(02-02-2014, 04:24 PM)Kerim Wrote: Hi CritMass -- I of course agree with all of DW's great advice. I especially agree that the answer to your specific question depends on diversification and valuation. If you think you'll want a lot more of a company than you already hold, and if that company is trading at a price that is attractive to you, then I would not let the desire to initiate a new position stop you from adding to a current position. I would put money into the companies that have the better combination of price and long-term safety / potential as a dividend growth stocks, regardless of whether I already held some.
Said differently, I would not let the desire to increase the number of stocks I hold induce me to put money into my second or third-best ideas. Unless you are already seriously overweight a name, put your money into the best prospects, whether or not you already own some.
Thanks for the good advice, Kerim. I guess I'm very fortunate to be able to pull money out of a high cost, low return insurance company variable annuity "mutual fund" type of product (my only option is a 403-B while working for a public school district - at least it is tax deferred), and have the entire universe of stocks, bonds, mutuals and ETFs to pick from. Like a kid in a candy store. Thanks again for the encouragement.
(02-03-2014, 02:21 PM)Dividend Watcher Wrote: CritMass, looks like Santa is coming early for you this year. Prices across the board are mostly getting into the reasonable range. Time to get your plan (version 1.0) together and get your buy list in order.
Now if prices keep going down or hold til the money you anticipate to be there arrives. I'm looking forward to reinvesting dividends over the next few weeks.
DW, yes, the ability to invest 2013 403-B dollars now unlocked into 2014 anything is like a visit from Santa. In terms my 1.0 plan, my head is spinning. A month or so ago I bookmarked a SA article by Inzkeeper on her(?) method of allocation. She is breaking down her portfolio by the following: US vs Canadian/International; across Risk factors based on Dennis Miller's article(s); across sectors; across Dividend percentages; and across dividend growth rates. I also have Bob Wells' portfolio list from several months ago that I've compared with one of Regarded Solutions' portfolios ( now only visible if you pay him money) and then there is the Chowder Rule, not to mention Mr. Fish's CCC listing. Whew! if I can synthesize some of this then maybe, just maybe my 1.0 p,an will begin to take shape. Thanks for your kind encouragement.