Saturday, November 19, 2005

Getting More Conservative

I've started to rebalance my portfolio. At one point I've had approximately 40% of my portfolio in company stock. I've brought it down to 35%, but there's still more work to do. This was accumulated over the years through the company employee stock purchase plan. Fortunately this was one of my best investment decisions ever (to hold onto the espp shares), but now it's time to diversify some of the risk and not get too greedy. Now where do I put this cash? I've thought about investing in other individual stocks, but I'm starting to shy away from that a bit. Over the years, I've been pretty fortunate at picking winners, but it takes time, a lot of work and a bit of luck. I'm leaning towards placing most of the cash into index funds such as the S&P 500 and just a small portion into individual stocks.

Oh... I was not able to get any ipo shares of Under Armour Holdings (UARM). That one shot up 94% on the first day of trading. The ipo market is really starting to heat up. Once you see some junk companies trying to go public, that's time to really lighten up. So far the companies coming public are actually making money. That's a good sign...


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