I've always been amused that many who don't feel the need to diversify when their predominant stock is rising for some reason feel the need to do so when it is falling.
I think the above is true, Mike, and a normal human reaction. But, if I had to do it all over again, I would do exactly what I did by going 100% Q last year.
If I had had a normal diversification program, I would have bought 20% Q at the most, and I would not have been able to retire this year. I now have enough that a 5% annual return would pay the bills, a 10% annual return will give me a veeeey comfortable retirement, and anything over that will not require retirement,but estate, planning!
It is very unusual to get an opportunity like Q. I don't ever expect to hit one again, and I would never go 100% now if I did. Why not? Because I have the bucks now, and I don't have to take that kind of step again.
I am in the process of sitting up a portfolio that I can "milk" for retirement money. It is going to include the stocks I have mentioned, plus a few more, plus a reserve fund. I think I will make it public when I do complete it next week. I will also give my rationale for the way it is set up, and how I intend to manage it.
LindyBill |
