06-04-2016, 07:24 PM
Prior to 2012 I was exclusively in Index funds. so this was the first really volatile period I’ve had to make portfolio decisions through. Being an older investor, but a newbie to DGI, this year has taught me a few lessons. Probably the least practical to share, but most important to me is trusting my gut. Amid this "oil crash/market correction we've all been waiting for" I often didn't heed my intuition. I'm not the world’s wisest investor, but at 55--I've seen a 1/2 century of the market, I can listen to my gut.
But, my three best "practical" takeaway lessons from this year….?
A) Chose good companies.
This just goes without saying.
B) If you've ANY doubts about "a" , sell at the first sign of trouble
Bookkeeping questions, divvy cut, etc. are all good reasons to jump ship for me. We all speculate at times, it's probably healthy for us emotionally if nothing else. But I don't need to give VER the same loyalty I give KO. .... I held onto Linn and should have sold! I sold Vanguard, KMI and Conco, which seems to have been for the best. Had I sold all my "spec stocks" at the first sign of trouble, I would have substantially cut my capital losses. Indeed, since learning that lesson, I could get back into KMI or VER now for less than I sold for. Not so with CVX, which brings me to
C) If you are sure about "a," don't sell (unless the fundamentals go to hell).
Virtually all the "a" list sells I made this years; i.e. waiting for CVX or EXXON to go lower before getting back in, just turned into capitol losses and dead cash sitting in the brokerage. About 10% of my portfolio is now only worth 8% of my portfolio, and is no longer paying me dividends.
D) When a company hits your "buy" zone...BUY!
Had I done this (BTI at $98, JNJ at $92), I'd have capitol gains even over my "a" list sell losses.
What are some lesson's you all learned though this volatile year, that you think are worth sharing?
Ronn
But, my three best "practical" takeaway lessons from this year….?
A) Chose good companies.
This just goes without saying.
B) If you've ANY doubts about "a" , sell at the first sign of trouble
Bookkeeping questions, divvy cut, etc. are all good reasons to jump ship for me. We all speculate at times, it's probably healthy for us emotionally if nothing else. But I don't need to give VER the same loyalty I give KO. .... I held onto Linn and should have sold! I sold Vanguard, KMI and Conco, which seems to have been for the best. Had I sold all my "spec stocks" at the first sign of trouble, I would have substantially cut my capital losses. Indeed, since learning that lesson, I could get back into KMI or VER now for less than I sold for. Not so with CVX, which brings me to
C) If you are sure about "a," don't sell (unless the fundamentals go to hell).
Virtually all the "a" list sells I made this years; i.e. waiting for CVX or EXXON to go lower before getting back in, just turned into capitol losses and dead cash sitting in the brokerage. About 10% of my portfolio is now only worth 8% of my portfolio, and is no longer paying me dividends.
D) When a company hits your "buy" zone...BUY!
Had I done this (BTI at $98, JNJ at $92), I'd have capitol gains even over my "a" list sell losses.
What are some lesson's you all learned though this volatile year, that you think are worth sharing?
Ronn