Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Resorting to individual stock purchases instead of Mutual Funds
Have others been TRADING stocks instead of investing in Equity funds? With indices so high, there are some beaten down plays that are tempting (for me, V and BMY are just 2 examples).
The market seems so heavily weighted towards tech, which could be bloated a bit. Seems like other sectors are dismissed.
What % of your portfolio is individual stocks (either long-term holds, or just short-term trades)?
My Chilean electric utility play is ENIC. Institutions and big banks are shorting the ever-loving shit outa that stock. But there are some US investment banks that have recently initiated analyst coverage. I've got just $2,500 into the ADR. I got in at a decent price-point, but then it's done nothing but fall. Right now, it likes to rise in share price in the off-hours, then fall during the day. But if you were to buy NOW, it would be at quite a deep discount. The total "bet" here for me is less than 1% of my portfolio total. About 0.84% right now, since "market forces" are sucking the life out of it--- for now. Yet, there are more analysts than not who recommend BUYING at this moment. There is a dividend. I missed May's. I've read that there will be a smaller dose in December. I can't find any specifics on that. https://www.barrons.com/market-data/stocks/enic/research-ratings
...Whenever I pull the trigger and put money into an individual stock, I know by now that it's about the same as punching myself in the face. Great idea.
Only about 3% resides in individual issues. (1) DFKG - more of a toy than serious investing. (2) WPM and (3) NGLOY - a couple miners comprising some of my real assets category. All positive over the brief time owned. Bought RIO near the bottom a couple weeks ago, but dumped it after reading about significant turmoil / turnover in the top ranks.
Also (recent) About 2% of portfolio is now split between etfs DOG and TAIL. Small bets the markets may fall precipitously. The press in their collective wisdom are all applauding Powell for his “transparency”. HA? How do they know? He may well have some surprises up his sleeve should inflation scare. Stay tuned!
I am doing this with income kicked out my CEFs. Also have been subbing out TROWE Health Fund for Sanofi, Merck, Roche. I little at a time. Combines healthcare with foreign as a boost. Morningstar's Wide Moat/Undervalued picks have been solid in small doses. Even some of those are approaching fully valued.
Roughly 50% of my portfolio consists of individual equity positions. They have always been boughten with a long term buy and hold intention and were also chosen for their dividend growth prospects. Nothing fancy, just the usual suspects.
I don't mess with them much but I do pick up a few shares when they go on 10% off sales like the recent activity in HRL & INTC.
Individual stocks and ETFs that I trade fairly frequently represent 5-6% of our liquid assets. The rest is in MFs and the hard-to-classify TIAA « guaranteed ».
Most of my holdings across accounts are individual stocks, mainly bought and managed for the long term, though I do trade some of them a bit more in one of my accounts. Overall I'd say a 60-40 split between dividend-paying stocks and various equity/allocation funds.
About 2/3 of my main portfolio is about equally split between stock investments via OEFs and individual stock holdings. The OEF stock investments generally have a total return focus but do include stock investments via mixed asset OEFs. The individual stock holdings generally also have a total return emphasis and are generally 3%+ YOC. (A subset of these individual stock holdings are 8%+ YOC. They have a stronger income focus but total return is still considered.)
Comments
https://www.barrons.com/market-data/stocks/enic/research-ratings
...Whenever I pull the trigger and put money into an individual stock, I know by now that it's about the same as punching myself in the face. Great idea.
Also (recent) About 2% of portfolio is now split between etfs DOG and TAIL. Small bets the markets may fall precipitously. The press in their collective wisdom are all applauding Powell for his “transparency”. HA? How do they know? He may well have some surprises up his sleeve should inflation scare. Stay tuned!
I don't mess with them much but I do pick up a few shares when they go on 10% off sales like the recent activity in HRL & INTC.