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I am still a newb here, starting in 2016 with Stock Advisor, and while I agree with the following statement it always worried me that many were FAAANG stocks.

"You should feel comfortable holding these stocks for the long haul; not only do they have the strength to ride out downturns, but they're also built for powerful growth."

Now that the market is undergoing a correction largely on FAANG I am not sure I agree with the thesis that these have the strength to ride the downturn.

Perhaps it is my own error in that I have typically weighted my portfolios with 3-7% starter stocks and the bulk of the rest of your recommendations around 1-3%. Maybe that was not intended and therefore my error.

Does anyone else use a different strategy or feel differently about its intentions?

Looking forward,
Randall
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Randall,

In reading your post, I believe you are not placing a proper time context on this little hiccup.

It hasn't been a full quarter yet let alone a year to properly judge whether the long-term performance is dead.

You should look at the actual price history of how these stocks move. Both NFLX and AMZN have had drops of 50% or more. They faced some of the same type of doubts about future business performance then then roared ahead 10x and more.

When you invest in these companies you are really investing in the management teams. They are the people that put new ideas into the business, the game changers.


Does that help you?

Gene
All holdings and some statistics on my profile page
http://my.fool.com/profile/gdett2/info.aspx
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Gene,

Yes that certainly helps and what a great point! Especially when applied to stocks like Netflix.

You also made me realize that only looking at the overall movement of a single stock that I have continued to add to is misleading. Most of the buys from 2016 and even 2017 are still very healthy.

Looking forward,
Randall
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I certainly understand where you are coming from as I purchased my Rule Breakers and Stock Advisors stocks within the last month. I thought of ignoring them for a year so I wouldnt have to see them go down but I did that on my first stock I ever purchased and didn't even know when the company was aquired by another so that really isn't an option.

I kid myself that I would be better off learning to buy short instead of long since most of what I purchased has gone down in value.

For the most part I am happy with the companies whose stock I hold, the last one I purchased is the exception, Roku. Of course that is the one that has gone down the most. How often do you check your stock? I am thinking daily might be too often to see such negative numbers.

JackieE
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JackieE,

"How often do you check your stock? I am thinking daily might be too often to see such negative numbers."

This is completely dependent on personality.

I am used to seeing the daily gyrations and don't get bothered by them. When I get up in the morning, I start my computer up and my portfolio program is started on desktop 3. If I am gone all day, it will silently download prices every 5 minutes while the market is open. Everything is calculated and displayed on the screen and a record is appended to a CSV file that I can load into LibreOffice Calc or Excel to make a chart showing the ups and downs for the day.

If I am at my desk during market hours, I will look and see what is going fairly often through the day.

Someone that is fears market volatility, like many new investors, might find themselves overwhelmed watching that close.

Most people that are not investors but own some stock, mutual funds, ETF's, etc are often much better off not looking at all.

There are many stories published of people that bought stock many years ago, never looked at it and found they are millionaires even though some of their investments went bankrupt. The simple fact that they owner didn't make a bunch of emotion-triggered buy/sell decisions paid-off for them.


Does that help you?

Gene
All holdings and some statistics on my profile page
http://my.fool.com/profile/gdett2/info.aspx
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"How often do you check your stock? I am thinking daily might be too often to see such negative numbers."

JackieE

Gene gave a good answer. He always does.

I have my portfolio set up on a Morningstar spreadsheet so I can track everything (5 accounts) in one place. The columns are arranged:

Company - % of portfolio - daily gain/loss - total gain/loss - Other stuff....

This arrangement lets me track daily movement, but it puts it in the context of how important it is to me. If it is a small holding with a big move, it doesn't matter that much. Or if it moves 5% one day, but the total gain/loss is 800% again, it also probably doesn't matter that much to me.

The reason the daily gain/loss is important is for checking the news. If the CEO abruptly quit I can find out why and if it is relevant.

Thats just me.

Good luck

Jeb
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Could you please share link for the same? Does the xcel sheet allows to link to our accounts and pulls the real time data ? Please share it for MAC OS if it is installable package? Thank you.
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