stock market was up today...

#13,501
#13,501
And I wouldn’t bet on mining or extracting anything with Biden still napping in the Oval Office. But some like to go for high risk/ high rewards.
 
#13,502
#13,502
Waste Management (WM) is another good idea. They will ride along with a booming economy but also provide a necessary service no matter how the economy might or not be doing. But it isn’t real cheap right now at 28x earnings. However the dividend is almost 2% and is covered by earnings at nearly 2x.
 
#13,503
#13,503
Thunder Good-Oil said:
Don’t put more than 10%-20% in any security unless it’s a broad based total market or index fund or complemented by it. QQQ, VTI, DIA, and SPY are good options if only a couple of investments are purchased. Then you can build around it/them with individual names. JNJ is a good proxy for healthcare. FDX or UPS for when the economy picks up. AMZN or PG or WMT or TGT or COST for a strong consumer. CVS for healthcare PLUS exposure to the consumer. AMT or CCI for the buildup of the wireless footprint. JPM or GS or MS or BAC or C or BLK or SCHW for exposure to financials. ITA for diversified defense sector exposure.

The Select Sector ETFs that track the S&P 500 sectors are another good idea. Low fees and easy to be more concentrated in a sector that is in favor. XLF, XLE, XLI, XLV, and 7 other sectors.

Unique ETFs that divide the S&P 500 into 11 sectors | Select Sector SPDRs

Don’t just invest in a couple of company stocks. Without diversification it is VERY dangerous. SPY and VTI are pretty diversified ETFs. QQQ is to a lesser extent and DIA (the Dow Jones Industrial Average ETF) has 30 stocks as components. DIA include large, high quality, generally profitable blue chip companies.
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Thanks for this. You have been very helpful in the past also. Appreciate it bro. Go VOLS
 
#13,505
#13,505
Velo Vol said:
*Ideally < 5%.
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What struck me as odd is that Charlie Munger suggested the opposite. He said that you really only need to be invested in about 4 places. Then he cited Berkshire-Hathaway, China, and rental properties as his choices. There might have been a 4th that escapes me. Of course, BRK covers many businesses. It’s a bit like a broad based index fund. And his real estate holdings can be well dispersed since he has about $2 billion.

Buffett likes farm land. And at the core he prefers assets that create things and produce income over time.

But going back to Munger, unless you are able to set aside several million in very safe assets that could keep up with inflation, I believe that diversification is extremely important. Returns can be enhanced by being concentrated in only a few owned assets, but the selected assets sure better be good ones with little room for error by picking a bad one(s). However, if you only own one thing, Berkshire-Hathaway should probably be that security. It is at such a large size though that great returns are more and more difficult to find. SPY or VTI might be just as effective.
 
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#13,506
#13,506
Thunder Good-Oil said:
What struck me as odd is that Charlie Munger suggested the opposite. He said that you really only need to be invested in about 4 places. Then he cited Berkshire-Hathaway, China, and rental properties as his choices. There might have been a 4th that escapes me. Of course, BRK covers many businesses. It’s a bit like a broad based index fund. And his real estate holdings can be well dispersed since he has about $2 billion.
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I know you wouldn't put 20% of your portfolio in a single stock, but someone completely new could conceivably read the above post as saying that.

I don't know what Munger said, but he's obviously well diversified.
 
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#13,507
#13,507
Velo Vol said:
I know you wouldn't put 20% of your portfolio in a single stock, but someone completely new could conceivably read the above post as saying that.

I don't know what Munger said, but he's obviously well diversified.
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No, Munger said you really only need about 4 investments. But BRK is quite diversified on its own. Of course Charlie is 99. But I think he’s stayed highly concentrated throughout.

I might go 20% in a single security. As far as a single stock, probably only if it was a lifelong holding that kept on running up. The stepped up basis is an amazing tax advantage.
 
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#13,508
#13,508
I am absorbing and trying to learn from all thats posted here. Thanks.

Question: with the depleted stockpiles now of weapons in NATO countries, and the new coldwar with China and the increased pacific demand, do yall not think putting maybe 10% in the best companies making up the Military Industrial Complex would be a good investment for the next 5 years or maybe 10?
 
#13,509
#13,509
marcusluvsvols said:
I am absorbing and trying to learn from all thats posted here. Thanks.

Question: with the depleted stockpiles now of weapons in NATO countries, and the new coldwar with China and the increased pacific demand, do yall not think putting maybe 10% in the best companies making up the Military Industrial Complex would be a good investment for the next 5 years or maybe 10?
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Yes. LMT. RTX. NOC. General Dynamics. LHX. They are all sound ideas for individual defense industry stocks. But the exchange traded fund ITA is the safest way to get exposure. You never know when an individual company will have difficulty and crash.

iShares U.S. Aerospace & Defense ETF | ITA

Keep in mind that defense contractors are at the mercy of Congress. With the ever expanding national debt and budget deficits, it might be a couple of years of depressed spending. The longer the term, the better the opportunity.
 
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#13,510
#13,510
Thanks for this ..i would never have known there was an ETF where i could invest in all of them instead of just individuals. Much appreciated
 
#13,511
#13,511
marcusluvsvols said:
Thanks for this ..i would never have known there was an ETF where i could invest in all of them instead of just individuals. Much appreciated
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The 0.39% expense ratio isn’t too bad. I think it could/should be around 0.25% since they just add defense stocks to the fund from a short list instead of analyzing an entire universe of public companies. But being well below 1% it isn’t at all unreasonable.

Almost $6 billion of net assets and over 1% of the shares trading every day means that it is a pretty liquid fund. With small funds that are thinly traded, it can be hard to find buyers if the investors want to trade their shares. The higher volumes keep the bid-ask spreads small.

The dividend is a little low, but 1% is better than nothing.

Raytheon is the largest holding and makes up about 20%. They sell a lot of missiles which is preferred to putting US soldier’s boots on the ground of conflicts. Add LMT, BA, and Howmet and that’s half of the fund. Strong aerospace names. All should benefit from building out the Space Force.

The p/e is about 28x which is a little bit expensive, but I personally wouldn’t wait for it to fall much (unless I fully expect Congress to make massive budget cuts to the military).

As with ANY fund, the advantage is the automatic diversification. But that also means that the mediocre and bad company names are included in the fund. However, the companies making up a large portion of the fund are also pretty good companies. The questionable or riskier names are only a small percentage of the holdings.
 
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#13,512
#13,512
I've seen some pieces recently about the possibility of a market crash. A bank failed today, the market assists to be concerned....... Those that follow the stock market, skills we need concerned?
 
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#13,517
#13,517
I personally try to own about 10 to no more than 20ish stocks at a time. Too few and you can get smacked really hard if a company suddenly takes an unexpected dump. More than that and you have a hard time keeping up and can get surprised with bad news too easily because it becomes too easy to over look things with all that on your plate.
 
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#13,523
#13,523
Yeah...one of them cant even string together complete sentences when reading someone else's words because of his dementia, after 46 years straight of leeching off of the government teet, even a small child can tell that he's a blithering idiot....and the other 1 graduated from the top 2 Ivy league schools in the US, has been a successful private attorney and even Solicitor General for the state of Texas, before becoming a stalwart US Senator trying to stem the ever growing tide of liberal morons...

These 2 guys are clearly very similar. Almost think they were twins if you didn't know better, right?

Jimmy Carter and Obama owe an incredibly huge debt to the Potato in Chief...they were neck and neck for the title of "Worst President in the last 100 years" until Dementia "Corn Pop" Joe was elected and proceeded to humiliate this once great Nation at every single turn...actually failing at every single decision he has made...while being an absent minded lackwit little girl sniffing degenerate all along the way. The rest of the world openly mocks and disrespects us now...and rightly so...as they know that this mental midget which should have been locked in an oldfolks home ten years ago will do ABSOLUTELY nothing about it. There is no retribution, nor even redemption coming with this embarrassment to our forefathers still in the Oval Office. For shame.
 
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