My cash holding has become too large and I am in the process of deciding where I want to put it. The following is a brief summary of where I am and welcome any alternate viewpoints. A few of these I hold just for the high dividends as I don’t infuse fresh cash to this portfolio and I am rethinking that strategy. I started picking individual stocks in early 2011 and I am still developing my investing philosophy. I am very happy to have found this board in its early innings as it reinforced where some of my thinking was heading at the time. Thank You to all who contribute here and to Saul for feeling the need to start this board in the first place.
Cash 16% Plan to cut this in half.
AAPL 20% I am still comfortable with this but maybe I shouldn’t be.
BOFI 7% May add depending on how my allocations play out.
NFLX 7% Waiting for international to play out.
EBAY 5% I think there is room for both PayPal and Apple pay.
AMBA 5% Was going to trim a little until the last earnings, thinking I will add now.
UBNT 4%
TICC 4% High div. may sell.
ETP 3% High div. may sell.
SCTY 3%
SYNA 3%
SWIR 3%
PFIE 3% I know the wait will be a while on this one. I have cash and others I could sell before realizing a loss here.
PSIX 3%
CELG 3% May add on a nice dip.
SKX 3% May add
CRTO 3% Plan on adding.
Z 2%
FB 2% Plan on adding.
NLY 2% High div. may sell.
PRLB 2%
ATVI 2% Bought on a nice dip but think the market may always be fickle on this one, may sell.
MA 2% May add on a nice dip.
NOV 1% Thinking this will be deadwood for a while and I’m still in the green so may redeploy the position elsewhere.
SWKS 0% Have been looking at this and the write up by GouchoChris today will probably get me to open up a 2% starter.
XPO, MIDD, MELI, ZLTQ, and GPRO are also on my radar at this time.
Thanks for reading,
Ray
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My cash holding has become too large and I am in the process of deciding where I want to put it. The following is a brief summary of where I am and welcome any alternate viewpoints.
Hi Ray,
It looks like you have a few basic questions to decide about. First: How much cash to hold? and it sounds as if you have decided to cut cash from 16% to 8% (which I certainly wouldn’t disagree with). The second question is: How many positions do you want to hold? and it looks as if you have decided on about 25. The third question then becomes: Do you want to hold one position that is so huge and out of proportion to the others that its movements overwhelm the other 24? That’s your decision to make.
As far as the stocks on your list that I am familiar with, I’d first suggest a position in SWKS of about 4%, rather than the 2% you’re thinking about. I might add 1% of XPO, and maybe add 1% to your FB too. If you reduce your AAPL a little (or sell something else), you might divide the the cash you raise between CELG, SKX, CRTO, and some more of SWKS.
Looks like a nice collection of stocks.
Hopes this helps.
Saul
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Ray,
I agree that Apple is a fantastic company and it will probably do things that others can’t even imagine. Still, at 20% that’s a lot riding on one position. If Apple were to decline your portfolio would hurt. Apple is my second largest position behind WFM, but it’s about 4% of my portfolio.
With respect to where to allocate: you have tons of interesting names on the list. XPO, CRTO, MIDD, SKWS, and MELI are excellent companies. I hold all expect SKWS … I have too much IoT exposure via CAMP & SWIR.
Have you looked at INBK?
It also looks like you have many rule breaking investments. Have you looked at TSLA?
Anirban
@ Saul,
I admit I just plain fell in love with AAPL the stock.
@ Anirban
I was watching TSLA under $40 a share and remained anchored there when it got to $100. It got too far ahead of me and I think of itself now. At this point it would take a major development for me to start a position, but maybe I’m still anchoring. I have thought about INBK, BOFI is just enough bank for me right now.
Thank you both for your thoughts. I have some stuff to mull over still and looks like I will be starting up with SWKS and adding to CRTO and FB for now. Then I need to deal with the 400lb. gorilla in the coming weeks.
Ray
Point of interest. I bought SWKS on 1/8/2015. It’s up about 25% since that purchase. I bought ZLTQ last August, it did nothing for a bit then shot up about 60% in short order. I’ve trimmed my position. I bought with the misunderstanding that they had a laser process that could help fat people get skinny. Upon doing more research I found that they had a process that would help someone about 15 pounds “overweight” trim down to an ideal physique for around $1,500. I’m sure there are lots of vain folks willing to spend that kind of money to trim a few pounds, but it is not the market I though at first. The stock may soar, but I think there are better places for my money - yet, I still hold some ZLTQ.
I’ll toss in some others for you to consider: DIS, MNST, HAIN, AMBA. I first purchased all of these 3 years ago or less. All of them are up no less than 150% since first purchase.
I bought ZLTQ last August, it did nothing for a bit then shot up about 60% in short order. I’ve trimmed my position. I bought with the misunderstanding that they had a laser process that could help fat people get skinny. Upon doing more research I found that they had a process that would help someone about 15 pounds “overweight” trim down to an ideal physique for around $1,500. I’m sure there are lots of vain folks willing to spend that kind of money to trim a few pounds, but it is not the market I though at first. The stock may soar, but I think there are better places for my money -
Hi Brittlerock, I also looked at ZLTQ back in August when it was recommended by one of the MF services. I thought it would probably do just fine but it had a feeling of sleeve to it and I, like you, felt I can’t own them all and there are places I feel more comfortable putting my money.
Saul