«I will make moves in this young folk portfolio I wouldn’t dream of doing in other portfolios, trimming D is an excellent example.+
By the way, the trims were $1K each, a trim, not a crew cut, and the buys were $1K each. Not the end of the world.»
«When I started this portfolio out, I had 3 questions that needed to be answered.
1. How much do you need?
2. When do you need it?
3. How sure are you it will be there?
Nothing I have done has changed the answer to the first 2 questions. The objectives are always the same. What does change, and I have made several changes over the years, are the tactics used to achieve the answer to number 3. Those changes may be due to market conditions, falling behind schedule or being ahead, or maybe someone here shares some thoughts that make me go hmm.
Kolpin commented she owns 68 companies and wouldn’t feel comfortable with less than 50. I too don’t feel comfortable with this particular portfolio owning less than 50. I got to thinking that how many more companies going forward may do what KMI or KHC have done? I decided I wanted a buffer number but haven’t decided on what that number will be yet.
Miguel and I have had discussions on the need for young folks to have some growth in their portfolio and I have always said I wanted some of that growth to balance off with our foundational companies. He then went on to make some suggestions.
I was already building V, MA, HD and NKE in the taxable account for growth, but wanted some more growth in the Roth Ira where most of his high yield, low growth companies are..So there you have it, some of the reasons for this most recent adjustment in the tactics used to insure the amount of money needed, when it is needed, will be there.
I will take a dividend cash flow hit this year due to building out low yielding, higher growth type companies, but since retirement is 35 years away, it’s a hit he can take this year. I can get back to yield next year.»