After sharing my taxable account portfolio in this post with you a few days ago, here is my Roth IRA portfolio.
| Symbol | Shares I Own | % Gained |
| JOYG | 107 | 16.55% |
As you can see, I have 107 shares of Joy Global and nothing else in my Roth IRA account. This highlights my unconventional way of investing with my Roth IRA money since I am buying stocks when most people buy mutual funds or ETFs. A few months ago, I decided to make short term trades in my Roth IRA account rather than my taxable accounts. This is because short term trades are taxed at 35% and stock or ETFs that I sell at a profit are taxed only at 15% if I hold it for more than a year. By making short term trades with my Roth IRAs and long term investing with taxable accounts, I save on taxes. (This is only personal preference. It is perfectly fine to not feel comfortable trading stocks in your retirement accounts since the decision on what is best for you depends on your particular circumstances).
This is totally not a diversified portfolio by itself, but I did not feel like I have enough assets yet to justify more than one stock since I am still using etrade and have to pay commissions. I figured that my overall portfolio (taxable, non-taxable) is pretty diversified so I am still responsible enough.
Let’s talk about the stock itself:
JOYG – Joy Global Inc is a mining equipment and services company. The share price was knocked down heavily last year when coal prices went down because of over supply. This was totally an overreaction since this company is fundamentally sound (little debt). The company was also able to grow their revenue and bottom line even with the mild winter. Once weather in
Barron’s also helped the stock by writing an article about the undervalued Joy Global back when the share price was in the mid 40s, compared to the price of $60+ now.
Overall, I feel great with this stock since I had a 16.55% run with it in a month, as I purchased these 107 shares in May. I feel that it can go back to the high of $72 or the start of the winter so I will keep it until either one is reached if nothing else changes.
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{ 2 comments… read them below or add one }
I do the same thing with my Roth IRA (except I have it with Scottrade). I’m limited to funds in my 401k so I purchase individual companies in my Roth. Nice to hear that things are working out well for you.
-limeade
limeade: Nice to hear from you and the fact that someone else also does this.
I believe that it is truly a good decision for me since I’m able to save tax on this (already a couple hundred bucks savings so far).