Hi I 2000,
I'M GENERALLY VERY POSITIVE ON THIS MARKET AND JUST HOLDING IS ALSO A VALID 6TH CHOICE.
Not to confuse you.
The question of allocation to me is a bit out of usual advice.
Of the stocks I own, I get comfortable in some.
Then I add to on every dip as I have dividends or funds from the unusual sale.
I like big positions in good stocks that have solid balance sheets but cyclical businesses, that are out of favor. I.E energy is now way over weight for me.
It takes only two or three of such wealth defining events, and one is confident for life.
Really the goal that Ted told us would arrive, but with time.
Keep in mind, how often Ted spoke about owning more shares than those on the board. If Ted was confident in holding a stock such that he would never take a loss, he accumulated big undue concentrations in that stock. Ted loved to become an insider, but from the anonymous outside.
If one accumulates 1-3 percent of the outstanding shares, he has the power to manipulate the stock.
Private equity/Hegde funds must report over 5% positions. Approaching ten % gets you choices on the board.
Ted had several huge winners in his life and was comfortable ever since.
He and his wife traveled a lot and Ted did not watch the market every day in his later years.
Every time the market had a general market sell off, I'd call him in Redondo Beach, and the first thing he'd tell me is I'm watching the market too closely. Honest to god, that was always his first words to me.
I was in my early twenties and wanted wealth accumulation to go fast. He was set and I'd guess in his 70's.
He would always try to cool my jets. LOL
It takes time. Invest vs. speculate.
Build and gain vs lose.
We get to choose every day.
Bob |
