This is my Hail Mary portfolio. Each of these preferred stocks has a possible return of over 300%. If any one of them performs, losses among the other 4 picks can be absorbed by the portfolio gains.
Symbol - Allocation - Expected Return
FRE-PO - 20% - 1800%
FNM-PH - 20% - 1800%
AHR-PC - 20% - 4500%
AIG-PA - 20% - 500%
SFI-PE - 20% - 300%
The par value on the FRE, FNM, and AIG preferreds is $50 and the other two are $25 par. I am sure there are lots of other stocks out there to choose from. Thoughts?
I think it's interesting to compare/contrast strategies, and I see a lot of merit in this one. dpswim, do you plan on rebalancing it over the next few months? In other words, will you reset each company to 20% in a couple of months (if it grows faster than the rest), or are you going to just let it ride for 5 years, then take a peek and see if you're wealthy?
Actually, which stocks outperform will get the most attention. Because in the case of these companies, if the stock isn't performing, it's related to the company continuing as a going concern.
All of the holdings, with the exception of SFI-PE, have some type of big benefactor looking over the shoulder of the company.
AHR has Blackrock
FNM, FRE, and AIG have the Feds
If any of these companies fail, it will be pie on the face of a politician or investment banker.
I don't understand your logic. If your looking for high risk, high return you might look here.
Notice the yield to maturity column. Only one security comes close to the possible return from my portfolio. The FRE preferreds have a $50 Par value and trade in the $2.50 to $3.00 range.
My assumption is that these securities are smack dab in the middle of the common shares and preferred shares that the Government owns. They aren't going to be diluted and the government is going to need to reinstate dividends to get their money back.
If you look at Fannie and Freddie, the entire amount of their prior quarter losses was loan loss reserves.
And they have been building up cash balances for the past 6 to 7 quarters.