Guess it won't go lower like I wanted. In hindsight, Atty was right that the 1 pt pull back was a nice enough one for the short term. Friday's price action was impressive.
Another part of the strategy. Margin interest on a tax return has a higher benefit than the penalty on a tax return of a nice capital gain (over a year). IF ONE IS RIGHT. It contributes to the leverage.
OK, that's as we say here: "Much mo betta".In other words, your assets ARE diversified so you gamble more in the market.I'm also diversified in assets(not AS much as you), but I wouldn't take those risks with my stocks because the wife and I are living off the income of our respective portfolios.My real estate in Fla. is a push(bought it in 2009-thought I was a genius-it's OK, but time-consuming-not worth the trouble.My home is multi-million(sorry, I usually don't post #s, but had to to illustrate) is ALL cash, but, of course, generates no income.Only OUR stocks and fixed income instruments do so I'm not as brave as you even though I don't believe it is possible for US to NOT outlive our LIQUID principal, real estate aside.I get your game and wish you the very BEST!!!!
I agree, and what I do, I would not recommend for others. The bottom line is also that I could lose every cent in the market (never happen in a million years) and that would only be 50% of my investment dollars which are diversified in an apartment house, with no mortgage, and a nice portfolio of shortterm 1st trust deeds earning 12%. Plus I own 75% in our nice custom home. So in the whole scheme of things my strategy is sort of diversified and not that risky. Only the stock portfolio is. Corporate officers that invest only in their own stock carry a much higher risk. In conclusion WITH GREAT RISK CAN COME GREAT REWARDS.
Ease up Shoot-I was teasing fella. It's your money. You know very well that overloading like you do is very risky-it's not an opinion. It's a fact. If it works for you, fine.Sort of like playing tennis and never hitting a second serve-well if all firsts are good, it turns out better-but, there's more risk. I think you are on the right side of the trade, but when anyone overloads like you, should there be an accounting scandal or some other unforeseen event, you lose BIGTIME-there's a reason sound investing suggests diversification-mathematical odds. If you choose to defy those odds and it works out, Mazel Tov. But, it's still not prudent-period.
Atty, you don't know the complete story on my risk taking. How about this: 20% of my 2 stock portfolio is financed by MARGIN. I do own a little of ABT as a 3rd stock, but it's really small. I bet that has you scratching your head. Hey I've had my share of losses in the past and I do bail if things don't pan out. Bought a nice position in RUTH at 20, several years ago, bailed at 15 and stock is now around $5/sh. Poor grandkids, still have some that I bought for them. I've also had a 2, 3, and a 5 bagger. So until I get the feel that TEVA is not panning out, or it's really overvalued, I'm in for the ride.