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Learning to Invest / Investing Beginners
|Subject: Re: Portfolio Weighting||Date: 10/28/2012 7:21 AM|
|Author: wrjohnston91283||Number: 26245 of 27416|
Eight individual stocks would be too few for my tastes.
Looking at the sectors you have (I've combined Corning and Intel):
Consumer Staples/Healthcare 10.5
Industrial Goods 10.5
Consumer Discretionary 3.5
I think you are a bit heavy into automotive, especially since it's only one stock. I own Ford as well and feel they will do well long term, but I wouldn't put 27% of my portofolio into them since they still have the debt that they didn't shed by filing bankruptcy that GM and Chrysler did.
Tech is the same thing - you have almost 30% of your portfolio in two companies, one of which has not has a good past few years due to commodity costs with foreign competition (Corning); even intel is having some trouble this year, although both have decent dividends (3% for corning and 4% for intel). If you want to be bullish on information technology look into the ETF VGT (http://finance.yahoo.com/q/hl?s=VGT+Holdings) and check out its top 10 holdings (Intel is there). Apple makes up 19% of the fund but that also means the other stocks in the fund make up 80%.
One of the reasons I have a decent amount in a well rounded mutual fund VINIX (besides not being able to trade individual stocks in my 401k) is that is helps provide me with diversification into the sectors I don't care to follow enough to research individual stocks. Just be aware of funds with heavy weightings in a single company (Apple is probably going to be the top holding in any total market mutual fund today due to is massive market cap, between my holdings in VINIX, VGT and Apple directly, I have more in Apple than I think I do. Not a bad thing, but something to keep in mind.
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