Quote from nlslax:
Just curious... Why do you use individual stocks instead of ETF's or other index-type products?
I've invested in ETF's over the years. A few industry examples were the drug sector, the housing sector, the retail sector, gaming sector, oil, ect....
There are certainly benefits and advantages to investing in them. But what I don't like about ETFs, is you end up investing in crap and/or over valued stocks as well as quality.
Thus, I prefer to create my own ETF, rather than investing in a generic one.
For example, I could have invested in the drug ETF, as I did in years past.
Instead, I created my own drug ETF.
Thus I am currently invested in spreads on ABT $37.5, PFE $12.5 and $12, BMY $17.5, AMGN $37.50, GENZ $42.50, BAX $42.50, GILD $35.
I've also invested in TEVA and others as well.
They all expire between June and Sept.
It would have been a lot less work to invest in an ETF, and I would recommend doing so for those without the time to do a lot of research and waiting.
But I prefer to select which specific stocks and at which specific prices I invest in. Thus, I do the extra work.
I'm currently still waiting to invest in MRK on further price weakness.
I've done the same sort of thing on the home consumer staple type stocks. Rather than investing in an ETF, I currently have active spreads on PG, JNJ, CL, CLX, KMB, ect... This way I get to select which specific stocks and at which specific prices.
I just like having control over what I specifically invest in and at what speciic prices, vs a generic ETF. The main downside, is, I'm at risk of one of those specific stocks suddenly crashing on me.
That happened to me when I invested in the housing related stocks back in 2007.
YIKES!
Putz Master