Investing 102

[GregWeld]

Imnop -----


Had you just put all your money into COKE (KO) == not the kind you push up your nose.... just FIVE YEARS AGO -- you'd have a 63% return... so you'd have around 30 grand now -- and that's if you'd have just done this 5 lousy years ago.

17 years ago - KO traded at $20 a share - and it split two for 1 in 1996... so you'd have TWICE as many shares and it's now trading at $60

So 18 grand (900 shares) - 17 years ago you would now own 1800 shares of KO worth $108,000

[lmnop]

Hey Greg
Thanks for the reply and the sympathy. You are right it is a tax differed account; although it has made so little money the tax is not a consideration. I read a couple of books about saving/investing when I was in my late teens and one mentioned if you save $1000 a year from age 20 to 40 and then stopped you would be way ahead rather than saving double the amount from age 40 to 60 or something like that. So I figured I would get ahead of the game and save $20k by age 20. I was a mechanic working in a mine and I saved money pretty quick. Every time I put money in the fund seemed to drop but I wasn’t worried as I believed in the long term magic I read about. Well I am still waiting for the magic. I have been jaded towards investing ever since. I felt like I did everything right and it didn’t pay off. Thanks to this thread I feel inspired to take another look at it. At minimum I need to re-invest and get rid of the useless mutual fund.
Ray

[GregWeld]

Sieg ---

Compare TransCanada Corp (TRP) to Calumet Specialty Partners (CLMT).... do a 5 year chart -- and you'll see what I was saying to you via PM.



To include "others" here as an Investing 102 "thought process" -- as I recommend nothing - only how I look at things...

CLMT -- is in the "oil chemicals biz" -- and TRP is a canadian pipeline (the one that's been in the news lately)... and what I was saying is that while CLMT pays a very high dividend (9%+) --- it has a terrible 5 year chart. When I say "terrible" -- what I see is -- they went down with the "market" in the 07/08 "great recession"..... but they DID NOT come "back" with the market (09 to present).... One of the "nice chart" things I want to see is whether or not a company was down with the market and are they also UP with the market... but if they went down and stayed down -- that's not a good sign, therefore not something I want to own. That -- and this is not a business I understand nor do I understand their competitors etc. So PERSONALLY I wouldn't take the big dividend as a "good thing"... rather, it would scare me. Remember -- pigs get fat - hogs get slaughtered. I want the good chart - with the growth - AND - the good/decent/nice/healthy dividend.

Dividend % is only ONE COMPONENT.... if you get a big dividend but the stock goes down 40%... that's not a good combo. If you get a decent dividend and some growth (8/9/10% + per year) now you're making money!

You want GROWTH in your money -- TOTAL RETURN -- That is the key.... you can get that in different combinations of dividends and growth of capital. Big growth - small dividend -- big dividend with steady eddy growth -- or decent dividend and decent growth... the key is to try to find some balance... and there's just too many companies out there that will give you these - without "settling" for something that lacks all the magic numbers. We need to be firing on all cylinders!

[GregWeld]

Ray -- # 1 congratulations on doing HALF your job... the savings early part! But you slacker -- you then promptly ignored MAKING YOUR MONEY WORK FOR YOU. No days off -- no sick pay... You need to pay a bit of attention to your money or they (I pretend every dollar is one employee!) walk off the job when you're not looking.

This is not to say you start to become a micro manager! It means that you need to pay attention and if you're guys are slacking - you need to do a bit of work yourself and see if you can't' get some of those guys "retrained" or "redeployed".

Go back and read from page one -- that's your homework assignment... and see if you can get reengaged and make that dream come back to life! It's not too late.

Originally Posted by lmnop

Hey Greg
Thanks for the reply and the sympathy. You are right it is a tax differed account; although it has made so little money the tax is not a consideration. I read a couple of books about saving/investing when I was in my late teens and one mentioned if you save $1000 a year from age 20 to 40 and then stopped you would be way ahead rather than saving double the amount from age 40 to 60 or something like that. So I figured I would get ahead of the game and save $20k by age 20. I was a mechanic working in a mine and I saved money pretty quick. Every time I put money in the fund seemed to drop but I wasn’t worried as I believed in the long term magic I read about. Well I am still waiting for the magic. I have been jaded towards investing ever since. I felt like I did everything right and it didn’t pay off. Thanks to this thread I feel inspired to take another look at it. At minimum I need to re-invest and get rid of the useless mutual fund.
Ray

[RECOVERY ROOM]

Makes good sense to me

[Bucketlist2012]

So I just thought I would share something to motivate the crowd...

One of my things is to see how things are going with my money over coffee.

The Total balance does not really matter, although we all want it to be going up..It always does, but sometimes it takes large Temporary hits.

But I just love when i wake up before dawn to make coffee, and when i check the account activity, A bunch of my assets have deposited Dividends into my account overnight as I slept...

It all gets reinvested.. But a bunch of money, as i slept...

But first you must manage your money, i.e. credit debt and consumer debt, save the money to put to work, i.e. live within your means, work smart and hard, and some sacrifice and boring unflashyness, i. e. no new car loan every 3 years to look cool.

Then the money that you put to work, is really working for you....While you sleep..

I used to dream of this as a kid believe it or not...Success was on my mind at an early age..

Life, a drug addiction, and a divorce, threw me off my game for years, but i always turned the boat into the wind and at an angle over the waves in the storm..

And now words like portfolio, net worth, money management/budgeting, dividends, yield, ROI, disposable income, and passive income, i.e. the overnight dividends, are always on my mind..

Because the wolf is always at the door...

I appreciate all the insight Greg and others share. I will do my part to share without straying from the CORE of the thread. Investing 102..

Mike V

[sik68]

I was channel surfing last night, and wound up watching Cramer...he was interviewing a board member of Dominion (D), an energy production & distribution company. The two talked a lot about providing energy for the exponentially growing data center industry. Cramer wrapped up the segment with "this is the energy provider to own."

Greg, looking at the 10 year (+66%) and Dividend (4.22%), something that would get your blessing?

[LS1-IROC]

Thanks to Greg and some of the other knowledgeable guys, I'm meeting with Chuck tomorrow to get into the game!

Time to get these slacker employees I have in savings to back to work

[Bucketlist2012]

Originally Posted by LS1-IROC

Thanks to Greg and some of the other knowledgeable guys, I'm meeting with Chuck tomorrow to get into the game!

Time to get these slacker employees I have in savings to back to work

Good job... You will be surprised if you keep your debt( consumer debt interest) low, and your hard earned money to work..

Time, and the right moves, will over time, blow your mind...

Yes the wrong moves suck, but you can minimize the losses with the right strategy and funds that are strong tested long term assets as Greg mentions..

I have 10 % of my money in a company 401K just because they match 10% , and i take the free money by matching it..

But 90% of it , is in a Schwab account that is not controlled by the 401K people...Much better deal for me anyways.

But as Greg mentioned before, TAXES, and each person's DIFFERENT situation, means more homework to come up with an indivdualized plan...

But I am 52...For those much younger....You want to be as Fortunate as Greg ??? Start early and get passionate..


OMG...I just sounded like ,Tommy Vu...

[GregWeld]

Originally Posted by sik68

I was channel surfing last night, and wound up watching Cramer...he was interviewing a board member of Dominion (D), an energy production & distribution company. The two talked a lot about providing energy for the exponentially growing data center industry. Cramer wrapped up the segment with "this is the energy provider to own."

Greg, looking at the 10 year (+66%) and Dividend (4.22%), something that would get your blessing?

Yeah buddy -- ya got GROWTH and a very nice dividend... I don't own this one - I own Con Edison (ED) and this is like the "COKE VS PEPSI" debate -- own either one or both... Good for you watching and listening and then DOING YOUR HOMEWORK.

Think about these "utilities".... everybody has to pay their power bill every month... buy the best of breed and kick back. They bring stability to your account -- a nice dividend and decent growth... all the things we're looking for.