Good Day to You,
When I was seventeen, it was a very good year.....or so the lyric goes.
Well, 17 was a long time ago for this one. Now to begin to leave one of my active lovers.
If one is of the mind, passion and spirit for investing; the rewards, satisfaction and a form of love may leave a smile upon the face. While 50 ways (reasons) are not needed to leave an investing lover, one will likely determine a few key personal points.
Needless to say, the group here are not one's normal invest monies in a 401k, 403b, 457 or some form of IRA just to build a retirement account. We here tend to "fiddle" with whatever is available to our accounts.
Understanding/knowing the difference between being a passive or active investor is of value; as long as one also understands that he/she is likely active in managing choices which fall into a passive investment vehicle.
The exceptions that come to mind are when one uses an advisor, be it human or robo. But, one has still made an active choice about this, too.
So........the plan for this house for a total portfolio:
---75% VWINX , 65% IG bonds, 35% U.S. stocks, active managed
---15% FSPHX , healthcare, active managed; also included, DPLO (Diplomat Pharma stock)
---10% FRIFX , a different real estate active managed fund with a history of 50/50 stocks/bonds
We have a percentage of all of these now, but will sell other holdings to accommodate the above numbers.
For those interested, the below links present more information (click on the other tabs at the top, aside from these composition links:
--- VWINX ,
compositionThis fund has superior returns for many years. Yes, it is subject to the markets not unlike any other fund.
--- FSPHX ,
compositionWe still remain tilted towards the health sector and the many sectors within health related. Although this sector has been getting the whack during the past 6 or so months; our holdings average total return for the past several years remain most decent.
--- FRIFX ,
compositionYou won't find an easy method for ranking in a category list for real estate, as this fund doesn't fit the normal holdings positions for this category, being about 50% bonds. As normal, we look for total return over a time frame; versus which fund is having the most fun, say, within a 1 or 2 year period.
--- DPLO , A specialty pharmacy. This company IPO'd in October of 2014. We purchased near the IPO price, having been very familiar with the quality of the organization during its 25 years of being private. We continue to hold this stock.
https://eresearch.fidelity.com/eresearch/goto/evaluate/snapshot.jhtml?symbols=DPLO&type=o-NavBarAs we investors are always subject (or should be subject to change) to change, the following holdings will be liquidated; market conditions allowing (no black swans, etc. allowed), from some accounts outside of Fidelity.
---BRUIX , DPRRX , BAGIX , DGCIX , OPBYX , VIIIX , GPROX , PRHSX , HEDJ , FHLC , ITOT
NOTE: all monies are tax sheltered accounts without current tax implications
We'll arrive at a conservative/moderate balanced account holding. As with all individual investors, such mixes are subject to "the eyes of the beholder" function as to how the balance suits their needs and views. The investment mix is mostly biased towards U.S. markets and companies, although at this time; about 20% of the holdings relate to other than U.S. One would also expect these holdings to generate greater than 20% of earnings/yields from sources outside of the U.S. going forward and providing some international exposure by this method.
Lastly, a large core holding in VWINX may be reasonably argued to possibly cause harm to an overall portfolio going forward due to its large percentage holdings in IG bonds. The main argument being that IG bonds have had one heck of a run for much too long. One may suppose that the "odds" factor such an argument. I will note again the phrase "that this time is different" since the market melt of 2008. Of course it is, eh? We live in a most dynamic investing world. At the very least, central banks and related polices operate upon the egos of the members. Who in these groups would want to look bad in the eyes of financial history? I suspect the central banks will continue to surprise many making decisions based upon every available form of data mining to obtain desired outcomes. Our house is still "betting" upon the investment grade bonds. This is no less as scary as the equity markets discovering flaws in the system, not yet known. With VWINX as the example, an investor will reap 35% of the up or down of the given equity holdings and 65% of the up or down of the investment grade bond holdings for a "total" result.
Remain or become fully flexible and adaptable, not just to your perception of the investing marketplace; but more importantly, to and for yourself and those important in your life.
This "personal overview" is likely incomplete; but will suffice for the time being.
Comments welcomed.
Regards,
Catch
Comments
Thank you for your thoughts regarding this post. As to the equity mix. With the 35% inside of VWINX and another 25% between the healthcare fund and the individual stock of DPLO, we arrive at about 60% equity exposure, although 25% of total equity exposure is via some form of the health sector.
NOTE: fed talk today indicates a possible rate increase in June, investment grade bonds of all flavors down about .8%. VWINX will not be a happy fund today.
Regards,
Catch