Comments on: I’m a microcap growth stock. What are you?

By: SimplyForties

SimplyForties — Mon, 08 Mar 2010 04:06:22 +0000

lol, okay so my human capital is decreasing? Good to know!

By: Adam

Adam — Mon, 08 Mar 2010 00:20:22 +0000

I love this post.
I consider myself a low cap growth stock, not because of my job nessesarily (I’m in an entry level salaried position) but because of my age (23) and attitude -big hopes and dreams. I’m still ‘low cap’ though as I still need to prove to the market my worth

By: Monevator

Monevator — Sat, 06 Mar 2010 09:12:33 +0000

Thanks for the clarification. To clarify my comment, I meant to say the former will come back hard – my income.

Reading back my comment, it sounded like I meant my portfolio!

I’m not so greedy as to not be satisfied with a 60% in a year rally in equities, nor insane enough to expect the same this year!

By: Anthony

Anthony — Thu, 04 Mar 2010 16:54:25 +0000

I think it’s interesting to think about how career should affect asset allocation, but unlike Milevsky et al, I think it really only comes into play at the margins: You’re a stock broker (tilt to bonds), or you have a benefit plan that is heavily invested in company stock or options that you can’t sell (short the stock to hedge job risk). Otherwise, I think the analysis can lead one astray. A friend is a tenured professor whose department just got vaporized. I’m a solo attorney, but I believe in Fama-French; should I avoid tilting S/V because it overweights me to business & consumer services and because I’m “a microcap stock?” I don’t think so, but instead endeavor to have a larger emergency fund.

Best regards,

Anthony

By: Mike

Mike — Thu, 04 Mar 2010 13:30:08 +0000

“You can probably go too deep down this rabbit hole! ”

Haha. Yep!

“(Is it that what you haven’t got in cash, is all in the stock market?)”

Yeah, pretty much. I’m generally in favor of high stock allocations for lengthy time horizons–provided the investor isn’t made uncomfortable by the volatility. I just recognize that in my own situation, a big chunk of our money could very possibly have a short time horizon (in the case of a business failure or my wife getting laid off).

By: Monevator

Monevator — Thu, 04 Mar 2010 11:02:39 +0000

Hmm… my friends would probably say I’m a dotcom stock. Lots of promise and endless ideas but where’s the money?

That’s mainly because they don’t have an insight into my investment portfolio, which underwrites the risks I take like you with my income.

I expect the latter to come back hard in the next 12 months (touch wood!) which would make me more of commodity extracting market cash cow?

You can probably go too deep down this rabbit hole!

Incidentally, I always thought you had a very large amount of your money in stocks, rather than cash, for some reason. (Is it that what you haven’t got in cash, is all in the stock market?)

By: Susan Tiner

Susan Tiner — Wed, 03 Mar 2010 22:15:01 +0000

I’m a micro cap growth stock with an open HELOC at a nice low interest rate as a cash reserve.

By: ctreit

ctreit — Wed, 03 Mar 2010 16:40:52 +0000

This is a great concept. We are our own most productive and valuable asset. I supposed I would call myself a preferred share – a stable, (almost) guaranteed minimum return with some upside for capital appreciation.

By: Lance

Lance — Wed, 03 Mar 2010 16:34:40 +0000

I’ll go with “securitized junk bond.”

By: Paul Williams

Paul Williams — Wed, 03 Mar 2010 15:22:55 +0000

Great concept, Mike!!! This makes a lot of sense and helps people visualize their TOTAL asset allocation a bit better. I’ll be putting this in my round-up on Friday.