There are many great names on sale in my opinion, but you must be able to look out a few months/years out. Normally I don’t speak much about my portfolio(s), I only mention my quick trades.
Beneath the surface, I have been building a portfolio with stocks that have took it on the chin. I use smaller position sizes and add to them as they fall lower.
Here are some names in that portfolio: NVIDIA Corporation [[NVDA]] , VMware, Inc. [[VMW]] , Chesapeake Energy Corporation [[CHK]] , Google Inc. [[GOOG]] , Yahoo! Inc. [[YHOO]] , E TRADE Financial Corporation [[ETFC]] , Valero Energy Corporation [[VLO]] , and now Chipotle Mexican Grill, Inc. [[CMG]] .
Suntech Power Holdings Co., Ltd. (ADR) [[STP]] was in this portfolio, but it ran so fast I had to take profits.
As traders, we should not limit ourselves to one avenue. For instance, I have 3 separate accounts:
The first one is the roth IRA, one in which everyone should have. I use this account for stocks I evaluate on a fundamental basis and have a longer time frame. Typically the stocks in this portfolio have lower betas, and many pay dividends. This is the account I rarely speak of, mainly because it’s slow money.
The second is my swing account. In this account, I add positions I intend to hold for a few days or even weeks. This is also the account I place stocks that have been crushed, like VLO, NVDA, ect.
The third, is my trading account. This is the one you hear me write about all the time.
The point I’m trying to get across is that there are opportunities to be had all over the marketplace. A year from now you will be kicking yourself when GOOG is back over $600, or VLO back at $50.
The market is cyclical in nature, don’t forget to take advantage of the dips.
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General Question:
Since my wife and I are self employeed, we manage our own 401K’s. Does anyone have the same situation and what pecentage of each 401K have the same stocks. We have some common ones but I am not so sure that it is a wise idea.
Ragin, what about adding a little NOV to your longer term holdings?
Mr. F, my husband and I invest with separate accounts. I feel very ambivalent about it, not sure if that is a good idea or not. Occasionally but not often we overlap on stocks, I worry a little about over-concentration in a sector when that happens.
NOV is my fav. oil service play. However, I think it may come down some more.
Good idea to look at overlap and sector concentration. My rule of thumb in a diversified stock portfolio is no more than 5% allocation to a stock, and no more than 30% concentration in one sector. Also, your top ten holdings shouldn’t be more than 50% of your account. I think that’s a pretty universal rule of thumb.
If you work for a public company, I’d put no more than 10% of your account value(s) in your beloved employers stock, even if they do assign that hot blonde administrative assistant to do your bidding. Besides, the wife probably wouldn’t approve.
Hopefully, you don’t work for Bear Sterns.
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Cajun–good post.
RC what do u think about GU now a days?
Good comment too AD …
Boca/Alpha
Thanks for the information