Holy Smokes !!! Fidelity Semiconductor !!!

[RSKY]

Fidelity Select Semiconductor hit $55.79 today. It was $22.88 in the second week of April last year. Up over 86% this year. I bought into the fund when it was in the lower 20's. When it drops the next time I'm gonna cry because I didn't take some money out when it was up. Let's see, got some landscapers coming over next week to redo the front, I need my bathroom remodeled, and I may trade trucks when the 2027s come out (gotta have all the new safety features).

If it holds true to what it has done the past several years it will hit $57 then drop a little. It always tops out at a seven number, $27, $37, $47 then it drops about $10-$15 or so and stays there for a couple to six months before it makes it'a next climb.

Got all my grands solely invested in this and Select Hardware Funds. If this keeps up for a couple more years they will be set to retire when they hit their fifties.

Now if this will just keep up for the next few years.

RSKY - sitting here chewing on his fingernails.

 

[Snobdds]

See my snobdds wisdom in my signature.

It's all paper, until you sell. You want, you sell. Selling does require buying though.

 

[RayIN]

I hear you! In 2024, investment returns paid for my newer tractor. I have to take a RMD every year, so the 2024 withdrawal bought a newer tractor. Within 6 months the Fidelity IRA was back up to before the withdrawal. This year a new pickup is on the horizon.

 

[Shawn T. W.]

Yeah, I have some of that in my ROTH ... It's done real good for me 115.89% gain since I bought it back a little over two years ago ... But like was said ... Until you sell ... It's just numbers.

 

[Oaktree]

At my age (75) I think I'll stick with funds that are a little less volatile.

 

[JJT]

GEV up $136 yesterday, 13+%. YTD - up 72%. I worked for the parent company for 28 years. That's the only reason I've been in GEV since day 1. Sometimes it's better to be lucky......

 

[RSKY]

At my age (75) I think I'll stick with funds that are a little less volatile.

I am 72 and have more in my account than I will ever spend. What I'm doing now is building it up for our kids and grands to have when we pass. Generational wealth is what they call it. I am giving it out as time passes and will continue to give out some funds as the years go by. Wife and I both inherited what our parents worked hard to build. Most of our invested funds come from that inherited wealth. As for less volatile funds, on a year by year basis the Select Semiconductor Fund has yielded around 15.5% since its inception in 1986. THAT is a pretty good pedigree.

RSKY

 

[bdhsfz6]

Investing a significant portion of your assets in a single stock is risky, particularly if your investment horizon is short.

 

[NorTracNY]

I guess I'm in a different boat. When my investments go up significantly now, I think that I've just locked up more assets that will cost me a fortune in taxes when I liquidate.

I'm paying too much now in taxes, so I hate selling investments with huge gains.

 

[ericm979]

I guess I'm in a different boat. When my investments go up significantly now, I think that I've just locked up more assets that will cost me a fortune in taxes when I liquidate.

That's a good problem to have.

The semi conductor industry growth is due to the AI bubble. It's going to pop eventually. I would not count on continued year over year returns from that.

 

[Shawn T. W.]

Investing a significant portion of your assets in a single stock is risky, particularly if your investment horizon is short.

Yes, but that is not what this is ... It's a mutual fund ...

Bumped up a tad more today ... !

Some of the top stocks in it ....

 

[BravoXray]

Before the AI bubble, I bought some NVIDIA at $18.94 per share. Down a little from it's peak of $212, closed at $199.64. I may get out of it soon.

 

[RSKY]

Investing a significant portion of your assets in a single stock is risky, particularly if your investment horizon is short.

It is not a single stock. It is a mutual fund invested in many semiconductor companies. The one thing I don't like about it is that 25% of it's portfolio is in one company. The rest is spread out in other top performers.

I do not invest in single companies. Been there, got the scars. And as I said elsewhere on this post we live on SS and pensions. This will mostly be passed on.

RSKY

 

[RSKY]

I guess I'm in a different boat. When my investments go up significantly now, I think that I've just locked up more assets that will cost me a fortune in taxes when I liquidate.

I'm paying too much now in taxes, so I hate selling investments with huge gains.

I will only sell when I need to make a large purchase. We live on SS and pensions. This is wealth to be passed on to the next generation, and the next, and so on. I am instructing the 16-year old now and she is listening. I have four more to instruct when they reach that age. Well, if I am able. When the youngest reaches 16 I will be 85.

RSKY

 

[RSKY]

That's a good problem to have.

The semi conductor industry growth is due to the AI bubble. It's going to pop eventually. I would not count on continued year over year returns from that.

I deal directly with Fidelity online. No brokers involved. If things start going to heck it only takes a few clicks and I move everything to something safer such as a money market fund. Been there and jumped way too early once and pulled money out of a sector that rebounded as soon as I jumped.

RSKY

 

[1Mech]

I guess I'm in a different boat. When my investments go up significantly now, I think that I've just locked up more assets that will cost me a fortune in taxes when I liquidate.

I'm paying too much now in taxes, so I hate selling investments with huge gains.

I see why, The Peoples Republic of NY. Just be glad it's not NYC!!

 

[1Mech]

I am 72 and have more in my account than I will ever spend. What I'm doing now is building it up for our kids and grands to have when we pass. Generational wealth is what they call it. I am giving it out as time passes and will continue to give out some funds as the years go by. Wife and I both inherited what our parents worked hard to build. Most of our invested funds come from that inherited wealth. As for less volatile funds, on a year by year basis the Select Semiconductor Fund has yielded around 15.5% since its inception in 1986. THAT is a pretty good pedigree.

RSKY

You may already be doing this, but in 2026, you can give up to $19,000 per recipient without triggering federal gift tax. If you are married, you and your spouse can collectively give $38,000 per recipient without incurring tax. Back when my parents where distributing their wealth to us kids before their deaths it was $10,000. Made for a nice Christmas. It was often in the form of stock rather than cash.

 

[bdhsfz6]

Yes, but that is not what this is ... It's a mutual fund ...

Bumped up a tad more today ... !

View attachment 5583731


Some of the top stocks in it ....


View attachment 5583752

True, but it's still a single holding. Mutual funds like this are slightly more diverse than a single stock, but still dependent on a specific market.

Nothing wrong with an investment like this as long as your investment horizon allows sufficient time to recover from a market downturn.

 

[RSKY]

True, but it's still a single holding. Mutual funds like this are slightly more diverse than a single stock, but still dependent on a specific market.

Nothing wrong with an investment like this as long as your investment horizon allows sufficient time to recover from a market downturn.

We take nothing out unless it is a major purchase. So we have lots of time to recover.

As of this week we are 75% invested in the tech market. Up from about 70% last week. Well this is in the funds I control. If you add in my wife's index funds and 401K we probably have 50-60% in tech mutual funds. But they are spread out into different types of tech, software, hardware, etc., so in many different companies.

I think I have been lucky in my investments rather than skilled or knowledgeable or as a friend always says, "even a blind hog finds an acorn sometimes".

RSKY

 

[MAX-24-Dean]

There has been a semiconductor shortage since Covid, supply chain issues started it.
Had a specialty circuit board manufacturer communicate to me on a replacement or new complete circuit that there supply chain wait time was around 2 to 3 weeks in 2019 is now 5 to 6 months and just get in line. In other words it may take longer.
It was also communicated that the last order of products to stuff the circuit cards took 8 months for supply and the price was higher than quoted before the order was made. This was all known to them at the time of the order. So the higher price just got passed on to the customer.
From all I have read in electronic journals the expected shortage of semi-conductors is going to be for another 2 to 3 years because manufacturing just can't keep up with demand.