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No. of Recommendations: 8
krishnarama listed holdings and wrote:


So every month I am adding same ten stocks (four or five shares in some of those companys. Sometimes I even buy one share based on the stock price). My commision charges are like three dollars for each purchase.

My concern is Am I doing the right thing by Buying the shares in those companys for long time.

I've read the numerous responses to your post. None of us are professional financial consutlants and anything you read or take as 'advice' is at your own risk. That being said, we don't know your age, your goals or your risk tolerance to fit those previous two categories. You have a 100% technology portfolio which includes a basket of stocks that by historical measures, all have rich valuations. Qualcomm is your 'value' stock at the moment. <ggg> This puts your portfolio right smack in the middle of aggressvive growth. High risk, high reward would be another way of looking at it. That fits the risk profile of some while it sends a cold chill over others.

You have chosen the strategy of dollar cost averaging by taking the money you save from your job and adding to your investments on a monthly basis. I like that strategy a lot and commend your efforts to apply it over the next decade or two. It is a strategy I used when I started out and I still use it to this day. Although these days, it seems to be more on a quarterly basis. It's not the only option available as a strategy, but certainly with everything I have read and studied on investing over the years - a good strategy to say the least.

That being said, your ten stocks certainly looked poised to do well in the future - each for their own individual reasons. Assuming that you did your homework well on each of the investments, you understand the risks for each in terms of the gorilla game. To put them all into the context of what defines 'long time', they each have their own unique longevity profile as well.

Once again. It's an aggressive growth portfolio with higher risk and the possibility of higher rewards because of it. You cannot expect all ten to be 'winners' over the long term. The possibility that a few of them will be 'winners' offers the chance to balance out the portfolio returns over the longer term. This, combined with your strategy of dollar cost averaging appears to look net positive. You already hold some confirmed gorillas. Qualcomm in CDMA technology. Siebel in CRM. i2 in SCM. The rest make up some exciting candidates in various games - be they royalty games or gorilla games.

It would appear from your question of "Am I doing the right thing", it would behoove you to increase your knowledge of investing via reading some investment books, periodicals devoted to investing and study everything you can here at the Fool. Sponge it all in and know that over the years as you invest, you will adjust, alter and find strategies to help you meet your goals along the way. We all make mistakes along the way in the process. That's part of the learning.


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