[Why Concentration Can Be A Terrible Idea]

Why does it have to be concentration or indexing.  I have substantial amounts in BRK & Indexes while putting money into good ideas I get every once in a while.  Rarely do I exceed 10% in one stock (except BRK).

[Taxation on IRA to Roth conversion]

I am hardly an accountant or expert in tax issues.  My reading of re-characterization suggests that it is initial value at time of conversion, unless you reverse the conversion. Please check below article.  Also, may be you can call your broker and talk about re-characterization.

 

https://www.fidelity.com/viewpoints/retirement/how-to-reverse-a-roth-conversion

[10 year financials?]

I have morningstar through township/county public library.  They gave a password to use it from home.

[Why do people get sucked into bubbles? - Issac Newton example]

Robert shiller in this interview - thats a bubble when people think it is time to jump in even though it is over priced.

 

http://www.cnbc.com/id/102802737

 

Munger attributing to Buffett 'It's not greed that drives the world, but envy.'

 

http://www.fool.com/investing/general/2013/06/10/charlie-mungers-18-biases-that-cause-you-to-fool-y.aspx (number 11).

[Some lessons from a value investor]

The main reason for the disaster is being heavy into oil & gas name since 2013,

Cardboard

 

Hi Cardboard, I am not into Oil & Gas.  But how do you know it is a disaster?  Personally during dotcom bust I sold a stock at a big loss and that company is  a very big company now.  During 2008, I learnt my lesson and kept a position even with 80% down and it came back pretty well.  I am generally not very good at taking such fluctuations and hence try to be more diversified.  But a short term change by itself should not be called a disaster.  It comes with the terrirtory.

[Some lessons from a value investor]

Buffett was reasonably diversified even in his partnership days.  I think some people take the concentration idea too far.  Mistakes happen but no one mistake should kill you. 

 

Here are the criteria Buffett laid out in his partnership letter dated January 20, 1966. 

 

"We are obviously only going to go to 40% in very rare situations - this rarity, of course, is what makes it necessary that we concentrate so heavily .when we see such an opportunity. We probably have had only five or six situations in the nine-year history of the Partnership where we have exceeded 25%.."

 

Page 9 (Diversification) http://www.rbcpa.com/WEB_letters/1966.01.20.pdf

[Foreign investing through IRA]

The fidelity representative suggested to buy the US equivalent from a market maker of foreign stock during the period foreign stock is trading. For example to trade a London stock equivalent in morning when London stock exchange is open to reduce spreads.

 

 

[Foreign investing through IRA]

Thanks a lot for the information.  I called and they confirmed that the stock I was looking at has actually a market maker in US and it is better to use it. 

 

The website says the following "All nonretirement brokerage accounts are eligible to add the international stock trading feature.", but as I understand it is a feature on website, one can call.

 

https://www.fidelity.com/stock-trading/international-stock-trading

 

Thanks again.

[Foreign investing through IRA]

Could anyone please let me know if there is a way to invest in foreign equities through an IRA?  I looked at Fidelity but looks like they exclude retirement accounts.

 

Thanks very much