Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: unclewest who wrote (15331)	1/16/2000 6:00:00 PM
From: DownSouth	Read Replies (1) \| Respond to of 54805

Hmmm, with all due respect uw, I don't buy the balanced portfolio thing with bonds and foreign stocks, blue chips etc. That is a formula for mediocraty. That is the advice M/L will give and I won't pay for that advice. I will be diversifying as I take money out of the market and purchase real estate over the next 10-20 years, and as (if) my portfolio gives me 2-3 more years of doubling, as I expect it will, then I will become more risk averse for a large part of my holdings. It's a gamble, I know, but if I wasn't "retired" I would still be aggressive in my investments, so what's the difference, besides that fact that I can now pay more attention to my aggressive behavior.

To: unclewest who wrote (15331)	1/16/2000 6:34:00 PM
From: unclewest	Respond to of 54805

i just received the following pm from one of my favorite si posters... i am throwing it out here...for additional food for thought. (shoot, i wish he said it out loud). Great post, I just hope some of them listen. Personally, I've given up trying to make people realize that we are in a secular bull, but that nothing lasts forever. Many of these investors entire experience is of cyclical markets, and they think they are all like that. I remember the 1970's well, and my father talked about the 1930's. When some act of man or God ends this secular bull, it will be a lot longer than a few months until recovery. I'm doing pretty much what you are doing. I want my bills paid, minimal debt, a paid for house, and enough cash equivalents to live on for at least 10 years. I'll keep what's left over in mostly gg stocks. People may think now that they will blithely hold on to stocks while their net worth shrinks like a popsicle in July, but past history both here and in Japan suggests that this will not be the case.

To: unclewest who wrote (15331)	1/16/2000 6:53:00 PM
From: Mike Buckley	Read Replies (3) \| Respond to of 54805

RETIREMENT MANAGEMENT if ya'll are really looking at your retirement in 2-3 year windows using only equities for funding, the focus is much too narrow and the time period much too short. Whew! I was wondering if I'm the only one who thinks that's the case. I agree with that part of unclewest's post. For those who care to know, my approach to retirement is probably one of the most conservative around here. I'll explain. We had originally planned to take 5 years' living expenses out of the market. (My wife will continue working at her choice. Living expenses are the funds needed above and beyond her income to support our current lifestyle.) When we implemented a portfolio management strategy that dictated selling some Qualcomm, an implementation that by coincidence was required at the same time that we began retirement management, we ended up with 7 years' living expenses. At the same time, my wife was feeling emotionally uneasy about not having my income for the first time. She recognizes it as pure emotion, possibly irrational. But what's important is that it exists and makes her feel uncomfortable, just the opposite of what retirement is all about. Recognizing her emotional discomfort and having taken the extra 2 years' living expenses out of the market on a temporary basis, we decided to take it out permanently. I can tell you that the decision mader her feel more at ease and that's the only thing that matters. The idea is that at the end of the 7-year period when we will have theoretically spent all the money pulled out of the market, we will have doubled our invested portfolio. At that time we'll use a similar thought process in which we pull money out of the market and continue investing the rest. Do I think it will take far less than seven years to double our remaining investments? You betcha. But one never knows what will happen. Being ultra conservative in my approach, I couldn't care less if the economy AND the market tanks in the meantime. How will I invest my portfolio? I am investing strictly in Gorillas and Gorilla candidates, with the one exception being that many if not most around here believe that EMC is a King. I currently own positions in six companies. Considering the safety I perceive in Gorillas and wannabe Gorillas, the importance that high-tech companies will have on our lives in the upcoming decades, that I have diversified among six sub-sectors, that I have seven years' living expenses taken care of, I'll sleep very well at night. If the market tanks and if the fundamentals are not significantly changed, we will revisit at that time the need to have seven years' living expenses in cash. We might at that time decide to invest two years' expenses in undervalued opportunties. For one last ultra conservative kicker, it's very possible that I will make more money this year than in any other year despite that I will retire this year. That money is not included in the above discussion. It will be put to use in the market when juicy values become apparent. When it comes to matters of personal finance, if you don't think I'm one lucky guy, consider this. I'm married to a woman who wants to continue working as her personal choice of how to use her time, who hates to shop, who waited until our 17th year of marriage before asking for her first diamond, and who doesn't want a second one. :) Sorry the post was so long. --Mike Buckley