How diversified is your portfolio? (POLL)

[kherman]

Mutual Funds and Index Tracking Stocks are equivilent to 7 stocks for purposes of this poll!
How diversified is your portfolio?
Include all accounts including IRAs and 401Ks ... etc.

If you want, maybe list some of your favorite stocks, mutual funds, tracking stocks that you own and maybe give some notes on them.

All of my stocks are listed below:

KIM
- A REIT. By far, my favorite hold right now. Very low volatility, with a good history. Nice 6% yield. IMHO, perfect for a Roth-IRA

LLTC
- Probably one of the best semiconductor stocks out there. Currently trading at $20. A great opportunity to buy. I bought at $37, so I'm down, but I'm a long term investor. The thing I hate is the volatility of this stock.

GD
- I work for GD, so I get a 1;1 match in my 401K. It's a good company to hold even if you don't get matching.

PFE
- What else can be said about Pfizer. It's a great company to own.

 

[GasX]

7 stocks per fund? that is WAY WAY low.

13 stocks, 2 mutual funds, sh!tload of cash

 

[kherman]

Originally posted by: Mwilding
7 stocks per fund? that is WAY WAY low.

13 stocks, 2 mutual funds, sh!tload of cash

I agree that 7 stock per fund is low. 20 is more realistic, but for the poll, I wanted more weight to be in individual stocks.
Just curious, what do you own? What are your favorite holds?

 

[ElFenix]

pretty soon its going to be 0.

 

[kherman]

Originally posted by: ElFenix
pretty soon its going to be 0.

Gettting out of the market?

 

[GasX]

Originally posted by: kherman

Originally posted by: Mwilding
7 stocks per fund? that is WAY WAY low.

13 stocks, 2 mutual funds, sh!tload of cash

I agree that 7 stock per fund is low. 20 is more realistic, but for the poll, I wanted more weight to be in individual stocks.
Just curious, what do you own? What are your favorite holds?

ELN - hoping for a rebound
CYMI - sold a lot at a profit and keeping some for the long haul
RGR - gotta love dividends!
REI-A - gotta love preferred dividends!
SO - more dividends
UST - gotta love chewin tobackie
TYC - bought near the bottom - long term hold
L - no strong feelings here
CVC - same
CPHD - insane loss :Q
MRK - Drugs good
PFE - drugs better
CALP - sold on the way down holding 100 for old time's sake (Dad's company)

The bolded ones are where I see the best return coming.

 

[FeathersMcGraw]

Counting stocks doesn't guarantee diversification. I could buy every stock listed on the NASDAQ and still be less diversified than a person who owned a mutual fund tracking the Wilshire 5000, an international equities fund, and an assortment of U.S. Government Treasuries. Asset categories are a far more important measure of diversification.

 

[GasX]

Originally posted by: FeathersMcGraw
Counting stocks doesn't guarantee diversification. I could buy every stock listed on the NASDAQ and still be less diversified than a person who owned a mutual fund tracking the Wilshire 5000, an international equities fund, and an assortment of U.S. Government Treasuries. Asset categories are a far more important measure of diversification.

Agreed. Diversification is not a simple thing. By some measures, 1 stock, 1 bond, 1 REIT and some cash is more diversified than a mutual fund holding 1000 stocks.

 

[kherman]

Originally posted by: FeathersMcGraw
Counting stocks doesn't guarantee diversification. I could buy every stock listed on the NASDAQ and still be less diversified than a person who owned a mutual fund tracking the Wilshire 5000, an international equities fund, and an assortment of U.S. Government Treasuries. Asset categories are a far more important measure of diversification.

I agree with you. Holding 20 tech stocks is a bad idea. OK, I left out a lot of considerations like bonds, etc. I probably should have done a more strait forward poll. "How many stocks do you own?". oh well, hind-sight is 20-20. Maybe in a couple of days I'll do a diferent poll.

 

[Quixfire]

Let's see.

Real estate holdings - Apartment Complexes, Land Development, Rental Homes

Stock - Chrysler, Ford, GTE, AT&T, Sun, IBM, ATI, & Pfizer

Gold, mostly here in the US, some in Foriegn Markets

T-bills, but most likey won't renew them.

Mutual funds, 401K, and IRA's, I'm too young for those yet.

 

[kherman]

Originally posted by: Quixfire
Let's see.

Real estate holdings - Apartment Complexes, Land Development, Rental Homes

Stock - Chrysler, Ford, GTE, AT&T, Sun, IBM, ATI, & Pfizer

Gold, mostly here in the US, some in Foriegn Markets

T-bills, but most likey won't renew them.

Mutual funds, 401K, and IRA's, I'm too young for those yet.

Your a landlord, but don't have any IRAs yet? I guess what Imean to say is that you are as diversified as you are but havn't got an IRA yet? Seems odd.

 

[Quixfire]

Originally posted by: kherman

Your a landlord, but don't have any IRAs yet? I guess what Imean to say is that you are as diversified as you are but havn't got an IRA yet? Seems odd.

I haven't started using IRA's because of the limitations in the amount you can invest over a year. The tax advantage isn't as great, when you can set up a corporation to handle you investments and then only be taxed on your profit, not your earnings.

Example, my secretary's company vehicle is a Mercedes Benz, which completely tax deducible and she lets me drive once in a while. This is hard to do if you put your money in an IRA.

BTW, my secretary is the wife.

 

[PsychoAndy]

100% tech, bought in august of 2000.

-PAB

 

[CPA]

I chose the 51-75 selection.

Sample of stocks owned:

XOM - That's right you anti-oil fanboys I own stock in the biggest oil company in the country, and I love it. Pays very good dividend

GPS - Gap, not doing well right now or for the last two years for that matter

INTC - Intel, ho-hum

CBCF - A bank, my token financial stock

MRK - Merck, solid

KO - Coca-Cola, has had rough time as of late

ENRNQ.PK - Enron, that's right I threw a little money at them when they plummeted. Now they are only sold on a pink sheet, so I can't sell easily. Been reading that Enron will cancel the current stock and issue new stock under a new company name. Oh well, looks like a lost a few bucks.

WMI - Waste Management, my company so I fell obligated to own some. And, unlike Enron employees my contribution to my company's stock is small in comparison to my portfolio as a whole.

 

[CPA]

Originally posted by: Quixfire
Let's see.

Real estate holdings - Apartment Complexes, Land Development, Rental Homes

Stock - Chrysler, Ford, GTE, AT&T, Sun, IBM, ATI, & Pfizer

Gold, mostly here in the US, some in Foriegn Markets

T-bills, but most likey won't renew them.

Mutual funds, 401K, and IRA's, I'm too young for those yet.

Why are you too young for a mutual fund, IRA or even a 401K???

 

[PsychoAndy]

Originally posted by: CPA

Originally posted by: Quixfire
Let's see.

Real estate holdings - Apartment Complexes, Land Development, Rental Homes

Stock - Chrysler, Ford, GTE, AT&T, Sun, IBM, ATI, & Pfizer

Gold, mostly here in the US, some in Foriegn Markets

T-bills, but most likey won't renew them.

Mutual funds, 401K, and IRA's, I'm too young for those yet.

Why are you too young for a mutual fund, IRA or even a 401K???

IIRC, IRA's and 401k's require a real job or self employment.

I have had a roth since I was 15.

-PAB

 

[kherman]

Originally posted by: Quixfire

Originally posted by: kherman

Your a landlord, but don't have any IRAs yet? I guess what Imean to say is that you are as diversified as you are but havn't got an IRA yet? Seems odd.

I haven't started using IRA's because of the limitations in the amount you can invest over a year. The tax advantage isn't as great, when you can set up a corporation to handle you investments and then only be taxed on your profit, not your earnings.

Example, my secretary's company vehicle is a Mercedes Benz, which completely tax deducible and she lets me drive once in a while. This is hard to do if you put your money in an IRA.

BTW, my secretary is the wife.

In a Roth-IRA, your only taxed when you take the money out. In 30 years in my case. I'll only be taxes on profit. How does one get taxed on earnings? i don't get it.

How do you set up a corporation? Is it legal? Hrmm more info.

 

[PsychoAndy]

Originally posted by: kherman

Originally posted by: Quixfire

Originally posted by: kherman

Your a landlord, but don't have any IRAs yet? I guess what Imean to say is that you are as diversified as you are but havn't got an IRA yet? Seems odd.

I haven't started using IRA's because of the limitations in the amount you can invest over a year. The tax advantage isn't as great, when you can set up a corporation to handle you investments and then only be taxed on your profit, not your earnings.

Example, my secretary's company vehicle is a Mercedes Benz, which completely tax deducible and she lets me drive once in a while. This is hard to do if you put your money in an IRA.

BTW, my secretary is the wife.

In a Roth-IRA, your only taxed when you take the money out. In 30 years in my case. I'll only be taxes on profit. How does one get taxed on earnings? i don't get it.

How do you set up a corporation? Is it legal? Hrmm more info.

You get taxed on your IRA earnings with a regular IRA. Thats the difference with Roth and Traditional. Its just deferred so many years.

Corps are legal. Consult a lawyer and have them do the paperwork.

-PAB

 

[LoverBoyJ]

Originally posted by: PsychoAndy

Originally posted by: kherman

Originally posted by: Quixfire

Originally posted by: kherman

Your a landlord, but don't have any IRAs yet? I guess what Imean to say is that you are as diversified as you are but havn't got an IRA yet? Seems odd.

I haven't started using IRA's because of the limitations in the amount you can invest over a year. The tax advantage isn't as great, when you can set up a corporation to handle you investments and then only be taxed on your profit, not your earnings.

Example, my secretary's company vehicle is a Mercedes Benz, which completely tax deducible and she lets me drive once in a while. This is hard to do if you put your money in an IRA.

BTW, my secretary is the wife.

In a Roth-IRA, your only taxed when you take the money out. In 30 years in my case. I'll only be taxes on profit. How does one get taxed on earnings? i don't get it.

How do you set up a corporation? Is it legal? Hrmm more info.

You get taxed on your IRA earnings with a regular IRA. Thats the difference with Roth and Traditional. Its just deferred so many years.

Corps are legal. Consult a lawyer and have them do the paperwork.

-PAB

Roth-IRA's are not taxed when withdrawn, thats the most preferred vehicle for retirement (much like a savings account but with higher interest yield), BUT if withdrawn before the age of 65 (i think) you'll get a big penalty hit! I haven't heard any taxation on Roth IRA's.

Traditional IRA's are taxed when withdrawn (during retirement) because you can claim them for tax deductions when filing for income taxes. You can withdraw early on traditional IRA without getting penalized for use as a down payment on a first time home buy but still you get taxed as soon as you withdraw it.

Consult a financial planner when planning for your retirement!

 

[Quixfire]

Originally posted by: CPA<br

Why are you too young for a mutual fund, IRA or even a 401K???

Well I am old enough to qualify for one and I am employed, but I not ready to lock my money into a government sponsored saving account. And here is why.

Lets say I sold a piece of property for a profit of 10 million dollars; I don't have to pay taxes on my profit until the end of my fiscal year. So while I looking for another property to invest in I loan the money to my investment firm. Which in turn pays interest on the loan, say 10%, they take the money and invest in volatile stock, like Ford. The firm buys stock and when they rebound by as little as $2.00, they sell making around 2 million dollars. I keep this practice up as long as possible, when nearing the end of my fiscal year; the firm pays the loan back in full plus interest. My real estate company then buys a property that is worth more than the value of the one sold at the beginning of the year. And additional money is borrowed from the investment firm, or banks if necessary. In the end I increase my net worth by millions with out being taxed to death.

I only pay taxes on the earned interest if my expenses don't use up the profit. I know this is legal because my accountant hasn't gone to jail and my companies were audited two years ago and the IRS owed me money.

When I reach the age of 55-60 then I will convert most of my investments into Mutual funds or private bonds for stability.

 

[FoBoT]

seems like index funds should count for more than 7 stocks, like the S&P 500 mutual fund that most of my 401(k) is in , is made up of 500 stocks, so why shouldn't that count as 500 stocks?

 

[kherman]

Originally posted by: Quixfire

Originally posted by: CPA<br

Why are you too young for a mutual fund, IRA or even a 401K???

Well I am old enough to qualify for one and I am employed, but I not ready to lock my money into a government sponsored saving account. And here is why.

Lets say I sold a piece of property for a profit of 10 million dollars; I don't have to pay taxes on my profit until the end of my fiscal year. So while I looking for another property to invest in I loan the money to my investment firm. Which in turn pays interest on the loan, say 10%, they take the money and invest in volatile stock, like Ford. The firm buys stock and when they rebound by as little as $2.00, they sell making around 2 million dollars. I keep this practice up as long as possible, when nearing the end of my fiscal year; the firm pays the loan back in full plus interest. My real estate company then buys a property that is worth more than the value of the one sold at the beginning of the year. And additional money is borrowed from the investment firm, or banks if necessary. In the end I increase my net worth by millions with out being taxed to death.

I only pay taxes on the earned interest if my expenses don't use up the profit. I know this is legal because my accountant hasn't gone to jail and my companies were audited two years ago and the IRS owed me money.

When I reach the age of 55-60 then I will convert most of my investments into Mutual funds or private bonds for stability.

Wow! If you're dealing with multi-million dollar purchases and sales of property, I think your way beyond most of us. A Roth_IRA still seems like it would make sense for you to start, even though you make so much money.

So, what happens when your firm buys a stock and it plummets?

I'd love an explanaiton of how this all works, but I suppose if you can recomend any books to us, that would be great. This all seeems very overwhelming, so any starting point would be great. Sounds like a big hassle to me, but if I can retire in 10 years, you can bet your life I'll look into it

Is any of this process stressful?

How old are you?
How long have you been doing this?
What's your personal worth if you cashed out today?
How much cash did you start with?

 

[kherman]

Originally posted by: FoBoT
seems like index funds should count for more than 7 stocks, like the S&P 500 mutual fund that most of my 401(k) is in , is made up of 500 stocks, so why shouldn't that count as 500 stocks?

I guess one of my original goals for this poll was to see how many people actually do their homework in the stock market. If you own nothing but mutual funds, that means next to no research has to be done.

To go out and buy 30 individual stocks is much harder than getting into a mutual fund that trades in and out of 500 stocks.

 

[Quixfire]

kherman
I would rather answer those questions offline, please PM your e-mail address to me.

As for the rest of you curious people, I recommed reading the book Rich Dad, Poor Dad by Robert Kiyosaki.

 

[snooker]

I have stock all over the place, yet they are all going down.

Ahh well, I invested for retirement and do not plan on messing with it anytime soon.