Investment Advice for Squilly

Discussion in 'Community Discussion' started by ucfgrad93, May 6, 2014.

  1. ucfgrad93 macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #1
    Ok, Squilly I know I've given you some grief in the past, but I'd like to share with you some ideas about investing. I have been pretty successful using a particular strategy that someone shared with me about 10 years ago. For the most part, it has worked well for me. I starting using this in my IRA in 2006 and since that time my account is up 142%.

    So, to get started, I want to ask you a few questions:

    1. How old are you?
    2. Do you have an online brokerage account, ie. TDameritrade, Scottrade, E-Trade, etc.
    3. How much do you have to initially invest?
    4. What are your goals for this money?
     
  2. Squilly macrumors 68020

    Squilly

    Joined:
    Nov 17, 2012
    Location:
    PA
    #2
    19
    TD Ameritrade
    $2000, at first invested in 10 stocks, narrowed it down to 3 - DDD, KKR & KR.
    Make more money
     
  3. ucfgrad93 thread starter macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #3
    Ok, good.

    A couple of clarifications:

    1. Of the $2,000 how much is in cash or is it all invested in the 3 stocks you listed?
    2. Making more money is a pretty generic goal. What do you want to use the money for? A car, cheap liquor & cheaper women, pay off debt?
     
  4. SilentPanda Moderator emeritus

    SilentPanda

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  5. ucfgrad93 thread starter macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #5
    No. I'd like to keep this out in the open. This way others may join in and possibly help or learn something.
     
  6. Squilly macrumors 68020

    Squilly

    Joined:
    Nov 17, 2012
    Location:
    PA
    #6
    It was all invested. Now it's about $2400 with $120 in cash over ~15 months.
     
  7. ucfgrad93 thread starter macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #7
    Ok, if I'm understanding you correctly, you started with $2,000 and your account is currently worth $2,520 ($2,400 in stock + $120 in cash). That is a 26% gain in 15 months. That is awesome!

    What about the second question: What do you want to do with the extra money you make?
     
  8. Squilly macrumors 68020

    Squilly

    Joined:
    Nov 17, 2012
    Location:
    PA
    #8
    Save it or reinvest it.
     
  9. ucfgrad93 thread starter macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #9
    Good, I'm glad you don't want to blow it.

    Next question: Are you able to add to it on a regular basis?
     
  10. Squilly macrumors 68020

    Squilly

    Joined:
    Nov 17, 2012
    Location:
    PA
    #10
    Yes. I'll probably be adding $10k of Apple in the near future.
     
  11. Shrink macrumors G3

    Shrink

    Joined:
    Feb 26, 2011
    Location:
    New England, USA
    #11
    My thought exactly.

    But I'm sure there's so much to learn here...:p
     
  12. ucfgrad93 thread starter macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #12
    So, at the current price $10,000 would get you 16 shares of Apple. If you do that, then 80% of your portfolio will be in just one stock. That is a very risky position to be holding. Basically, you are betting everything on Apple to succeed. Now Apple has a pretty good track record, but not always. If you did that in September 2012 when Apple was around $700, then you still wouldn't be back up to that price.
     

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  13. Squilly macrumors 68020

    Squilly

    Joined:
    Nov 17, 2012
    Location:
    PA
    #13
    Right. But I'm betting that because of their track record and the fact that they'll be down to below $100 to reach more investors and get a hefty dividend AND releasing a larger iPhone, it'll shoot back up.
     
  14. ucfgrad93 thread starter macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #14
    That could all very well happen. Or it could be a huge flop and the stock will tank. Basically, you are trying to "time the market." As most experienced investors will tell you, that is not always an easy thing to do.

    Now in fairness and full disclosure, I do own Apple stock and it is about 30% of my IRA. Even that position is too high. However, I bought it for the same reasons you want to: the dividend and the stock split. After the split, I'll probably sell off some of it.
     
  15. Squilly macrumors 68020

    Squilly

    Joined:
    Nov 17, 2012
    Location:
    PA
    #15
    Fair enough. If I buy, I'll sell a bit after the split and see what happens. Don't expect it to dip though.
     
  16. ucfgrad93 thread starter macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #16
    I don't expect it to dip either, but it could.

    What I recommend to most of my friends is invest money in the entire market or a segment of the market and not just one particular stock. This is what mutual funds and ETFs do. It is a basket or collection of stocks that covers a market or segment of the market.

    I first learned and tried this strategy using an ETF called PowerShares QQQ. It trades under the ticker symbol QQQ. It is tech centered EFT. Its top 10 holdings are:

    Apple 13.17%
    Microsoft 8.21%
    Google, Class A 3.72%
    Google 3.68%
    Amazon 3.52%
    Qualcomm 3.33%
    Intel 3.27%
    Gilead Sciences 2.98%
    Facebook Class A 2.98%
    Cisco 2.94%

    The top ten holdings account for 47.8% of the entire holdings of QQQ, and there are a total of 101 stock holdings in the entire fund.

    http://portfolios.morningstar.com/fund/holdings?t=QQQ&region=usa&culture=en-US&ownerCountry=USA

    Are you with me so far?
     
  17. mobilehaathi macrumors G3

    mobilehaathi

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    Location:
    The Anthropocene
    #17
    Yeah, but eventually you're going to launch a hostile takeover of Berkshire Hathaway, right?
     
  18. TechGod macrumors 68040

    TechGod

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    Feb 25, 2014
    Location:
    New Zealand
    #18
    That is the most logical thing to do, obviously.
     
  19. Squilly macrumors 68020

    Squilly

    Joined:
    Nov 17, 2012
    Location:
    PA
    #19
    I understand. At first I had 10 or 11 stocks in my portfolio split between $2000. I had 3 biopharmaceuticals, all of which I pulled out before they all became successful. I was all around the market before I stayed with my current three.
     
  20. ucfgrad93 thread starter macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #20
    Good.

    I hate to say it, but I'm booked for the rest of the day and evening. But tomorrow, we'll get into what I want to share with you.
     
  21. nebo1ss macrumors 68030

    Joined:
    Jun 2, 2010
    #21
    Squilly with the gains you made in the last 18 months. You should be giving investment advice to ucfgrad.
     
  22. Squilly macrumors 68020

    Squilly

    Joined:
    Nov 17, 2012
    Location:
    PA
    #22
    Gains aren't supposed to be that high?
     
  23. Peace macrumors Core

    Peace

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    Space--The ONLY Frontier
    #23
    Remember AAPL is splitting 7-1 in June.
     
  24. nebo1ss macrumors 68030

    Joined:
    Jun 2, 2010
    #24
    On an annualised basis and with interest rates where they are you are doing very very well.
     
  25. rdowns macrumors Penryn

    rdowns

    Joined:
    Jul 11, 2003
    #25

    So? $10,000 invested today is still $10,000 after the split, plus or minus any gain or loss from now until then.
     

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