They Say "Money Talks" So Let's Talk

[M51]

I am overly diversified with 87 stocks. Trying to whittle it down and buy more shares of the better ones.

I was in a similar situation while working. Was difficult for me to finance X number of stocks and build share count. Think I had topped out at about 34 companies in my non-retirement brokerage acct. A few years prior to retiring, whittled it down to 16. Have added about 6-7 in retirement. Was also financing retirement accts and bond funds/etfs.

May need 2-4 stocks in each sector to achieve about 90% diversification for the SP500.

 

[bonefish1]

I was in a similar situation while working. Was difficult for me to finance X number of stocks and build share count. Think I had topped out at about 34 companies in my non-retirement brokerage acct. A few years prior to retiring, whittled it down to 16. Have added about 6-7 in retirement. Was also financing retirement accts and bond funds/etfs.

May need 2-4 stocks in each sector to achieve about 90% diversification for the SP500.

If you're trying for sector diversification, why not just by sector ETFs or mutual funds instead of individual stocks?
I know those aren't as exciting, but they'll accomplish the diversification goal.

 

[New Pal Boiler]

If you're trying for sector diversification, why not just by sector ETFs or mutual funds instead of individual stocks?
I know those aren't as exciting, but they'll accomplish the diversification goal.

Problem with those is you get all the “meh” companies along with the studs. I’ll take Amazon and Apple, you can have eBay and IBM.

 

[bonefish1]

Problem with those is you get all the “meh” companies along with the studs. I’ll take Amazon and Apple, you can have eBay and IBM.

But trying to pick 4-5 winners for an entire sector is really tough and I would argue isn't really the definition of diversification. I would say you're picking blue chips, which is a fine strategy, but not really diversifying. (and this is coming from someone who is extremely risk tolerant and has made/lost a lot of money betting on micro/small cap biotechs).
If you want a great big company diversified fund, buy Fidelity Contrafund. Has been my favorite for 20 years.

 

[70boiler]

But trying to pick 4-5 winners for an entire sector is really tough and I would argue isn't really the definition of diversification. I would say you're picking blue chips, which is a fine strategy, but not really diversifying. (and this is coming from someone who is extremely risk tolerant and has made/lost a lot of money betting on micro/small cap biotechs).
If you want a great big company diversified fund, buy Fidelity Contrafund. Has been my favorite for 20 years.

Ditto on Contrafund. Fidelity also has a Blue Chip Fund - FBGRX

 

[M51]

Looks like I caused another down day. Invested a little on Wed., market down on Thurs. Happened 2-3 times in June. Invest a little, next day or two are down days.

Maybe I will just alert everyone when I plan on buying, wait a day and you will have buying opportunities.

Investor alert!

Made a couple small purchases this morning. Market moving down although it was down some when I made the purchase. Down day tomorrow? Good news, both stocks are slightly higher.

 

[70boiler]

ABUS is running wild, currently up 80%, on news of MRNA losing a patent fight with it.

 

[M51]

ABUS is running wild, currently up 80%, on news of MRNA losing a patent fight with it.

Nice! Hope you have a few thousand shares!

 

[bonefish1]

ABUS is running wild, currently up 80%, on news of MRNA losing a patent fight with it.

When did you start watching ABUS?
Never looked at it until today.

 

[70boiler]

Nice! Hope you have a few thousand shares!

When did you start watching ABUS?
Never looked at it until today.

Sadly, I saw a blurb about the pending patent suit and glanced at it, but never got back to take a good look. Ugh. Then I saw it today.

 

[New Pal Boiler]

But trying to pick 4-5 winners for an entire sector is really tough and I would argue isn't really the definition of diversification. I would say you're picking blue chips, which is a fine strategy, but not really diversifying. (and this is coming from someone who is extremely risk tolerant and has made/lost a lot of money betting on micro/small cap biotechs).
If you want a great big company diversified fund, buy Fidelity Contrafund. Has been my favorite for 20 years.

I don’t necessarily want just big companies, but I do want winners with explosive growth. Like Twilio, Shopify, Teledoc, Docusign, Salesforce, Nvidia, Tesla, etc. I don’t want old line, stagnant companies like Chevron, Wells Fargo, Ford, IBM, P&G, Coca Cola, etc, and you get lots of those in S&P 500 ETFs.

 

[M51]

If you're trying for sector diversification, why not just by sector ETFs or mutual funds instead of individual stocks?
I know those aren't as exciting, but they'll accomplish the diversification goal.

NewPal commented on the "meh" stocks in the SP500. I was just trying to provide an example of stock diversification without owning an entire index. I did have a SP500 fund in my IRA up until the early 2000's. Moved all that money in more specialized funds, a small cap fund and a bond fund.

There are some sectors/sub sectors in the SP500 index that I do not buy individual stocks. One being retail, apparel and the like. And I want my stocks to pay me in dividends.

Picking 2-4 winners in each sector and being diversified is not overly difficult, beating an index is.

 

[M51]

Boston Beer is smoking hot today! Up $135+

Think I have stimulated the stock a little during the pandemic.

 

[70boiler]

Chinese automaker Li Auto (LI), produces electric SUVs and is about to make an offering of American Depository Receipts at between $8 and $10.
It may be well worth looking into.
Each ADR will translate to 2 shares of stock.

 

[70boiler]

Watch for a Premarket and early Monday MRNA run given this announcement-

Moderna's Covid-19 BARDA contract gets added $472M modification

Seeking Alpha Link

 

[70boiler]

Possible Penny Players:
BNGO
UAVS
EMAN
ADMP
AIM
NOVN
SCON

 

[70boiler]

Hyundai may be making move in electrics ... talk with battery makers Samsung, LG and SK Group

LINK TO
Hydrogen champion Hyundai races to electric as Tesla takes off | Article [AMP] | Reuters

 

[70boiler]

The Kodak decision coupled with its huge volume surge the day before any information was released is troubling.

 

[70boiler]

GDP shrank 32.9% in April to June quarter.

 

[70boiler]

Moderna Chief Medical Officer sold 20k shares which were all that he had available to sell. He retains some options for about 20k additional.
That perhaps makes one question the likelihood of a successful third trial phase on its Covid vax.

 

[bonefish1]

GDP shrank 32.9% in April to June quarter.

But wasn't that easily predictable? This is why I went to about 80% cash in March, thinking that all this bad news would tank the market and I could time it to get back in, but the opposite happened. The rally didn't make sense fundamentally. So, that's why I went back into equities in June due to FOMO (fear of missing out), knowing that trailing economic data (unemployment, GDP, exports, etc) were going to be bad for some time but the market had already reconciled that fact and priced it in.

 

[70boiler]

But wasn't that easily predictable? This is why I went to about 80% cash in March, thinking that all this bad news would tank the market and I could time it to get back in, but the opposite happened. The rally didn't make sense fundamentally. So, that's why I went back into equities in June due to FOMO (fear of missing out), knowing that trailing economic data (unemployment, GDP, exports, etc) were going to be bad for some time but the market had already reconciled that fact and priced it in.

Yes, certainly a contraction but I was a bit surprised at the size. The market just hasn't (and seemingly is continuing to) behave terribly rational. Today hasn't been anything like one probably would have prophesied if asked about a scenario of that level of contraction.

 

[M51]

Apple, Amazon, Facebook, Alphabet all with big earnings beat. All up after hours, Alphabet lowest of the four. ( Alphabet now down slightly).

Apple is also going to split stock 4/1. Would like to see many more companies follow this lead.

Many more top companies report on Friday. Think it will be a huge up day for the markets.

 

[70boiler]

Apple, Amazon, Facebook, Alphabet all with big earnings beat. All up after hours, Alphabet lowest of the four. ( Alphabet now down slightly).

Apple is also going to split stock 4/1. Would like to see many more companies follow this lead.

Many more top companies report on Friday. Think it will be a huge up day for the markets.

Splits are really going to be a thing of the past, imho, given the ability to buy partial shares in today's world.

 

[M51]

Splits are really going to be a thing of the past, imho, given the ability to buy partial shares in today's world.

Apple is splitting the stock to make it more affordable to the small investor. $100 is the sweet spot for Apple.

 

[New Pal Boiler]

Splits are really going to be a thing of the past, imho, given the ability to buy partial shares in today's world.

Apple is splitting the stock to make it more affordable to the small investor. $100 is the sweet spot for Apple.

You missed his point about fractional shares.

 

[70boiler]

Apple is splitting the stock to make it more affordable to the small investor. $100 is the sweet spot for Apple.

Yes, they probably are.

 

[70boiler]

Apple is splitting the stock to make it more affordable to the small investor. $100 is the sweet spot for Apple.

You missed his point about fractional shares.

Yes, they probably are.

Holy hell...I thought that I was the old guy without 21st century awareness...lmao

 

[M51]

You missed his point about fractional shares.

Don't think I did. Has some significant limitations. Platform type, brokerage firms that offer fractional trades, type of trade, stocks that can be traded, etc. May seem wonderful for a new investor.

 

[New Pal Boiler]

Don't think I did. Has some significant limitations. Platform type, brokerage firms that offer fractional trades, type of trade, stocks that can be traded, etc. May seem wonderful for a new investor.

All the big ones I know of offer fractional shares... do you know of any that don’t? Robinhood sort of forced all their hands.

 

[M51]

CAT with a strong earnings beat. Up 3% premarket.

 

[M51]

CAT with a strong earnings beat. Up 3% premarket.

Exxon and Chevron miss earnings, revenue expectation. Hopefully third qtr oil/gas consumption increases.

ABBV and ITW both beat earnings, revenue.

 

[SKYDOG]

CAT with a strong earnings beat. Up 3% premarket.

So much for that!

 

[M51]

So much for that!

Yep.......

 

[70boiler]

There is about to be an IPO for Rocket Companies, the umbrella for Quicken Loans, Rocket Mortgage... Projected price of $20 - $22

 

[70boiler]

Marathon Oil will be a potential runner today...
Selling its Speedway stores and good earnings report...

 

[70boiler]

I also see that Plug Power has a deal in the UK for a supermarket chain contract

 

[70boiler]

Lordstown Motors which produces electric trucks is going public and it should drive stakeholder Workhorse upward

 

[SKYDOG]

Marathon Oil will be a potential runner today...
Selling its Speedway stores and good earnings report...

Grrrrrr! I own this and thought they were going to spin it off not sell it. In a couple days it will will probably settle back and the shareholders will have half the company.

 

[bonefish1]

There is about to be an IPO for Rocket Companies, the umbrella for Quicken Loans, Rocket Mortgage... Projected price of $20 - $22

Just refied withe Loan Depot out of CA. 2.875 on a 30 yr fixed. Saw a commercial for them on TV for the first time yesterday so they must be doing well.