Diversify your stock portfolio: What do you recommend?

Posted:
in AppleOutsider edited January 2014

Comments

  • Reply 1 of 13
    What are you looking for in a stock? If you don't know, answer these questions for me:



    How old are you?

    How much are you going to invest?

    What is your career path?



    Basically, recommending stocks is as much about the investor as it is about the investment. Personally, I wouldn't invest in any of those, but I may have a very different objective than you have.
  • Reply 2 of 13
    I own INTC, CLWR in addition to many others. If you can clearly answer Spline's questions, you'll be starting on the right path.
  • Reply 3 of 13
    solipsismsolipsism Posts: 25,726member
    My title question is mostly rhetorical. I am just curious to see what other people are investing in, besides Apple, 'round these parts.
  • Reply 4 of 13
    trumptmantrumptman Posts: 16,464member
    Having all your portfolio in tech stocks, even if they are different tech stocks, is not diversification. You need to look at some other sectors. I've been eyeing some banks since they have been so hammered right now. I haven't bought yet, but Citibank, Washington Mutual, Wells Fargo, and Bank of America have all been slammed.



    Nick
  • Reply 5 of 13
    Citibank is on the verge of being sold.
  • Reply 6 of 13
    trumptmantrumptman Posts: 16,464member
    Where did you read that? Usually the stock grabs some uptick with any sort of credible rumors of activity. (selling, splitting, etc.) It is the largest bank in the world so who is buying?



    Nick
  • Reply 7 of 13
    dudditsduddits Posts: 260member
    Quote:
    Originally Posted by trumptman View Post


    Where did you read that? Usually the stock grabs some uptick with any sort of credible rumors of activity. (selling, splitting, etc.) It is the largest bank in the world so who is buying?



    Nick



    Napster is rumored to be a potential buyer. Another rumored buyer is Arby's - something about a combined fast food fast banking organization for eating and banking on the run. Between Napster and Arby's, I'd say Arby's is the more likely suitor, although Napster has confounded pundits before. If that happens, I wonder if that means citibank customers will have to reorder new checks with the new name on it?
  • Reply 8 of 13
    Quote:
    Originally Posted by trumptman View Post


    Having all your portfolio in tech stocks, even if they are different tech stocks, is not diversification.



    That was true fifteen years ago. Today, silicon is in everything, and it would be impossible for the high tech market to be universally affected by some event, barring nuclear holocaust. For example, if you own stock in a company that makes high-power LEDs or solar panels or, for that matter, train-engine maintenance electronics, they are going to respond very differently to market trends than will high tech that's "consumer" driven, like iPods, mobile phones, or handheld video games. And beneath all of them are often the same parts.



    My advice to any budding traders is to pick a niche or two to focus on, and dump anything else into funds. Aside from the Apple stock that I have (which has been a stupifying return on investment over 6.5 years) I am mostly interested in technology IP investing. The payoffs in this niche usually come from "M&A." The rest is dumped into emerging-market funds. My other advice is that if you're young, be very risky. $15k can become $350k in a few years if you're lucky, but if you lose the $15k, in a few years that's probably not going to be such a big deal if you're the type who's seriously thinking about investing at that young age.
  • Reply 9 of 13
    Quote:
    Originally Posted by trumptman View Post


    Where did you read that? Usually the stock grabs some uptick with any sort of credible rumors of activity. (selling, splitting, etc.) It is the largest bank in the world so who is buying?



    Nick



    Sorry trump, that was just a sarcastic comment, not a fact. I use them for my business banking, and it seems every couple of months they get sold and their name changes. My local branch is now called Citibank/Smith Barney.
  • Reply 10 of 13
    Y'know, on a note similar to the questions raised in this thread...



    http://biz.yahoo.com/brn/071016/2335....pf=retirement



    These are some excellent points to bring up with kids today. I started saving at a very young age. My mom opened my first savings account with me and I loved to watch the numbers get bigger every time I made a deposit. That positive experience made me a lifelong saver and an early investor in stocks.
  • Reply 11 of 13
    Quote:
    Originally Posted by SpamSandwich View Post


    ...My mom opened my first savings account with me and I loved to watch the numbers get bigger every time I made a deposit. That positive experience made me a lifelong saver and an early investor in stocks.



    Amen, SpamSandwich, Amen!
  • Reply 12 of 13
    What do you guys think AAPL will do Monday with earnings being reported? My guess is that it will be up 1-2% during the day, report stellar earnings, and repeat what happened in January...tank down to $150s in the following weeks. Then the ramp back up to $200+ will happen before January.
  • Reply 13 of 13
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by cuencap View Post


    What do you guys think AAPL will do Monday with earnings being reported? My guess is that it will be up 1-2% during the day, report stellar earnings, and repeat what happened in January...tank down to $150s in the following weeks. Then the ramp back up to $200+ will happen before January.



    I'm expecting the same thing, but I think it will be 5-6% on Monday. RIMM also took a dive after a short jump after it's record earnings a couple weeks ago.



    I'm still debating whether I'm going to capitalize on this trend or not.
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