SHOT with the step up in basis. You seem like an EXPERIENCED investor with a good long term plan.....so I would bet you have a pretty good idea what to keep or not keep....according to how it fits into your investing plan. I will say....when my mom died I cashed in her IRA IMMEDIATELY. I was not interested in the rules and requirements inherent in owning an inherited IRA......and......I was not interested in growing the money in the IRA and having to pay regular INCOME TAX rates on it over the rest of my life. I just bit the bullet and cashed it all in immediately....paid the taxes....and got it invested in my regular brokerage account.....where all the growth and earnings would be taxed as capital gains. PLEASE....let us know what you decide to do.....and.....keep posting on here with us.
A GOLDEN day today. I was TOTALLY green....just like most on here I would guess. I had a really nice beat of the SP500 by 0.78%. I had 5 stocks today that had a daily gain of over 1%. APPLE +3.04%.....Amazon +2.15%.....Microsoft +1.29%....Costco + 1.24%....and Home Depot +1.15%. Needless to say....again like many people today....I am at a new personal all time high.
SO....I cant resist this little article and the message it contains. How to Invest Like Warren Buffett Here's the recipe that one of the greatest investors uses to pick stocks. https://www.morningstar.com/articles/963821/how-to-invest-like-warren-buffett (BOLD is my opinion OR what I consider important content) "Undoubtedly one of the most-respected investors ever, Warren Buffett's recipe for success is simple. It boils down to: Buy businesses, not stocks. In other words, think like a business owner, not someone who owns a piece of paper (or these days, a digital trade confirmation). Look for companies with sustainable competitive advantages, or moats. Firms that can successfully fend off competitors have a better chance of increasing intrinsic value over time. Focus on long-term intrinsic value, not short-term earnings. What matters is how much cash a company can generate for its owners in the future. Therefore, value companies using a discounted cash flow analysis. Demand a margin of safety. Future cash flows are, by their nature, uncertain. To compensate for that uncertainty, always buy companies for less than their intrinsic values. Be patient. Investing isn't about instant gratification; it's about long-term success. Of course, what's simple in theory can be less so in execution. To help deepen your understanding of how Buffett thinks, we've compiled some of Morningstar's work on the approach he and partner Charlie Munger have taken at Berkshire Hathaway (BRK.A)/(BRK.B). We've also taken a look at funds that emulate Berkshire's style, as well as undervalued stocks that fit Berkshire's investment parameters. How to Pick Stocks Like Warren Buffett Berkshire has traditionally benefited from being able to sniff out companies with moats, including for these holdings. 3 Things Investors Can Learn from Warren Buffett Whether you're new to the market or not, there's plenty to learn from Berkshire Hathaway's leader. Funds That Buy Like Buffett, 2021 These funds own the same stocks that the Oracle of Omaha does. 10 Stocks Buffett Might Buy, if He Could The investing legend might take an interest in these high-quality firms if Berkshire were nimble enough. 2020 Shareholder Letter Recap: Warren Buffett on Bonds, Buybacks and Apple What Berkshire Hathaway's chairman left out of this year's annual shareholder letter is almost as notable as what he put in. 2019 Shareholder Letter Recap: 4 Takeaways from Berkshire Hathaway's Annual Shareholder Letter Warren Buffett addresses Berkshire Hathaway after his exit, the problem with corporate boards, and why equities are still the place to be long-term. 2018 Shareholder Letter Recap: Buffett Says Focus on the Forest, Forget the Trees In his annual letter to Berkshire Hathaway shareholders, Warren Buffett argues why the whole is much greater than the sum of its parts--and comments on that sizable cash stake. 2017 Shareholder Letter Recap: Stick With Big 'Easy' Decisions In his annual letter to Berkshire Hathaway shareholders, Warren Buffett makes the case for doing less and sticking to the fundamentals of investing. 2016 Shareholder Letter Recap: Indexing the Best Choice for Investors Large and Small Berkshire Hathaway CEO Warren Buffett praises indexing and American dynamism in his 2016 letter to shareholders. 2015 Shareholder Letter Recap: America's Economic Magic Is Alive and Well America's golden goose of commerce and innovation will continue to lay more and larger eggs, writes the Berkshire chairman and CEO in his annual letter to shareholders. 2014 Shareholder Letter Recap: Berkshire's Simple Secrets to Success In the firm's annual letter to shareholders, Warren Buffett and Charlie Munger reflect on Berkshire Hathaway's history and future prospects. 2013 Shareholder Letter Recap: 3 Nuggets From Buffett's Annual Letter More clippings--and a few thoughts--for your Oracle of Omaha file. 2012 Shareholder Letter Recap: Don't Hold Your Breath for a Berkshire Dividend In his annual letter, Berkshire Hathaway chairman and CEO Warren Buffett laid out a case against a Berkshire dividend and a case for more big acquisitions, and issued a reminder not to worry about short-term uncertainty." MY COMMENT I left the above links in....so that anyone that wishes can click on them. I like to invest in a similar style.......I boil it down to FOCUSING on companies that are.......AMERICAN, DOMINANT TO THE POINT OF MONOPOLY in their business area, WORLD WIDE MARKETING and SALES, ICONIC PRODUCTS, GREAT MANAGEMENT, ORIENTED TOWARD THE BROADEST POSSIBLE CONSUMER MARKET. This is the TOTAL BASIS of the ten individual stocks that I own........as well as.......my emphasis of the AMERICAN BIG CAP WORLD in my SP500 Index Fund and my Fidelity Contra fund.
HERE is the typical media take on......where we are headed......right now. Stock market news live updates: Stock futures edge higher as indexes head for winning August https://finance.yahoo.com/news/stock-market-news-live-updates-august-31-2021-221753781.html (BOLD is my opinion OR what I consider important content) "Stock futures rose Monday evening, with the major indexes on track to close out August trading with another monthly gain. Contracts on the S&P 500 ticked up. Both the blue-chip index and the Nasdaq set fresh record intraday and closing highs during the regular trading day, powered higher by a jump in heavily weighted Big Tech stocks. The S&P 500 is on track to post a seventh straight monthly advance in August, pacing toward a 3% monthly gain and bringing its year-to-date increase to nearly 21%. The Nasdaq has outperformed with a gain of 4% so far in August as traders piled back into growth and technology stocks. Meanwhile, the Dow — which is heavy in cyclical stocks with earnings tied to the economic recovery — has underperformed, gaining 1.3% as concerns over the Delta variant resurged in recent weeks. Even given the S&P 500's march to all-time highs, many strategists have penciled in further gains. BMO Capital Markets became the latest firm to raise its year-end price target on the S&P 500 on Monday. The company's chief investment strategist Brian Belski wrote in a new note that he now expects the index to end the year at 4,800 instead of 4,500. He cited the "blistering rate" of corporate earnings beats in the second-quarter, with the strengthening economic backdrop helping also drive profit growth at many companies. The current policy environment has also been conducive to further gains in equities, other strategists have noted, given the Federal Reserve's still-accommodative policy tilt and the prospects of further government spending with the infrastructure and budget reconciliation bills being discussed in Congress. The Fed's policy trajectory has been especially closely watched, as traders brace for the gradual easing of crisis-era supports like the central bank's $120 billion per-month asset purchase program. Still, key central bank officials including Fed Chair Jerome Powell have signaled they are waiting to monitor the incoming data and Delta variant's impact on the economy before charging ahead with a policy move. "We do think that tapering, in general, will be a non-event, most likely because first, the market has had time to react throughout this year," James Liu, Clearnomics founder and CEO, told Yahoo Finance. "The Fed has done a great job telegraphing all this." "Whether it's September or November for the announcement of taper will really depend on the jobs report coming up and some more economic data," he added. "But regardless, the market seems to expect it at this point. This is very different from 2013, when the market had to adjust very abruptly to taper."" MY COMMENT YEP.....we are on track for a GREAT week this week. Can you imagine not being in this market over the past years since the banking collapse of 2008/2009? I cant.....it would be a nightmare to have sat and missed it all.
AS USUAL I am once again posting my PORTFOLIO MODEL. My initial criteria to start the process to consider a business are.......BIG CAP, AMERICAN, DIVIDEND PAYING, GREAT MANAGEMENT, ICONIC PRODUCT, WORLD WIDE LEADER IN THEIR FIELD, LONG TERM HORIZON, etc, etc, etc. PORTFOLIO MODEL "Here is my "PORTFOLIO MODEL" for all accounts managed which is the basis for MUCH of my discussion in this thread. I am re-posting this since I often talk in this thread about my portfolio model. My custom in the past on this sort of thread was to re-post my portfolio model every once in a while since I will tend to talk about it once in a while. I "manage" six portfolios for various family including a trust. ALL are set up in this fashion. If I was starting this portfolio today, lets say with $200,000. I would put half the money into the stock side of the portfolio, with an equal amount going into each stock. The other half of the money would go into the fund side of the portfolio, with an equal amount going into each fund. As is my long time custom, I would than let the portfolio run as it wished with NO re-balancing, in other words, I would let the winners run. Over the LONG TERM of investing in this style (at least in my actual portfolios), the stock side seems to reach and settle in at about 55% of the total portfolio and the fund side at about 45% of the total portfolio over time. That is a GOOD THING since it tells me that my stock picks are generally beating the funds over the longer term. AND....since the funds in the account generally meet or beat the SP500, that is a VERY good thing. As mentioned in a post in this thread, I include the funds in the portfolio as a counter-balance to my investing BIAS and stock picking BIAS and to add a top active management fund that often beats the SP500 (Fidelity Contra Fund) and a SP500 Index Fund to get broad exposure to the best 500 companies in AMERICAN business and economy. The funds also give me broad diversification as a counter-balance to my very concentrated 10 stock portfolio. At the same time the funds double and triple up on my individual stock holdings............that I consider the BEST individual businesses in the WORLD. STOCKS: Alphabet Inc Amazon Apple Costco Home Depot Honeywell Nike Microsoft Proctor & Gamble Nvidia MUTUAL FUNDS: SP500 Index Fund Fidelity Contra Fund CAUTION: This is a moderate aggressive to aggressive portfolio on the stock side with the small concentration of stocks and the mix of stocks that I hold and with the concentration of big name tech stocks. Especially for my age group. (71). So for anyone considering this sort of portfolio, be careful and consider your risk tolerance and where you are in your life and financial needs. I am able to do this sort of portfolio since my stock market account is NOT needed for my retirement income AND I have a fairly HIGH RISK TOLERANCE. In addition I am a fully invested, all the time, LONG TERM investor. (LONG TERM meaning many years, 5, 10, 20, years or more)" MY COMMENT This portfolio is HIGHLY CONCENTRATED on the big cap side of things. OBVIOUSLY between the funds and my ten stock holdings there is MUCH doubling and tripling up on the stocks. THAT is INTENTIONAL. I strongly subscribe to the view of Buffett and some others that TOO MUCH diversification kills returns. I do NOT believe in the current diversification FAD that most people seem to now follow.......or think they are following. I DO NOT do bonds and think the current level of bonds held by younger investors.....those under age 50.....is extremely foolish.I DO NOT do market timing or Technical Analysis.
Yup up nicely 1.13 nice rally for sure. Great time to own tech stocks, glad I held to mine through the rough patch this year. As to the pypl news, I can’t really say that I’m with it 100% to me it looks more like that now since they lost eBay revenue they are trying to plan a replacement source of income. Don’t get me wrong, I own quite a few shares and I’m sure they’ll be just fine but I doubt that them getting an exchange app will be a smart idea and I’m pretty sure that the competition will be rough. They also have a great deal amount of debt and so I wouldn’t want them to add more.
YEAH....I put stuff up that seems interesting....but....that does not mean that I would buy the stock. I have no interest in owning PayPal. I dont do banks, insurance companies, brokerages, financial companies, etc, etc. They are too close to that group for me to have any interest in them.
