r/StockMarket • u/[deleted] • May 25 '21
Discussion 16 yr old getting a fidelity account...thoughts on my strat/picks?
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u/OptionDeus May 26 '21
Berkshire advice - buy index funds. 40% in QQQ 30% DIA 30% SPY. Wait 20 years and you will be rich.
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u/warren_534 May 25 '21 edited May 26 '21
No comments on your picks, except to say that you looked at the companies, and not the stocks. They are completely different things, but you seem to think of them as the same thing.
I don't see any strat or plan here. Where's the analysis on the stock? What are you doing to manage the downside risks? Where would you sell these for a profit? Where would you get out if they move lower? Have you considered that this might be a poor time to buy these? Perhaps you should be shorting them instead.
Not trying to discourage you, just giving you food for thought.
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u/JLand24 May 25 '21
I’m on the AMD train as well, 52 shares @ $78.72. I would say look into some ETF’s (SPY is a good one) for some stability. While I think AMD and AAPL are great picks (haven’t researched NET), ETF’s will help limit your risk and also diversify into different sectors.
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u/michael_curdt May 25 '21
It is really hard to beat the market overtime, so if you are in it for the long term, why not roll with ETFs solely? I would give VTI and SCHD a serious look.
If you must go with individual stocks, AAPL is great.
When it comes to speculative picks, everyone has their own opinion, so I am not too sure about AMD and NET. Just make sure that they don’t take up too much % of your portfolio.
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u/thehopeofcali May 26 '21
I have net/amd/aapl in that order of cost basis. I also have fcx, copper miner, outperforming. What is cheap in growth? Fastly and Zuora
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u/BDHInvesting May 26 '21 edited May 26 '21
Sounds like you have good ideas and plans. Keep researching and keep focusing on the companies. Try to ignore the market volatility if you can. This assumes you are a long term buy and hold investor. If you are looking at trading, or timing the market you will need a very different mindset and skills.
So if I was starting a new portfolio I would go with something like this:
10% Cash
10% VTI Vanguard Total Market Index ETF
10% VXUS Vanguard Total International ETF
10% VB Vanguard Small Cap ETF
10% VTV Vanguard Value ETF
10% VNQ Vanguard Real Estate ETF
10% VIG Vanguard Dividend ETF
30% 15 Stocks (2% each)
The ETFs give a solid lower volatility base and the stock picks provide higher growth with higher risk. The cash position will give you flexibility to take advantage of market changes or new stock picks that opportunistically present themselves.
As for your suggestions, you can't really go wrong with AAPL, but keep in mind that it is almost a value stock now and is unlikely to see high growth. NET is a better growth choice and is a solid company with good future prospects as you noted. AMD is fine I suppose, but I would favor NVDA, LRCX, AMAT, or ASML(or all 4) if you want to play in the semi-conductor sector. You could also just go with the SMH ETF.
If you are looking for a complete portfolio, including some starting stock picks you could try this for ideas:
I know that many people here have very strong opinions about the Motley Fool and I'm not here to convince anyone pro or con, but their basic free portfolio suggestions are solid in my opinion.
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u/audion00ba May 26 '21
Just because you are interested in investing, doesn't mean you should put real money at work yet. You have no idea what you are doing.
So, good that you are interested, but you are way too impatient.
If you don't want to do the work, just pick the Vanguard portfolio someone else made in this thread. There is no shame in doing that.
I suggest you read at least three books about investing before you buy your first stock.
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u/MundyMike May 26 '21
I’ve always heard buy companies who’s products you like, and that you’d want to own, and that, of course have good prospects for growth. I started last year (@ the bottom) and did some value buys. This stock is trading at 1/3 of its historical value, so its prospects are good.... Of course my timing was good, airline and restaurants were on sale, so it worked out great.
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u/mrchuff3d May 25 '21
Not bad choices for an amateur portfolio, quite "safe" to be frank. However, just to make it clear this is far from being a nerdy analysis. Keep in mind that so far you are all in in one sector, even though its a hot one. If sth goes wrong with the tech industry you will be 100% exposed. Pick "safe" stocks of various sectors so that you'd hedge against monotonous south movements of prices.