Investment advice thread

[The-Noid]

Originally posted by: Lothar

Originally posted by: Yoxxy

Originally posted by: Lothar

Originally posted by: Yoxxy
My rules apply to stocks and individual bonds except for investing in indexed mf's. That is why I say limit positions to 10%. I don't really deal with indexes unless it is a short term future so I canuse the leverage...

Whatever suits you.

If you do your own proper research, you shouldn't have to follow that rule.
I'll keep my 20% portfolio investment in LUK, thank you.

blah, your a know it all. Holding companies are the equivalent of buying a mutual fund. You knew that when you posted it. Even day traders won't fill their books more than 10%. As even day traders always have powder in treasuries. Having said that LUK is running low on cash so their prospect for increasing revenues through consolidations and purchases is lower than it has been in the last 2 fiscal years. To expand at the rate they have and to keep those P/E ratios that you hate they are either going to need to issue (more) debt (that is what I would not want to do in this environment) or issue more equity and dilute you.

Wait a year and we will see how your LUK does my guess is around negative 10-12 percent from this today.

There are limits to every rule, but generally for the average investor they should have no more than 10% in a single holding, unless there is a specific situation. Look at the many LEH or BSC employees that had 90% of their net worth in their own stock which was averaging 20% a year. Now where are they?

I'm not a day trader so your comparison there is irrelevant.
Why make the 10% rule to limit yourself when you can invest more into your best idea? That's like saying "one shouldn't have more than 10% of their portfolio in Berkshire".

I've waited 4 years since I first purchased the stock. I will continue to wait.
LUK has been overvalued the past 2 years. I haven't bought any additional new shares since then.
If your guess is really a negative 10-12% then that means I suspect you're also expecting the market to drop double your "expected" amount, right? 😉
Sounds like a good deal to me compared to picking a generalized S&P 500 index fund.

We also have an 11% portfolio stake in JNJ which is ahead of your hard "10%" limit as well. :roll:

Again that's a stupid comparison. We don't have 90% of our net worth in one particular stock. LUK is the highest at 19.4%, and if by net worth you also include car, house, and other things we own then it's much less than that.

My expectation is Dow 7500 is the bottom. But many have made the case for 6,000 Dow and 950 S & P for the bottom.

It all depends how much of a government/fed bottom we get.