Market Notes

Just some notes of my stock trades and self-education.

“The stock market is a no-called-strike game. You don’t have to swing at everything—you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, “Swing, you bum!””

—   Warren Buffett

“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.”

—   Warren Buffett

“Risk comes from not knowing what you’re doing.”

—   Warren Buffett

When Should You Rebalance Your Portfolio?

After my portfolio past yesterday, I began to reevaluate my risk tolerance.

I have over 58% of my portfolio in stocks. The rest is in 401k/IRA accounts. That’s way too high risk. Especially since a lot of them are speculation stocks, no matter how much I believe in the companies.

So I’ve been thinking about rebalancing my portfolio, especially since I plan on buying a house soon. This sounds about right.

30% stocks (limit to 30% speculation)

40% mutual funds

30% CD/bonds

I’m going to miss getting such fast growth from volatile stocks but I know that streak can’t last for long. I’ll update with the specifics when I figure them out.

What’s In My Portfolio and Why

My portfolio consists of:

  • AAPL (safe) - I think they’re undervalued. Their quality is unmatched. Market will realize it eventually… again.
  • TSLA (spec) - Electric cars are the inevitable future and these guys are leading the way. They’re leaps and bounds beyond anyone else in this category.
  • GOOG (safe) - I use almost all their services. Google search, Gmail, Drive, Calendar, etc. Plus their Android devices lead install bases in mobile. They continue to innovate.
  • EMC (spec) - Started as speculation stock but I’ve grown to like them. Everything is going to the cloud. Bought originally based off of Trefis community’s bullish opinion.
  • FB (spec) - THE social media site. Who else has a more accurate virtual representation of the human population? That is a huge asset that will only become more important as the world is virtualized.

How Feedly Saved Me $2,000

Bought 1994 NOK at $3.51 on May 7th based on some stuff I read on Trefis, the mass bullish opinions, and the possibility of Windows Phone doing well.

Actually saw Windows Phone wasn’t doing well (from news and from personal observation) so I put in sell order last week at $4.21 which it never reached (stayed at around $4.17) thinking I’d get out ahead while I could.

Then last night browsing my Feedly RSS reader, I saw MSFT acquired devices division of NOK. Canceled sell order which thankfully went through (difference of $2k). Sold today at $5.26. 50% gain. $3.5k made. Thanks Feedly!