Mixed Bag, One-Egg Investing
I did okay today. DigitalDisco beat the market on Wednesday applied to both my own portfolio and my picks. In my CAPS picks, I saw some things that I found odd. BBY surged nearly 4% on no news of significance. They are going to open stores in the UK, but are also slowing the rate at which they open stores. Magic 8 ball saaaaaaaaaaaaaaaaaaaaaaays 4%. Fine.
AKAM, my largest holding, gained back 1.67% today after the bloodbath yesterday. I exaggerate a bit on bloodbath, but aside from C my portfolio lost at least 4% per equity on no news, which is bothersome.
Back on the CAPS side, FSLR posted a decent gain today which is also irritating. The company was rightfully headed south as their position in the market continues to recede and management can't get a handle on it. So far the "sure-fire" picks that I had in my head have all turned out sour, while GERN, a wildcard continues to post nice, consistent gains. I think that their most recent success is based on the fact that the reason for the FDA hold was announced, and it falls toward the not-as-bad end of the spectrum (at least for now).
Lastly, a co-worker and I were discussing small-ball investment strategies today. Specifically, how do you avoid putting all of your eggs in one basket when you only have one egg? My total portfolio is valued at less than $700, and I knowingly invested in too many securities despite the fact that commissions actually come into consideration for me. I did so because I saw large returns over the next 12-24 months that would easily offset my commission expenses, but we were debating if it was a good strategy or not. I suggested that if he were to dive in that he should select two securities at most. Anybody care to share their thoughts?