Nooby Questions

[Deaddog]

Just found this site.

I like the method of picking stocks. Make more sense than most I've come across.

A quick search told me that the IBD 7% sell rule is ignored and gave an explanation of why.

Is there a minimum or maximum number of stocks that will be held in the portfolio at any one time?

Are stocks ever allowed to exceed their 15% target price or are they automatically sold.

[mrmarket]

Just found this site.

I like the method of picking stocks. Make more sense than most I've come across.

A quick search told me that the IBD 7% sell rule is ignored and gave an explanation of why.

Is there a minimum or maximum number of stocks that will be held in the portfolio at any one time?

Are stocks ever allowed to exceed their 15% target price or are they automatically sold.

hi Dog,

Good questions....I usually hold up to 14 stocks in my $$$MR. MARKET$$$ portfolio. Sometimes I run past 15%..but usually do not.

[Deaddog]

Mr Market Sir:

A question on money management.

How do you determine your position size? If you usually hold up to 14 stocks, do you allocate 1/14 of your portfolio to each pick?

Right now you are holding around 8 stocks, does this mean you are sitting on cash equivalent to 40 some % of your total portfolio?

[mrmarket]

Mr Market Sir:

A question on money management.

How do you determine your position size? If you usually hold up to 14 stocks, do you allocate 1/14 of your portfolio to each pick?

Right now you are holding around 8 stocks, does this mean you are sitting on cash equivalent to 40 some % of your total portfolio?

No hard and fast rules. If I like a stock a lot, I buy a lot of it. I don't sit on cash very often.

[Deaddog]

No hard and fast rules. If I like a stock a lot, I buy a lot of it. I don't sit on cash very often.

Mr. Market Sir:

If I might trouble you with a couple more questions. Do you use margin?

How do you get from 8 to 14 stocks if you don't sit on much cash.

What's not to like about the stocks you pick? Why would you like one more than another? Is your portfolio likely to be weighted heavily to one stock you like a lot and have several that you only like a little?

[mrmarket]

Mr. Market Sir:

If I might trouble you with a couple more questions. Do you use margin?

How do you get from 8 to 14 stocks if you don't sit on much cash.

What's not to like about the stocks you pick? Why would you like one more than another? Is your portfolio likely to be weighted heavily to one stock you like a lot and have several that you only like a little?

I've never bought a stock on margin. I only invest money I can afford to lose completely.

I have an MBA from Wharton..I understand what makes a business profitable. I dig into fundamentals and make subjective decisions when it comes to asset allocation. Sometimes I just really like a product, or a valuation, or a balance sheet or all of the above.

So the answer is....of the 14 stocks in my portfolio, some of them I am much more invested in than others.

[Deaddog]

Here is what is causing my confusion; On your home page which hasn't been updated for a bit there are only 8 stocks showing.

Not that it matters i guess as a couple have hit their target and at least one has been added. If you have 14 open positions right now there are a bunch that I'm not aware of.

As it is you're doing great, I'll quit bothering you and sit back and see if I can't learn something.

[mrmarket]

Here is what is causing my confusion; On your home page which hasn't been updated for a bit there are only 8 stocks showing.

Not that it matters i guess as a couple have hit their target and at least one has been added. If you have 14 open positions right now there are a bunch that I'm not aware of.

As it is you're doing great, I'll quit bothering you and sit back and see if I can't learn something.

I have UP TO 14 positions....I add more when I feel like it. At this point I haven't felt like it and I only have 7. All of my trades are shown for all to see. I hide nothing.

[Deaddog]

I have UP TO 14 positions....I add more when I feel like it. At this point I haven't felt like it and I only have 7. All of my trades are shown for all to see. I hide nothing.

Mr Market Sir:

Can you give us the percentage each stock now takes up in your portfolio, along with the % of cash?

What I’m trying to figure out is how to manage my portfolio.

If I’m going to have up to 14 stocks in my portfolio and I’m not going to use margin and I’m rarely going to sit on cash, how does one vary the number of stock in their portfolio.

Are you letting the market determine the make up of your portfolio? When you have cash from a sale, you review your scans and if there are 2 good stocks you buy both. Or if 2 stocks have reached their target and your scans only turn up one good candidate you invest the cash from both sales into the one, especially if you like it a lot.

Do you ever add to a position or scale out? When you’re not sitting on any cash and something shows up that you like a lot how do you handle that?

Trying to learn from the best. If I’m being a pain, just kick the old dog aside. I’ll just get out of the way, wag my tail and wait for the next morsel of wisdom.

[Eric]

Mr Market Sir:

Do you ever add to a position or scale out?

Actually, this is a good question: Mr. Market, refering to MELI right now, you could dollar cost average your original position. Have you ever considered it? Why or why not?

Good questions, Deaddog. If I wasn't such a silent lurker, I would probably ask many a similar question.

[mrmarket]

Mr Market Sir:

Can you give us the percentage each stock now takes up in your portfolio, along with the % of cash?

What I’m trying to figure out is how to manage my portfolio.

If I’m going to have up to 14 stocks in my portfolio and I’m not going to use margin and I’m rarely going to sit on cash, how does one vary the number of stock in their portfolio.

Are you letting the market determine the make up of your portfolio? When you have cash from a sale, you review your scans and if there are 2 good stocks you buy both. Or if 2 stocks have reached their target and your scans only turn up one good candidate you invest the cash from both sales into the one, especially if you like it a lot.

Do you ever add to a position or scale out? When you’re not sitting on any cash and something shows up that you like a lot how do you handle that?

Trying to learn from the best. If I’m being a pain, just kick the old dog aside. I’ll just get out of the way, wag my tail and wait for the next morsel of wisdom.

I really am not as rigid with my allocation as you make me out to be. Why don't you just watch me like everyone else?

[mrmarket]

Actually, this is a good question: Mr. Market, refering to MELI right now, you could dollar cost average your original position. Have you ever considered it? Why or why not?

Good questions, Deaddog. If I wasn't such a silent lurker, I would probably ask many a similar question.

I never average down..it's just good discipline on my part. I have as much MELI as I want right now.

[Deaddog]

I really am not as rigid with my allocation as you make me out to be. Why don't you just watch me like everyone else?

Mr Market Sir:

I’m not trying to make you out to be anything other than what you are. Which I am led to believe is “HUUUGE”. If anything I am trying to give some rigidity to my own portfolio allocation.

I am watching and with massive interest. I aspire someday to be as knowledgeable in the market as yourself. You are leagues ahead of others I have followed, in that you freely give away your stock picking methods. If you were to stop blogging tomorrow for whatever reason, I have a method that I can use to find some top stock picks. For that I am forever in your debt.

The next logical step is to learn how to manage my portfolio. I know what to buy. I know where to take my profit. What I don’t know is how much to buy.

Can you give me a hint as to how you handled the BUCY and WRLD trades?
You sold BUGY and bought WRLD. Without getting into the dollar amounts can you tell me did you buy the same number of shares as you sold, leaving you some excess cash in your account to seek other opportunities, or did you buy an amount equal to the dollar value you received from the BUCY sale.

I am considering structuring a portfolio with 8 stocks. Each position will be a fixed dollar amount (1/8 of the portfolio). As I take profits and replace stocks I will use this same fixed amount. When I have accumulated profits equal to this fixed dollar amount I will then make the decision to either increase the number of stock in the portfolio or to increase the fixed dollar amount.

Your comments would be appreciated.

[mrmarket]

Mr Market Sir:

I’m not trying to make you out to be anything other than what you are. Which I am led to believe is “HUUUGE”. If anything I am trying to give some rigidity to my own portfolio allocation.

I am watching and with massive interest. I aspire someday to be as knowledgeable in the market as yourself. You are leagues ahead of others I have followed, in that you freely give away your stock picking methods. If you were to stop blogging tomorrow for whatever reason, I have a method that I can use to find some top stock picks. For that I am forever in your debt.

The next logical step is to learn how to manage my portfolio. I know what to buy. I know where to take my profit. What I don’t know is how much to buy.

Can you give me a hint as to how you handled the BUCY and WRLD trades?
You sold BUGY and bought WRLD. Without getting into the dollar amounts can you tell me did you buy the same number of shares as you sold, leaving you some excess cash in your account to seek other opportunities, or did you buy an amount equal to the dollar value you received from the BUCY sale.

I am considering structuring a portfolio with 8 stocks. Each position will be a fixed dollar amount (1/8 of the portfolio). As I take profits and replace stocks I will use this same fixed amount. When I have accumulated profits equal to this fixed dollar amount I will then make the decision to either increase the number of stock in the portfolio or to increase the fixed dollar amount.

Your comments would be appreciated.

I buy based on the amount I feel like buying the day I make the purchase. If I'm feeling confident, I buy more. If I am feeling timid, I buy less.

I think your method sounds reasonable. Part of the reason I am able to be patient with adverse stock moves is because I am DIVERSIFIED with 14 positions.

I also don't buy all my stocks at once so that I am a little less dependent on MARKET TIMING.

I'm glad you like the site. Tell a few like minded friends. You are obviously both interesting and intelligent and we'd love to have more like you on this forum.

Why not start your own thread...I am sure it will quickly get a loyal following on here.

Good Luck.