Thoughts on my "equities play portfolio"?

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Topic Author
Mikimac
Posts: 5
Joined: Mon May 18, 2020 3:39 am

Thoughts on my "equities play portfolio"?

Post by Mikimac »

Hey friends, frequent reader but first time poster here. I have learned so much from you all. I want to ask your thoughts on my "equities play portfolio". So most of my money are invested in index funds but about 1/10 are in a taxable account where I essentially pick individual stocks (my "play" money to pick stocks). I realize this is exactly what Bogle told us not to do, but it's a small fraction of my total investments and I do enjoy following companies a bit. I am late 30's with a spouse and two small children. I recently re-balanced the play portfolio to be the following:

The Equities/Non-equities Split:

Equities (see below): 82%
Bond (BND): 13%
Gold (GLD): 5%
This equities/non-equities split mirrors my index funds investment, and I added gold in place of some bond as a bit of insurance against recession

Within Equities: I work in the tech industry and used to be in the healthcare industry, so I only buy stocks in these industries.

TECH:
Apple 12%
Amazon 8%
Facebook 11%
Google 14%
Microsoft 15%
Tesla 22%
Zoom 6%

HEALTHCARE:
Abbvie 4%
Abbott 4%
Roche 4%

My Questions for You:
  • If you have a side portfolio where you also pick stocks yourself, do you have any advice for me?
  • Does it make sense to follow the same equities/non-equities split as my index investments (where 90% of my money is), or should I just go all in equities because this is play money for me to pick stocks?
  • Do I have a reasonable number of stocks within equities and each representing a reasonable fraction of the portfolio?
  • What do you think about buying gold as insurance against recession?
Thank you!
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Cyclesafe
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Joined: Wed Dec 31, 2014 1:03 pm

Re: Thoughts on my "equities play portfolio"?

Post by Cyclesafe »

You're posting in the wrong forum.
"Plans are useless; planning is indispensable.” (Dwight Eisenhower) | "Man plans, God laughs" (Yiddish proverb)
houseofnine
Posts: 90
Joined: Sat Jan 11, 2020 4:40 pm

Re: Thoughts on my "equities play portfolio"?

Post by houseofnine »

I have a very similar approach. One thing that might give you a better view is to determine the weight of your specific equities relative to your entire portfolio. Many of your individual stock holdings can also be found in funds, so the percentage of MSFT, for example, may be bigger than you are comfortable with. The best tool I know of for this is the X-Ray feature at Morningstar. Costs money to access, but you can start a free trial that will show you where all of your stocks are held (go to Stock Intersection). I prefer to keep <3% of my total portfolio in any individual company. It can be a struggle when you hold AAPL, AMZN, etc.
zeal
Posts: 246
Joined: Tue Dec 11, 2018 4:28 pm

Re: Thoughts on my "equities play portfolio"?

Post by zeal »

I don't have any play money (our income isn't very high, all extra goes to tax-deferred accounts), so take my opinion with a grain of salt, but...

I wouldn't bother holding gold/bonds, both for the same reason. Partly because of tax efficiency but mostly because if I'm setting aside $X to gamble, I'm gambling all $X.
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McGilicutty
Posts: 346
Joined: Tue Dec 13, 2016 5:24 pm

Re: Thoughts on my "equities play portfolio"?

Post by McGilicutty »

I too own individual stocks. I like to invest in some of the smaller tech stocks that are discussed on this message board:

https://boards.fool.com/sauls-investing ... 20980.aspx

I also subscribe to Motley Fool Stock Adviser and Motley Fool Rule Breakers as well as Bert Hochfeld's Ticker Target news letter.

I've done well so far with the 'individual stocks' portion of my portfolio climbing from 15% of the total portfolio to a little over 18%.

Given the stocks that you own, I'm sure you've done well too.
Topic Author
Mikimac
Posts: 5
Joined: Mon May 18, 2020 3:39 am

Re: Thoughts on my "equities play portfolio"?

Post by Mikimac »

houseofnine wrote: Thu Jun 25, 2020 7:06 am I have a very similar approach. One thing that might give you a better view is to determine the weight of your specific equities relative to your entire portfolio. Many of your individual stock holdings can also be found in funds, so the percentage of MSFT, for example, may be bigger than you are comfortable with. The best tool I know of for this is the X-Ray feature at Morningstar. Costs money to access, but you can start a free trial that will show you where all of your stocks are held (go to Stock Intersection). I prefer to keep <3% of my total portfolio in any individual company. It can be a struggle when you hold AAPL, AMZN, etc.
Thanks for that advice. I should look into X-Ray. I realize many of my stock picks probably have a high representation in my index funds (eg VTI).
Topic Author
Mikimac
Posts: 5
Joined: Mon May 18, 2020 3:39 am

Re: Thoughts on my "equities play portfolio"?

Post by Mikimac »

zeal wrote: Thu Jun 25, 2020 9:53 am I don't have any play money (our income isn't very high, all extra goes to tax-deferred accounts), so take my opinion with a grain of salt, but...

I wouldn't bother holding gold/bonds, both for the same reason. Partly because of tax efficiency but mostly because if I'm setting aside $X to gamble, I'm gambling all $X.
That's a good point. I've been vacillating back and forth whether to own bonds/gold in my play portfolio. I should probably just get rid of them and pick a few more stocks.
Topic Author
Mikimac
Posts: 5
Joined: Mon May 18, 2020 3:39 am

Re: Thoughts on my "equities play portfolio"?

Post by Mikimac »

McGilicutty wrote: Thu Jun 25, 2020 12:03 pm I too own individual stocks. I like to invest in some of the smaller tech stocks that are discussed on this message board:

https://boards.fool.com/sauls-investing ... 20980.aspx

I also subscribe to Motley Fool Stock Adviser and Motley Fool Rule Breakers as well as Bert Hochfeld's Ticker Target news letter.

I've done well so far with the 'individual stocks' portion of my portfolio climbing from 15% of the total portfolio to a little over 18%.

Given the stocks that you own, I'm sure you've done well too.
Oh that's really good to know. I should go take a look at that thread. I have gotten pretty lucky with these stocks, especially Tesla that I bought at $20 a share (recently sold some at $1000 a share because I was getting nervous that it's taking up a big chunk of my play portfolio. I also had a few losers that I had gotten rid of, like GE.
snailderby
Posts: 1215
Joined: Thu Jul 26, 2018 11:30 am

Re: Thoughts on my "equities play portfolio"?

Post by snailderby »

Mikimac wrote: Thu Jun 25, 2020 1:20 pm
houseofnine wrote: Thu Jun 25, 2020 7:06 am I have a very similar approach. One thing that might give you a better view is to determine the weight of your specific equities relative to your entire portfolio. Many of your individual stock holdings can also be found in funds, so the percentage of MSFT, for example, may be bigger than you are comfortable with. The best tool I know of for this is the X-Ray feature at Morningstar. Costs money to access, but you can start a free trial that will show you where all of your stocks are held (go to Stock Intersection). I prefer to keep <3% of my total portfolio in any individual company. It can be a struggle when you hold AAPL, AMZN, etc.
Thanks for that advice. I should look into X-Ray. I realize many of my stock picks probably have a high representation in my index funds (eg VTI).
1. Even without a paid Morningstar subscription, you can use the X-Ray tool here: https://www.tdameritrade.com/education/ ... -xray.page.

2. Apple, Amazon, Facebook, Google, and Microsoft are already the five biggest holdings in any total stock market fund. And Tesla and Zoom's P/E and P/B ratios are very high. But you probably already know that.
Topic Author
Mikimac
Posts: 5
Joined: Mon May 18, 2020 3:39 am

Re: Thoughts on my "equities play portfolio"?

Post by Mikimac »

snailderby wrote: Thu Jun 25, 2020 4:11 pm
Mikimac wrote: Thu Jun 25, 2020 1:20 pm
houseofnine wrote: Thu Jun 25, 2020 7:06 am I have a very similar approach. One thing that might give you a better view is to determine the weight of your specific equities relative to your entire portfolio. Many of your individual stock holdings can also be found in funds, so the percentage of MSFT, for example, may be bigger than you are comfortable with. The best tool I know of for this is the X-Ray feature at Morningstar. Costs money to access, but you can start a free trial that will show you where all of your stocks are held (go to Stock Intersection). I prefer to keep <3% of my total portfolio in any individual company. It can be a struggle when you hold AAPL, AMZN, etc.
Thanks for that advice. I should look into X-Ray. I realize many of my stock picks probably have a high representation in my index funds (eg VTI).
1. Even without a paid Morningstar subscription, you can use the X-Ray tool here: https://www.tdameritrade.com/education/ ... -xray.page.

2. Apple, Amazon, Facebook, Google, and Microsoft are already the five biggest holdings in any total stock market fund. And Tesla and Zoom's P/E and P/B ratios are very high. But you probably already know that.
Sweet, gotta go give it a try.
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