Post by retiredat48 on Aug 12, 2022 0:37:26 GMT
retiredat48 , "Like, FSPTX Fidelitry Select Technology Fund, accumulated since fund inception, is my largest holding. Never sold any. Partly enabled me to retire early."
If you never sold any and it hardly paid any divvys over the years what could it possibly have to do with retiring early?
R48 reply in bold: C'mon mnfish...am I missing something? If you bought into a stock fund that had the tremendous growth of FSPTX, you don't need dividends to increase wealth. At age 48 (1993), my assets in mutual funds had grown to where I could retire (be financially independent)...29 years ago. EEEK.
I'm not smart enough to have ever bought anything at "inception" but my second largest position is ORCL which I purchased in 1995. Yahoo says it's up 3,400% since. I have twice given 100sh to churches I have attended so I'm only up about 2,200%.
Well, this is what I am talking about.
When I first bought AAPL it was equal to 5% of my total portfolio although the position in my taxable acct equaled 7.5% because I had more cash in that acct. It was in the middle of a 38% decline in price so I made 3 buys ($550, $500, $450) just the opposite of the much-heralded "pyramid up" you are famous for.
???Why do you think I do not buy anything during a decline. Declines are only known after they occur. I suspect you were not sure a decline in share price would occur, or you would have waited. BTW if one pyramid ups then they NEVER face the potential that something like AAPL would go bankrupt. Hundreds of high tech companies went completely bust in 2001 bear period. A few survived. AAPL was one. Also, had you pyramided up and made these purchases at $550, $565 and $580/share, would it have adversely affected your successful outcome? No.
As far as over allocation, you have mentioned your daughter has 86% of her portfolio in FSPTX and bear in mind that the fund has 25% of holdings in 2 stocks. MSFT and AAPL.
I am aware of this. Have had discussions with daughter a lot. But it is a mutual fund, not an individual stock. And holding on fully has resulted in all this growth to date (over many years). Further, this is a special IRA that I started for each of 3 kids at their age 12...to age 22. I treated these IRAs as part of my AA, and I do not have 86% in FSPTX. However, am aware of the aspect high tech may flounder for the next decade. But so far the approach is to hold until she retires! Then reallocate and spend whatever she wants. She also has her own personal more-balanced IRA.
Disclosure re holding for long periods...I have owned Wellington Fund, VWELX, since 1953. That's the good news. Bad news...I spent the dividends on ice cream cones along the way. YOLO!!!
R48 in bold.