lynn
 |
My own rule is 6-9 stocks in a portfolio, spread among industries. I'd increase my holdings in this portfolio. You don't really want more than 9 stocks in a portfolio (personal opinion). And you do want to be diversified..
Remember though that it is not about buying companies when the stock is doing good. And you don't just want to add when the stock is doing good - in fact if they are good companies buy when they are doing poorly (if you know the reasons why). Or look for the dips - all stocks have highs and lows and the yearly high's and low's are easy to find - buy on the low end to get more for your money. The best time to buy a stock as an investment is to buy when the stock is down.
I like your portfolio for long term, you seem to be comfortable with brand recognition.
Remember the best rule of investing is invest in what you know. We all have our own investment styles. |
TechFarm
 |
Good job thinking about this.
You seem to be well diversified:
1. Healthcare: RTSX, JNJ
2. Financial: BAC
3. Energy: XEC
4. Tech: EBAY
5. Consumer Discretionary: BBY
Good job. I think you have some overlap with RTSX and JNJ (JNJ even makes medical devices).
Some areas you are missing are:
1. Telecom (what about AMX, America Movil, a Mexican/Latin America Telecom play. Large growth area).
2. Utilities (what about SZE, Suez, a French Utility with Growth)
3. Consumer Staples (what about HANS, Hansen Natural, a growth company with the #2 Energy drink brand)
4. Industrials (what about BA, Boeing -- there's an aerospace replacement cycle now (commercial and military).
5. Basic Materials (what about FCX, Freeport McMoran, a Gold and Copper company. Emerging nations, like China, need this raw material to continue to grow!)
Also, be careful about commissions. $7+$7 = $14 to buy and sell. And if your position size is $500, that means $14/$500 = .028 or 2.8%. You are spotting the market 2.8% just to break even. So, as you get more money, try thinking about having larger positions sizes.
5-10 stocks is fine for a portfolio. Less than that you won't get diversification, more than that, you will not have enough time to study.
(Link to how to be diversified:
http://techfarm.blogspot.com/2007/07/how-to-play-am-i-diversified.html
)
Regarding when to buy and sell, maybe you can read more books such as Jim Cramer's "Mad Money: Watch TV, Get Rich". See link below on other starter recommended books:
http://techfarm.blogspot.com/2007/06/investing-book-recommendations.html |
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
