Otter, take this in the context I intend it, for the purpose of our discussion. I hope you know I am laughing when I mess with you guys and gals to stir up conversation. It's just my personality and I mean no harm. I get a lot of good stock ideas to research from you guys, and sometimes I even buy them. I'm grateful for the help I receive here.
That said, how can you justify holding 80 stocks? It sounds like stock collecting. You have your own S&P ETF.
More specifically what does it accomplish for you? It may not hurt anything, and you are certainly diversified five times over. If I am honest I only have a dozen great ideas in any particular year, unless the market is like it is right now with marketwide sales. I don't believe I can properly keep track of 80 stock and make sound investment rules, not even 30, unless I just do what others do on TV and stock forums.
I very much like your strategy to buy and hold. That should be the default strategy for any DGI investor. But there are times when great companies reach crazy overvaluation, especially if you hold 80 stocks. That's when it's time to put that stock in an IRA and trim it if that is age appropriate advice. Not suggesting one must cash out of their best stocks. Pigs get slaughtered so I take a profit and park it somewhere safe for redeployment. 95% of my port is IRA or Roth IRA so I don't need to wait around for the stock to return to reality and take the loss because there are no tax liabilities.
That said, how can you justify holding 80 stocks? It sounds like stock collecting. You have your own S&P ETF.
More specifically what does it accomplish for you? It may not hurt anything, and you are certainly diversified five times over. If I am honest I only have a dozen great ideas in any particular year, unless the market is like it is right now with marketwide sales. I don't believe I can properly keep track of 80 stock and make sound investment rules, not even 30, unless I just do what others do on TV and stock forums.I very much like your strategy to buy and hold. That should be the default strategy for any DGI investor. But there are times when great companies reach crazy overvaluation, especially if you hold 80 stocks. That's when it's time to put that stock in an IRA and trim it if that is age appropriate advice. Not suggesting one must cash out of their best stocks. Pigs get slaughtered so I take a profit and park it somewhere safe for redeployment. 95% of my port is IRA or Roth IRA so I don't need to wait around for the stock to return to reality and take the loss because there are no tax liabilities.