The vast majority of my retirement portfolio is invested in mutual funds (my 401k) and ETFs (my IRA) with a roughly 80/20 allocation favoring equities. Nevertheless, I do actively manage some of the money by picking stocks and by investing in targeted ETFs. Below, I have outlined most of my actively managed stock picks (I did not include my employer's stock).
Change Since Purchase (%)
% of Portfolio
Berkshire Hathaway B
Ford Motor Company
Coal ETF (KOL)
Honda Motor Cars
Procter & Gamble
% of Total Portfolio
- Asset Allocation: I will not invest more than 2% of my portfolio in any individual stock. If a stock reaches 4% of my portfolio, I generally will "bank" my gains.
- The Honda gain is a fluke. I bought it for long-term potential and it immediately spiked up. Pure Luck.
- My Ford investments was a speculative bet. All my shares were bought below $5 per share. I have a sell order in a $10 for half the position.
- The CIT shares are worth less than $10. If I sell them, the commission will exceed the value of the stock sale. Will hold them indefinitely.
- Note the EFT positions (Coal, Financials and the REIT). The Coal and Financials performed very well for me. I "took" some of the profit and reduced my positions recently. Bulls make Money, Bears make Money, Pigs get slaughtered.
- Sonic is my favorite fast food restaurant. I have a small position, but it is a speculative bet.