[Sell off individual stocks?] How many own zero/few stocks?

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SuperSaver
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[Sell off individual stocks?] How many own zero/few stocks?

Post by SuperSaver » Fri Aug 29, 2014 8:14 am

Hi Bogleheads,

Just trying to gauge how truly committed those on here are: How many of you are all-in with indexed funds only?

I'm 37, and contemplating the wisdom on here and slowly divesting my shares of individual stocks. Some of these were given to me by family, so there's the emotional bonds too that need be severed.

My only dilemma are:
1) the capital gains in selling now. I don't need the money
2) Some of the blue chips are great dividend producers... Even if they don't match the Index, they will still be a good source of income
3) My 3 largest equities have out-performed the market handsomely since purchased in late 1990s. I'd hate to sell my "winners".

If I do sell, I'd put it all in Total Stock Market Index.

Thanks

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Re: Poll: How many own zero/few stocks?

Post by cheese_breath » Fri Aug 29, 2014 8:25 am

SuperSaver wrote: 3) My 3 largest equities have out-performed the market handsomely since purchased in late 1990s. I'd hate to sell my "winners".
I love this one. Would you prefer to wait until they're your losers like maybe Enron, WorldCom, GM, and many others? Personally I don't own any individual stocks. All in TSM Index except for a little in S&P 500 index.
The surest way to know the future is when it becomes the past.

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Re: Poll: How many own zero/few stocks?

Post by Nukeboilermaker » Fri Aug 29, 2014 8:31 am

I'm in a similar situation as you (28 years old), I own 3 stocks two of which were gifts from family members and the third is my ESPP. I am selling the 2 stocks that my family gave me here very soon as we're building a home. I don't think they would want it any other way knowing they contributed to the home my family will grow up and establish fond memories in. The third is an ESPP (employee stock purchase) that I have confidence in, as I'm an indexer but still believe in this stock. I plan to sell the ESPP stock when the portfolio value reaches a target point/value (approximately every 4 to 6 years). With that money I will divide it into fourths and apply towards invest/spend/mortgage/college.

What's important about single stocks is that you aren't actively single stock picking with your portfolio. It's okay and fun to have some single stocks in companies you believe in, the key is for that behavior to not be a majority of your portfolio. Usually <10% of portfolio can be in this manner and people often refer to this as the "mad money".

Cheers,
Nuke

Edit: If there is a company that provides a service or product that you stand behind and want to succeed, investing in the company can certainly impact that company. I know someone who strongly believes in electric cars and invested in tesla solely for that reason, his investment has worked out well for him. The important factor is investing in diverse fashion, but don't buy stock (XY) purely because motley fool or a coworker said so...
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mhc
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Re: Poll: How many own zero/few stocks?

Post by mhc » Fri Aug 29, 2014 8:32 am

I'm all in with index funds.

I receive ESPP, NQSO, and RSU's every year. I sell them immediately. My gambling days are over.

I use to buy bonds at auction. Those are all gone. Holding a bond fund in retirement accounts is a lot easier. I have better things to do with my time.

Professor Emeritus
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Re: Poll: How many own zero/few stocks?

Post by Professor Emeritus » Fri Aug 29, 2014 8:33 am

I made one single stock investment in my entire life. Compaq That taught me everything I needed to know that I was not a master of the universe

Gropes & Ray
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Re: Poll: How many own zero/few stocks?

Post by Gropes & Ray » Fri Aug 29, 2014 8:35 am

I have never had an individual stock. I only started investing a few years ago and all of my investments are in tax advantaged accounts that offer mutual funds.

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Re: Poll: How many own zero/few stocks?

Post by Sconie » Fri Aug 29, 2014 8:39 am

I don't own any individual securities currently, however, I have in the past----generally for a relatively small portion of my portfolio and when I recognized an opportunity that I thought others had ignored.
I know that you think you understand what you thought I said, but I don't think you realize that what I said is necessarily what I meant......

gerrym51
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Re: Poll: How many own zero/few stocks?

Post by gerrym51 » Fri Aug 29, 2014 8:42 am

I'm in no index funds. Got 2 target date funds

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Re: Poll: How many own zero/few stocks?

Post by jf89 » Fri Aug 29, 2014 8:51 am

In college when I was just learning about this whole stock market thing (and before being referred to this site), I purchased two individual stocks. The blue chip stock I purchased is my father's employer. The other was a penny stock mining company, because the trading platform gave me $100 and a free trade. I forget why I chose that specific company, but it was certainly not based on anything intelligent.

The blue chip was sold to become the first deposit in my IRA (although I still follow it closely, as a large portion of my father's retirement is invested in company stock (not his choice), and his pension is very closely tied to their overall health).

My mining company penny stock shares were at one point worth less than the cost to sell them, so I held on. It has reverse-split and my total share value now fluctuates between $9 and $12 (somebody is actually trading this inactive mining company on a daily basis!). One of these days the shares will either become worthless, or they'll strike gold (literally) and... I don't really know the upside of twelve ~$1.00 shares in a mining company that doesn't mine. Until then, I track this <0.01% with my overall portfolio just for fun.
"Save as much as you can, diversify diversify diversify, and you can't go wrong with tech stocks" | -First investing advice I recall from my parents in the 90's (two outta three ain't bad)

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Re: Poll: How many own zero/few stocks?

Post by bloom2708 » Fri Aug 29, 2014 8:52 am

We own an individual stock 1 day per year. The day our "stock awards" vest. The day they hit our Fidelity account I push "sell".

I then diversify into our cash accounts, college funds and index funds.
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jf89
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Re: Poll: How many own zero/few stocks?

Post by jf89 » Fri Aug 29, 2014 8:53 am

gerrym51 wrote:I'm in no index funds. Got 2 target date funds
Interesting that you make that distinction... I'd consider you 100% in index funds.
"Save as much as you can, diversify diversify diversify, and you can't go wrong with tech stocks" | -First investing advice I recall from my parents in the 90's (two outta three ain't bad)

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Re: Poll: How many own zero/few stocks?

Post by jeff1949 » Fri Aug 29, 2014 8:55 am

I was given $2000 worth of Portland General Electric stock back in the 1990s. This company then morphed into Enron and we went on a wild ride together. :shock: :oops:


Suffice it to say I now own only VG Index Funds (5 different ones). 8-)
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Re: Poll: How many own zero/few stocks?

Post by Grt2bOutdoors » Fri Aug 29, 2014 8:56 am

I hold index funds and individual equities (many). My retirement money is in index funds (the vast majority of assets).
Don't take risk with more than you can afford to lose. I have had winners, and outright losers - the winners more than made up for the losers, but things can change on a dime, including the holdings in an index fund. Anyone invested in an equity fund, be it index/actively managed/sector funds especially,is doing themselves a disservice if they believe their money is "safe" or "safer", it is not. Owning a particular strategy such as low-beta, minimum volatility, smart-beta, alternative funds, commodity funds doesn't make one immune to the risk of loss. Spreading out your risk minimizes the error of regret "oh, i wish i didn't have 15% of my assets in Enron, GM, Kodak, Polaroid, etc......but that's about the only free lunch you will get.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Re: Poll: How many own zero/few stocks?

Post by 123 » Fri Aug 29, 2014 9:09 am

Aside from our index funds we have a small percentage in Berkshire Hathaway (BRKB). It makes my wife feel like we're real big wheeler dealers. It gives her a cheap thrill whenever Warren Buffet is mentioned in the media, since he's "Our Warren".
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Re: Poll: How many own zero/few stocks?

Post by sunnyday » Fri Aug 29, 2014 9:10 am

I own 0 stocks and have a 3 fund portfolio. I'm a fan of keeping it simple. If I had individual stocks, I may wait to sell depending on the taxes on the capital gains. Or if they made up a large portion of my portfolio, I'd probably sell all of the ones with the smallest gains.
SuperSaver wrote: 2) Some of the blue chips are great dividend producers... Even if they don't match the Index, they will still be a good source of income
Dividends have a tax-disadvantage, so you're probably better off holding equity with low dividends, assuming the total returns are the same.

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Re: Poll: How many own zero/few stocks?

Post by LarryG » Fri Aug 29, 2014 9:13 am

Years ago I owned numerous individual stocks. I then "saw the light" and moved to mutual funds. The light then got brighter and I went to index funds. I have held index funds for about 15 years.
LarryG

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DaveG
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Re: Poll: How many own zero/few stocks?

Post by DaveG » Fri Aug 29, 2014 9:13 am

We own 5 individual stocks which is a lot fewer than we used to own. >95% of our investments are in index funds or ETF's.
He/She:41/40, Kids:8/4 | Stock (72%): 20% US LrgCap, 20% Intl Developed, 8% US MidCap, 8% US SmlCap, 7% Intl EM & Frontier, 5% RE, 4% JnkBnd | Bond (25%): 21% USIndx, 4% TIPS | Commodities (3%)

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Re: Poll: How many own zero/few stocks?

Post by dickenjb » Fri Aug 29, 2014 9:18 am

I had one share of my former employer. I bought it so I could attend the annual meeting last year. I thought it might be interesting since we had an activist investor who fired our CEO and put his people on the board. It wasn't at all interesting.

This thread prompted me to go on Vanguard and sell the share.

I now own no individual stocks. However, I do have NQSO's on my former employer stock and anticipate executing all of those by expiry in 2018. Then I will own no individual stocks nor derivatives tied to individual stocks.

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Re: Poll: How many own zero/few stocks?

Post by technovelist » Fri Aug 29, 2014 9:19 am

I don't own any stocks.
I also don't own any index funds, actively-managed funds, or bonds.
I do have a couple of closed-end funds that invest solely in precious metals.
In theory, theory and practice are identical. In practice, they often differ.

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Re: Poll: How many own zero/few stocks?

Post by Flobes » Fri Aug 29, 2014 9:27 am

I own a single share of Berkshire Hathaway B, which entitles me to an 8% discount on my auto insurance.

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Re: Poll: How many own zero/few stocks?

Post by ObliviousInvestor » Fri Aug 29, 2014 9:30 am

Flobes wrote:I own a single share of Berkshire Hathaway B, which entitles me to an 8% discount on my auto insurance.
Ditto this. Otherwise, index funds.
Mike Piper, author/blogger

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JPH
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Re: Poll: How many own zero/few stocks?

Post by JPH » Fri Aug 29, 2014 9:52 am

I have shares of Nicholas Fund and VG Wellesley Income Fund. Both were among the first investments I ever made some 40+ years ago. I often think about selling them. But, the ERs are not too bad. They are in taxable accounts, and it has never seemed a good time to pay the taxes. Instead I've been converting from TIRA to RIRA.
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Re: Poll: How many own zero/few stocks?

Post by WhyNotUs » Fri Aug 29, 2014 9:53 am

I own a handful of individual shares of stocks that I ended up with from dividend reinvestment that did not jibe with sales or that allow me to track what could have been. Less than $1,000 all together. The Apple that I sold hurts a bit. Even MSFT perked up after I sold it.

If you are still investing monthly or yearly, you could do a gradual transition. Might be able to pick and choose your spots to sell shares based on long term gains and tax situation. YMMV

Personally, I thought about transitioning to indexes a long time before actually doing it. I still own some Wellesley which is actively managed. Probably 80% indexes 20% active funds at this time. For me, I became exhausted by trying to be smarter, more ethical, and interpreting information from a sector of human existence that had proven to be untrustworthy. My indexing was as much about surrender to larger forces as it was about optimizing wealth. What will be, will be.
I own the next hot stock- VTSAX

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Re: Poll: How many own zero/few stocks?

Post by nisiprius » Fri Aug 29, 2014 9:58 am

Which question is it?
How many own zero/few stocks?
I own zero individual stocks. Last time I owned an individual stock was in 2002.
Just trying to gauge how truly committed those on here are: How many of you are all-in with indexed funds only?
It would not be accurate to say all my holdings are in index funds. I would say I'm pretty darn committed to index funds but not 100% committed. I do not use "fun money" to try to improve my returns through speculative stock picks.

1) I do own over a dozen different issues of individual TIPS (Treasury inflation-indexed bonds) and what a pain in the neck they are.

2) I own two mutual funds that are technically not index funds: Vanguard Prime Money Market fund--well, money market funds are NOT index funds--and Vanguard Inflation-Protected Securities (VIPSX), which isn't an index fund but might as well be. It is so close to the index, and to the iShares TIPS index fund TIP, that you can barely separate the lines on a chart.
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Re: Poll: How many own zero/few stocks?

Post by InvestorNewb » Fri Aug 29, 2014 10:21 am

SuperSaver wrote:Just trying to gauge how truly committed those on here are: How many of you are all-in with indexed funds only?
I am. (see sig) very pleased with returns too.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)

SuperSaver
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Re: Poll: How many own zero/few stocks?

Post by SuperSaver » Fri Aug 29, 2014 10:22 am

The results are in...
To date, the "experts" picks beat the Indexers handily.
http://americasmarkets.usatoday.com/201 ... elivering/

Does suggest following their rec's in a bull market to make a good buck

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Re: Poll: How many own zero/few stocks?

Post by Dave55 » Fri Aug 29, 2014 10:24 am

No stocks. Index only.

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Re: Poll: How many own zero/few stocks?

Post by YDNAL » Fri Aug 29, 2014 10:29 am

SuperSaver » Fri Aug 29, 2014 9:14 am wrote:3) My 3 largest equities have out-performed the market handsomely since purchased in late 1990s. I'd hate to sell my "winners".

If I do sell, I'd put it all in Total Stock Market Index.
Are "3 largest equities" these 3 ?
http://www.bogleheads.org/forum/viewtop ... 9#p2165779
SuperSaver » Sat Aug 23, 2014 9:44 pm » first Forum post wrote:Other Investments:
$50,000 in direct stock (PG, MRK, HD)
PG was $55 in late 1990s and drop below $50 most of early 2000s and again in 2008. You held-on...huh?
MRK was $80 then $90+ in early 2000s. Now $60.
HD was $70 then $20 (twice). You held-on... huh?
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Re: Poll: How many own zero/few stocks?

Post by cheese_breath » Fri Aug 29, 2014 10:29 am

SuperSaver wrote:The results are in...
To date, the "experts" picks beat the Indexers handily.
http://americasmarkets.usatoday.com/201 ... elivering/

Does suggest following their rec's in a bull market to make a good buck
You could try it if you like and report back to us in a year or two with your results. Maybe you'll get lucky, but personally I'll take the conservative approach and stick with my index funds.
The surest way to know the future is when it becomes the past.

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Re: Poll: How many own zero/few stocks?

Post by YDNAL » Fri Aug 29, 2014 10:39 am

USA Today Money wrote:Below are the 20 S&P 500 stocks that analysts were the most bullish on going into the year:

Company Symbol Average rating YTD % Ch.
H&R Block HRB 1.56 15.6%
Ryder R 1.56 22.8%
Celgene CELG 1.61 12.1%
Quanta PWR 1.61 14.8%
American Tower AMT 1.64 23.8%
Agilent A 1.65 -0.1%
Starbucks SBUX 1.68 0.7%
Delta Air DAL 1.69 7.8%
Thermo Fisher TMO 1.69 7.8%
Facebook FB 1.71 35.1%
Covidien COV 1.71 27.3%
Schlumberger SLB 1.72 22.3%
NRG Energy NRG 1.73 6.1%
Precision Castparts PCP 1.74 -9.7%
Gilead Sciences GILD 1.75 43.2%
Zoetis ZTS 1.75 8.1%
AES AES 1.78 4.1%
Affiliated Managers AMG 1.78 -3.0%
Cardinal Health CAH 1.78 9.7%
Discover Fin’l DFS 1.78 11.5%

Sources: Thomson Reuters on ratings, S&P Capital IQ on stock price movements
1: Strong buy, 2: Buy, 3: Hold, 4: Sell, 5: Strong sell
How is this actionable?
  • 1. Use top 5, top 10, top 15, all 20?
    2. Perhaps use even numbers.... top 4, 8, 16?
And, #15 (by average rating) blew everyone out of the water. This is just hilarious!
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Re: Poll: How many own zero/few stocks?

Post by TomatoTomahto » Fri Aug 29, 2014 11:03 am

We own some legacy BRK which I don't want to sell right now because they are in a taxable account and have done well.

Involuntarily, we own shares in the stock of my wife's employer, 1/3 of which vest every year and which are replenished (usually a bit more than replenished) by that year's deferred comp. We sell those shares the moment they vest and any blackout period ends.

Other than some legacy odds and ends (Primecap, Wellington, and Wellesley), everything else is indexed Vanguard funds.

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Re: Poll: How many own zero/few stocks?

Post by gkaplan » Fri Aug 29, 2014 11:09 am

What poll?
Gordon

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Re: Poll: How many own zero/few stocks?

Post by dolphinsaremammals » Fri Aug 29, 2014 11:26 am

I own no individual stocks. Years ago I used to. Now I'm retired and own CDs and Wellesley.

If I were a young person and I thought the stocks you have were decent companies, I'd probably hold on to them, but I'd put my future savings into Vanguard funds like Wellesley. Eventually the stocks you have will be a small portion of your portfolio.

Update: if you donate to charities, you can give them appreciated stock instead of cash. I forget how this works, but I think it avoids capital gains tax.
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Re: Poll: How many own zero/few stocks?

Post by abuss368 » Fri Aug 29, 2014 11:28 am

gkaplan wrote:What poll?
Gordon, do you still own stocks?
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Re: Poll: How many own zero/few stocks?

Post by abuss368 » Fri Aug 29, 2014 11:29 am

SuperSaver wrote: 3) My 3 largest equities have out-performed the market handsomely since purchased in late 1990s. I'd hate to sell my "winners".
That may be the way the chips fell but please do not think one has superior stock picking ability. One could just as easily select stocks that underperformed.
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Re: Poll: How many own zero/few stocks?

Post by abuss368 » Fri Aug 29, 2014 11:32 am

I would say there is no need to select individual stocks. One is not compensated for the risks involved.

The last time we owned an individual stock was 2008. 6 years have passed real quick. I do not see the need for us to own them.

If you really want to hold an individual stock to make investing more interesting that is fine. You can select one or two stocks perhaps, maybe three. Jack Bogle, in his excellent book "The Little Book of Common Sense Investing" advised no more than 5% of your portfolio.

Best.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Re: Poll: How many own zero/few stocks?

Post by hiddensee » Fri Aug 29, 2014 11:35 am

SuperSaver wrote:1) the capital gains in selling now. I don't need the money
A point worthy of further consideration.
2) Some of the blue chips are great dividend producers... Even if they don't match the Index, they will still be a good source of income
A stock that grows slowly but pays a large dividend is functionally equivalent to a stock that grows quickly and you periodically sell. You can withdraw whatever yield you like from any stock, up to 100%, simply by selling off your holiding over time - the downside being that you then won't match the index.
3) My 3 largest equities have out-performed the market handsomely since purchased in late 1990s. I'd hate to sell my "winners".
The congratulations, you can sell now and be a real winner, rather than just a mark-to-market 'winner'.

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Re: Poll: How many own zero/few stocks?

Post by nobsinvestor » Fri Aug 29, 2014 11:47 am

There is no reason to own individual stocks... unless you know something about future earnings that the rest of the market doesn't.

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Re: Poll: How many own zero/few stocks?

Post by 14thMed » Fri Aug 29, 2014 11:52 am

Just one here,Bank of America. Bought at almost the low,so I'm up x3.

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Re: Poll: How many own zero/few stocks?

Post by nobsinvestor » Fri Aug 29, 2014 12:10 pm

abuss368 wrote:I would say there is no need to select individual stocks. One is not compensated for the risks involved.

The last time we owned an individual stock was 2008. 6 years have passed real quick. I do not see the need for us to own them.

If you really want to hold an individual stock to make investing more interesting that is fine. You can select one or two stocks perhaps, maybe three. Jack Bogle, in his excellent book "The Little Book of Common Sense Investing" advised no more than 5% of your portfolio.

Best.
Make investing more interesting? Good investing is supposed to be more boring than watching paint dry :D

Why subject 5% of your portfolio to uncompensated risk and losses?

I propose: Go to Vegas once a year and gamble with 50 basis points to 1% of your portfolio. You'll not only have way more fun (especially if you're single 8-) ), but even if you lose everything you came with, you'll probably do better than speculating 5% or more of you portfolio on individual stocks

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Re: Poll: How many own zero/few stocks?

Post by gerrym51 » Fri Aug 29, 2014 12:19 pm

jf89 wrote:
gerrym51 wrote:I'm in no index funds. Got 2 target date funds
Interesting that you make that distinction... I'd consider you 100% in index funds.

index funds are tied to some kind of index. although i can look at the components of my main fund trrbx-it holds underlying funds that are managed and not managed-

this is a good question though-is a target date fund considered indexedor not indexed

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Re: Poll: How many own zero/few stocks?

Post by Sidney » Fri Aug 29, 2014 12:22 pm

SuperSaver wrote:1) the capital gains in selling now. I don't need the money
What is your current tax situation If you don't need the money and these have unrealized long term CG, consider opening a DAF and donating them. Whether this makes sense for you depends on your expected tax rate this year.
I always wanted to be a procrastinator.

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Re: Poll: How many own zero/few stocks?

Post by YttriumNitrate » Fri Aug 29, 2014 12:29 pm

Based on these responses so far, I feel like a wild and crazy guy for having a whopping 15% of my portfolio in individual stocks...
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Re: Poll: How many own zero/few stocks?

Post by Meg77 » Fri Aug 29, 2014 12:31 pm

I have a brokerage account where I own 7 stocks. My husband also has a brokerage account he came into marriage with where he owns 6 stocks. The total value comes to right at 7% of our total investments. The other 93% is primarily in index funds with the exception of a few small sector funds in our IRAs (REITs, energy, precious metals) and some ESPP/RSU assets in our employer stocks (which we will convert to index funds as soon as possible). So I guess you could say we are around 85% committed to 100% indexing. :D

We haven't added to our brokerage accounts in years, and in fact we've sold off some winners to finance new home purchases this year. All new money goes into index funds within our retirement accounts/HSA, and beyond that we are focused on rebuilding cash and paying down debt. If the market or a stock I like drops more than 20% in value though, and I happened to have a lot of cash on hand, I would consider buying some more individual stocks. I like maintaining a "fun money" account I use to gamble with - and I do consider it gambling, albeit with a relatively small downside (I might not beat the market but I fully expect to make money, which is a very big difference from my attitude towards, say, blackjack).

For instance I bought BP right after the oil spill and Toyota after their big recall scandal a few years back. I also bought AAPL when it dropped below $300 on a whim because I had some cash. I also have gotten to go to the Great Investors' Best Ideas symposium a few different years and subsequently acted on their tips with regard to Diageo, Bank of America and Lowes. All those bets have paid off big time, but I have had a couple of losersas well. I lost my shirt on CTHR way back when, and my MDC (a homebuilder) never recovered fully after the recession. I sold both to offset gains at various points. In any event, I'm happy to be able to use a few grand here and there to place some bets and also to support companies I frequent.
"An investment in knowledge pays the best interest." - Benjamin Franklin

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Re: Poll: How many own zero/few stocks?

Post by Meg77 » Fri Aug 29, 2014 12:33 pm

gerrym51 wrote:
jf89 wrote:
gerrym51 wrote:I'm in no index funds. Got 2 target date funds
Interesting that you make that distinction... I'd consider you 100% in index funds.

index funds are tied to some kind of index. although i can look at the components of my main fund trrbx-it holds underlying funds that are managed and not managed-

this is a good question though-is a target date fund considered indexedor not indexed
Some target date funds are funds of index funds - like Vanguard's LifeStrategy funds and TargetRetirement Date Funds. However other target date funds may contain underlying managed funds. So it depends on the provider. You can usually tell by the expense ratio. :P
"An investment in knowledge pays the best interest." - Benjamin Franklin

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Re: Poll: How many own zero/few stocks?

Post by abuss368 » Fri Aug 29, 2014 1:21 pm

nobsinvestor wrote:
Make investing more interesting? Good investing is supposed to be more boring than watching paint dry :D
An excellent quote that Warren Buffett has said time and again!
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Re: Poll: How many own zero/few stocks?

Post by abuss368 » Fri Aug 29, 2014 1:23 pm

nobsinvestor wrote:
Why subject 5% of your portfolio to uncompensated risk and losses?
Please see Jack Bogle's excellent book "The Little Book of Common Sense Investing". Near the end of the book, Mr. Bogle outlines many points to consider. The 5% in individual stocks was one of them.

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John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Re: Poll: How many own zero/few stocks?

Post by abuss368 » Fri Aug 29, 2014 1:26 pm

Meg77 wrote: Some target date funds are funds of index funds - like Vanguard's LifeStrategy funds and TargetRetirement Date Funds. However other target date funds may contain underlying managed funds. So it depends on the provider. You can usually tell by the expense ratio. :P
Hi Meg77,

I believe Fidelity's Target Funds hold a lot of underlying funds with many of them active management.

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John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Re: Poll: How many own zero/few stocks?

Post by letsgobobby » Fri Aug 29, 2014 1:57 pm

I own lots of stocks, all in index funds.

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Re: Poll: How many own zero/few stocks?

Post by Ice-9 » Fri Aug 29, 2014 2:16 pm

I currently own no individual stocks. I'm all index funds or ETFs on the equity side.

Several years ago, I did dabble, albeit only slightly. My roommate at the time daytraded, and when he talked up a big tip on a penny stock, I went in with a VERY small amount, in part just for male bonding and in part just to be able to say I invested in a penny stock. :D

I bought 100,000 shares at $0.008 a share. That's right, less than a penny a share. Held it just over a year, and then tried to sell when it was showing at slightly above a penny. However, there's very little volume on a stock like that, and I had to lower the price to execute the sell. After decreasing the price and resetting a new order a few times, I ended up selling all of it for the same $0.008 a share I had paid for it.

However pointless that transaction, I ran into technical trouble using TurboTax to report it the following April. After a significant hold time on the phone with TurboTax tech support, I was told that (at least back in 2008) TurboTax had a limit of five digits that could be entered for the number of shares. So, I'll admit it, rather than do my entire tax return over the old fashioned way that year, I lied to the IRS about 1 share worth $0.008 that I had no gain or loss on. :!:

I also bought a small amount of BHP and RTP at one point, thinking it might diversify my portfolio. But I only held that just over a year as well for a small gain, and it's not as interesting of a story as the penny stock. I'm all passively invested and boring now, but content.

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