Raytheon Stock [Advice]

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bulldogmed
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Joined: Tue Feb 25, 2014 3:42 pm

Raytheon Stock [Advice]

Post by bulldogmed » Sun Apr 27, 2014 6:59 am

http://online.wsj.com/news/articles/SB1 ... reno64-wsj

Anyone have thoughts on buying Raytheon stock? I know it goes against BH mantra to buy individual stocks, but what about one stock? Buy and hold it for a year, and see how you do. Currently priced, if Raytheon were to go bankrupt, at most you would lose is $95. How about it?

The Wizard
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Re: Raytheon Stock Advise

Post by The Wizard » Sun Apr 27, 2014 7:07 am

Sure, go ahead.
Learn how individual stocks work.
Just keep the individual stocks to a small fraction of your total investment portfolio; I'd say 5% or less.
So for a total port of $500K, you're allowed $25K max to spread over a handful of individual stocks...
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Topic Author
bulldogmed
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Re: Raytheon Stock Advise

Post by bulldogmed » Sun Apr 27, 2014 7:14 am

The Wizard wrote:Sure, go ahead.
Learn how individual stocks work.
Just keep the individual stocks to a small fraction of your total investment portfolio; I'd say 5% or less.
So for a total port of $500K, you're allowed $25K max to spread over a handful of individual stocks...
Maybe the better question is, should I be taking stock tips from the WSJ?

The Wizard
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Re: Raytheon Stock Advise

Post by The Wizard » Sun Apr 27, 2014 7:17 am

bulldogmed wrote:
The Wizard wrote:Sure, go ahead.
Learn how individual stocks work.
Just keep the individual stocks to a small fraction of your total investment portfolio; I'd say 5% or less.
So for a total port of $500K, you're allowed $25K max to spread over a handful of individual stocks...
Maybe the better question is, should I be taking stock tips from the WSJ?
I don't think there's any disputing the performance of Raytheon stock shown in the graph in that article...
Attempted new signature...

Kidneydoc
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Re: Raytheon Stock Advise

Post by Kidneydoc » Sun Apr 27, 2014 8:52 am

I purchased RTN at $40, and my stake has grown with dividend reinvestment. I know passive investing a big part of this forum. My stock portfolio makes up 40% of my net worth, but I enjoy keeping track of my stocks. I lean toward a value philosophy: mostly dividend stocks with competitive advantage which RTN both have. However, you will need to ride out periods in the market when defensive stocks are not popular (ie. defense cuts). This stock is a buy and hold for me.

MN Finance
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Re: Raytheon Stock Advise

Post by MN Finance » Sun Apr 27, 2014 8:54 am

One share of one stock for one year? Why don't you just collect figurines instead.

Topic Author
bulldogmed
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Re: Raytheon Stock Advise

Post by bulldogmed » Sun Apr 27, 2014 9:13 am

MN Finance wrote:One share of one stock for one year? Why don't you just collect figurines instead.
Haha, well I don't care about figurines for one thing. For another, I'm a 24yo medical student, so I have a low net worth. I just thought it might be an interesting experiment. FYI, I've already maxed out my Roth IRA and my spouse's Roth IRA with TR funds in Vanguard, so I'm not some young hot head. :D

John3754
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Re: Raytheon Stock Advise

Post by John3754 » Sun Apr 27, 2014 10:01 am

So we're talking about buying one share of the stock? I don't understand the point of this exercise. Sure if the stock goes to $0 then at most you've lost $95, but if the stock goes up 20% you've made $19, and after taxes and the fees to buy and sell the share you've just about broke even. If this is supposed to teach you some kind of lesson then I don't see it.

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whaleknives
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Re: Raytheon Stock Advise

Post by whaleknives » Sun Apr 27, 2014 10:51 am

I think it's a way to dollar cost average into the market. :)
"I'm an indexer. I own the market. And I'm happy." (John Bogle, "BusinessWeek", 8/17/07) ☕ Maritime signal flag W - Whiskey: "I require medical assistance."

placeholder
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Re: Raytheon Stock Advise

Post by placeholder » Sun Apr 27, 2014 12:26 pm

whaleknives wrote:I think it's a way to dollar cost average into the market. :)
A dollar at a time?

Retread
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Re: Raytheon Stock Advise

Post by Retread » Sun Apr 27, 2014 1:52 pm

Wait until you're out of medical school and can buy a thousand shares and also spell advice correctly. :happy
Bruce
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springnr
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Re: Raytheon Stock Advise

Post by springnr » Sun Apr 27, 2014 2:56 pm

Houston... second stage did not fire, good will orbit suboptimal.
Hands on learning works best for some, go for it, keep lesson cost reasonable.

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Mursili
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Re: Raytheon Stock Advise

Post by Mursili » Sun Apr 27, 2014 5:38 pm

We own some RTN. We invest our taxable account (not the most efficient tax-wise) in magicformulainvesting.com stocks. I recommend reading The Little Book That Beats the Market. It is not very BH-like and some (many?) around here can get snippy about "magic formulas." Still, it is really just another way of creating a value-oriented index if followed mechanistically. Currently RTN is on the list (though on the top 50, not top 30).

That being said, there is no point in buying a single share of a stock (other than Berkshire) unless you just want to deal with proxy statements and the like. Just start buying into an inexpensive equity index fund at this point in your life.
When it comes to havoc, no one wreaks like me! - Dr. Heinz Doofenshmirtz

spaddlewit
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Re: Raytheon Stock [Advice]

Post by spaddlewit » Sun Apr 27, 2014 9:12 pm

Some brokerages let you open up a 'paper trade' account.. where you 'buy' a stock but not really. It's cheaper than doing something like this.

jojay
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Re: Raytheon Stock [Advice]

Post by jojay » Mon Apr 28, 2014 6:30 pm

Hi
I'm not a fan of individual stock ownership having made a lot of money only to be so greedy that I lost it all again. But, Raytheon is an excellent investment from a long term portfolio perspective ( How ironic that they recently dropped 4% ). I work for a competitor and am fully aware of their market strength as well as their internal strengths. They will continue to grow. Their existing product line has future orders for several years and the technologies will yield terrific product differentiation and extension. Definitely a long term growth company.
Just target when you want to get out and don't be greedy.

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