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Author: naturalgreen Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Early Investment Errors Date: 11/11/2000 10:55 AM
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I've been a real fool in my first year of investing with no real strategy. As my portfolio stands now:
stock (# of shares)
AAPL (15)AMAT (20) AMZN (50) AOL (20) CMB (30) CSCO (20) ERICY (30) TXN (10) VERT (62). I've had to take some heavy losses in the past months by buying on margin. That was lesson #1. I'm ready to start my second year of investing off a little better. The question I have is should I liquidate the portfolio in all or part and reinvest? Also at this time I can invest about 500 a month without any hardships. I have no debt and no bills at this time, but that'll change. By the way I'm 25 and single. I see this next year as my window of opportunitny to put some money away for early retirement. Thanks Danny
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Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26075 of 74759
Subject: Re: Early Investment Errors Date: 11/11/2000 11:25 AM
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Well, it seems to me you have to think about selling the same way as you did about buying. Do you still have faith in those companies? If you don't, dump 'em unless you think you can find a fool who will pay more than you think they are worth. (Then you'd wait for the fool to pony up.) If you do, you should hold.

You imply you will have debts in the (near?) future. The reader out in cyberspace can only speculate: car, house, marriage, trip to Hedonism II in Jamaica, ...

Each would suggest a different investment tactic. I don't say strategy, because that implies a long term view.

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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26099 of 74759
Subject: Re: Early Investment Errors Date: 11/12/2000 3:19 PM
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've been a real fool in my first year of investing with no real strategy. As my portfolio stands now:
stock (# of shares)
AAPL (15)AMAT (20) AMZN (50) AOL (20) CMB (30) CSCO (20) ERICY (30) TXN (10) VERT (62). I've had to
take some heavy losses in the past months by buying on margin. That was lesson #1. I'm ready to start my second year of
investing off a little better. The question I have is should I liquidate the portfolio in all or part and reinvest? Also at this time
I can invest about 500 a month without any hardships. I have no debt and no bills at this time, but that'll change. By the
way I'm 25 and single. I see this next year as my window of opportunitny to put some money away for early retirement.
Thanks Danny


If you are happy with the co's let them ride.

$500 a month is not enough to be investing in stocks. Take a look at mutual funds. Maybe some index funds. I would think about getting to 100,000 before going to individual stocks, but if you saw a good longterm stock I could see selling some mutual funds to buy it.

Don't forget the cash emergency fund.

At 25 you could have made a lot worse investment decisions. Maybe not investing until your are 40.

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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26100 of 74759
Subject: Re: Early Investment Errors Date: 11/12/2000 3:23 PM
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I've been a real fool in my first year of investing with no real strategy. As my portfolio stands now:
stock (# of shares)
AAPL (15)AMAT (20) AMZN (50) AOL (20) CMB (30) CSCO (20) ERICY (30) TXN (10) VERT (62). I've had to
take some heavy losses in the past months by buying on margin. That was lesson #1. I'm ready to start my second year of
investing off a little better. The question I have is should I liquidate the portfolio in all or part and reinvest? Also at this time
I can invest about 500 a month without any hardships. I have no debt and no bills at this time, but that'll change. By the
way I'm 25 and single. I see this next year as my window of opportunitny to put some money away for early retirement.
Thanks Danny


You have probably learned this so this might be more for other readers. Do not use margin unless you can afford to use it. For example if you are getting a 10,000 bonus in January and wanted to invest 7,500 today then I can see using margin. Just take it slow.

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Author: dstarrat Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26189 of 74759
Subject: Re: Early Investment Errors Date: 11/17/2000 5:53 PM
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I would disagree. It is not too early to invest in individual stocks. There is a lot to be gained by controling the tax costs by using a disiplined B&H approach to good equities. The use of DRIPs and/or free/cheap traders can allow you to build a portfolio slowly and carefully and give you the benefit of DCA, as well.
The use of margin for individual stocks (or anything) seems a serios risk for the investor and should be left for the speculator.
IMHO, Dave

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