Selling out - Howard Marks

[fenders53]

(02-04-2022, 10:05 AM)rnsmth Wrote:

(02-03-2022, 07:30 PM)fenders53 Wrote: Such an important subject that can't be fully appreciated until you endure full market cycles.  I am still refining 30 years later.  I have lot's of opinions.

-A five stock portfolio is crazy, you are probably arrogant to believe you are that good at stock picking.
-A 50+ stock portfolio accomplishes nothing if it contains 10 stocks with fleas you stubbornly refuse to part ways with.  It will underperform when the bulls is running and offer no downside protection when the market is dumping ballast.  

For me it's know what you own, and make sure most of it is very high quality.  If you don't have time for thorough research before you build a large position, and reasonable follow up monitoring, then you probably own too many stocks.  You should put some of your assets in an ETF.  I enjoy swing trading stocks.  That should never be allocated in a manner where it can devastate my entire portfolio.  

What say anybody else?

It is a sympton of a share price focus on the markets, something that seems pandemic here despite the name of the forum.

Dividend and dividend growth, high quality companies with very safe dividends and don't worry so freaking much about share prices.   

That is my view.  I have been surprised at the amount of the discussion here that has to do with share prices and non-dividend paying so-called growth companies like Facebook.

It's OK to hold onto your beliefs.  I do as well.  We all carve our own path.  Had you bought FB ten years ago you would likely be very happy with your 1,000% gain, but it doesn't matter that you didn't.  Most of us do own a DGI port. Very few respond to those threads because it's like watching paint dry, just as it is intended to be as a long game. 1/3rd of my port is dedicated to selling put options for monthly income, mostly to gamblers.  It provides 3X a DGI stock dividend so it's what I do.  After 5 years I am confident enough it works consistently.  Nobody here has to approve but it funded years of my cash needs in advance before I even retire.  I don't have enough assets to do that with DGI stocks.  I wish I did.

Bottomline is don't worry much about our desire for total return. We can spend that the same as you can spend a dividend.