How many of you invest in individual stocks?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.

Do you invest in individual stocks?

Funds only
93
43%
Serious stock position
47
22%
Small stock position
76
35%
 
Total votes: 216

Topic Author
BeaglesRule
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How many of you invest in individual stocks?

Post by BeaglesRule » Sun Mar 29, 2015 8:05 am

Know that we all subscribe to the Boglehead style of fund investing but wonder how many of you also buy/sell individual stocks? If so do you allocate a serious amount of your portfolio or would you say you dabble in them? And why - for a bit more action with chance of a higher payoff, hunch sustained by research, interest in a certain local company or sector?
I am strictly in funds at the moment (have had stocks and even done the IPO thing in the past) and quite happy but wonder if I am missing something and would like your thoughts about having individual stocks along with strong fund positions.
Last edited by BeaglesRule on Sun Mar 29, 2015 10:19 am, edited 1 time in total.

tim1999
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Re: How many of you invest in individual stocks?

Post by tim1999 » Sun Mar 29, 2015 8:08 am

I have a "serious" individual stock allocation. It's what I'm comfortable with. Mainly dividend-paying stocks with low volatility/beta.

Wagnerjb
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Re: How many of you invest in individual stocks?

Post by Wagnerjb » Sun Mar 29, 2015 9:07 am

I invest in individual stocks, and they represent a "serious" share of my portfolio. I invest in large cap stocks, in my taxable account. You can read about the strategy in the Wiki on passively holding individual stocks.

This strategy uses every characteristic of being a Boglehead:

Low cost
Diversified
Passive
Very tax efficient
Low turnover


Best wishes.
Andy

BabylonOrBust
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Re: How many of you invest in individual stocks?

Post by BabylonOrBust » Sun Mar 29, 2015 9:32 am

I might when my IRA reaches a certain size, but when I do it won't be more than 10% of my stock allocation and it mainly will be for the same reason I occasionally bet on football games. :sharebeer I realize intellectually I can't beat the collective wisdom of Vegas or Wall Street, but it's fun to try if the stakes aren't too high.

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nedsaid
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Re: How many of you invest in individual stocks?

Post by nedsaid » Sun Mar 29, 2015 9:38 am

I still own 15 individual stocks in a brokerage IRA. I have made a change on rare occasion but I haven't done serious research since the 2000 crash. I have mostly relied on my independent broker to keep me up on my stocks and to suggest changes. Active mutual funds and individual stocks are how I started out.

My suspicion is that my stocks more or less went up and down with the market. I don't think that I have experienced outperformance but the stocks haven't hurt me either.

From the time I bought my first stock in 1988 and until the 2000 crash, I took stock picking pretty seriously. I spent a lot of time in financial magazines and researching at the library. After things crashed in 2000, I lost interest in doing all that research. It was a whole lot of work and all that effort didn't seem worth it. Seeing Lucent and later Nortel crash and burn were big factors. Fortunately, I had my winners too so it all balanced out.

I have trimmed my individual stocks, they were about 45% of my retirement portfolio at the end of 1999 and are now about 15%. Since 1999, most of my new monies for investment have gone into index funds. I wanted broader diversification.
A fool and his money are good for business.

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FreeAtLast
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Re: How many of you invest in individual stocks?

Post by FreeAtLast » Sun Mar 29, 2015 9:45 am

Never have and never will. When I was working I did not have the time to do the necessary research......and now that I am a retired old fossil.....I don't need the extra excitement in my life.
Illegitimi non carborundum.

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topper1296
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Re: How many of you invest in individual stocks?

Post by topper1296 » Sun Mar 29, 2015 9:51 am

I use index funds as my core investments and supplement that with individual stocks. I've been doing it that way for over 20 years now. My individual positions are in a taxable account that is low cost and tax efficient with very low turnover.

Added bonus, I enjoy doing the "homework" associated with it.

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ObliviousInvestor
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Re: How many of you invest in individual stocks?

Post by ObliviousInvestor » Sun Mar 29, 2015 9:53 am

I own precisely one B-share of Berkshire Hathaway, solely for the discount on GEICO insurance. No individual stocks other than that.
Mike Piper, author/blogger

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k66
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Re: How many of you invest in individual stocks?

Post by k66 » Sun Mar 29, 2015 9:58 am

I hold one individual stock with a near-guaranteed ROR of 50%. I hold it in my company's employee share ownership plan (e.g. I get a 1/2 share for every one I purchase up to 4% gross). Also, once per year, I sell as many shares as I am able to without violating the minimum holding period (else I would forfeit new matches in the coming year).

I see this practice as a necessary inconvenience.
LOSER of the Boglehead Contest 2015 | lang may yer lum reek

DVMResident
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Re: How many of you invest in individual stocks?

Post by DVMResident » Sun Mar 29, 2015 9:59 am

Make a poll? There's quite a number of BH who hold individual stocks.

No individual stocks here outside of employer RSU/stock options (not by choice).

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Taylor Larimore
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Re: How many of you invest in individual stocks?

Post by Taylor Larimore » Sun Mar 29, 2015 10:02 am

BeaglesRule wrote:Know that we all subscribe to the Boglehead style of fund investing but wonder how many of you also buy/sell individual stocks? If so do you allocate a serious amount of your portfolio or would you say you dabble in them? And why - for a bit more action with chance of a higher payoff, hunch sustained by research, interest in a certain local company or sector?
I am strictly in funds at the moment (have had stocks and even done the IPO thing in the past) and quite happy but wonder if I am missing something and would like your thoughts about having individual stocks along with strong fund positions.
BeaglesRule:

I no longer invest in individual stocks; only index mutual funds. These experts tell you why:
Brett Arends, Wall Street Journal columnist: "Buy individual stocks only as a gamble."

Benjamin Graham: "I have little confidence, even in the ability of analysts, let alone untrained investors, to select common stocks what will give better than average results."

Bill Bernstein, author of The Four Pillars of Investing: "Picking individual stocks is like volleying with the Williams sisters."

Jack Bogle: "Attempting to build an investment program around a handful of individual securities is, for all but the most exceptional investors, a fool's errand."

Adam Bold, author, adviser: "Mutual funds don't have the pizzazz of the hot stocks of the moment. If you're looking for entertainment, go gambling in Las Vegas. But if you want to accumulate real money for your retirement and other goals, mutual funds are the safer bet.

Dalbar Research Report (July 15, 2003): "The average equity investor earned a paltry 2.57% annually; compared to inflation of 3.14% and the 12.22% the S & P 500 index earned annually for the last 19 years."

Charles Ellis author of Winning the Loser's Game: "If you, like Walter Mitty, still fantasize that you can and will beat the pros, you'll need both luck and prayer."

Sy Harding, Forbes contributor: "My advice – avoid individual stocks! Even experienced full-time professional money managers, with staffs of trained people performing research, with access to data, software, and corporate contacts that most part-time investors could not come close to duplicating, struggle to match the market’s performance by buying, holding, or selling individual stocks."

Mathwizard: The vast majority of trades you would make are between you and a professional investor. Both of you are assigning a value to the stock, and one of you thnks the price is high and another thinks it is low. Who do you suppose is more likely to be right.

Standard & Poor's: When the S&P 500 index was officially formed in 1957 to its 50th anniversary in 2007, only 86 of the original 500 companies still remained.

Larry Swedroe, author of many financial books: "Owning individual stocks and sector funds is more akin to speculating, not investing."

David Swensen, Chief Investment Officer of Yale University: "There's no way that spending a few hours a week looking at individual securities is going to equip an investor to compete with the incredibly talented, highly qualified, extremely educated individuals who spend their entire professional careers trying to pick stocks."

Eric Tyson, author of Mutual Funds for Dummies: The notion that most average people and non-investment professionals can, with minimal effort, beat the best full-time, experienced money managers is, how should I say, ludicrous and absurd."
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

Geologist
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Re: How many of you invest in individual stocks?

Post by Geologist » Sun Mar 29, 2015 10:12 am

You could search on the site, because this is hardly the first thread on this subject, even recently. Many posters may not be eager to post again on the same subject.

MarkBarb
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Re: How many of you invest in individual stocks?

Post by MarkBarb » Sun Mar 29, 2015 10:18 am

I am granted stock by the company at which I work. When I receive a grant (generally an annual event), it vests in thirds each year. When it vests, I sell the shares and transfer the proceeds to an index fund. That's the only individual stock that I hold today.

On rare occasions I will by an individual stock, but those occasions seem to be getting increasingly rare.

Topic Author
BeaglesRule
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Re: How many of you invest in individual stocks?

Post by BeaglesRule » Sun Mar 29, 2015 10:20 am

DVMResident wrote:Make a poll? There's quite a number of BH who hold individual stocks.

No individual stocks here outside of employer RSU/stock options (not by choice).
Thanks for the idea DVMResident. My first poll, hope I didn't mess it up.

Topic Author
BeaglesRule
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Re: How many of you invest in individual stocks?

Post by BeaglesRule » Sun Mar 29, 2015 10:22 am

Geologist wrote:You could search on the site, because this is hardly the first thread on this subject, even recently. Many posters may not be eager to post again on the same subject.
Appreciate the tip. Sorry to be redundant.

likegarden
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Re: How many of you invest in individual stocks?

Post by likegarden » Sun Mar 29, 2015 10:24 am

I sold my former employer's stocks 10 years ago and no longer own any stocks. I mostly invest in index funds, all Vanguard.

Sidney
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Re: How many of you invest in individual stocks?

Post by Sidney » Sun Mar 29, 2015 10:29 am

I have a handful of individual stocks from much earlier in my investing life. Over time, these are being donated away.
I always wanted to be a procrastinator.

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stemikger
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Re: How many of you invest in individual stocks?

Post by stemikger » Sun Mar 29, 2015 10:33 am

The only way I would own individual stocks is if I was able to do the work and have the confidence to act on my analysis. And if I did decide to go that route, my stock of choice would be Berkshire Hathaway B shares of course.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!

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CABob
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Re: How many of you invest in individual stocks?

Post by CABob » Sun Mar 29, 2015 10:34 am

I'm not sure how to answer the poll. I own six individual stocks. They are all long term holdings going back to my pre-Boglehead days which of course means there are some significant long term gains. They all would be generally considered to be blue chip, dividend paying stocks. In total they comprise about 5% of my total portfolio which I consider to be small, but, I consider them to be serious money. I don't consider them to be "play money".
I have often thought of selling them, but, procrastination rules.
Bob

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LiveSimple
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Re: How many of you invest in individual stocks?

Post by LiveSimple » Sun Mar 29, 2015 10:52 am

( May be I owned some individual stocks many years ago )

Currently I own heavily 1 stock of BRK.B for the comparison purpose in another 10 / 20 years.
Also for the nice annual report, mailed to my home.

Also I am researching, heavily on TSLA Tesla Motors Inc, for the optimal timing, as my strategy again is to buy heavily 1 stock for comparison purpose in another 10 / 20 years.

I know, seeing the gains of individual stocks is tempting. :moneybag
However investing for the long run, involves not losing the principal, hence index funds are better in the long run :D

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Rainier
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Re: How many of you invest in individual stocks?

Post by Rainier » Sun Mar 29, 2015 11:07 am

Ruby wrote:( May be I owned some individual stocks many years ago )

Currently I own heavily 1 stock of BRK.B for the comparison purpose in another 10 / 20 years.
Also for the nice annual report, mailed to my home.

Also I am researching, heavily on TSLA Tesla Motors Inc, for the optimal timing, as my strategy again is to buy heavily 1 stock for comparison purpose in another 10 / 20 years.

I know, seeing the gains of individual stocks is tempting. :moneybag
However investing for the long run, involves not losing the principal, hence index funds are better in the long run :D
What is "own heavily" or "buy heavily"...?

1 stock? Do you mean 1 share?

ShiftF5
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Re: How many of you invest in individual stocks?

Post by ShiftF5 » Sun Mar 29, 2015 11:13 am

The only reason I would buy individual stocks is is I felt Confident that I knew enough to pick companies that will outperform the overall market.

I have no such feeling. 100% Index here.

That's just me.

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Aptenodytes
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Re: How many of you invest in individual stocks?

Post by Aptenodytes » Sun Mar 29, 2015 11:23 am

Well I said "small" but I am at the smallest of the small; something like .03%
I guess if you round that it is zero.
A future version of the poll should give percentage ranges instead of adjectives -- looks like some people weren't sure which side of a threshold their holdings fell on.

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stevewolfe
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Re: How many of you invest in individual stocks?

Post by stevewolfe » Sun Mar 29, 2015 11:30 am

My last individual stock trade was in 1999.

LFKB
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Re: How many of you invest in individual stocks?

Post by LFKB » Sun Mar 29, 2015 11:40 am

I own some Google and Apple stock but that's it. I believe those two companies will continue to be the dominant technologies of this generation and they seem to be making the right moved to keep from being passed up by others. We'll see. I own about $20k in each.

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Re: How many of you invest in individual stocks?

Post by itstoomuch » Sun Mar 29, 2015 11:57 am

Have about 30% of discretionary retirement funds in trading accounts. The % used to be much smaller but the accounts out ran the deferred annuities and MFs. Exiting stocks (I think temporary) as a defensive, mental interest matter, and having the nut cracked.
:|
Did not vote.
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nisiprius
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Re: How many of you invest in individual stocks?

Post by nisiprius » Sun Mar 29, 2015 12:22 pm

Like many other Bogleheads, I once did and quit doing it. I've bought individual stocks maybe ten times in my life. I haven't kept records so allow for false memory, and they were all small positions--all less than 100 shares--but I'm pretty sure I won big on my very first one, had small gains on maybe six or seven, and small losses on maybe one or two. My earliest stock purchases were in the days of fixed commissions, where you paid over $100 for any brokerage trade AND if it was less than 100 shares, they added 1/8 to the price for a purchase and deducted 1/8 from the price for a sale... and were asked whether you wanted the stock certificate sent to you or held at the brokerages.

I never got badly burned; that's not why I quit.

I quit because I finally figured out that I had no clue about what I was doing and that for me it was just a dumb thing to do. I had some beginner's luck and then I was smart enough quit while I was still ahead.

P.S. Anyone who takes financials risks for fun, or for the thrill, or for entertainment needs at least to consider how much fun they are getting per dollar spent and whether they wouldn't get more fun per dollar in some other way. (I tend to think that the word "fun" is often a bit of a euphemism--that people who risk money "for fun" are like people who smoke cigarettes "for the taste.")
Last edited by nisiprius on Sun Mar 29, 2015 4:36 pm, edited 1 time in total.
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Re: How many of you invest in individual stocks?

Post by bloom2708 » Sun Mar 29, 2015 12:49 pm

I do find it curious that even some diehard Bogleheads invest a significant portion in single stocks. "It works for me" or "Do as I say, not as I do" coming into play.

A selection of Large Cap Dividends stocks is "diversified". Or "I only do it for Apple, Facebook and Google stock". I'm way ahead so I have to stick with Apple. I can't sell because I have too much capital gains.

I am enjoying keeping it simple and buying into my 3 fund portfolio each month. But I also enjoy reading the "do as I say, not as I do" ideas out there.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

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LiveSimple
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Re: How many of you invest in individual stocks?

Post by LiveSimple » Sun Mar 29, 2015 1:00 pm

Rainier wrote:
Ruby wrote:( May be I owned some individual stocks many years ago )

Currently I own heavily 1 stock of BRK.B for the comparison purpose in another 10 / 20 years.
Also for the nice annual report, mailed to my home.

Also I am researching, heavily on TSLA Tesla Motors Inc, for the optimal timing, as my strategy again is to buy heavily 1 stock for comparison purpose in another 10 / 20 years.

I know, seeing the gains of individual stocks is tempting. :moneybag
However investing for the long run, involves not losing the principal, hence index funds are better in the long run :D
What is "own heavily" or "buy heavily"...?

1 stock? Do you mean 1 share?
Opps, I meant 1 share :D

Bungo
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Re: How many of you invest in individual stocks?

Post by Bungo » Sun Mar 29, 2015 1:05 pm

Until recently, just one, my former employer's stock, through various stock plans. I sold whenever I was entitled to. I changed jobs a few months ago, and there's no stock plan at the new job (startup company) so I have no individual stocks.

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tylerdurden
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Re: How many of you invest in individual stocks?

Post by tylerdurden » Sun Mar 29, 2015 1:12 pm

I only own stock for one company, and it's through my company's ESPP. I work for a relatively stable company and receive decent discounts on the stock, so it makes sense for me. All my other investments are in funds or ETFs (via Betterment).

I have owned several other stocks in the past, but decided to sell all of those and just invest in Vanguard funds moving forward.
"The things you own end up owning you." -TD

sambb
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Re: How many of you invest in individual stocks?

Post by sambb » Sun Mar 29, 2015 1:31 pm

yes, made a lot of money in AAPL. Paid off mortgage. Dont plan on doing it again unless I see a tremendous product like apple iPhone on the market, which ALSO has been undervalued by analysts (who carried blackberries at the time). Opportunities come up, but for me maybe not again. Wasn't a lucky bet as BH try to tell me. It was clear to me that the iPhone was a game changer. If i see another product this revolutionary that has been totally undervalued by the street, i would invest. But that may not happen for decades, if ever. Apple under steve jobs was an amazing run - a once in a lifetime opportunity that was consistently undervalued by wall street who was carrying black berries (and largely other established investors who didn't stand in line at product launches to see the cultural effect of steve jobs), and unprecedented in my portfolio, and so glad i had that $$ in apple instead of the broad market in indexes. Now, however, i sold, paid off debts, and i am an index investor. In many ways i should have held on.

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GerryL
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Re: How many of you invest in individual stocks?

Post by GerryL » Sun Mar 29, 2015 2:17 pm

I answered small position -- about 15% -- but I don't really trade. I have a considerable amount in my former employer's stock from RSU grants and ESPP, but I decided some years back to keep the total shares below a certain level and sold shares occasionally to maintain that level. Now that I am no longer acquiring new shares, I am using the dividends as part of my retirement income instead of investing them in my taxable account, as I had been doing. My other holding is inherited stock from my late father's auto industry employer. I'll probably gradually transfer those shares to restock my DAF as needed.

No plans to purchase any more individual stocks.

jay22
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Re: How many of you invest in individual stocks?

Post by jay22 » Sun Mar 29, 2015 4:51 pm

Never owned one. I started investing with index funds and plan to continue doing so. That said, I do sometimes wonder if I should invest in B shares of Berkshire Hathaway, just to see how it goes.

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pennstater2005
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Re: How many of you invest in individual stocks?

Post by pennstater2005 » Sun Mar 29, 2015 5:17 pm

I held stock positions in Coke, Berkshire (B shares), Alcoa, GE, Universal Insurance, Fannie Mae, Ford, Bank of America, Pepco and others. I held onto them awhile even after I found Bogleheads. I wasn't a buy and hold kind of guy with individual stocks for whatever reason. I got too antsy too quick waiting for something to happen. UVE was the killer, I bought at around $3 and it's trading today at $24 a 700%+ gain. But, I had no idea it would do that and sold too early. Fannie Mae bought at .26 cents then peaked at $5.82 - missed that one as well. Index funds fit my personality well.
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Yesterdaysnews
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Re: How many of you invest in individual stocks?

Post by Yesterdaysnews » Sun Mar 29, 2015 10:02 pm

I own 5000 shares of AAPL in my taxable account. Can't say I regret that non-index fund purchase. I take large positions in large well run companies and rarely if ever sell. I avoid businesses where I don't understand how they make money. Tax deferred account is fully indexed with VG. My taxable account keeps my investing life a little interesting LOL. YMMV.

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Dale_G
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Re: How many of you invest in individual stocks?

Post by Dale_G » Sun Mar 29, 2015 10:47 pm

I only own 1 stock - PCL, Plum Creek Timber. It is a timber REIT with a dividend of 4%. The dividend is paid out as a capital gain and I still have plenty of tax loss carry-forwards left over 2008/2009, so the dividend is effectively tax free. I have some small hope that timber will provide some tiny protection against inflation.

I say tiny protection, because the holding is less than 1% of the portfolio.

Dale
Volatility is my friend

Wagnerjb
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Re: How many of you invest in individual stocks?

Post by Wagnerjb » Sun Mar 29, 2015 11:12 pm

bloom2708 wrote:I do find it curious that even some diehard Bogleheads invest a significant portion in single stocks. "It works for me" or "Do as I say, not as I do" coming into play.

A selection of Large Cap Dividends stocks is "diversified". Or "I only do it for Apple, Facebook and Google stock". I'm way ahead so I have to stick with Apple. I can't sell because I have too much capital gains.

I am enjoying keeping it simple and buying into my 3 fund portfolio each month. But I also enjoy reading the "do as I say, not as I do" ideas out there.
I will speak for myself, as you may have assumed that my individual stocks in the Large Cap arena were my only stock holdings. They are certainly not, as I have other sectors in my tax deferred accounts - held in low cost index funds, including Small Caps, Small Cap Value, Int'l Large Caps, Int'l Value, Int'l Small Caps, Int'l Small Value, EM stocks, EM value, EM small cap, and US REIT.

The "do as I say" part is to be diversified, low cost, passive and tax efficient. The "do as I do" part is not applicable because most people don't have the portfolio size, the ability, the tax position or the interest to deal with individual stocks.

Best wishes.
Andy

The Casualty
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Re: How many of you invest in individual stocks?

Post by The Casualty » Sun Mar 29, 2015 11:20 pm

GE is 10% of our portfolio in an IRA. I have a price to sell 50% but I will keep the other half long term. We get about $9K a year in dividends and rebalance into PIMIX.

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Garco
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Re: How many of you invest in individual stocks?

Post by Garco » Sun Mar 29, 2015 11:41 pm

I own a handful of individual stocks, all of which I inherited. I sold a few but kept a few that had substantial capital gains since the stepped up date. I'm not sure when, if ever, I will sell these stocks. They make up only about 3% of my portfolio's value.

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fourwedge
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Re: How many of you invest in individual stocks?

Post by fourwedge » Sun Mar 29, 2015 11:55 pm

Two years ago I held 100% of my 6 figure retirement+ taxable in stocks. I traded it by mostly technical (with some fundamental) analysis on a day trader time frame. I made money on more then half of my trades, but I gained 20% less trading frequently then if I had just bought and held my first 30 positions.

That was an eye opener to me and I switched from day trader to a mutual fund buy and hold investor. A year after that I found BH forums and index funds. Within months I had everything I could, transferred to VG.

No more desire to own any individual stocks.
Max out your tax sheltered retirement accounts with inexpensive, well diversified, index funds and you will beat 90% of all investors.

PNW_Hunter
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Re: How many of you invest in individual stocks?

Post by PNW_Hunter » Mon Mar 30, 2015 12:06 am

Whoever had a serious stock position with Kraft last week should be pretty happy right now :P

Nozzle
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Re: How many of you invest in individual stocks?

Post by Nozzle » Mon Mar 30, 2015 10:35 am

I have a significant position in one stock -- my employer. Everything else is in mutual funds. After IPO I plan to divest and reinvest solely in index funds. It was a fun ride but I've accepted it as a once in a lifetime opportunity.

DFrank
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Re: How many of you invest in individual stocks?

Post by DFrank » Mon Mar 30, 2015 11:01 am

The only stock position I have is my employer. Our 401k match is given in company stock. We are free to sell it at any time though. From time to time I've gotten some stock awards as well, stock options a long time ago, and then restricted stock awards more recently. Across all those sources I manage my holdings of company stock so they don't get to be a large portion of my portfolio - I think between 1-2% currently.
Dave

ny_rn
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Re: How many of you invest in individual stocks?

Post by ny_rn » Mon Mar 30, 2015 11:21 am

Prior to following the Boglehead philosophy, I owned American Express, Exxon Mobil Corp, Corning and Sanofi-Aventis. I had no idea what I was doing.

I sold everything and dumped all the proceeds into Vanguard Total Stock Market Index Fund. This is the only fund I contribute to which is held in my Roth IRA and taxable account.

The top of my investment policy statement reads, "at no time are you to invest in individual stocks."

kazper
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Re: How many of you invest in individual stocks?

Post by kazper » Mon Mar 30, 2015 11:58 am

For my wife's birthday a few years ago, I decided to buy her 2 shares of Facebook at around $20. She LOVES facebook with a passion. It was my first and only stock purchased. At the time it was as much as I felt comfortable spending on "extras". Plus I was sure it was going to tank and be a regret later... Yeah, still waiting for it to come down to Earth :oops:

kolea
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Re: How many of you invest in individual stocks?

Post by kolea » Mon Mar 30, 2015 12:39 pm

One thing I find interesting is that while many people are disdainful of stocks, it seems to be widely believed here that some actively managed funds beat indexed funds, but due to higher costs, the active fund underperforms when expenses are included. The implication here is that an individual should be able to pick stocks that beat the market, just as an active fund does, and since there would be no fees, you will come out ahead in the end.

Me, I have no patience for such a thing and mostly stick with passive funds (I have a couple of active funds in specialty areas). But I think that stock picking is not a bad thing to do if you are good at it.
Kolea (pron. ko-lay-uh). Golden plover.

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Toons
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Re: How many of you invest in individual stocks?

Post by Toons » Mon Mar 30, 2015 12:42 pm

I did 20-25 years ago,still own them :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

Grt2bOutdoors
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Re: How many of you invest in individual stocks?

Post by Grt2bOutdoors » Mon Mar 30, 2015 1:21 pm

Started investing in individual equities over 20 years ago, mainly a diversified large cap value equity/low beta (misnomer - when the market declines, nearly everyone goes along for the "ride") portfolio. That portfolio has done well overall - it's not designed to be a "shoot the lights out, lose your shirt kind of portfolio (though it could happen but then again if I lose my shirt you all will be joining me if the ship goes down :) ). Mainly a buy and hold portfolio, very low turnover (selective TLH) and with time has created large unrealized gains embedded in it's value. That is partially offset by positions in mainly indexed funds when available, spouses retirement plan has mainly institutional class actively managed options (acceptable er costs :annoyed ). My main investing vehicle these days are funds mainly held in retirement plans and taxable account - holding a mix of large blend, growth, mid and small cap, emerging market value, total international, us and global reits, total bond market, stable value funds.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

linenfort
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Re: How many of you invest in individual stocks?

Post by linenfort » Mon Mar 30, 2015 1:33 pm

Wagnerjb wrote:I invest in individual stocks, and they represent a "serious" share of my portfolio. I invest in large cap stocks, in my taxable account. You can read about the strategy in the Wiki on passively holding individual stocks.
...
That is a good entry, very helpful, and I like that fact that it exists alongside the typical Boglehead's habit to look askance at any kind of plan involving individual stocks. It's almost a knee-jerk response in this forum, but there are foolish ways to invest in indie stocks and there are wise ways, the latter more closely resembling a pure Boglehead strategy.
TwoByFour wrote:One thing I find interesting is that while many people are disdainful of stocks, it seems to be widely believed here that some actively managed funds beat indexed funds
...
I am glad the entry is called "Passively Managing..." :happy
I think of my holdings as "minimally processed" or mostly passive.

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