Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Thoughts on "Raising Cash" ... and, also "Trimming the Dead Wood?"

edited July 2014 in Fund Discussions
Hello,

I have been reviewing my funds thinking now is a good time to trim the "dead wood" so to speak and raise some cash within my portfolio (although I currently have a full allocation within my asset allocation). The choice was hard to make since my portfolio's valuation, as a whole, is less than one percent off its fifty two week high water mark. With this, I decided to sell funds that had not beaten out my short term bond funds on their year-to-date returns and with this there was only one ... MFLDX. In addition, I chose to let my worst performing small cap fund (KSDVX) go within its sleeve. With the cash, I'll sit on the sideline with most of it though I will add some of it to my three best performing funds (momentum move, over the past 90 days) ... TOLLX, DEMAX & SPECX ... and, a couple value plays by adding to HWAAX & BWLAX. I'll average the rest back in over the next several months ... and, should a good pull back come in the near term I'll more than likely put the residual back to work in bulk.

I wish all ... "Good Investing."

Old_Skeet

Comments

  • edited July 2014
    I did add a couple of things in the last week that fit into the themes like I like and moved a bit more into GAINX, but otherwise I'm just not finding a whole lot of interest. Not selling anything.

    Personally, for me, it becomes what do I want to own long-term. If something happens that requires a significant re-think of the thesis, fine, but the intent is long-term. I've really found it makes the whole process of investing more enjoyable. I still enjoy it, still do tons of research on new ideas, but to have names where you can feel like there's a good degree of "autopilot" and dividends just reinvest is - I find - significantly less stressful and there's less in the way of emotions involved in decisions.

    I don't want to be trying to time the market and instead will just let dividends continue to come in (including a number of monthly payers, like VET and INF) and reinvest. There's nothing wrong with what you're doing, but I don't want to have to manage as frequently.

  • Old_Skeet - you own TOLLX, DEMAX and SPECX - all class A funds with a hefty load. Of all listed, only MFLDX is no load. Did you actually pay the load on these, or did you have some way around it? TOLLX is currently NTF and load waived at Fidelity and possibly Schwab, but the others...
  • Hi timgr,

    I am able to buy load waived.

    Old_Skeet
  • Hi Scott. I've come to the same conclusion as you - think long term. Timing in and out, trying to own that "perfect" fund and collecting hot funds just doesn't make sense to me anymore. It can be fun as a hobby, but it can be detrimental on returns. Play on the fringe, invest the bulk with a longer term vision.

    Anyway, in setting up my 401k rollover to Schwab, GAINX is one of the funds I'm considering as my large cap dividend focused fund (a 'theme' I like going forward). I noticed you were buying and I liked what I read in David's assessment. The other I was considering with dividend focus was SCHD.
  • edited July 2014
    "Timing in and out, trying to own that "perfect" fund and collecting hot funds just doesn't make sense to me anymore. It can be fun as a hobby, but it can be detrimental on returns. Play on the fringe, invest the bulk with a longer term vision. "

    Well said and that's really it. Again, I'm not one of those people who says that their way is the only way - farthest thing from it. People who use technical indicators and all of the other factors - all that stuff fascinates me. 5+ years ago, I moved in and out of things constantly and I really feel that it was detrimental on returns. Gradually I did that less and less.

    The thing is, less micromanaging doesn't mean I'm not enjoying investing. If anything, having a "best ideas"/themes portfolio and having all but a couple of things pay a dividend has actually made the entire effort less stressful and decisions less emotional and less focused on the day-to-day. I can just own a (to use examples) Canadian National Railway or Conocophillips and that's it. Collect the dividend. Love researching ideas, have ideas in mind if I want to put more money in the market. Otherwise, best ideas that pay a dividend and just sit on them.

    I think you have a portion that can be still for "play", but I dunno, I don't even find myself that interested in that anymore. I was going to invest in a little Canadian pot stock the other day and instead went with Marine Harvest (MHG), which has a variable dividend but a very generous dividend policy and is one of the world's largest seafood companies.

    GAINX is really appealing and probably what I'll continue to move the rest of the money from PQIDX to.

    As for TOLLX mentioned above, that's a great infrastructure mutual fund. I own INF, which I think is a good CEF play on it and I just keep reinvesting that monthly div. There's also Brookfield Infrastructure (BIP), which is a pure play on infrastructure but results in a K-1 at tax time.
  • Not a time to be adventureous, complacent is good for me at age 80, comfortable and not good for making changes when a good fund like TOLLX is also at highs in a sector mostly highs. Raising some cash is ok but waiting is also ok.
Sign In or Register to comment.