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Author: FLEETWOOD One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6743  
Subject: Re: MY END OF APRIL REPORT Date: 4/30/2000 6:12 PM
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"My average bail-out sell price was 103 on the 7 stocks I owned, and so far my average re-buy price on these 7 stocks is 105. So my losses from selling at automatic stop-limits and then buying them back presently are close to nil. "

Marv said -- I'm not sure if 1.9% (2 / 103) is insignificant. Can you give me an idea of how much your total port would have been worth if you didn't have the stops (relative to what it is worth today)?
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I am quite sure that in the greater scheme of things (which first and foremost is maintaining my investment strategy's 8-year course) that this difference of 1.9% or whatever is in fact immensely insignificant. For example, when placed in context it is just a momentary blip in comparison to having increased this portfolio's market value by 27.8 times since 1994 and/or achieving returns such as 69% in 1996, 73% in 1997, 58% in 1998 and 93% in 1999.

I believe one must focus on the horizon -- the big picture -- the objective, not on over-analyzing and fretting about individual happenings like the one cited. Just take care of it, get back on course and press on.

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"I have added a new facet to my strategy – i.e. investing about 20% of this portfolio in Schwab's Yield Plus Select bond fund (SWYSX). This will provide a "cash" reservoir to ride out a bear market (if it occurs) without having to sell my BUY&HOLD stocks at depressed levels."

Marv said -- I'm not sure what you mean by this. I assume you're retired and you have to live off of these funds. So prior to your last rebalance, you sold some stocks whenever the need arose. If that is the case, I wouldn't include the bond fund as an investment in your portfolio calculations since it's kinda like including your checking account as an investment.
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I'm semi-retired. No, I presently do not have to live off of these funds. The only compelling reason I presently have to sell anything in this IRA is to meet the IRS's requirement that I make an annual Minimum Required Withdrawal. I do then spend it as I see fit, however, such as on special ordering a new Yukon XL with all the bells and whistles and paying cash for it.

However, stating that the bond fund should not be included as an investment facet of this portfolio makes no sense to me because no matter how one cuts or apportions it, the portfolio in its entirety is an on-going investment -- whether it be in stocks, bonds, mutual funds, index funds and/or money market amounts.

FLEETWOOD


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