Stumbled upon this thread on reddit. You can read through it if you want, or just click on the imgur link to look at the portfolio. Started with $50K in April of 2015.
https://www.reddit.com/r/personalfinance/comments/4umy57/investing_hired_a_financial_advisor_after/
I don’t think it’s anyone in AF, since it does not contain SUNE.
Can’t view imgur at work. Was it all in A Shares and private REITs?
yeah its blocked for me as well
7 individual securities: Allergan(8.7%), Bristol-Myers(9.1%), Corning(9.3%), Hawaiian Holdings(9.3%), Ubiquit(9.6%) Valero(5.9%), Yahoo(9.0%).
2 funds: ASHIX(11.8%) and TMRIX(15.1%)
Cash at 12.3%.
Looks to be on the efficient frontier to me.
Would’ve made a lot of money with that if he timed it right, HA almost tripled in a year.
The two funds he’s in aren’t unreasonable. A good short duration high yield fund and an international fund, both lowest cost share class options.
I love this dude bragging about the CFP … ahhh its great ---------------------------------------------------------------------------------
[–]tripletaco 0 points
35 minutes ago
I’m a bit smarter than that. Series 7, 63, and CFP holder here.
he must be soooooo awesome with that CFP
i expected the portfolio to be worse. i’ve at least heard of all those companies.
Perhaps I’m just far more conservative than most, but if I’m investing for someone with only $50K to invest, I’m not throwing 60% of it into 7 individual stocks. And I’m certainly not re-balancing frequently(somewhere between monthly and quarterly per the thread) in a portfolio with only 9 assets. And I’d need a really compelling reason to have 12% sitting in cash.
I have complaints about some of the security selection as well, but the broader issue I saw was simply an adviser putting almost no effort into their job. That looks like the portfolio someone in a high school economics class would come up with.
If you read the thread, sounds like there is more to the story. But being down, even when the market is up, is not necessarily a cause for concern.
obviously it’s still terrible asset allocation and security selection. i just expected bunghole networks and weed college inc to be in there.
My “mentor” thought me that diversification is for old people and rich people. I dislike his selection (easy to say post fact) but the general idea of not diversifying was good
This one is a little more clear cut- http://www.financial-planning.com/news/finra-broker-squeezes-243k-out-of-elderly-blind-widow
Yea while its not unreasonable to be down when the market is up and we also dont know if he holds additional investments elewhere, I find it hard to believe he doesn’t have some allocation to an S&P index fund. I am all for selecting individual securities as part of an overall plan but there should be solid market exposure