Is my stock portfolio diversified? Rate my stock portfolio.?

Question

My IRA is in index funds, but for fun I have a small sharebuilder account. Top 5 holdings BA, KO, PEP, T, BAC. Other large holdings include, BUD, BF_B, C, and DRE. The markets had it rough lately, but over the long-term, what do you think? Looking for input.

Answer 1

Having both Coke and Pepsi is certainly NOT diversified and then with Bud too? AND another bottler, alcohol company? Not good. All consumer consumables.

Nor is having two major banks being diversifed.

You should be able to decide which you think is better between Coke or Pepsi, Citigroup or Bank of America, Bud or the Brown Forman.  And you may not want both the soft drinks and the booze.

You might have reasons for owning all those, (like for a recession)  but diversified it is not. And that is what you asked.  

Good Luck.

Answer 2

I have to agree with the other posters. You have made some good choices in stocks with great potential but not very diversified. If one of your stocks fail to perform the majority of your stocks will also. You only have 2 different catagories represented here.

Answer 3

Never ask the lowly investor for advice. He will always be tailing the market. You will note that there are always trends where stocks gain and then lose. The pattern may be rising at which time the shares should be scrutinized.Our success has been to purchase and sell when the price has reached a level of expected gain in value . We always invest in shares which pay dividends as well.