Hamilton Portfolio

Mr.Hamilton said: "My Portfolio: 348 Common Shares (Washington Mutual) Purchase Price: 3.99 Cash: 113.77 Future Prospects Verizon E Trade Financial Crox 1 Year Dry Wall and lumber companies Real Estate Devolopement Goal: Beat the S&P Annual Return."

Mr.Hamilton said: "Bought 348 Common Shares (Washington Mutual) Purchase Price: (3.99) 1388.52 Sold 348 Common Shares (Washington Mutual) Sell Price: (4.28) 1489.44 Profit: 100.92 Net Profit( After Commision): 74.92 Return: 5.39% Portfolio Cash: 1590.21"

ratAphooey said: "So your portfolio consists of one stock you already sold?"

Mr.Hamilton said: "I made the sell today, and yes more portfolio will consist of only one stock until I have the funds to diversify. I believe greatly in Washington Mutual which is why I'm confident in its volatility. My position for today is that Oil Futures will expierience a slight rebound tomorrow resulting in A. Low growth of the S&P, DJIND, Etc. And the day after red trading through Friday which I believe will be a growth day. Thats just where I stand right now, chances are I'm wrong, but I'm disciplined enough to wait until I see a price I like."

rmelv said: "Two questions. If you believe in Wamu why did you sell? Secondly, why the heck do you believe in Wamu? I would much rather just go long the bonds. Wamu may survive, but the equity holders aren't going to be the winners."

MarketRunner said: "Ham- How long have you been trading 100% of your portfolio being in and out of one stock? Seems extremly risky."

Mr.Hamilton said: "Your right it is risky. My position right on the stock market is... The majority of families with IRA's are investing 30% of their portfolios over seas. I believe this is because for the time being alot of people have lost complete faith in the U.S. economy. So for the time being it will be difficult for a company to sustain any real growth. So currently I believe the growth we are seeing is from short positioned investors looking to make a quick buck. P.S. I don't have full faith in Washington Mutual. For one, I HATE KILLINGER. If the management was better, like wells fargo, I would invest my entire portfolio and not look back. For the time being I'm using short positions for returns and by winter earning season I will position myself for longer terms."

MarketRunner said: "Ham- I disagree with the thought that investors are moving their investments over seas due to lack of confidence. The fact Americans are actually just late to the game. To be truly diversified one should only own approx 1/3 of their equity investments in American companies, as American companies represent about 1/3 of the worlds market cap. Today espically this is easier than ever as most brokerages offer easy access to foreign markets. The optimal 30% rate however is unrealistic due to home bias. Just keep in mind this trend will not be reversing, it will only contiue as America's market cap contiues to shrink relative to other nations"

Mr.Hamilton said: "Its estimated, theres so much that can go into one thing. Such as it's so much easier to invest in foreign countrys with new technologies, or alot of undeveloped countries have so much growth potential. There isn't a set rule for investing. Diversified or not. Your still subject to the same risk. For example if you bought 10 not good companies. And I owned just one excelleny company. You would be more subject to risk than I, even though your diversified. I guess what I'm trying to say is nothing is full proof. No matter how diversified. Assuming all purchases were made logically, we would see the best of companies with the best of prices and the worst of companies with the worst prices. This is not the case, because no matter how logical you try to base an investment, your emotions... I'll continue later on."

MarketRunner said: "Investing is an emotionless sport. If you let your emotions get involved it will only end badly. Just a suggestion, learn modern portfolio theory."

Mr.Hamilton said: "Instead of critiqueing my investment methods (with a 136% return this year) why not take a second to listen to my argument at hand. I obviously know I'm subject to additional risk investing in only one company. Even still I minimized the risk. First of all don't tell me that emotions don't persuade investors. Thats just not true, to be human is to have emotions. My argument was simply if all investments were made logically, than share prices would be self evident."

MarketRunner said: "What im saying is you should try to trade without emotions, not that they dont effect investors. And Investments are not made logically because people do not act logically. Stock prices in the long run are rational, and make sense, as they are based on results. In the sort term they can behave in irrational manners, its called volatility. How do u manage to minimize risk with one stock in your portfolio? Puts?"

Mr.Hamilton said: "Sometimes I do covered puts... Today is not a good day lol... I sold myself short... could of added an extra 20%+ to my portfolio, but hey thats what its like to be human lol... I hate greed. Anyways I'll wait for the price to recede. I'm hoping it will go down to about $3.50 then I'll buy 1,000 shares or so."

MarketRunner said: "you're using mostly tech analysis to place your trades?"

Mr.Hamilton said: "Yes, I do technical analysis, but not all of it... Sometimes I do Equivolume charting, but since I'm more of a trader now than an investor... I'm trying to increase cash held in portfolio, before winter, because thats the point I want to enter for longer terms. If I had more money to invest things would be so much easier... Paper Trading Portfolio... International Paper ( I decided I wanted to buy this when it was 20! but I didn't have the cash too) :( Verizon: 33 E Trade Financial: 3.00 Freddie Mac: 7.98 Only securites I'm interested in now... Monday I have a Market order for 396 Shares of Fre. Wish me luck on that one... Note: Every company that I invest in I look at... Well the overall company, decide if its a necessity in life, ask if it has any room for growth, I look at earnings, operation cost, assets, liabilities, and Management. Managment is the most important, because you can have a great company with great prospects, but its not going any where without someone who knows what he's doing."

Aligator said: "[QUOTE=Mr.Hamilton;71909].........Diversified or not. Your still subject to the same risk.............[/QUOTE] [QUOTE=Mr.Hamilton;71909]I obviously know I'm subject to additional risk investing in only one company. [/QUOTE] heh, heh....see how quickly you're learning? In just a couple of days you have come so far.... But actually, I know what you are saying. Maybe it'll work for you. Didn't work for me, though. I came to view the 1 stock portfolio as a sort of an Israeli approach - they have to win every battle; every war. There will be no room for error. And as long as you understand the risk and are willing to pay the price for failure I say, "go for it". Just be completely sure you understand what that price may be."

Mr.Hamilton said: "I like your analogy, at your age, you can't afford risk, but at mine, I can and will subject myself to risk for the greater reward. Ultimately, I will diversify."

rmelv said: "Hamilton you are on the right track in some respects. I would rather have stock in one company I knew very well, than ten which had been picked randomly. Many pros run very concentrated portfolios. I would personally like to have atleast 3-4, but once you get past 20 stocks you are just being silly."

Mr.Hamilton said: "Thank you... I'm moving away from Washington mutual. Unless it goes back down to $3 a share. Now I'm taking the time to get to know Freddie Mac. For years has this company been advertised by brochures as Federally "Insured" and for once it has been put to the test, and it is. So why not invest in a company at a record low and has legitimately been proven to be federally insured. The government is a business in my perspective, if they were to take it over with tax payer money, they better have a good reason."