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If only I joined this forum earlier! - DividendDragon - 10-10-2014
After reading through various threads on this forum I realise that my portfolio is a complete and utter mess!
Check it out on the 'my portfolio' page.
I Have around $1400 in 2funds that are currently at losses of around $50.
Should I sell up and invest this in bluechips or wait it out and just invest in bluechips from now on?
RE: If only I joined this forum earlier! - rapidacid - 10-10-2014
What are you comfortable with?
If your current allocations are going to gnaw at you moving forward, then sure, sell them + reallocate.
If I remember correctly you pay quite a bit of premium on transactions ... like $18 USD?
If you had 4K in 6 equities and you wanted to redistribute to 6 "better" equities you'd be losing more than 5% of your capital in the transition ( 6*2*18 / 4K ). That's quite a hit.
Since you've stated in other threads you're in it for the long haul, personally I would reallocate. I don't know how the taxes work for you being in the UK ( right? ) so maybe this isn't feasible.
I wouldn't buy 6 equities, I'd buy 3 ( and realistically probably only 2 ). Ideas for starting from scratch:
XOM: 3% yield on one of the largest companies in the universe. Oil selling off right now, enabling the high starter yield. Wait 7 years and you'll have a 6% YOC
PG: 3% yield on another core position. They're shedding 1/2 their brands that add little or nothing to their top + bottom lines. Should be leaner and more profitable moving forward.
MO: 4.4% yield on "the best dividend stock in history".
Yield isn't everything obviously, and of course there's a universe of stocks with higher yields, but I don't think many would put up too much argument if you started over with those 3 holdings.
I'm not licensed to give financial advice, these are just ideas.