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DigitalDisco (< 20)

My Portfolios

Recs

7

March 04, 2010 – Comments (8) | RELATED TICKERS: AKAM , ATW , IQNT

I'm looking for some brutal honesty here, so fire away.  I have two portfolios; one small spec portfolio and my larger IRA (rolled over from previous 401ks).  I'm excluding my current 401k because obviously my investment options are limited to a handful of mutual funds.  Some background information to help you evaluate my positions and strategy: I'm 27, single, no kids, a homeowner, income just south of $40k a year, total debt (minus house) of about $13k with a plan in place to pay it off in the next couple of years.  If you need/want any additional information, just ask.  Again, beat me up on individual securities, overall strategy, all will be helpful.  Praise is also nice if I deserve it.  My portfolios:

Spec:

AKAM, AOB, GNBT, GTE, SLSZQ (bankrupt, just waiting for it to zero out), and WM.

IRA (total value just over $7k with just under 10% being cash, all positions are roughly equal value):

ATW, BBY, BKE, BNPQY, BRK.B, C, F-A, GOOG, KO, LINE, RRC, TNDM

Fire away!

8 Comments – Post Your Own

#1) On March 04, 2010 at 1:40 PM, anticitrade (99.66) wrote:

I like AOB, LINE and TNDM from that list.

I have never been a big fan of your fancy stocks like GOOG, KO, BRK.B, and C.  I think at your age for your roth IRA you should be willing to accept a little more risk than these guys represent. 

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#2) On March 04, 2010 at 2:06 PM, lemoneater (81.74) wrote:

Looks like you have a heavier weighting towards growth stocks. Also I'm skittish about financials, but depending on when you bought them and what you expect it could be okay.

My husband thinks that BBY may not be a good long term hold because the same electronics are available for less at e-commerce stores. He wonders if it will eventually go the way of Circuit City.

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#3) On March 04, 2010 at 2:34 PM, Option1307 (29.65) wrote:

total debt (minus house) of about $13k with a plan in place to pay it off in the next couple of years.  

Depends on what kind of debt we are talking here. If its something with a high rate i.e. credit cards charging you 25% etc. You should be paying that off first being investing money. It's better to pay down debt with high rates, than assume you can beat those rates investing. I realize you can't take money out of your IRA, but I certainly wouldn't add anymor money until your debt is payed off if you have a high rate on it. I think investors tend to fail and realize this important point.

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#4) On March 04, 2010 at 2:44 PM, anticitrade (99.66) wrote:

Excellent point option1307.  Get the easy garunteed return of paying off your high interest debt first.

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#5) On March 04, 2010 at 4:50 PM, thedogsmad (92.41) wrote:

I agree on the debt points also take larger positions to reduce trade costs.  With 12 positions on 7k, with ~7 dollar trades your trade costs to buy and sell are about 2.4%.  That will definitely add up over time.

Run the number on a financial website to see what your paying over time and the amount of trading you do. 

With smaller positions there is an advantage to diversity, and the learning factor is immeasurable if it helps you learn investing.  Easily worth trading costs in the short run.

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#6) On March 04, 2010 at 6:56 PM, DigitalDisco (< 20) wrote:

In regards to the debt, the average on the entire amount is just a shade under 10%, and I do have a plan to pay it off in just over 3 years (sooner depending on how much overtime I can work at my new job). Also, I have less than $1k in my spec account (I learned the hard way that commissions can kill ROI when you have no money, like me, otherwise I would've only picked up MAYBE two securities). I don't plan on contributing any more any time soon unless something in my life goes drastically well

 I actually got in on a great deal for my IRA where I have 500 free trades (487 left, I liquidated a dog of a mutual fund from a previous IRA).

In response to anticitrade, I took GOOG because I think it does have some strong growth potential left in it despite its colossal size.  I don't know how much of this is already built into the price, but I can see their Chinese expansion (fingers crossed) and cell phone attempt (ditto) netting them some large gains. KO I took because I wanted some stability in my portfolio, plus it gives me some "international" exposure. BRK.B I took because I live in Omaha and want to go to the shareholder meeting (I'll just be honest here, it's a good stock to boot). And I picked up C in the hopes that it would double or more in the next 12-18 months. C is one stock that I'm going to try to actively trade as I see it rollercoasting its way upward.

Thanks for the input so far, it is appreciated. Feel free to shoot holes in my responses as well as it helps. I'm explaining the reasons I bought the stocks but I'm still too new to be 100% confident in my decisions.

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#7) On March 04, 2010 at 7:17 PM, ragedmaximus (< 20) wrote:

 1.pay off debt because of absurd interest! 2.buy BPT when it goes back to 60 bucks and reinvest with it's high dividends,when it goes back to 100 bucks sell half and stay in cash when it starts going down from 100 sell the other 25 percent and then when it goes back to 60 start all over again do this for 5 years and then get out.this is what i'm going to do once it gets back in the 60 dollar range,until then i think Ill keep buying and selling x,fcx,aks,auy,cenx on the dips!

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#8) On March 05, 2010 at 4:40 PM, DigitalDisco (< 20) wrote:

Just a comment to bump this back up to relevant.

 Thank you all for your input and keep it coming please!

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