CAP on number of portfolio holdings

Jay Sternin on

Do any of you have a cap on the number of stocks you hold in
your portfolio?
If so, how do you work it. We're at about 20 and I feel
that if we get to about 25 or 30 we should consider selling
something before we buy something new. In my mind,
this would be a way of forcing ourselves to take a more
critical look at our current holdings.

Thanks.......Jay

Laurie Frederiksen on

Dear Jay,

I'm not sure what others do but I think you want to make sure no holding is so large that it would take out your portfolio if it didn't pan out or so small that it wouldn't contribute significantly if it went up. I also think you don't want so many that you can't do the work to follow them adequately.

Perhaps this might be 1-2 stocks per member. It probably depends on how engaged your members are with following stocks. That tends to be the norm in the clubs I am in.

Like a lot of things, I think that while it is fun to go shopping and buy new stocks, it's really important to maintain your interest and focus on the ones you already own. You don't need every good stock to do well as an investor. You just need the time to make sure the ones you do have continue to be worth keeping.

Laurie Frederiksen
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On Fri, Mar 23, 2012 at 7:02 PM, Jay Sternin wrote:

Do any of you have a cap on the number of stocks you hold in
your portfolio?
If so, how do you work it. We're at about 20 and I feel
that if we get to about 25 or 30 we should consider selling
something before we buy something new. In my mind,
this would be a way of forcing ourselves to take a more
critical look at our current holdings.

Thanks.......Jay

Etana Finkler on

Laurie and club cafe,

When the Stockettes Investment Club disbanded, 2 securities were transferred to me.

Is my cost basis, for tax purposes, the closing price on the day that TD Ameritrade lists the stocks as coming in to my portfolio?

Also, when I finally sell these 2 securities, will I or the ex-members of the ex-Stockettes need to know the cost basis at which we bought those 2 stocks? I forgot to write that down from the bivio account, and now I don't have access to the closed bivio account:

SYK Stryker

FDS Factset Research

Thanks a lot,

Etana Finkler

Jim Thomas on

Etana,

> When the Stockettes Investment Club disbanded, 2 securities were transferred to me.

> Is my cost basis, for tax purposes, the closing price on the day that TD Ameritrade lists the stocks as coming in to my portfolio?

Your cost basis, for tax purposes, in those transferred securities is shown on bivio's Withdrawal Report. Every member who received transferred securities should have been given a copy of their Withdrawal Report. The withdrawing member's cost basis shown on the Withdrawal Report is not shown anywhere else (not even on their K-1).

> Also, when I finally sell these 2 securities, will I or the ex-members of the ex-Stockettes need to know the cost basis at which we bought those 2 stocks? <

When you eventually sell those securities, you need to know the cost basis shown on the Withdrawal Report and the sales proceeds. The cost at which the club originally purchased those securites is irrelevent.

-Jim Thomas

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