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.
Your advice is good and correct. Two of my worst losses in the last few years were with WM and EK and in both cases I knew I was playing with fire (tons of debt, huge short interest, disastrous chart, etc). Still though, I believe the US gov stole WM from me in the dark of the night and with EK there still might be value there....I might buy more!
I do agree with you but sometimes the irrational gambler in me takes over.