Play money individual stocks, which ones?

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TheTimeLord
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Play money individual stocks, which ones?

Post by TheTimeLord » Tue Dec 12, 2017 9:24 am

It seems like a fair number of BH have some play money set aside for trading individual stocks. So which individual stocks are BH buying?
Run, You Clever Boy! [8944]

Admiral
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Re: Play money individual stocks, which ones?

Post by Admiral » Tue Dec 12, 2017 9:33 am

None. I use my play money for vacations. :beer

FootballFan5548
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Re: Play money individual stocks, which ones?

Post by FootballFan5548 » Tue Dec 12, 2017 9:47 am

I own 15 individual equities which make up 14% of my total portfolio.
Mainly blue chip dividend payers that I've held for years before I became a BH convert. This number was as high as 30 at one point, but I've been pairing the overall number down.
They are:

Ticker Stocks
AAPL Apple
JNJ Johnson & Johnson
AXS Axis Capital
XOM Exxon Mobil Corp
VZ Verizon Communications
RDS B Royal Dutch Shell
FB Facebook Inc
MCD McDonald's Corp
F Ford Motor Corp
MET Metlife Inc
GE General Electric Co
NLY Annaly Capital Mgmt
GOV Government Properties Trust
MSFT Microsoft Corp
FRFHF Fairfax Financial

sschullo
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Re: Play money individual stocks, which ones?

Post by sschullo » Tue Dec 12, 2017 9:52 am

Admiral wrote:
Tue Dec 12, 2017 9:33 am
None. I use my play money for vacations. :beer
Yep! I do too. Vacations and supporting worthy causes is the type of "play" that's meaningful! I will NEVER EVER own individual stocks.
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

mak1277
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Re: Play money individual stocks, which ones?

Post by mak1277 » Tue Dec 12, 2017 9:58 am

I have some "play money" in Apple.

I also have a stock holding requirement for my employer's stock, but that's way more than play money...more like 20% of my net worth.

dbr
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Re: Play money individual stocks, which ones?

Post by dbr » Tue Dec 12, 2017 9:59 am

I would say BH are not buying individual stocks, or rather a few do. I don't know how much a fair number is.

If you would like an enthusiast site for stock picking I recommend this one: http://socialize.morningstar.com/NewSoc ... F100000005

TravelforFun
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Re: Play money individual stocks, which ones?

Post by TravelforFun » Tue Dec 12, 2017 9:59 am

I use my play money to buy and sell individual stocks, Currently I own:

Alibaba
Amazon
Facebook
GBTC
Lockheed
LTC
Skyworks
Square
USG

The stocks are 12% of my net asset.

TravelforFun

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DaftInvestor
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Re: Play money individual stocks, which ones?

Post by DaftInvestor » Tue Dec 12, 2017 10:02 am

I quit playing in individual stocks years ago. It became too much of a second job for me doing research and tracking investments and when some of the valuations of the stock I was holding started not making sense I decided it was time to find other hobbies.

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TheTimeLord
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Re: Play money individual stocks, which ones?

Post by TheTimeLord » Tue Dec 12, 2017 10:08 am

DaftInvestor wrote:
Tue Dec 12, 2017 10:02 am
I quit playing in individual stocks years ago. It became too much of a second job for me doing research and tracking investments and when some of the valuations of the stock I was holding started not making sense I decided it was time to find other hobbies.
That's what got me into indexing.
Run, You Clever Boy! [8944]

Admiral
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Re: Play money individual stocks, which ones?

Post by Admiral » Tue Dec 12, 2017 10:08 am

DaftInvestor wrote:
Tue Dec 12, 2017 10:02 am
I quit playing in individual stocks years ago. It became too much of a second job for me doing research and tracking investments and when some of the valuations of the stock I was holding started not making sense I decided it was time to find other hobbies.
+1.

I quit the stock game in 2008. I used to own:

Cisco
Google
Microsoft
Pfizer
Rambus
Schlumberger
Chevron

And a bunch of others I forget. Some I made money on, some I lost money on, some did nothing for like 10 years (Microsoft, Pfizer).

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TheTimeLord
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Re: Play money individual stocks, which ones?

Post by TheTimeLord » Tue Dec 12, 2017 10:12 am

dbr wrote:
Tue Dec 12, 2017 9:59 am
I would say BH are not buying individual stocks, or rather a few do. I don't know how much a fair number is.

If you would like an enthusiast site for stock picking I recommend this one: http://socialize.morningstar.com/NewSoc ... F100000005
Given the number of play money threads I had seen it seemed like something not uncommon for BH to do with 5% or less of their portfolio. For people who are majority index investors, their individual stock picks to me would represent tilts more than bets on individual companies. For me the actionable part would be seeing if their was a theme that translated into a sector tilt. Now if everyone says Berkshire-Hathaway that translates into S&P 500 over Total Market in my mind.
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DanMahowny
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Re: Play money individual stocks, which ones?

Post by DanMahowny » Tue Dec 12, 2017 10:19 am

Short Tesla

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oldcomputerguy
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Re: Play money individual stocks, which ones?

Post by oldcomputerguy » Tue Dec 12, 2017 10:23 am

Admiral wrote:
Tue Dec 12, 2017 9:33 am
None. I use my play money for vacations. :beer
+1. DW and I just got back last night from ten days in Jamaica. Much better return.

:beer
Anybody know why there's a 20-pound frozen turkey up in the light grid?

dbr
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Re: Play money individual stocks, which ones?

Post by dbr » Tue Dec 12, 2017 10:27 am

TheTimeLord wrote:
Tue Dec 12, 2017 10:12 am
dbr wrote:
Tue Dec 12, 2017 9:59 am
I would say BH are not buying individual stocks, or rather a few do. I don't know how much a fair number is.

If you would like an enthusiast site for stock picking I recommend this one: http://socialize.morningstar.com/NewSoc ... F100000005
Given the number of play money threads I had seen it seemed like something not uncommon for BH to do with 5% or less of their portfolio. For people who are majority index investors, their individual stock picks to me would represent tilts more than bets on individual companies. For me the actionable part would be seeing if their was a theme that translated into a sector tilt. Now if everyone says Berkshire-Hathaway that translates into S&P 500 over Total Market in my mind.
"Play" money does not translate into an investing strategy of any kind by definition. If you want to know if there is a strategy of some kind involving individual stocks, then that is a different question. I would say the answer to that is yes at least in the case of those who choose stocks according to dividend criteria. But this is far more than play money. What fraction of people posting here that might represent I wouldn't know without taking a survey. The mainstream BH analysis of individual stocks is that diversifiable risk should be eliminated by holding stock funds. There can be a discussion of how many stocks one needs to hold to eliminate diversifiable risk. But I think you could be more clear regarding what you are trying to do.

Then there is this thread: viewtopic.php?f=1&t=234364

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JoMoney
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Re: Play money individual stocks, which ones?

Post by JoMoney » Tue Dec 12, 2017 10:32 am

I gave up on individual stocks, but I don't think it's unreasonable. You can build a fine passive portfolio that way, but I felt it unnecessarily complicated things and introduced some behavioral issues
https://www.bogleheads.org/wiki/Passive ... ual_stocks

I index now, take my 'funny money' to a casino, and don't confuse it with investing.

Here's some stock picks from Bogleheads:
viewtopic.php?f=10&t=206778&start=200
https://docs.google.com/spreadsheets/d/ ... 0/htmlview
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

inbox788
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Re: Play money individual stocks, which ones?

Post by inbox788 » Tue Dec 12, 2017 12:42 pm

I gave up on individual stocks, especially buy and hold large caps. If I were to buy an individual stock, I'd be looking for something that might be the next Amazon or Tesla, but those ships have sailed already (and most of the names listed here as well). If a stock already has a market cap of $50B or $100B or more, growing 10X would mean $1T valuations. Amazon or Tesla might have that potential, but I think the rapid growth in those companies is already behind them, but what do I know? I'd be looking at companies in the $1B range that could potentially be $10B or even $100B companies in a decade. There are a few out there, but I don't have the stock picking skills to find them, and even if I did identify them, I wouldn't have the stomach to put a significant enough bet to make a big difference.

SPPI - $1.5B market cap - Money losing biotech with no real products yet. If one of their products is successful, it will more than justify the current price and a couple of homers might make this a $20 or $50B company in some years. Or they could fizzle out and be bought up for $200M.

DDD - $1B - play on 3d printing and manufacturing

MZOR - $1.4B - this could be the next intuitive surgical or be bought up for $10B down the road

IMO, it's much more likely a $1B company goes to $100B than a $100B reaches $10T.

I just can't risk 5% or 10% of my portfolio on a moonshot, let alone 1%. I'm content with the secure knowledge I'll make average gains, and with cost savings, expect to be in 90th percentile of investors in a decade. I'll miss out on being in the 99th percentile, but avoid the chance of being in the lower 50th as well.

mrgeeze
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Re: Play money individual stocks, which ones?

Post by mrgeeze » Tue Dec 12, 2017 1:15 pm

TheTimeLord wrote:
Tue Dec 12, 2017 9:24 am
It seems like a fair number of BH have some play money set aside for trading individual stocks. So which individual stocks are BH buying?

My most recent purchases were
GE
OII
CBI

Recently I sold
FCX (partial)
AAPL (partial)
FNMA (partial)

I think the buys are all still good bargains.
I admit they are all very risky.
Be ready to wait a year or 3 to make some $$.

Yes indeed, just like VEGAS!!!

Nate79
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Re: Play money individual stocks, which ones?

Post by Nate79 » Tue Dec 12, 2017 1:26 pm

I do not understand the need to have play money in individual stocks. This is more trouble than it's worth for 5% of a portfolio. I would rather use the money towards very speculative investments where the potential impact is higher, but risk is much higher. Something like cryptocurrency.

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TheTimeLord
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Re: Play money individual stocks, which ones?

Post by TheTimeLord » Tue Dec 12, 2017 1:29 pm

Nate79 wrote:
Tue Dec 12, 2017 1:26 pm
I do not understand the need to have play money in individual stocks. This is more trouble than it's worth for 5% of a portfolio. I would rather use the money towards very speculative investments where the potential impact is higher, but risk is much higher. Something like cryptocurrency.
That's why they make chocolate, vanilla and strawberry.
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KlangFool
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Re: Play money individual stocks, which ones?

Post by KlangFool » Tue Dec 12, 2017 1:39 pm

TheTimeLord wrote:
Tue Dec 12, 2017 10:12 am
dbr wrote:
Tue Dec 12, 2017 9:59 am
I would say BH are not buying individual stocks, or rather a few do. I don't know how much a fair number is.

If you would like an enthusiast site for stock picking I recommend this one: http://socialize.morningstar.com/NewSoc ... F100000005
Given the number of play money threads I had seen it seemed like something not uncommon for BH to do with 5% or less of their portfolio. For people who are majority index investors, their individual stock picks to me would represent tilts more than bets on individual companies. For me the actionable part would be seeing if their was a theme that translated into a sector tilt. Now if everyone says Berkshire-Hathaway that translates into S&P 500 over Total Market in my mind.
TheTimeLord,

In my case, it would be a bet on a potential hot technology. It could be one company or several companies in the same area. In any case, the total amount for all bets would be $5,000 or less.

KlangFool

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arcticpineapplecorp.
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Re: Play money individual stocks, which ones?

Post by arcticpineapplecorp. » Tue Dec 12, 2017 1:44 pm

GM is perhaps the best most recent large company (even better than ENRON) to learn why investing in individual stocks is unwise (if you want to replace that word with "risky" feel free. I mean no offense). Why?

We know that when a company goes out of business, stock holders lose everything (Enron). But GM hasn't gone out of business you say? And it's shares are up you say (since the recession)? Well, none of that helps the GM stockholders who owned stocks before its bankruptcy. If you are not aware that shareholders pre-recession (pre bankruptcy) lost everything and NEW shares were sold to NEW shareholders and the previous shareholders were wiped out, you should read on:

https://www.usatoday.com/story/money/co ... n/2097515/
Common stock holders in the old General Motors were essentially wiped out, watching their shares morph into shares of Motors Liquidation. The common stock originally traded on the Pink Sheets but was later canceled.

Meanwhile, shares of the new GM, which went public in 2010 have held up reasonably well. Shares of GM were initially priced at $33 a share, so those early investors are down, since the stock is trading for $29.10. But GM stock is up 50% from July 2012.

But, unfortunately for shareholders in the old GM, the relative safety of the new GM's stock is of no value to them. Shares of the old GM are canceled.
source: https://www.usatoday.com/story/money/co ... n/2097515/
Unfortunately, as happens all too often, the author learned the wrong lesson:
Investors must learn from this situation and remember to never hold shares of an individual company's stock this long. Investors must bail out when shares decline 10% or more to avoid such a catastrophic loss.
No. No. and No. What must be learned is to never hold individual stocks. Try selling your shares in a company that's going down and out (like Enron). You may not find any buyers.

Why would anyone want to buy stocks when the company can stay in business but you lose all your money? That makes absolutely no sense to me whatsoever. And for those that say, well that's rare, I'm not so sure about that. Reogranization is a viable strategy for businesses who find themselves in financial difficulty. The rules (legal) favor the companies, not the shareholders. So why would you want to take the side of a lopsided deal not in your favor?
Last edited by arcticpineapplecorp. on Tue Dec 12, 2017 1:44 pm, edited 1 time in total.
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

WhiteMaxima
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Re: Play money individual stocks, which ones?

Post by WhiteMaxima » Tue Dec 12, 2017 1:44 pm

BRKA or BRKB

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CABob
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Re: Play money individual stocks, which ones?

Post by CABob » Tue Dec 12, 2017 1:57 pm

I don't consider this to be "play money" but I do have investments in Caterpillar, General Electric, Huntington Ingalls, McDonald, Northrop, and AT&T. They are all long term holdings, dividend payers, and were bought well before my Boglehead days that might be considered in the "blue chip" category.
I have been essentially ignoring them for years, but certainly wish I had been watching GE a bit closer. I would like to sell some or all of them but don't like the potential capital gains taxes that would be incurred.
Bob

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saltycaper
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Re: Play money individual stocks, which ones?

Post by saltycaper » Tue Dec 12, 2017 1:57 pm

I don't understand the investment of "play money" into large-cap/mega-cap companies. Many of these companies are mature with mathematically limited room for top-line growth, and they are widely followed by analysts. KlangFool often says if you don't think you can get a 10X or 20X return in 5 or 10 years (or some such numbers), don't bother, and I agree with that sentiment.

I do not have any play money. I'd suggest taking whatever dollar amount of play money you are considering, pretend you lose it all, and plug the number of dollars you have now versus the number of dollars you would have if you lost your play money into a compound interest calculator, and see how much you are potentially costing yourself. If it's a substantial sum, perhaps it's not such a good idea. If it's not a substantial sum, again, I don't see why you are bothering. It's the usual risk/reward trade-off.

There may be a handful of people out there that just like doing it for the sake of doing it and are content not to earn much in the way of returns, and even tracking the Total Market would be entertaining enough, but I think there are very few such investors.
"I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said." --Alan Greenspan

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TheTimeLord
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Re: Play money individual stocks, which ones?

Post by TheTimeLord » Tue Dec 12, 2017 2:02 pm

saltycaper wrote:
Tue Dec 12, 2017 1:57 pm
There may be a handful of people out there that just like doing it for the sake of doing it and are content not to earn much in the way of returns, and even tracking the Total Market would be entertaining enough, but I think there are very few such investors.
viewtopic.php?f=10&t=232569
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saltycaper
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Re: Play money individual stocks, which ones?

Post by saltycaper » Tue Dec 12, 2017 2:03 pm

TheTimeLord wrote:
Tue Dec 12, 2017 2:02 pm
saltycaper wrote:
Tue Dec 12, 2017 1:57 pm
There may be a handful of people out there that just like doing it for the sake of doing it and are content not to earn much in the way of returns, and even tracking the Total Market would be entertaining enough, but I think there are very few such investors.
viewtopic.php?f=10&t=232569
Like I said... very few such investors. :wink:
"I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said." --Alan Greenspan

MittensMoney
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Re: Play money individual stocks, which ones?

Post by MittensMoney » Tue Dec 12, 2017 2:18 pm

I hold a few individual stocks in my IRA.

WIN - Bought 4/417, -63%
SWCH - Bought 10/26/17, -25%
T - Bought 6/20/17, -2% (after Div's I'm in the green)
CELG - Bought 10/30/17, 9%
OXY - Bought 04/25/17, 12%
VZ - Bought 04/25/17, 13%
TGT - Bought 04/04/17, 14%
MARK - Bought 10/20/17, 158%

Like most stock pickers, I have some good picks and bad picks. I bought SWCH during it's IPO, don't think I'll be participating in another IPO anytime soon. Bought CELG after a big downturn, has bounced back as expected. OXY, VZ, TGT, T were close to 52 week lows. MARK clearly paid off the best, but daily it's seeing 12% swings up or down so who knows..

And, as expected, had I just bought VOO when I bought the group of stocks in April I'd be up 20% so as far as I'm concerned the proof is right there telling me to just buy index funds in the future.

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3wood
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Re: Play money individual stocks, which ones?

Post by 3wood » Tue Dec 12, 2017 2:54 pm

After years of never owning an individual stock I bought two small biotech companies as a speculative investment. As of now, they represent less than 1% of my portfolio so there is no risk of it affecting my retirement plans. I might add some more on dips and hope they are sitting on the next blockbuster drug.
BLRX
MBRX

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Ditchwitch
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Re: Play money individual stocks, which ones?

Post by Ditchwitch » Tue Dec 12, 2017 3:05 pm

JoMoney wrote:
Tue Dec 12, 2017 10:32 am
I gave up on individual stocks, but I don't think it's unreasonable. You can build a fine passive portfolio that way, but I felt it unnecessarily complicated things and introduced some behavioral issues
https://www.bogleheads.org/wiki/Passive ... ual_stocks

I index now, take my 'funny money' to a casino, and don't confuse it with investing.

Here's some stock picks from Bogleheads:
viewtopic.php?f=10&t=206778&start=200
https://docs.google.com/spreadsheets/d/ ... 0/htmlview
Same here...life's too short to be sitting at the trading desk. I find watching stock tickers can become a hazard in your personal life....buy and hold indexes or mutual funds...single best invention in the investing world for the average investor. I prefer going to the casino and crashing some change....

Now, if you are knowledgeable in a particular area that might qualifiy you to make some better informed decisions than the millions of research analysts pouring over company financial statements and press releases then that might be an angle..yes, that's absolutely something worth considering but then it does take some time and research and usually with $$$ you get invested behaviorally...so I would probably still hedge indivdual stock bets by placing sector bets or using actively managed funds...
“Anyone who has never made a mistake has never tried anything new.” | ― Albert Einstein

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TXGymGuy84
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Re: Play money individual stocks, which ones?

Post by TXGymGuy84 » Tue Dec 12, 2017 4:06 pm

OLED!

3funder
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Re: Play money individual stocks, which ones?

Post by 3funder » Tue Dec 12, 2017 4:20 pm

DanMahowny wrote:
Tue Dec 12, 2017 10:19 am
Short Tesla
I'll have what you're having.

tesuzuki2002
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Re: Play money individual stocks, which ones?

Post by tesuzuki2002 » Tue Dec 12, 2017 4:26 pm

sschullo wrote:
Tue Dec 12, 2017 9:52 am
Admiral wrote:
Tue Dec 12, 2017 9:33 am
None. I use my play money for vacations. :beer
Yep! I do too. Vacations and supporting worthy causes is the type of "play" that's meaningful! I will NEVER EVER own individual stocks.
I'm working towards owning no individual stocks. I had over 200 holdings... I'm down to around 75 now. I'm working on it. Selling some here and there and buying the index.

MrsRoos
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Re: Play money individual stocks, which ones?

Post by MrsRoos » Tue Dec 12, 2017 4:34 pm

Play money = 1.4% of investment portfolio

Held since 2014/2015
KO +5%
DATA +64%

and will be adding NVDA to the list this week.
“Anyone who believes in indefinite growth in anything physical, on a physically finite planet, is either mad or an economist.” - Kenneth Boulding

Grt2bOutdoors
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Re: Play money individual stocks, which ones?

Post by Grt2bOutdoors » Tue Dec 12, 2017 4:45 pm

Own individual equities as part of overall portfolio (~20%). That said, there is nothing "play money" about it. I've had winners/had losers, net net, the amount of gains prevent me from liquidating as they are all up. No, I will not be donating them either. As a previous poster said, many of these would be considered blue chip today, though at time of purchase many were "up and comers".

The last lottery ticket I bought was a loser, while the state was a big winner. :annoyed
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

triggertreat
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Re: Play money individual stocks, which ones?

Post by triggertreat » Tue Dec 12, 2017 5:39 pm

Tootsie Roll

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Sandtrap
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Re: Play money individual stocks, which ones?

Post by Sandtrap » Tue Dec 12, 2017 5:50 pm

I've been tempted and made a secret list.

Lockheed Martin  LMT
Boeing   BA

Raytheon  RTN
Northrop Grumman  NOC
General Dynamics  GD
United Technologies Corporation  UTX
L3 Technologies LLL

Coca Cola  KO
Fairly valued wide moat
General Mills GIS
Undervalued narrow moat
Kellogg  K
Undervalued narrow moat
Kraft Foods  KRFT
Mondelez International  MDLZ
Nestle  NESN NSRGF
Fairly valued wide moat
PepsiCo  PEP 3 star yes
Fairly valued wide moat

Exxon Mobil  XOM
Chevron  CVX

Johnson and Johnson  JNJ
Phizer

Bayer AG    BAYZF
Wide moat fairly valued

Purina Animal Nutrition
Second largest usa feed producer
Owned by nestle
Tyson Foods (broiler)l
Fairly valued stable

Estee Lauder Companies, Inc EL
Class A stock.
Undervalued wide moat

Procter & Gamble PG
Fairly valued wide moat

Grt2bOutdoors
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Re: Play money individual stocks, which ones?

Post by Grt2bOutdoors » Tue Dec 12, 2017 8:15 pm

triggertreat wrote:
Tue Dec 12, 2017 5:39 pm
Tootsie Roll
Are you waiting for Ms. Gordon to sell? So is half of Wall Street. My bet is Warren Buffet buys the company or Mars, Inc.
When and if they are willing to sell out!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

honduranhurricane
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Re: Play money individual stocks, which ones?

Post by honduranhurricane » Tue Dec 12, 2017 8:31 pm

less than 5% of net worth: amzn, aapl,dis, dwdp,fb, googl, and spb. Found BH last year and was converted to indexing for the vast majority of funds. So much less stressful! That said, I do like stock picking so I will likely always have a small portion of my investments in individual stocks.

Emily1980
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Re: Play money individual stocks, which ones?

Post by Emily1980 » Tue Dec 12, 2017 8:52 pm

Too chicken.

I mentioned in another thread a few months ago that I was thinking about buying EFX (Equifax) and FDP (Fresh Del Monte Produce) because both seemed like okay companies having temporary setbacks. I said that, if I did, I would do it on Nov 1st when I rebalanced to see if I could make a quick buck on the turnaround. EFX is up 9.2% and FDP is up 6.07% since then, more than double the small cap value index I'm tilted to. But given that I only would have put 1% of my portfolio in each, or $13k total for both, that would only have made me $500 in excess of my tilt fund. And I'd probably be wimping out already since holding them in my ROTH lets me get away with not paying taxes.

Other companies I've thought about buying in previous years, but was also too chicken to pull the trigger, include NILE (Blue Nile) and AESAY (AES Tiete), both of which disappeared completely. Blue Nile was taken private and the shareholders were bought out. I would have made a little money on that, but I have no idea if it would have beaten the relevant index. Probably not. I'm not sure if AES was taken private or was wiped out, but I do remember looking the ticker up a year later (before it had disappeared) and being really, really glad that I didn't buy it. It had lost another 50% from what would have been my entry point. And I would definitely have bailed.

So my imaginary individual stock portfolio (EFX, FDP, NILE, and AESAY) would definitely be underperforming the index as a whole.

acanthurus
Posts: 308
Joined: Sun Aug 04, 2013 8:02 am

Re: Play money individual stocks, which ones?

Post by acanthurus » Tue Dec 12, 2017 8:57 pm

Removed
Last edited by acanthurus on Mon Jan 01, 2018 5:45 am, edited 1 time in total.

venkman
Posts: 397
Joined: Tue Mar 14, 2017 10:33 pm

Re: Play money individual stocks, which ones?

Post by venkman » Wed Dec 13, 2017 12:26 am

TheTimeLord wrote:
Tue Dec 12, 2017 9:24 am
It seems like a fair number of BH have some play money set aside for trading individual stocks. So which individual stocks are BH buying?
In 2005, I bought some shares of a media conglomerate called Bad Wolf Corporation. The stock fell at first, but eventually it Rose... 8-)

itstoomuch
Posts: 4924
Joined: Mon Dec 15, 2014 12:17 pm
Location: midValley OR

Re: Play money individual stocks, which ones?

Post by itstoomuch » Wed Dec 13, 2017 1:30 am

Against my better judgement :annoyed
Currently about 80% cash in Discretionary ( it is Not Play $) and would be near 100% cash but what remains is taxable at short-term rates.
Zillow, tracking stock
GAIN, GOF; closed end funds.
COLM, NWN, STWD. Dividend payers.
I have covered calls options on those stocks where I can protect some of their gains.
I am not sure what we will do when the stocks become LT.
I never have more than 15 holdings. Typically about 10 total.

Just reread OP. You want to know what I am buying?
Haven't found something that interests me.
And it is a secret. :wink: :beer
YMMV.
Rev90517; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax 25%. Early SS. FundRatio (FR) >1.1 67/70yo

triggertreat
Posts: 6
Joined: Sun Jun 18, 2017 1:36 pm

Re: Play money individual stocks, which ones?

Post by triggertreat » Wed Dec 13, 2017 3:05 pm

Grt2bOutdoors wrote:
Tue Dec 12, 2017 8:15 pm
triggertreat wrote:
Tue Dec 12, 2017 5:39 pm
Tootsie Roll
Are you waiting for Ms. Gordon to sell? So is half of Wall Street. My bet is Warren Buffet buys the company or Mars, Inc.
When and if they are willing to sell out!
Ive had stock in TR for the last 53 years.Guess I can wait a little longer :happy

bhsince87
Posts: 1472
Joined: Thu Oct 03, 2013 1:08 pm

Re: Play money individual stocks, which ones?

Post by bhsince87 » Wed Dec 13, 2017 3:42 pm

I currently own about $900k in individual stocks. For the record, I don't consider that "play money"! :D

Currently own 33 different companies, with a very heavy emphasis on small to mid cap tech. I've owned some of them since the late 1990s. My average return has been 16%+ per year.

I've never been a trader, but a buy and hold person (Buffet philosophy). I occasionally took profits for buying things like autos and a house. Luckiest move I ever made was selling almost all of my holdings in 1998 to buy some real estate. I also "backed up the truck" and loaded up on some of these stocks in 2008-2009 with cash I had on hand for paying off my mortgage, plus selling some bonds.

I do still buy on occasion, like when a stock I follow tanks 8-10% in one day for a silly reason. But since I'm nearing retirement, I've really cut back on the purchases. I plan to start selling when I'm in the 0% capital gains bracket, since all of these are in a taxable account. Also, all along, I've been buying "Bogle Approved" funds in my 401k.

That being said, I don't recommend others take this approach. In my engineering job, I had the opportunity to work with the best (and worst) tech companies around the world. From start ups to Apple, Cisco, Intel etc. I eventually learned which companies had their acts together, hired good engineers, kept them happy, paid their bills on time, etc. By no means "insider information", but real data that was unfiltered by industry analysts. My employer has such a huge customer base that I also see industry and/or regional purchasing trends updated weekly. After I retire, I will no longer have access to such information, and at that point, I will stick with funds.
BH87

tedclu
Posts: 179
Joined: Fri Feb 06, 2015 3:13 pm

Re: Play money individual stocks, which ones?

Post by tedclu » Wed Dec 13, 2017 3:44 pm

30% in individual stocks, large and concentrated bets.

CNX (Nat gas) way undervalued
CEIX (coal) way undervalued
CTL (telecom) new holding, dvd reduction concerns, but 15% yield and 125%+ return potential just too good.
MAT (Toys) new holding, waiting for an offer from HAS at 23 with large break up fee. Or it will be a 3-5 year holding.
SAVE (transport) they just keep growing
WYNN (casino) bought at the bottom early 2016, too much long term gains to sell.

hicabob
Posts: 2588
Joined: Fri May 27, 2011 5:35 pm
Location: cruz

Re: Play money individual stocks, which ones?

Post by hicabob » Wed Dec 13, 2017 3:53 pm

TXGymGuy84 wrote:
Tue Dec 12, 2017 4:06 pm
OLED!
oled for me too - I have owned for the last decade or so and now it's by far my largest single stock holding. Patience paid off on that one.

dabears5496
Posts: 11
Joined: Mon Feb 13, 2017 11:35 am

Re: Play money individual stocks, which ones?

Post by dabears5496 » Wed Dec 13, 2017 4:19 pm

@inbox788

I'd strongly recommend staying away from DDD or any 3d printing stock that is on the public markets. All the growth in printing is coming from the private markets. Until those IPO, i'd stay away.

inbox788
Posts: 4324
Joined: Thu Mar 15, 2012 5:24 pm

Re: Play money individual stocks, which ones?

Post by inbox788 » Thu Dec 14, 2017 5:32 pm

dabears5496 wrote:
Wed Dec 13, 2017 4:19 pm
@inbox788

I'd strongly recommend staying away from DDD or any 3d printing stock that is on the public markets. All the growth in printing is coming from the private markets. Until those IPO, i'd stay away.
Thanks for the advice. I doubt I'd be making any individual stock investment, even with play money, mainly because it requires too much work on my part to do the research to find the good companies (and that's if my methods are correct and achieve the objective). I then have to do the trades, and the worst part is bother with the accounting at tax time. Life is simple without having to keep track of individual stocks, and I'm finding TLH to be a burden these days.

If one wants to bet on 3d printing, there isn't much access to the private companies, and waiting for the right one to go IPO may take a while. Meanwhile, there are a dozen companies that are already public, and a couple are likely gold if you can identify it. Buying the basket is also a play, but there is lots of coal to drag along IMO.
https://finance.google.com/finance?chdn ... 2AaFhL-oCw

I've even looked at HPQ, which seems to be doing some interesting things, but far too much of their valuation is their legacy business, so not a good pureplay on 3d printing. That leaves companies like DDD or SSYS or PRLB where you can make a significant single concentrated bet. If you can't do that, and go with diversification of many individual stocks, you might as well index invest.
https://www.fool.com/investing/2017/10/ ... -sept.aspx

And when the private companies start going IPO, how do you know it won't perform like XONE? (or maybe you believe XONE is due for a rebound -- or not)
https://finance.google.com/finance?chdn ... jAHpqpfYCw

BTW, around Y2K, I found a small company who's market cap was around $100M or $400M that I believed was the next best thing in display technology -- OLED! I invested in it for a couple of years, but abandoned my position (maybe 100 shares at the time). Turns out I was absolutely right, but it would take more than a decade for them finally prove themselves, and I'm sure they struggled to keep most of their investors satisfied. You can see several false starts. It's a wonder they survived and weren't cut off from funding or taken private or acquired by a bigger entity.
https://finance.google.com/finance?chdn ... jAGf24XwCA

JBTX
Posts: 1919
Joined: Wed Jul 26, 2017 12:46 pm

Re: Play money individual stocks, which ones?

Post by JBTX » Thu Dec 14, 2017 5:44 pm

Lot of people jumping on OP needlessly. He obviously understands the risks involved and does it for a side hobby. I have contemplated doing it over the years but ultimately never have. Not worth the time and I don’t think I have any proprietary information that would give me any particular edge.

dabears5496
Posts: 11
Joined: Mon Feb 13, 2017 11:35 am

Re: Play money individual stocks, which ones?

Post by dabears5496 » Fri Dec 15, 2017 5:45 pm

@inbox788

3D printing is a tough spot to invest in. The historical top performers, SSYS/DDD, are running on older technology. The new technology is faster, more accurate and makes better parts. There is a reason why SSYS and DDD are not growing, even though the startups are growing like gangbusters. It turns into a classic case of the big, slow company not innovating over a certain period of time. They leave the door open for new competition, and that is exactly what has happened.

You made a good point about "do I invest now" b/c i do not have access to the private markets? This is why it's so tough. Even when those private companies go public, if they're really a top performer, they'll sell at a multiple that you won't want to pay.

If you believe in "to win in individual stocks, you need to know something that everyone does not know," this does not lead to success, especially in 3D printing. If you knew the specifics about the certain technologies and how they have the upper hand on everyone else, then go ahead, dive into a certain stock. But, I can tell you that SSYS and DDD are not those companies. XONE is also a tough play due to market fit and their financials. All metal 3D printers struggle due to cost, safety, and repeatability issues.

Now, HPQ might be the most interesting fit. They've entered the market with a real solid machine that is competing the traditional injection molding for plastic parts.

If you really want to get involved, maybe just do the ETF.

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