Your Allowable Risk on Investments

Japher · May 27, 2003, 12:13

Just curious; when it comes to money, how much are you willing to risk?

About 60% of my personal portfolio is in Genentech (DNA), it has had quite a run recently... Should I, or more so, would you keep it all on the table, take some off, or take it all of?

I like risk, so if I take any off it will be a small amount, yet, where is the fun in that? Bet big win big! Right?

MRT144 · May 27, 2003, 12:17

take some off and put it in bonds. maybe a 5 year bond or something (i realize you want to enjoy your money since youre older). id also put some in an index fund maybe in a few months...

alas i dont have any capital to invest

i hate it

Az · May 27, 2003, 12:20

How much did you gain? ( percentage-wise from the original purchace, and for what period of time. )

Dauphin · May 27, 2003, 12:21

I'd rather have a diversified portfolio with the highest expectation value.

Kidicious · May 27, 2003, 12:22

60% is way too high with all the risk today.

Az · May 27, 2003, 12:24

True, that. Esp. in a SINGLE HIGHTECH FIRM!

Open a bussiness

MRT144 · May 27, 2003, 12:25

azazel, even worse, biotech.

Japher · May 27, 2003, 12:49

I have gained a little over 50% of my initial investment. I have owned the stock for about 4 years (I think thats an 18% gains tax range), bought it at around 82/share. Saw it go to 100, split and then hit 80 again (100% gain!). Then as it goes it dropped to 30... Now it is back to around 65. I think I should take some out and diversify more. Bonds? Not at their yields today... Index funds are a quick an easy way to invest... Yet, I think I will invest in something more exciting, but still relatively stable, i.e. blue chips with high yeild values.

What's wrong with Biotech?

loinburger · May 27, 2003, 12:53

I've got everything in low-to-moderate risk mutual funds. Motorola was the only company stock I've ever owned, and I got out of that when the going was good.

Diversify, man.

MRT144 · May 27, 2003, 12:59

its risky japher. but you like risks. maybe we should go to cache creek some time and you can match all the money you lose in a mutual fund or something.

so say you lose 500 bucks at cache creek. you invest 500 dollars in the market. lets do this thang!

Japher · May 27, 2003, 13:16

I use to go to Cache Creek all the time when I was going to school... it was a blast!

Drogue · May 27, 2003, 14:24

I go as high risk as possible. I don't mind if it lose it all, it's not a lot of money, and I don't have a need for it, yet if I get a good one, then I can buy myself a car

I have about 6 or 7 hightech (from internet to investment vehicles to biotech, my current fave) firms, and a couple for takeover prospects. As for cashing in, it was shown in a study a few years ago (will try to find it) that stocks have a tendancy to mean reversion. That is, if it strays a lot from its price, either up or down, it has a tendancy to come back slightly. This is also shown that when you have good or bas news about a company, the market tends to overreact, being that humans act like sheep, and if it's going down, sell. I would say if it's gone up a lot, look to see what it's backed by. If it's something amazing, maybe hold them. Otherwise, sell them, and take your profits.

One of the wisest men I ever met, who I worked for for a little while, used to say "get in, make your money, get out and leave a little for the next guy". He was a very successful stockbroker (hint: he no longer works

)

Saras · May 27, 2003, 14:26

I mainly invest in Lithuanian private equity/venture cap. 'nuff said.

Drogue · May 27, 2003, 14:37

I just see the market as gambling where the average punter wins slightly, rather than loses, as per real gambling. Anything better than even odds and I'll try it. It's fun, and gains money

Saras · May 27, 2003, 14:40

Amen, brother Drogue.