Vanguard 500 VFINX
http://finance.yahoo.com/q/bc?s=VFINX&t=my&l=on&z=m&q=l&c=
Got in 2002, around $120 a share. It’s gone down to 70 and now back up to 105 over the years.
About 75% of my total stock investments are in this fund.
Should I sell off half while the market is up and reinvest?
Should I just sit on it another 10 years?
Should I sell it all?
What would Skinneej do?
While we wait for Skinneej, let me give you my take:
If you sold, where would you put your proceeds? I don’t have alot of options right now, until we have a (hopefully small)pullback. Otherwise I’m content to sit on my positions, with about 40% in cash.
You got some really great companies there, and somewhat diverse. Exxon, Msft, Appl, GE to mention a few.
Even if it doesn’t appreciate, you are still getting a dvd of $2.65/yr.
I would expect this fund to be back in the $130 range in the next 18 months, or sooner. However,
I wouldn’t add to this position, and I’d start taking my dividend into an investment account, not re-investing into VFINX. From that acct I’d start diversifying on dips away from blue chips, toward whatever part of the market you know best in the small to mid cap range.
Now let’s hope Skinneej doesn’t blow me totally out of the water, but regardless its always a learning experience.
We are all still learning. The hardest part of investing is knowing when to sell. I seem to keep making the mistake over and over again! “Conventional wisdom” says that if you do not follow your portfolio very closely, then there are a few things that you should follow:
That being said, none of us can predict the future. The market is very irrational. And it can be irrational for a lot loonger than you want it to be! It’s really up to you to decide what “high” and “low” is. Of all the mutual fund managers and hedge fund managers in the USA, only a handful of them have beat the market consecutively in a ten year stretch.
Personally, I am expecting a pullback of some sort, so I am a little heavier in cash right now. I think I am around 40% in cash. I buy individual stocks in my 401K and right now I have slowed down the buying process. My most recent investments have been dividend type stocks, energy stocks, oils stocks, shipping stocks. I only own one retailer (JOEZ). My thesis is that I just can’t see how the economy is getting better when unemployment is still on the rise.
Also, I am predicting gas prices to hit $5.00 this summer! These two things together, I just can’t see how this market goes up much higher from here.
Stocks I am staying away from:
US BANKS
Retail
REIT
Autos
I have done something I thought I would never do. I’ve paid off all my real estate.
I think it is chicken to do it as inflation is surely coming and you should not pay debt with expensive $ when you can pay with cheap $. But I have no confidence in this president.
India, China and Brazil are good bets for funds.
My Apple stock has doubled in the last year. My best holding.
Hunting, fishing, and poker are my sports. Work when necessary.
I’m re-asking the original question now. The transaction finally went through after Vanguard dragged their feet over an address dispute. Now I can sell those shares.
1: Keep VFINX (60% of current portfolio, remaining 40% in one stock)
2: Cash/money market
3: Other (please explain)
Hold the tomato, fool!
I think you’ve answered your own question by posing it again. There are times when you loose confidence in an investment, there are two approaches I take:
Sell everything, and never look at it again. Focus on your future investments (they always go sky high the minute you sell).
Sell a significant portion to invest the proceeds in other stocks or funds, and maybe the remaining shares will appreciate.
The top ten stocks in VFINX are great stocks, but they are only 20% of the portfolio and get watered down by other stocks.
You could sell VFINX, take those ten and have a pretty good start on a very nice long term portfolio.
I don’t care how good a stock or fund is I would never have that % in it. I certainly am no expert as I have made many bad decisions, but the exposure seems to great to me. I bought more Apple stock on the way down and now it has gone up so much that it represents 30% of my portfolio. It is making me nervous. I plan on selling a portion to get it down to 20%
Hunting, fishing, and poker are my sports. Work when necessary.
To be clear, I’m actually 50% cash in a savings account and 50% in roth, of which is 50/50 vfinx and mck. There is also a 401k but that’s just “oh yeah, I forgot about that” money.
Hold the tomato, fool!
Everyone is an expert when the market rallies. When it loses 1000 points in a week, the experts are too busy to opine. That is neither interesting nor odd. It’s just plain normal.
Hold the tomato, fool!
Rather, this is the opportunity to start using that 50% in cash. I’m about 40% in cash.
I used Friday to increase positions in Dollar General, Tata, and bought Hero.
I’m still looking to add to ATT, GE, and Duke. We’ll see what the market holds for these on Monday.
I am not assuming we are at a bottom, or that we’ll be back to this past Monday’s levels anytime soon. I will be adding to positions as the market falls.
Its in down markets that one can make money on good stocks. Its hard for me to make money in up markets
Hope you didn’t buy DUK right before the dividend dropped. It will probably pick back up again in a few weeks but now is when I would buy if I were going to hold it for a while. I know nothing so don’t listen to me.
14’ Pamlico 140 Angler w/ rudder
Kayak, SCUBA, or both.
I had planned to buy when DUK dropped below 16. I think my limit order was 15.85, and I bought after the ex div. date. Its a long term position, and replaces shares of DUK that I sold north of $17, so I’m less concerned with this one dividend pymnt.
I understand your point, though. I’ve seen many buy just before the ex-div date, and then the stock drops, and they lose more than the price of the div payment.