Announcement

Collapse
No announcement yet.

Have You Ever Invested A Large Lump Sum In One Stock?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • JBinKC
    replied
    My current set limit is 20% for a stock but I had moments in my early investing career where a stock (Iomega) was around 80% of my portfolio's value after a huge percentage gain over a relatively short period of time during the mid 1990s (and this included selling out of my cost in the stock). I will admit that investment was mainly luck and bought it because I used their products in business.

    Leave a comment:


  • safari
    replied
    I bought 1,000 shares of NVDA in January 2016 when the share price was $29.96, so I had about $30K in a single stock. That was about 5% of my total portfolio. It started climbing and gained over 100% in a few months. Normally, I would have sold it by then, but I didn't want it to be taxed at the ordinary income rate, so I wanted to hold it for at least a year to be classified as a long term investment and be eligible for the 15% rate. So I held onto it. In January 2017 I sold 300 shares at $107.30 per share for 258% gain, totaling $32,190. I got my original investment back (and more) and decided to ride the remaining 700 shares, as the future of the company looked very bright. The stock kept going up and up, so I decided to cash in by selling 300 more shares in September 2017 at $181.00 per share for 503% gain, totaling $54,300. I still own 400 shares of NVDA today, and the share price is currently $262.58 (775% gain). I got around $105K in a single stock, which is highly disproportionate, but I feel like there is room for more growth, so I am going to hold it for now. I've been investing since 2006, and this is by far my best investment to date. I took a risk of putting a lot of money in a single stock and it paid off big time.

    Leave a comment:


  • disneysteve
    replied
    Originally posted by rennigade View Post
    With individual stocks you can get rich much quicker...or lose your shirt. Risk/reward.
    Losing your shirt is pretty unlikely unless you're investing in penny stocks and highly speculative stuff, and ignoring your investment as well. If you take a big chance on a well-established company and keep track of it, you certainly could lose money but except for the rare exception where a company pretty much implodes overnight (i.e. Enron), you can avoid the "lose your shirt" scenario. You could simply set a stop loss order when you buy in that would automatically sell if the stock drops below a certain level.

    That's not to say that I promote taking a huge risk on a single stock. I'm with you on the get rich slowly path primarily using mutual funds. I just think sometimes the actual risk of individual stocks is a little overblown.

    Leave a comment:


  • rennigade
    replied
    Nope...never have. I always figured id have a better chance of not losing all of my money if I spread it out between lots of companies...all within a single fund.

    But then again with my approach...its a make money slowly kind of play. With individual stocks you can get rich much quicker...or lose your shirt. Risk/reward.

    Leave a comment:


  • TexasHusker
    replied
    Originally posted by disneysteve View Post
    I don't think that's the same at all. First, you were investing in two entirely different businesses: vacation rentals and hair salons. Second, you weren't just passively buying into an existing business as a shareholder with no input or control. You were running the show.

    Still a risky move but a very different kind of risk than if you had taken that same money and bought shares of a single publicly traded company.
    OK then, putting all eggs in two baskets. Still risky.

    But with a publicly traded company, such should be less risky: Publicly-traded companies should be run by executives with years of administrative and managerial experience, and should be overseen by a hopefully-capable board of directors.

    Leave a comment:


  • Fishindude77
    replied
    There are some pretty well run public companies out there that one could do quite well in long term. One I've watched is John Deere, wish I'd have bought a bunch of that 5 years ago.

    Leave a comment:


  • disneysteve
    replied
    Originally posted by TexasHusker View Post
    I spent my life's savings on some cabins and three franchise locations - I would classify that as putting a bulk (all ) of ones loot in one stock.
    I don't think that's the same at all. First, you were investing in two entirely different businesses: vacation rentals and hair salons. Second, you weren't just passively buying into an existing business as a shareholder with no input or control. You were running the show.

    Still a risky move but a very different kind of risk than if you had taken that same money and bought shares of a single publicly traded company.

    Leave a comment:


  • TexasHusker
    replied
    I really don't see a problem tying up a chunk of your portfolio in a single stock or two...if you are highly knowledgeable about the industry and have thoroughly researched the company. If you know what you're doing, you could be rewarded with returns exponentially higher than the averages.

    It's sort of like taking out $200K of your stash and buying your own business.

    I spent my life's savings on some cabins and three franchise locations - I would classify that as putting a bulk (all ) of ones loot in one stock.

    On the other hand, you could lose your proverbial shirt. And even though a chunk of your stash is in a single stock, you don't manage the co.

    All about risk, reward, and comfort!

    Leave a comment:


  • Fishindude77
    replied
    Originally posted by LivingAlmostLarge View Post
    NYCB fishinguy? I am curious because I'm debating buying a dividend paying stock.
    No. It's a smaller institution. Would rather not share the name on an internet forum.

    Leave a comment:


  • surveysboy
    replied
    My 10,000 Investment Into Verizon Stock 2009

    Hey James great question,

    I invested 10,000 in Verizon stock (VZ) about 9 years ago when the stock market was in it's depression. Stocks were low and they had Verizon Fios going. I figured this new technology was not going anywhere soon, the stock market had no choice but to go up so I invested half of my net worth into one stock.

    I know this was frowned upon however I took a chance anyway.

    I used a trading platform that was free to invest as long as you had a certain amount inside the account. I forgot the online platform I do apologize because it was so long ago. I do recall it had a Z in the name. I tried to Google the name but I could not find the company. It may not be in business anymore.

    I let the stock sit for three years and long story short I made nice dividend returns and the stock tripled. This was my first time trading and I really messed up on my taxes after closing the account.

    I recall a 10% fee or something along those lines after cashing out that I had to pay in regards to the return. I was under the impression this had to do with taxes.

    All I know is after taxes, penalties and fees, I only made about $6,000 profit from a 200% gain. Even though the time it took to place the investment was minimal, I learned the time to learn the taxes and withdrawal process was a big headache. By the time I figured some of the policies out it was too late.

    I realized I should have went with a broker instead of trying to do it myself. I had no idea I would make so much money in such little time.

    Leave a comment:


  • LivingAlmostLarge
    replied
    NYCB fishinguy? I am curious because I'm debating buying a dividend paying stock.

    Leave a comment:


  • Fishindude77
    replied
    Yep.
    I own approx. $375,000 worth of a bank that is publicly traded and pays a dividend of about 4% based on today's value per share. Considering I've been buying this stock for quite some time and made initial buys at about 2/3 today's value, I'm probably getting more like a 6% avg. return. They also paid a one time dividend last year that was about 4X normal, due to exceptional financial performance.

    This has been a good long term deal, will probably buy some more.

    Leave a comment:


  • Singuy
    replied
    Originally posted by james.hendrickson View Post
    Wow Singuy - did you purchase your AMD in one buy or have you been accumulating it over time?
    Accumulated over the past 8 months. Amd was trading side ways and gave me plenty of chances to average down. I am fairly positive that this stock will be a multi bagger by 2021 due to its growth and Intel's manufacturing woes. So confident that I am quarter of a mil in.

    Leave a comment:


  • james.hendrickson
    replied
    Originally posted by Singuy View Post
    Yes.

    Just did the calculation and I have a little bit over 250k in AMD stocks. A distance second would be SHOP at 28k. Also have 26k in BZUN, 18k in MTCH, and 16k in Amazon.

    I believe I have more AMD than my 401k as of today.

    Did AMD work out? No clue, I'll let you know by 2021 which is my selling point.
    Wow Singuy - did you purchase your AMD in one buy or have you been accumulating it over time?

    Leave a comment:


  • tripods68
    replied
    I bought Netflix, cost about 10K...sold it a year later with a 4K realized gain taxable. I should not have sold it looking back.
    Last edited by tripods68; 05-29-2018, 06:58 PM.

    Leave a comment:

Working...
X