Ever dip your feet into individual stocks?

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YoungJediInvestor
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Ever dip your feet into individual stocks?

Post by YoungJediInvestor »

Almost not an "investing" question because at this point I know the theory and individual stocks seem more like gambling then investing, but anyone invest a couple thousand of disposable income after investing in retirement and savings.

Kind of want to try for fun with the expectation it is high risk and not expecting too much
Elena
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Re: Ever dip your feet into individual stocks?

Post by Elena »

I do have one individual stock. Follow the same "buy and hold" principle, though. Buy on the dips, hold forever. It is boring, really. Not taboo.
Swansea
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Re: Ever dip your feet into individual stocks?

Post by Swansea »

Some years back my IRA was entirely in 4 or 5 individual stocks. After about 10 years I evaluated the performance against the S&P 500. It came out about even. I then put the monies in a index stock fund. I had fun researching and trying to beat the market, but came out average which is ok.
Also, I had most of my retirement monies in a non-IRA tax deferred account, so the individual stocks made up about 10% of my investments.
awval999
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Re: Ever dip your feet into individual stocks?

Post by awval999 »

Yes, with play money only.

I just bought a bit of TGT after the big drop.
aristotelian
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Re: Ever dip your feet into individual stocks?

Post by aristotelian »

Yes. It hasn't gone well. I thought I would take a "play money" approach with a small amount of my IRA. I have not kept close track, but 15 years later, my wife's IRA is about 30% larger than mine and I suspect largely due to this. Probably more winners than losers, but some of the losers were total disasters. (I am talking to you, Dell Computer!!!!) It did teach me some valuable lessons about the volatility of stocks, the information asymmetry between insiders and everyday investors, and the superiority of diversification.

I do think it is possible to own a diverse portfolio of stocks using an investment rather than speculation perspective, but it would require a lot of stocks, a lot of discipline, and a lot of money. At the end of the day you would end up with the same performance as a total stock market fund. The only concrete advantage I can see is opportunities for tax loss harvesting but I am not convinced TLH would make a big difference for me.
Last edited by aristotelian on Fri Mar 03, 2017 8:57 am, edited 1 time in total.
livesoft
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Re: Ever dip your feet into individual stocks?

Post by livesoft »

My spouse was in two investing clubs that invested in only individual stocks back in the late 1990's to early 2000's. They didn't do as well as index funds, but I'm sure they had fun. So consider it a hobby and note that usually hobbies cost money to keep participating in them. And there are more expensive hobbies than stock market investing.
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nisiprius
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Re: Ever dip your feet into individual stocks?

Post by nisiprius »

Yes, I have. The last time I made a transaction with an individual stock was when I bought 40 shares of Apple (AAPL) at $22.19 on 10/5/2000. Due to the $30 commission--which in those days was considered fairly standard--I paid $887 + 50 = $912.

My diary entry reads:
Rationale: Gambling. I think Wall Street probably overreacted because they dislike Apple… at a P/E of 12 and $4 billion in cash I think Apple will probably come back.
Future intentions: Hold about a year and wait for recovery. “Double or nothing”—if I lose it, I’ve lost it. If it goes up significantly, take my profit and run.
I sold it in March of 2001 at $19.69, losing about $125 overall. While certainly not a disaster, my recollection is that I somehow never got around to telling my wife about it.

At about the same time frame, I also made a small amount of money in GE, and also made a small amount of money in QQQ (the NASDAQ-tracking ETF) because even though I bought into the bubble, I bought before the top and managed to sell before it fell below what I'd paid.

Although none of these were disasters, in retrospect they were all pretty dumb moves.

If you don't have any strong gambling tendencies--for example, if you do not go to casinos--and just want to understand the nuts and bolts of stock investing, and have the discipline to only bet money you can afford to lose, then I'd still argue you can get more "fun" and more "education" spending your money in other ways but, hey, your money, your life. It's a reasonable thing to do as long as you seriously are prepared to lose the money.

For an actual educational benefit, try hold on for long enough to get the glossy annual report mailed to you, and turn to the balance sheet and the various notes and spend some quality time trying to see if you can make any sense of them at all. (Uh... I never could myself. That's one reason I quit fooling around with individual stocks).

Absolutely the worst thing that could happen to you would be to have the stock you pick go up quickly and by a lot, because you will be tempted to think you have the magic touch, you're a natural. Be careful.
Last edited by nisiprius on Fri Mar 03, 2017 8:59 am, edited 1 time in total.
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arsenalfan
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Re: Ever dip your feet into individual stocks?

Post by arsenalfan »

Yes, play money that you can afford to lose entirely.

It's fun for me, and represents 0.2% of my portfolio. Something to do, kind of like fantasy football...

VW after dieselgate, United Healthcare the day of the federal lawsuit, Apple when it dipped below $100, whole foods market.

It's been a mixed bag thusfar, mostly lagging the index funds. If the trades weren't free (have 100/month at a brokerage, use about 4 per year), I don't think I'd be doing it.
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randomizer
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Re: Ever dip your feet into individual stocks?

Post by randomizer »

Nope. If I want thrills I'll play a video game.
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Midpack
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Re: Ever dip your feet into individual stocks?

Post by Midpack »

Wow. Other than my 401k, I was entirely individual stocks until my mid-40's with a 100% equity AA. It wasn't until then that I bought into an equity mutual fund in our own accounts and early 50's before I bought our first fixed income fund (in my 401k). By my mid-50's I'd sold off all our individual stocks, with a portfolio entirely of equity and bond funds (mostly index). I did very well with individual stocks, but I don't need to take the risk/volatility anymore, so in my early 60's I'm happy with a Bogle/early Bernstein style portfolio now.

I am not recommending the path I took, especially 100% equity AA, but fortunately it worked spectacularly for me.

And FWIW, when I began investing, indexed mutual funds and especially lazy portfolios weren't as well known or popular as they seem to be now.
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linenfort
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Re: Ever dip your feet into individual stocks?

Post by linenfort »

My dad bought the S&P fund for me and my sibs when we were children. When I became interested in stocks, he happily let me sell it all. I bought mostly big stuff like Philip Morris and Chevron.

I still have about 50 dividend stocks and a few others like Google and Berkshire B.Made my share of mistakes along the way.

Still, I prefer index funds and am now in the strange position of trying to get Dad back into them. He likes stocks and stock newsletters.
nisiprius wrote:bsolutely the worst thing that could happen to you would be to have the stock you pick go up quickly and by a lot, because you will be tempted to think you have the magic touch, you're a natural. Be careful.
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keystone
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Re: Ever dip your feet into individual stocks?

Post by keystone »

I do. Actually, I did it a lot back in the 90's and early 2000's and was pretty bad at it like most people. I never had any intentions of getting back into it, but somehow I was drawn to this thread viewtopic.php?t=196386 and it rekindled my interest in it. In fact, I ended up buying and selling one of the stocks mentioned in that thread multiple times.

It's a tiny fraction of my net worth, but if I do well I'll have a little extra spending money on other hobbies, if I under perform, I'll forget about it.
lernd
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Re: Ever dip your feet into individual stocks?

Post by lernd »

Agree with others who have said they use their "play" money. I have about 1% of total investments in individual stocks, total of about 5 different companies. I have invested in micro/small-cap companies in a field related to my work because it is my belief (correctly or incorrectly) that my specialized knowledge coupled with the fact that these companies are too small to be heavily analyzed by investment firms, at least gives me as good a chance as anyone else to predict well. I've bought/sold stocks at various times over the past 6-7 years and to date based only on stocks I've sold, I've got a return about equal to S&P 500 - though my swings are probably much more wild. I consider it a hobby and do not let "creep" increase my allocation to that portion of my portfolio.
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timboktoo
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Re: Ever dip your feet into individual stocks?

Post by timboktoo »

Every time I buy an individual stock, I feel compelled to sell it immediately and am only able to hold it a few days. It's too stressful for me. Compare that to index funds, where I couldn't tell you my balance to the nearest $10,000 right now, not because I am wealthy by any means but because I pay so little attention to it.

I do not have the character required to own individual stock, even though I'd like to own an individual position if for no other reason than to feel more connected to how markets work. I also don't seem to be able to pick them very well. It would appear that the information widely available in Value Investing books does not perfectly capture exactly how Buffet makes the choices he does, unless I am missing something. He possesses a skill that I do not have and a character that I envy.

Individual stock ownership seems like a nice hobby. It's not something many people should try to do with a large percentage of their wealth though, in my opinion.

Good luck!

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DetroitRick
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Re: Ever dip your feet into individual stocks?

Post by DetroitRick »

Yes, primarily since 2006 when I started constructing a portfolio of stocks. It represents, currently, 18% of my total investments. My other portfolios all consist of mutual funds and etf's and are in retirement accounts.

My portfolio is well-diversifed, with 2 segment exceptions, across 40 positions. I mostly avoid emerging markets with these stocks, and have only a very limited number of positions in small caps (which I round out with a single small-cap mutual fund).

It takes a fair amount of work, although less than it might because I trade fairly infrequently. Results for me have been modestly better than similar segments in my fund portfolios. I enjoy the work, know what I'm doing and also reap some additional benefits pertaining to my tax situation (this is all in a taxable account), But I would not personally want to scale this up to cover the rest of my investments - too much time for my taste in doing that.
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Re: Ever dip your feet into individual stocks?

Post by Grt2bOutdoors »

nisiprius wrote:Yes, I have. The last time I made a transaction with an individual stock was when I bought 40 shares of Apple (AAPL) at $22.19 on 10/5/2000. Due to the $30 commission--which in those days was considered fairly standard--I paid $887 + 50 = $912.

My diary entry reads:
Rationale: Gambling. I think Wall Street probably overreacted because they dislike Apple… at a P/E of 12 and $4 billion in cash I think Apple will probably come back.
Future intentions: Hold about a year and wait for recovery. “Double or nothing”—if I lose it, I’ve lost it. If it goes up significantly, take my profit and run.
I sold it in March of 2001 at $19.69, losing about $125 overall. While certainly not a disaster, my recollection is that I somehow never got around to telling my wife about it.

Absolutely the worst thing that could happen to you would be to have the stock you pick go up quickly and by a lot, because you will be tempted to think you have the magic touch, you're a natural. Be careful.
Some things are better left unsaid. :wink: Those 40 shares would now be 560 shares valued at roughly $77K.
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Re: Ever dip your feet into individual stocks?

Post by Broken Man 1999 »

I have bought individual stocks in the past, and still dabble a bit currently.

Typically I buy 4-5 stocks and hang on for some time.

I have had some good winners, and a couple of sure-bets that disappointed. I lost money on Cisco not once, but TWICE!

Most recent purchases were Apple @ $93.55 and Microsoft @ $50.48. Though I don't consider myself a dividend investor, often times one can find a quality stock that has a nice dividend to make the waiting a tad easier.

My stocks are well below 5% of my retirement portfolio, so the risk is small.

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Re: Ever dip your feet into individual stocks?

Post by Grt2bOutdoors »

Plenty of times, still have my feet in them, both directly and indirectly. If you own a mutual fund holding equities, you indirectly own individual stock on a proportionate basis to your total investment in the fund's total assets. I own both mutual funds and a diversified portfolio of mainly large cap dividend paying equities. On a total return basis, I don't look at the portfolio on an individual holdings basis, only as a whole. The winners more than make up for the losers, much like an index fund does, only without the ongoing expense ratio.
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Re: Ever dip your feet into individual stocks?

Post by Bogel0048 »

When I was in grad school, in the early 1970's, my mother was in a small dollar investment club with other SAHMs. She told me I should buy a great stock, Houston Oil and Mineral. I bought $2K (about all I had to my name at that time) and within 18 months I sold it for $4K. I thought making money on stocks was easy! Then she told me to buy another great stock, Syntex Labs. I put in my $4K and in another 18 months I sold it for $2K.

I learned my lesson and after that I saved my money in the bank or in high yielding, A rated municipal bonds (interest rates on bonds were very high during the late 70s thru mid 80s). Starting after the October, 1987 stock market drop I started investing primarily in Vanguard index funds and I've stuck with Vanguard funds ever since.

I did buy about $10K each of IBM, Exxon, and Bank of America in the early 1990's as UGMA account holdings for our children, thinking those stocks would grow in value for their college education. We ended up paying for their college on a pay as you go basis and our sons still have the stocks. IBM and Exxon have done OK (IBM a little better). BoA did very until it became a dog after 2008; recently it has started to show some life.
carguyny
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Re: Ever dip your feet into individual stocks?

Post by carguyny »

I was awarded $50k worth of Snap in the IPO allocation.

But I didn't take it up. I've officially stopping individual stocks simply for tax inefficiency. Last year my individual portfolio made 30% in realized trades - all were short-term cap gains so compared to even holding VOO for the whole year it's actually a worse trade with a lot less risk.

This could change in a down market, but the risk is even higher on individual stocks as you head into a bear market.
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Re: Ever dip your feet into individual stocks?

Post by bottlecap »

That's how I started out investing, before I found this site.

It's not fun. It's not profitable.

I find my fun elsewhere these days.

JT
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Re: Ever dip your feet into individual stocks?

Post by t3chiman »

lernd wrote:...I have invested in micro/small-cap companies in a field related to my work because it is my belief (correctly or incorrectly) that my specialized knowledge coupled with the fact that these companies are too small to be heavily analyzed by investment firms, at least gives me as good a chance as anyone else to predict well. ...
I do the same. There are special situations ("The end of oil! Sell!") that one can work, make a couple of bucks if you don't get greedy. Lately, I am following the discussions of experts in kidney and liver cancer drugs. Grim subjects to be sure. But there are hundreds of smallish companies in the space, some of them better positioned than others to succeed medically and financially.

Beware the small company space in general. The game is not played straight in most cases. The dumb money is easy pickings for the sharpies out there. That said, EXEL, after some early heartburn, has been good to me; CALA has just been fabulous.

HTH
hulburt1
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Re: Ever dip your feet into individual stocks?

Post by hulburt1 »

I bought 6 different stock in the last 3 years and lost $10000. Then I bought Facebook and have made $200000. I will not buy stock. But I do like SNAP
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Re: Ever dip your feet into individual stocks?

Post by goblue100 »

I have about 10% of my portfolio in stocks I choose. I don't consider it "fun" money, or "play" money or gambling money. I wouldn't do it if I didn't take it seriously. I've outperformed the S&P some years and under performed it others. My overall return is in the ball park of the S&P over the last 10 years. It would have been easier to not do it and just park it in an index fund, but I like the mental challenge of trying to identify good companies. My average holding period for a given stock is over 3 years, and rising. I'm trying to get to Warren Buffets favorite holding period of forever. When I started I was a short term trader, happy with a few points gain and a quick flip. Now I'm looking for 2 - 10 "baggers", in Peter Lynch's vernacular.
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Re: Ever dip your feet into individual stocks?

Post by ruralavalon »

YoungJediInvestor wrote:Almost not an "investing" question because at this point I know the theory and individual stocks seem more like gambling then investing, but anyone invest a couple thousand of disposable income after investing in retirement and savings.

Kind of want to try for fun with the expectation it is high risk and not expecting too much
No, never.

I used be 100% in individual stocks, but stopped long ago.
Last edited by ruralavalon on Fri Mar 03, 2017 12:14 pm, edited 2 times in total.
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Re: Ever dip your feet into individual stocks?

Post by bloom2708 »

The only single stock I ever had any "luck" trading was Sirius Satellite Radio.

The stock had some huge swings because it seemed to be near bankruptcy several times. Once I purchased $2,000 worth at $1 and sold at $6.XX. I bought a "Lifetime" subscription with some of the gain. I still have it. :o

Another time I purchased $2,000 when it was trading under 25 cents. That was when it was almost a sure thing to go bankrupt. It didn't and I sold near $1 after a rescue.

I made money but I just as easily could have lost it all. I knew it and was willing to risk it. Now I just buy VTSAX or VTIAX if I'm feeling the itch to buy something.
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ClevrChico
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Re: Ever dip your feet into individual stocks?

Post by ClevrChico »

Yes, in the late 90's, in college. Lost half my money. Luckily it wasn't much money. Lesson learned.
student
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Re: Ever dip your feet into individual stocks?

Post by student »

I owned several stocks when I started investing. Then I concluded that I don't have the insight to invest in stocks. So I am down to a couple of stocks that is less than 1% of my investments.
Durzo
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Re: Ever dip your feet into individual stocks?

Post by Durzo »

YoungJediInvestor wrote:Almost not an "investing" question because at this point I know the theory and individual stocks seem more like gambling then investing, but anyone invest a couple thousand of disposable income after investing in retirement and savings.

Kind of want to try for fun with the expectation it is high risk and not expecting too much
Yes! I know it's not popular among Bogleheads, but I see nothing wrong with it if done properly. I have a couple of thousand in individual stocks. If you have met your saving and retirement goals and it represents a small percent of your portfolio I would encourage you to go for it.

It is by far my favorite aspect of investing. I max out 401k, HSA, and IRA with index funds and it feels so boring. However, when I buy $100 of a stock I picked out and it goes up 8% that day I am thrilled. I love watching the stock go up and down, I love reading about what the company is doing and what they are planning, I love having their quarterly reports playing in the background, I love getting the notification that my three shares get $1.85 in dividend this quarter, I love it all.

I am only 24 years old so it may be something that I grow out of, but for now I love the nature of individuals stocks. I use Robinhood it is easy to manage and it's "free". Consider it as on option if you want to go through with this.
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Re: Ever dip your feet into individual stocks?

Post by itstoomuch »

Yes.
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Re: Ever dip your feet into individual stocks?

Post by FullYellowJacket »

Every time I think about playing around with individual stocks, I realize that the most money I would be willing to put in would be inconsequential even if said stock went up 500%.

Same reason why I did not invest in bitcoin. I thought about it back when prices were around $100 for 1 BTC. The most I ever thought about putting in would have grown to an amount that would represent .3% of my net worth.

I likely would have forgotten/lost my private key and therefore my BTC either way, since that was multiple hard drives ago.
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CyclingDuo
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Re: Ever dip your feet into individual stocks?

Post by CyclingDuo »

YoungJediInvestor wrote:Almost not an "investing" question because at this point I know the theory and individual stocks seem more like gambling then investing, but anyone invest a couple thousand of disposable income after investing in retirement and savings.

Kind of want to try for fun with the expectation it is high risk and not expecting too much
Why try it just for fun? If one was to do it, why not try it for an actual sound investment - rather than treating it as "gambling"? That would be more "fun" in my way of thinking. The recommendation would be, of course, to have the majority of your portfolio in diversified index funds. Own the pie, rather than just a piece.

Our toes have been dipped in for over 25 years. You will find many on these forums that have a history of holding stocks. Some still do. Some have made the decision to change their strategy to index funds only. Some continue with a mixed strategy of both funds and individual stocks. Either way, buy and hold good quality investments (or sectors through sector funds). Understand the economic cycle, and how various sectors perform during the cycle so you are not buying at the highs or peak of a cycle. If they no longer are good quality, then you TLH them and consolidate into the ones that are good quality. The difficulty of only throwing a couple thousand into such an individual stock investment is that you won't be able to be diversified. If that was the case, you might want to take a look at a stock that is diversified - or a sector fund that owns a diverse portfolio within a sector. Berkshire Hathaway (B shares), GE, Disney, 3M, HSBC, Exxon, Textron, Icahn, Steel Partners, and various conglomerates come to mind.

As others have mentioned - or will mention - if a quarterly earnings report is not well received for an individual stock/company, then you have to be willing to ride out a quick gut wrenching haircut. Likewise, one that is well received, will increase the share price. That type of volatility is part of holding individual stocks where they correct quickly in either direction. If your time frame is years+, then a company growing earnings over time will appreciate in share price.
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Re: Ever dip your feet into individual stocks?

Post by hicabob »

I have 2 ira's that had almost the same balance about 15 years ago. As an experiment I set one as 100% indexed total stock market. The other is individual stocks. They went back and forth for years but recently the individual has been on a tear and is now 12% higher than the indexed. :happy

I enjoy stock-picking but most of my $$ are indexed since it's so much lower stress and less volatile
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Toons
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Re: Ever dip your feet into individual stocks?

Post by Toons »

Yes .
I dipped my feet into individual stocks 25 years ago ,still holding
Coke,Walmart,Microsoft,Disney,Praxair(1993)
:mrgreen:
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Re: Ever dip your feet into individual stocks?

Post by flamesabers »

I haven't ever invested in individual stocks as there is too much uncertainty for me. While investing in a particular industry may prove to be profitable in the long-term, that doesn't guarantee every company in the industry will be a financial success. Companies can suffer financial setbacks or even bankruptcy for all sorts of reasons, some of which may be completely unpredictable. It would be nice to think I can invest in a few companies and become a millionaire sooner than later, but it's not something I'm willing to bet my money on.
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PhysicianOnFIRE
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Re: Ever dip your feet into individual stocks?

Post by PhysicianOnFIRE »

I bought some BRK-B for the luxury of zero dividends. No plans to sell anytime soon.

:beer
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Re: Ever dip your feet into individual stocks?

Post by itstoomuch »

Rough guess, my experience only:
Of 10 stock picks, 6 are failures and half of these Big losses and other 3 minor losses; 2 are just OK and hold for a possible big jump; Remaining 2 are big winners that make individual stocks worthwhile and they are slated to be Sold. The issue of having winners and losers is that you need to find replacements. This is not easy and my 6:2:2 rule reappears on each new stock :annoyed .
Currently, holding 85% cash, no bonds. This is all Discretionary money. 8-)
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691175002
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Re: Ever dip your feet into individual stocks?

Post by 691175002 »

Buying individual stocks merely leads to random outcomes. On average and over long periods of time it is very challenging to do much better or much worse than the overall market.
(If you could lose to the market on purpose, just inverse those trades to make guaranteed money.)

I have a diversified portfolio of large dividend paying equities from before passive investing really became popular, and keep maybe 10-15 additional positions on the side of very small and illiquid microcap stocks that are currently profitable and are likely to remain profitable going forward.

I have had success, but as a percentage of my overall NW it doesn't really achieve anything.
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Pajamas
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Re: Ever dip your feet into individual stocks?

Post by Pajamas »

Bogel0048 wrote:Then she told me to buy another great stock, Syntex Labs. I put in my $4K and in another 18 months I sold it for $2K.
Interesting, because Syntex was my first stock investment and I had the opposite experience. The company was bought out by Roche not too long afterwards and I made a profit of nearly $2k, a significant amount for me at the time, more than a paycheck. That encouraged me to continue investing. I have on occasion wondered what would have happened had I lost money with that first stock investment, instead.

Our contrasting experiences show the speculative nature of investing. I once read a post (on a different forum) that was someone complaining about their worst investment ever and the same stock was on my top ten list of best investments. It was all in the timing, before vs. after the 2007-2008 financial crisis.
goblue100
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Re: Ever dip your feet into individual stocks?

Post by goblue100 »

Grt2bOutdoors wrote:
nisiprius wrote:Yes, I have. The last time I made a transaction with an individual stock was when I bought 40 shares of Apple (AAPL) at $22.19 on 10/5/2000. Due to the $30 commission--which in those days was considered fairly standard--I paid $887 + 50 = $912.

My diary entry reads:
Rationale: Gambling. I think Wall Street probably overreacted because they dislike Apple… at a P/E of 12 and $4 billion in cash I think Apple will probably come back.
Future intentions: Hold about a year and wait for recovery. “Double or nothing”—if I lose it, I’ve lost it. If it goes up significantly, take my profit and run.
I sold it in March of 2001 at $19.69, losing about $125 overall. While certainly not a disaster, my recollection is that I somehow never got around to telling my wife about it.

Absolutely the worst thing that could happen to you would be to have the stock you pick go up quickly and by a lot, because you will be tempted to think you have the magic touch, you're a natural. Be careful.
Some things are better left unsaid. :wink: Those 40 shares would now be 560 shares valued at roughly $77K.
Not to mention another $3,500 in dividends in the last 5 years. My rate of return calculator says that is annual return rate of 32%.
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns
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Oak&Elm
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Re: Ever dip your feet into individual stocks?

Post by Oak&Elm »

Yep, a little just for fun. I do know a guy who owns 1 stock in a 2MM portfolio....it's Apple. That' what I call high risk but it worked out well for him.
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Dendritic Tree
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Re: Ever dip your feet into individual stocks?

Post by Dendritic Tree »

I bought 10 shares of TSLA in June 2013. I think it was around $100/share at the time. This before I knew the ways of Bogle. It still remains the only single stock I've ever owned. My position is now worth just over $2500. At this point it's just a curiosity more than anything else. We'll see where it goes after the Model 3 launch. Quite an interesting P/E ratio right now, too.
Northern Flicker
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Re: Ever dip your feet into individual stocks?

Post by Northern Flicker »

The problems are more severe than just the question of picking the right stocks. You are taking uncompensated unsystematic risk.

It is much better to take risks for which you are compensated.
Risk is not a guarantor of return.
Catalina34
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Re: Ever dip your feet into individual stocks?

Post by Catalina34 »

I did this a lot in 2009, using 10 -$1,000 increments and buying what I thought was low priced stock- Ford, Airlines, etc.
It paid off big with many winners and a few losers, but when I add it all in with expenses I could have done as well in an index fund without the daily churn of wondering how they were doing and agonizing over sell points.
I am all out now and just in index funds.
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vitaflo
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Re: Ever dip your feet into individual stocks?

Post by vitaflo »

FullYellowJacket wrote:Every time I think about playing around with individual stocks, I realize that the most money I would be willing to put in would be inconsequential even if said stock went up 500%.
Yup, and after that I think "oh I already own $6,000 worth of Facebook stock via VTSAX" and realize buying it separately is silly.
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Abel
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Re: Ever dip your feet into individual stocks?

Post by Abel »

Yes, in the early 90's. Lost $1500 on a "hot tip" from my brother in law about his company, and mostly broke even with a few years' worth of 100 share small potatoes trades. Pretty much a waste of time and not to be repeated.

But, it was absolutely the best thing I did to learn my risk tolerance, and also to learn that I've got no insight or intuition whatsoever, and for me it's worse than 50/50 chance of coming out ahead.
traveltoomuch
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Re: Ever dip your feet into individual stocks?

Post by traveltoomuch »

I've done it twice: once, fifteen years ago, when I thought I knew something others didn't. (Wrong.) And more recently to gain a shareholder perk. I might buy a stock again for a shareholder perk, but I would consider it as a transactional thing, not entertainment. There are more important things to spend time on than tracking individual stocks the fate of which is entirely outside my control.
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topper1296
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Re: Ever dip your feet into individual stocks?

Post by topper1296 »

Absolutely. I used index funds as my core investments, but also have 14 positions that I've held for many years (and took me several years to buy them). I may increase that number up to 20 at some point, but I'm in no hurry.
Fishing50
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Re: Ever dip your feet into individual stocks?

Post by Fishing50 »

In 2004, I devised a Peter Lynch Ten-Bagger plan, with large dose of tech & health care in Roth. :twisted:
Altria & Automatic Data Processing have paid off. :moneybag
The other 8 :oops: haven't matched Russel 1000 core investment.
Glad we're simplified now. :beer
2yrs from military pension. 80 equites / 20 bonds for life, ZERO emergency fund, 100% taxable in equities (dividends in cash), 33% taxable, 30% Roth, 37% tax deferred. | Gone Fishing At 52yrs old!
PStrider
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Re: Ever dip your feet into individual stocks?

Post by PStrider »

Yes.

Got burned pretty bad. It's been a year now, and it still stings a bit every now and then.

What's left of it, I put in AMD when it was $4 and will probably hold it forever to remind me not to do it ever again.

Now I just look for stocks with good perks (ie. brk.b and geico, ford x plan, etc.)
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