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$100K Portfolio
Posted: Wed May 29, 2013 2:36 pm
by Odysseusa
Hi PPers,
Please provide some feedback regarding the portfolio below. Thank you.
$100K Portfolio
Stock
Basic Materials
100 shares of PSX at $65 = $6,500
Consumer Goods
200 shares of MO at $37 = $7,400
Healthcare
200 shares of ABBV at $45 = $9,000
Services
100 shares of NSC at $77 = $7,000
Industrial Goods
100 shares of UTX at $95 = $9,500
Financial
100 shares of CB at $88 = $8,800
100 shares of AFL at $54 = $5,400
Bond
100 shares of TLT = $11,600
Gold/Silver
100 shares of GLD = $13,500
Cash
200 shares of SHY = $16,800
Re: $100K Portfolio
Posted: Wed May 29, 2013 2:56 pm
by Pointedstick
sooo....
53.6% stocks
11.6% long bonds
14.1% precious metals
16.8% cash
3.9%
What was your rationale for choosing this allocation? What is your investment time horizon? What is your objective? Will you rebalance? When and now? Are you making new contributions? Are you looking for capital appreciation, or income, or both?
Without knowing any of those things, it's pretty hard to tell whether this portfolio makes sense for you.
Re: $100K Portfolio
Posted: Wed May 29, 2013 3:37 pm
by Ad Orientem
What Pointed said...
In addition was there some specific reason you didn't just go
55% VTI
15% CEF
15% Cash
15% TLT
?
Re: $100K Portfolio
Posted: Wed May 29, 2013 4:03 pm
by Odysseusa
I am mainly a stock person but I also want to listen to Harry Browne and try to keep stocks to around 50% and the rest to cash/bond/gold.
Re: $100K Portfolio
Posted: Wed May 29, 2013 7:33 pm
by sophie
With only 7 stocks, and >5% chunks of your portfolio held in individual stocks, this looks pretty risky to me. Are you planning to increase the number of stocks held?
I believe Harry Browne suggested holding at least 20 stocks for a reasonably safe level of diversity, but you can't beat owning the whole market with an index fund.
Re: $100K Portfolio
Posted: Thu May 30, 2013 8:59 am
by dualstow
MO (and PM) has been one of my favorite holdings throughout the years, but I don't think I'd want tobacco to be my only consumer goods stock. If it were, I'd choose PM over MO.
Re: $100K Portfolio
Posted: Fri May 31, 2013 1:12 pm
by Odysseusa
sophie wrote:
With only 7 stocks, and >5% chunks of your portfolio held in individual stocks, this looks pretty risky to me. Are you planning to increase the number of stocks held?
I believe Harry Browne suggested holding at least 20 stocks for a reasonably safe level of diversity, but you can't beat owning the whole market with an index fund.
Thank you. I will try to have the stock portion of at least 10 increasing-dividend stocks.
Thanks, Dualstow, Sophie, AD, Poinstick, etc.
Re: $100K Portfolio
Posted: Fri May 31, 2013 1:13 pm
by Odysseusa
dualstow wrote:
MO (and PM) has been one of my favorite holdings throughout the years, but I don't think I'd want tobacco to be my only consumer goods stock. If it were, I'd choose PM over MO.
I wonder that when marijuana is made legal in the United States that MO/PM will enter this type of business?
Re: $100K Portfolio
Posted: Fri May 31, 2013 10:15 pm
by smurff
I am picturing the Marlboro Man laid out, puffing on weed.
Re: $100K Portfolio
Posted: Sun Jun 02, 2013 8:52 pm
by dualstow
Odysseusa wrote:
dualstow wrote:
MO (and PM) has been one of my favorite holdings throughout the years, but I don't think I'd want tobacco to be my only consumer goods stock. If it were, I'd choose PM over MO.
I wonder that when marijuana is made legal in the United States that MO/PM will enter this type of business?
I think we'd see some nice competition between P.Morris and Wal*Mart.
On a related note, I've given up trying to nudge my septuagenarian mom to apply for medical marijuana for her glaucoma. It's too bad she's not interested. She has always made the best (drug-free) brownies.
Re: $100K Portfolio
Posted: Tue Jun 04, 2013 9:16 am
by Odysseusa
Sequoia Fund (SEQUX) holds over 15% in cash/bond. I would like to hold 15% in cash, 15% bond, 15% in gold/silver, and about 50% to 60% in stock to see how it goes. My reasoning for stock is that once you have found a good business with a wide moat, it is hard not to pick it up to make it part of your life.
Re: $100K Portfolio
Posted: Tue Jun 04, 2013 10:03 am
by Pointedstick
Odysseusa wrote:
My reasoning for stock is that once you have found a good business with a wide moat, it is hard not to pick it up to make it part of your life.
I'm not sure I understand what this means.
Re: $100K Portfolio
Posted: Wed Jun 05, 2013 9:56 am
by Odysseusa
Pointedstick wrote:
Odysseusa wrote:
My reasoning for stock is that once you have found a good business with a wide moat, it is hard not to pick it up to make it part of your life.
I'm not sure I understand what this means.
Here is the definition of wide moat.
http://www.investopedia.com/terms/w/wid ... c-moat.asp
Dictionary Says
Definition of 'Wide Economic Moat'
A type of sustainable competitive advantage that a business possesses that makes it difficult for rivals to wear down its market share and profit. The term is derived from the water filled moats that surrounded medieval castles. The wider the moat, the more difficult it would be for an invader to reach the castle.
Investopedia Says
Investopedia explains 'Wide Economic Moat'
Businesses that possess at least one factor of Porter's 5 forces model would possess a wide economic moat. For example, a business that holds an exclusive patent for the creation of a miracle drug would effectively keep potential competitors out of its business. Having few or no competitors would allow the company to continually generate high levels of profit. Legendary investor Warren Buffett is renowned for his philosophy of investing in businesses with wide economic moat.
Re: $100K Portfolio
Posted: Wed Jun 05, 2013 10:39 am
by Pointedstick
Right, but "make it a part of your life?" Concentrating too much of your money in a single company seems awfully risky, regardless of how wide their moat or thick their walls or whatever other castle metaphors may apply. Competitive advantages have a way of disappearing overnight, and when you least expect it.