We retired July 1 2003. Being disiplined has allowed me to increase our portfolio value about 12 times since then. And that includes the 2008-2009 meltdown.I have also pulled all of our living expenses out of the market and giving generous gifts to our children when appropriate.
Important Rule to follow-Get rid of all debt- The money you make should support your family, not the bankers family. Get a true idea as to how much you are spending now. You will spend more in retirement. Cost of living is going up and while your needs will change they will not go down. So plan on replacing all of your current income
I have been buying MLPs (Master Limited Partnerships) for years. There is a lot of growth and the distributions are mostly tax deferred Examples ETE -started buying about 3 years ago PAA-Started buying about 8 years ago-Still buying MWE Started buying about 8 years ago-Still buying
Growth-No dividends currently ACAS -own about 10 years-still buying occasional. I'm expecting 15-20 in a year or two and a $1.00+ dividend CVU- 10 years expecting about 25 to 30 in a year or two
EDAC looking for a double from here in a year or two.
These are securities that I have researched and studied and I am comfortable to continue buying. I have had others that were bought out-merged or i sold because I wasn't happy with them. I currently have no losers in my portfolio and massive gains in the ones mentioned. i'm sure you have something in your portfolio you should have sold some time ago and redeployed the money into a winner that you already own. Do it-its the first step to increasing your portfolio returns. You really don't need more than about 10 stocks in your portfolio to make money---If you have the right 10. Does it work? Today the DOW was down 82 and the Nasdaq was down 11. My portfolio had 9 up in value and 2 were down. How were yours? Good luck. b&w
buyandwin, Thank you for the thoughtful and interesting reply. I always like hearing some success stories. I need to study up a bit on MLPs as I know very little about them. Thanks for the tickers.
I also have a rather disciplined approach. I have 3 very long term DRIP stocks that I own and continue adding shares since about 1995...mmm, pep, nue.
I also buy undervalued microcaps (mostly but not all) in a couple ROTH IRA accounts. Currently hold...navr, ta, edac, vtsi, lojn, noof, mcz, hska, jlwt, htch, stx, bac, ekdkq, uve. I added shares of htch and lojn today and ta last week. I will hold from weeks to years and will average down and up. Occasionall one goes belly up but I do get my share of ones that double or triple or 5X, etc. Avg gain since I opened the ROTHs in July, 2000 is about 20%/yr. I am not equally weighted in these stocks.
I also recently deployed most of my cash into three real estate parcels. I hated the low interest rates in bank accounts, loved the low real estate prices, and enjoy having a physical inflation proof hedge, and was able to leverage myself a bit with close to zero risk. Two parcels that I can hunt/fish on and one apartment building that I bought to punish myself. I'm sort of semi-retired....which is tough to explain to people when they ask me what I do since I'm in my 40s.
I like your CVU mention. I keep looking at it but haven't bought any.
I am not criticizing-Just making a suggestion if you are willing to let the market tell you what to do to improve your results.
You said- >>>Occasionall one goes belly up but I do get my share of ones that double or triple or 5X, etc. Avg gain since I opened the ROTHs in July, 2000 is about 20%/yr.<<<
If you have stocks that go up 2-3- or 5 times you could do much better (IMHO) than a 20% per year growth rate. I don't believe you should have companies that go belly up. There are usually a lot of signs while a loss is still small to get out and redeploy the money into winning situations. Selling off losers will give you more time to concentrate on your winners. It will also make you feel better when your good stocks go up and you have compounded the gains by adding to those stocks.
Investing is not a science, it is an art and if you continue to listen to the market and improve your portfolio you will benefit by expanding returns.
For example-everyone here is excited about EDAC and the potential growth coming down the road. The stock price is right at the 52 week high--But all I hear is everyone is taking profits because they made too much or they are buying all kinds of situations that most will not produce like EDAC could. If EDAC stumbles, evaluate the situation and decide what to do. If you have fewer stocks you can know more about the few you do own and not be fatigued by the losers most are carrying in their portfolio.