Ever dip your feet into individual stocks?

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Silverado
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Re: Ever dip your feet into individual stocks?

Post by Silverado »

Toons wrote:Yes .
I dipped my feet into individual stocks 25 years ago ,still holding
Coke,Walmart,Microsoft,Disney,Praxair(1993)
:mrgreen:
I don't go back that far, but bought Coke, PG, Microsoft, Kroger, Starbucks, MMM, Altria, GE, and Deere, back in 2003-2010. Have never sold anything. Have PM, Kraft, and Mondelez now from the MO divestments. All told, we received $2300 in dividends last year.

Strange the amount of responses who seem to look at individual stocks as something to to be 'played' and seemed to buy and sell on a whim. I view them just like the other 95% of our portfolio, that is, something to be bought and held.

With the appropriate amount of 5% that these are, they give me no worries or concern. I expect to replace cash charitable donations with appreciated shares sometime in the future. Especially with the reinvested dividends.

Besides getting some enjoyment of watching the dividends increase over time, I also get a kick out of watching each original purchase get older. Every uear another one or two go over the decade mark. I may bake a cake when the original 90 shares of KO turn 20 in six years. Or maybe KO will be gone by then, who knows. Who cares.

I didn't have much of a thought process when I started buying $2500 or so worth of stock each year, but over the years as I have matured I do like that I did it.
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stemikger
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Re: Ever dip your feet into individual stocks?

Post by stemikger »

No I never did. I have no desire. There was a time I was toying with the idea of owning some Berk B because I am such a fan of Warren Buffett, but never did.

As far as funds go, even though I'm currently 100% in index funds, I would like to have a little money in Wellington Fund because of the history and that is where John Bogle got his start. That I would probably do one day.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!
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Toons
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Re: Ever dip your feet into individual stocks?

Post by Toons »

Silverado wrote:
Toons wrote:Yes .
I dipped my feet into individual stocks 25 years ago ,still holding
Coke,Walmart,Microsoft,Disney,Praxair(1993)
:mrgreen:
I don't go back that far, but bought Coke, PG, Microsoft, Kroger, Starbucks, MMM, Altria, GE, and Deere, back in 2003-2010. Have never sold anything. Have PM, Kraft, and Mondelez now from the MO divestments. All told, we received $2300 in dividends last year.

Strange the amount of responses who seem to look at individual stocks as something to to be 'played' and seemed to buy and sell on a whim. I view them just like the other 95% of our portfolio, that is, something to be bought and held.

With the appropriate amount of 5% that these are, they give me no worries or concern. I expect to replace cash charitable donations with appreciated shares sometime in the future. Especially with the reinvested dividends.

Besides getting some enjoyment of watching the dividends increase over time, I also get a kick out of watching each original purchase get older. Every uear another one or two go over the decade mark. I may bake a cake when the original 90 shares of KO turn 20 in six years. Or maybe KO will be gone by then, who knows. Who cares.

I didn't have much of a thought process when I started buying $2500 or so worth of stock each year, but over the years as I have matured I do like that I did it.

Bingo :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
FedGuy
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Re: Ever dip your feet into individual stocks?

Post by FedGuy »

When I was in high school, I inherited two individual stocks from a deceased relative. The two holdings were worth somewhere in the range of a few hundred to a few thousand dollars. The executor of the will (a relative) convinced me that holding the two stocks would be more trouble than it was worth and I agreed to sell, but he botched the transfer forms and only ended up selling a portion of each; I ended up getting stock certificates for the rest, which I kept in a folder in a safe place. I didn't know how to sell them and figured I'd just hang on to them.

One stock sent me a dividend check every three months...for 48 cents. Even when I was in college and had more time than money, going to the bank to deposit a 48 cent check was annoying (but I did it anyway--four times a year--because I wasn't going to throw away money). The other company sent annual dividend checks of somewhere around $50.

I moved around a number of times over the years, including a few years overseas, and wasn't very diligent about keeping either company updated on my address. At one point, at least one of companies lost track of me and I stopped receiving dividend checks. I eventually contacted them years later and was able to receive payment for the dividends that had accrued in the meantime.

One company went through a series of corporate nonsense including a reverse stock split and a spinoff. I ended up getting cashed out of some fractional shares but also ended up with shares of stock of some third company. Having to deal with all of this on my taxes was a pain, particularly since the amounts in question were so small, and I started trying to figure out how to sell.

I brought the physical stock certificates to Charles Schwab, where by this point I had a brokerage account and Roth IRA (both 100% in index funds), to see if they could sell them for me. But it turns out that the shares had somehow "escheated" to the state, even though I had the physical certificates in my hand. I was told I needed to go to the midtown Manhattan office of one of the stocks' custodians to straighten it out. I went there, and was told I needed to go to a different building. The people in the second building told me to go to a third, who told me to go to a building in a different state. It took years before I was finally able to straighten everything out. I sold all of the individual stocks as soon as I could after that.

So no, I won't be buying individual stocks again.
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ruralavalon
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Re: Ever dip your feet into individual stocks?

Post by ruralavalon »

Yes I dipped my feet, but still got athletes foot :( .
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Tycoon
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Re: Ever dip your feet into individual stocks?

Post by Tycoon »

No. I've inherited stocks, and my company matches a percentage of my 401k contributions with stock, but I've never purchased stocks myself.
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. Getting rich off of "smart people's" behavioral mistakes.
alwayshedge
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Re: Ever dip your feet into individual stocks?

Post by alwayshedge »

Yes when I was young and stupid, I used to trade stocks. I did a lot of research on them. I enjoyed it. My biggest winner was a company called Dendreon which is now bankrupt. I bought 2000 shares at around $4 and eventually sold them over $30/share. I thought I was a genius but I simply now attribute it to luck. I also bought a lot of bank stocks post crisis but sold them on the initial run ups. You can say I did very well trading stocks but could have easily EASILY been burned as well. Once I came to this realization and discovered the bogleheads, Ive just stuck to index funds. The other problem I had with stocks was that you have to essentially be right twice. I would find myself selling a stock to take a profit only to see it keep rising astronomically. Even though I made money, I'd feel like I lost money because of all the gains I missed out on. I hated dealing with this. Needless to say, those days are over.
jadedfalcons
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Re: Ever dip your feet into individual stocks?

Post by jadedfalcons »

AT&T. Held it for over 20 years now. My numbers would have been much better if I hadn't bought a large chunk shortly before the tech bubble burst that it still hasn't recovered from. Based on my cost basis, I'm getting well over 5% return from the dividends at least, so hopefully another 25 years of compounding will give me a decent retirement stock.
BFive55
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Re: Ever dip your feet into individual stocks?

Post by BFive55 »

I used to own Microsoft. It was a gift to me. It went up super high then down and just lagged for a bit before I sold it.

My mom... she bought Apple and Starbucks. She bought Apple when it was $30 a share and Starbucks when it was cheap. She's held onto them for about 6-8 years. On Apple alone she's made over 350% return (based on the initial purchase plus a few others averaging the cost) and Starbucks she's made like 250% I think.

She really got super lucky. I sort of want her to get into something safer... but with how Apple is performing... how can I justify that advice? Apple's products are so amazing and everyone still loves them. No one is really poised to knock them off their pedestal. Samsung is going to take a while to recover from that battery fiasco. Their iPhones are like crack for younger people.

I think if Apple reaches 200 she should sell. That would be something like a 450% return or something.... a lot of money. Gosh, I think her investment adviser had wanted even more into Apple.
Nowizard
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Re: Ever dip your feet into individual stocks?

Post by Nowizard »

Yes. Have always had a stock or two during most time periods. Now, in retirement and taking MRD's, there is more disposable income than expenditures. Some of this is put into funds, some in stocks, primarily those with dependable, significant dividends. This is done knowing we will not be under pressure to cash in the stocks at any given time and as a substitute for putting additional assets into a MM account which pays next to nothing in interest. At this point, dividends are being received as predicted and the individual stocks are in the black as well. Not a recommended strategy but one that scratches the itch to occasionally "do something."

Tim
FedGuy
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Re: Ever dip your feet into individual stocks?

Post by FedGuy »

BFive55 wrote:but with how Apple is performing... how can I justify that advice? Apple's products are so amazing and everyone still loves them. No one is really poised to knock them off their pedestal.
If you're looking for arguments in favor of dumping Apple, some of the standard arguments are:
1) Apple hasn't introduced a compelling product since Jobs died.
2) The Apple Watch has not met expectations.
3) Some people have wondered if Apple is still able to innovate/disrupt or is just resting on its laurels.
4) If a company does become poised to knock Apple off its pedestal, the price will drop faster than you and your mom will be able to recognize it and react. For all you know, a company you never heard of might announce an iPhone killer tomorrow.
5) All it takes is for there to be one bad earnings report or one stupid comment made on an investor call, and the price could drop quickly and dramatically.
6) Stock prices in general have been on a tear lately, so some of what you're seeing may not be Apple-specific. In any case, diversification offers protections that have been well-documented on this board.

I don't use Apple products and don't spend much time reading their reviews or reading market assessments of the company, and don't have an opinion about the company's future performance, but there are reasons to justify a sell decision if that's what you want to do.
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nedsaid
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Re: Ever dip your feet into individual stocks?

Post by nedsaid »

Silverado wrote:Strange the amount of responses who seem to look at individual stocks as something to to be 'played' and seemed to buy and sell on a whim. I view them just like the other 95% of our portfolio, that is, something to be bought and held.
This is my view. My individual stocks are about 12% or so of my investment portfolio and I view them as long-term investments. I am not playing here, investing is serious business with me.
A fool and his money are good for business.
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David Jay
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Re: Ever dip your feet into individual stocks?

Post by David Jay »

I have about 5% of my portfolio in individual stocks. I am performing at near-market levels.

I intend to simplify as I get into my retirement years. I enjoy it but I do not want to leave my wife with the complexity.
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VaR
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Re: Ever dip your feet into individual stocks?

Post by VaR »

I don't know which would be worse, losing my play money or winning big and getting addicted to the gambling?
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