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Yes, I know I'm overweighted
#1
Over weighted and need more diversification.
I have 60% in 4 stocks with 40% in two in the same sector but I haven't seen a strong need to cut those back. I wouldn't mind trimming T and Duke some though. I'll be putting max contribution ($13K) into IRA's after 1/1 each year.

By dollar value as of 12/12/13
ATT, 25.6%
Verizon, 15.0%
Pepsi, 11.1%
Duke, 11.1%
Walmart, 2.6%
Coke, 2.2%
Target, 3.2%
Walgreen, 4.4%
Home Depot, 2.5%
GE, 0.9%
Starbucks, 2.4%
Whole Foods, 1.8%
CSX, 0.9%
JNJ, 2.9%
Pfizer, 2.1%
Novo Nordisk, 2.8%
NLY, 0.1%
Region's Financial, 0.6%

Non Div
Celgene, 5.1%
XBI, 1.9%
Hilton, 1.7%

Comments,
Thanks,
Fred
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#2
I don't think that diversification is overly important in a small but growing portfolio, though my dividend portfolio was started with roughly equal $4000 chunks of each equity selected. As my weightings drift from the original amounts, I'll just rebalance with the addition of fresh cash.

I do find it interesting that you have allocated 40% to two very slow growth companies who are slugging in out in a relatively mature market. Plus T has extreme debt issues, especially with regard to underfunded pensions. I recently added T outside of my DG portfolio, but only as a short term position to be held six months to a year.
Alex
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#3
Hi Hawkbill -- welcome to DGF!

I agree generally with Alex. I would not worry too much about keeping equal (or equal-ish) weightings if you are still in the accumulation phase of life. If the portfolio is very large (in dollar terms) and you are approaching retirement, then I'd get more worried about having so many eggs in so few baskets. We had a good thread going about that a while back -- here.
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#4
(12-16-2013, 01:17 PM)TomK Wrote: Hi Hawkbill -- welcome to DGF!

I agree generally with Alex. I would not worry too much about keeping equal (or equal-ish) weightings if you are still in the accumulation phase of life. If the portfolio is very large (in dollar terms) and you are approaching retirement, then I'd get more worried about having so many eggs in so few baskets. We had a good thread going about that a while back -- here.
Thanks for the replies. I am still in the accumulation phase and will be for the next 11 years. It is not a small amount though. I inherited the four large holdings, all the others I've bought. DUK is flat over the last two years but I sort of look at it as a steady base load. If it doesn't do better this coming year I will trim it. If T hits 36 again I will sell some and purchase other fairly valued DG stocks.
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#5
I would diversity if I were you, taking any one position to no more than 5% of the portfolio. In your current positions, I would for sure add to KO, JNJ and GE - even at today's prices.

Establish a watch list, check valuations and when any company on your list gets in your range make the move.
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