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Paul, I can agree with your post 2481. I am a small investor with 8-10 stocks that makes up 70% of my portfolio, the rest is in indexed mutual funds. This limits me to about 8% in any one stock. I feel that this limits my risk at a time when I need to conserve my limited capital. Once I have built up my holdings to the larger status (over 1/4M) I will probably move more to mutuals. Currently I am in highly speculative issues trying to make something happen. But I also like to short term trade with 3-4 issues with a target of 15% profit, after commissions. I have been failrly successfull while holding these issues for only 60-90 days, implying a much larger annual profit. While the volitility of my portfolio swings 8-20% a month, I am 25 years from retirement and don't worry about these monthly swings. Annaulized I am still doing something right by making 15-17% a year. Less than an index fund but i am learning as I go, and should improve over time! I am also learning about many industries and how they cycle. Currently I am in technology, biotechs, oil& gas, software, new technologies, mining, medical, and entertainment areas. I see no reason that I can't follow this many areas. Also note that while the market lost 5% in October, my portfolio went up 8%! |
