I just posted this in my journal in another place, but it occurred to me that this was probably a better place.
If you are going to face punch me, please use 16oz gloves. I'm old.
About six months ago I began to be impatient with the sheep, with their panics and hysteria and addiction to that great opiate of the masses, the mainstream media, their hormones and the effect the market...sinking like a stone and going back up and sinking like a stone and going back up, so I decided to put all of my 401(k) into my company's stock, which is an option we have in the plan.
I did that in January, I believe. Well here it is, it's now July, and for the year my 401(k) is up about 14.5%. Seeing as I work for a public utility I figured that the growth opportunity was a little weak but then again I was little safer when it came to sinking like a stone. Dividends are paying about 3.2% and they just increased their dividend per-share.
Now, I only have about $22,000 in there because I just started about eight months ago. For the longest time I just put the minimum in to get all of the matching, but because my new job is going to increase my pay from 120k to about 150k/160k, I have increased my percentage into 401(k) to help with the effective tax rate.
I think also that perhaps some of my bravery exists because I only have $22,000 in there. As it grows I will probably start to do something else, I don't know what.
It certainly flies against the established Great Wisdom of Diversification, but then again if I had followed that I would not be up more than 14% for this year. What do you think of my solution, if anything? Stay the course, abandon ship, or what?