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Advice on Diversification
#1
I purchased 40 shares of Lowes roughly 9 years ago through ESPP at an average of $21.40 a share. More about that later.That was my first foray into stocks and the past few years I've dabbled a little more but never really got serious about it. The past year and a half I've learned a lot and now actually do a ton of research into stocks before I buy rather than just pick a company I like. Since March I've really ramped up my buying because I recognized a lot of stocks were unduly punished.

I've really honed in my process of picking stocks. My plan is to pick solid companies that are undervalued and have a safe dividend above 3%. I typically only buy roughly $150 at a time. I know I'm a small timer but hey gotta start somewhere.

Currently that initial purchase of Lowes has a return of 716%. Unfortunately, at the time I had no clue and never did any dividend reinvestment. Lowes is currently 68% of my portfolio and I was going to just keep buying stocks in other sectors till I'm properly diversified. It hit me yesterday that it is currently at all time highs of $173 and only has a yield of 1.39%. Why wouldn't I sell a good chunk of it and buy other higher yielding stocks? 

I can't think of much downside to that. I'll become more diversified, be earning a higher yield, and should be able to have higher returns overall as I feel Lowes is properly valued and I would be purchasing other stocks that are not.

I feel its the right choice but i guess I'm just looking for validation. Thanks!
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Messages In This Thread
Advice on Diversification - by kered - 10-10-2020, 12:58 PM
RE: Advice on Diversification - by fenders53 - 10-10-2020, 01:22 PM
RE: Advice on Diversification - by fenders53 - 10-10-2020, 01:24 PM
RE: Advice on Diversification - by kered - 10-10-2020, 09:39 PM
RE: Advice on Diversification - by fenders53 - 10-11-2020, 05:09 AM
RE: Advice on Diversification - by kered - 10-11-2020, 10:36 AM
RE: Advice on Diversification - by fenders53 - 10-11-2020, 12:04 PM
RE: Advice on Diversification - by fenders53 - 10-15-2020, 08:02 AM
RE: Advice on Diversification - by fenders53 - 10-15-2020, 11:11 AM
RE: Advice on Diversification - by ken-do-nim - 10-15-2020, 09:24 AM
RE: Advice on Diversification - by fenders53 - 10-15-2020, 10:00 AM



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