Author Topic: Opinions on my Investment portfolio allocations  (Read 648 times)

stupidfinance

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Opinions on my Investment portfolio allocations
« on: July 23, 2018, 12:13:55 PM »
New to the forum, so nice to meet everyone. 33 year old Project Management professional in the software industry. I have been investing since 2006 and thanks to the current bull market have built up a sizable portfolio. I am very passionate about investing and in it for the long term. I do not day trade, but do buy individual stocks along side my 401k and broad index ETFs.

My ask to the community. I would like opinions (good and bad) about my stock allocations in my portfolio listed below. I have never sat down with a investment advisor, but simply tried to do my homework and follow picks of what I believe to be intelligent investors. I consider my self a generally defensive investor and like dividends.

Few things to note:
- Max our ROTH IRA, 401k and my wifes SEP IRA.
- Portfolio below is held between ROTH IRA, 401k, my wives SEP IRA and brokerage account. Retirement accounts account for 75% of that value of the portfolio
- I currently have more cash on hand than I normally would given my opinion of a stock market top
- 401k is comprised of 80% S&P 500 index fund and 20% small cap index fund
- Gold and silver are physical bullion in the form of coins and 1oz bars

Emergency funds: Yes
Debt: Mortgage 4% 30yr Fixed with 27 yrs left. I pay weekly and pay additional 30% each month, so wind downs in 22yrs vs 30yrs)
Tax Filing Status: Married Filing Jointly
Tax Rate: 22-25% Federal, 0% State
State of Residence: Texas
Age:33
Desired Asset allocation: 98% stocks / 2% bonds
Desired International allocation: 7% of stocks

Thanks in advance.


talltexan

  • Handlebar Stache
  • *****
  • Posts: 2326
Re: Opinions on my Investment portfolio allocations
« Reply #1 on: July 23, 2018, 12:18:43 PM »
Seems very tech-heavy and very financial heavy. You've probably out-paced the SP500 over the last two years.

If you're committed to individual stocks, consider General Dynamics or Caterpillar (i'm assuming dividends matter to you).

If you're ready to start switching to indexing, I'd recommend adding a value index, like SP-value or even small cap value.(turn off dividend re-investment if this is your path)

stupidfinance

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Re: Opinions on my Investment portfolio allocations
« Reply #2 on: July 23, 2018, 01:39:04 PM »
Thanks @talltexas! Some of my positions have gained quite a bit as a % of my portfolio due to them being long standing positions (2006-2009). I made a lot of purchases in that time period in BRK.B, MA, USB, SBSI and GOOG.

I have looked at CAT before, but not GD, I will do some research on them.

Any thoughts on REITS at the moment? I feel they are a bit undervalued (or were 4-5 months ago, when i picked up STOR & HCP for 20% below their value now).

If I had to loose one stock, I am thinking it should be COP or GE.

Thanks
Clint

Raymond Reddington

  • Stubble
  • **
  • Posts: 198
  • Age: 2014
  • Location: NYC
  • "The Concierge of Cash"
Re: Opinions on my Investment portfolio allocations
« Reply #3 on: July 24, 2018, 02:28:07 AM »
Thanks @talltexas! Some of my positions have gained quite a bit as a % of my portfolio due to them being long standing positions (2006-2009). I made a lot of purchases in that time period in BRK.B, MA, USB, SBSI and GOOG.

I have looked at CAT before, but not GD, I will do some research on them.

Any thoughts on REITS at the moment? I feel they are a bit undervalued (or were 4-5 months ago, when i picked up STOR & HCP for 20% below their value now).

If I had to loose one stock, I am thinking it should be COP or GE.

Thanks
Clint

my taxable trading portfolio has:

MMM
ABBV
AIV
AMZN
BUD
AIV
T
ATO
BXP
CSCO
CAG
ED
CXW
CSX
CONE
DLR
GEO
GILD
GSK
GS
HASI
PFF
JPM
KMB
LW
LHO
LMT
NSRGY
ORI
PFE
RTN
O
RLJ
STWD
UTX
UNIT
VZ
VOD
DIS
WELL
and some cash.

I do this because I enjoy it, and it's profitable (and I do have plenty of funds in indexing and in mutual funds, at least as a percentage of my assets). I always joke that this account is like running my own "index"

My biggest comment on yours is that physical gold is a waste as it does not generate income and is, by nature a speculative asset that only holds value if you sell high. It is not a buy and hold investment, so unless you're holding this to sell within the next year or two, that capital is doing exactly the same thing it would be doing sitting in an interest free savings account in the meantime. Also, as others have said, I'd diversify a bit - get some more industries in there. To answer your question about REITs, I personally prefer them to actively buying and trying to manage real estate, but you've got to be careful. I am staying away from retail/mall REITs and only invest in O because they are heavy on standalone, single tenant properties with triple net leases. Residential REITs you have to be careful too because of the bubble on the high end of the market which has been felt in most major cities. There is too much supply of "high end" housing, and the problem is getting worse. I generally look at the portfolios of rental REITs before buying. I like AIV in this regard, but their valuation is kind of high at the moment, so I'd like to see if I can get a better price when rates go up again and everybody panic sells REITs.

I sold GE after they cut the dividend and haven't looked back, but now it's so bad, it just may be a buy low opportunity if you believe it can be turned around. But personally I'd rather be in something else right now.
« Last Edit: July 24, 2018, 02:33:32 AM by Raymond Reddington »

AdrianC

  • Pencil Stache
  • ****
  • Posts: 949
  • Location: Cincinnati
Re: Opinions on my Investment portfolio allocations
« Reply #4 on: July 24, 2018, 05:41:11 AM »
Your top 5 look fine to me. Why bother with such tiny positions after that?

talltexan

  • Handlebar Stache
  • *****
  • Posts: 2326
Re: Opinions on my Investment portfolio allocations
« Reply #5 on: July 24, 2018, 10:04:38 AM »
I'm concerned that they only became the top 5 by having a nice run-up until today. What if they fall back down towards the rest?