(1) I fill each $5,000 Roth with a single stock purchase each year (so only one $8 fee)(2) the dividends are automatically re-invested in the stock from which they were paid with no trading fee involved (I get more shares with no feesI know that the conventional wisdom is to not put too much of your portfolio into single stocks but Berkshire Hathaway offers a lot of diversity in a single stock. Plus, my 401K investments (Fidelity index funds) give my portfolio a pretty good measure of diversity. Seems penny wise, pound foolish.1. What happens if one or both stocks were purchased at recent or 52-week highs?2. What happens if one or both stocks plunge 30% - 50% within a 6-month period?2a. Couldn't happen to Berkshire? Wrong.http://finance.yahoo.com/q/bc?s=BRK-B&t=5y&l=on&...I sincerely doubt even Warren Buffett buys an individual stock position as a single transaction, anddecides he's done. I know positions like Coke, Proctor & Gamble, Johnson & Johnson, etc weremultiple purchase transactions. Just the transactional execution of say, buying 1M shares of stock X,would likely not occur as a single transaction.
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