yea Im already addicted, haha

I keep playing around with different ideas, and catch myself talking to my wife about, "well what if we invest in this company" or "OH, do you think they are a public company" hahaha

do you think I have too many consumer goods sector items?

thats 3 out of my 10

I was thinking maybe of not buying KO and/OR TGT

and instead picking up UHT or HCP in healthcare or maybe picking up an insurance company, because everyone needs insurance. specifically MCY (I used to have my car insurance with them in college)

I put $50 a week out of my paycheck into a personal hold account at Edwards Jones and when I get to $1000 I make a purchase.

My top 5 right now to purchase next in no particular order, Disney, WalMart, Time Warner, Lockheed Martin and Wells Fargo.

I believe you're a fairly young dude, and if that's so, then good job. More younger people need to do things like this and get started early/earlier. :thumbsup:

36, home owner. So yeah, kinda young. Especially when standing next to Mr Weld...

He may be old but at least he's not tall....wait maybe that doesn't help things.

Chetly I like the idea of the holding account, like most, I spend what I have. I've just recently opened an account for the OT to be dropped into, we'll see if that helps.

Dan

My mother works for Edward Jones, so shes the real driving force behind me saving. Being I get a raise every 6 months, I send a % of that raise to the savings account. I have it set up through work where they send the $50 every pay day. Doesn't take long to build up some cash and its not pre tax so I don't get a penalty if I need to take money out of the account.

I have not forgot about you guys, trying to find the time to post up something worthy of discussion.

I missed your statement here -- and since the thread isn't about recommending what stock to buy or sell (there are 10's of 1000's of websites that do that daily).... what to think about for YOU... is more important in your decision making.

Be careful of too much consumer retail. Be careful of too much of any "sector". Diversification is important LONG TERM.

Buy what you feel comfortable with... because in the long run - if you're not comfortable with a particular name - you'll sell it when it's down... and kick yourself for buying it. So compare the historical TOTAL RETURN. And compare what you can sleep with thru thick and thin. KNOW that regardless of what companies you pick -- the MARKET will take you up and down over time. The key is not to be shaken out in those down markets and to continue to reinvest the dividends

The key is to BREAK that habit... which takes some effort. You'll never break that habit unless you are in a position to either scale back -- or going forward - stop spending the increases... and start to invest those instead. Once you actually start to invest - and see the gains and income they can create. Then a person actually becomes MORE addicted to the savings/gains than they are of pissing away every paycheck including future paychecks.

We ALL want "stuff". We want it now... and regardless of income level.. there is never enough. PERIOD. I don't care who you are. The Stuff just becomes more expensive or more of.

The key to this entire thread is not to suddenly wake up and be 62 or 65... and realize your career has come to an end - which means the income that came with it... and now you finally have time on your hands -- but have no money. That must be the sickest feeling EVER... You're now old - useless - unemployable at any meaningful job - and frankly - who wants to still HAVE to work when you're 65+. The only cure for this decease that you KNOW is coming - is to start taking the medicine NOW.

We always wan to put this off.... but the facts are quite clear that all of us is living FAR FAR longer than in the past. We are now living 25 and 30 years past retirement. That's a very very long time to live a sucky cash poor retirement. And with inflation factored in - that time gets worse not better.

$50 a week now doesn't seem like much... but if that grows to $100 a week with raises and bonuses - and then it starts to earn a return and gets some capital growth (total return)... it starts to find some traction...


Here's something I ask people all the time. If it takes you $80K per year to live now ---- and social security is going to pay you $1500 a month in retirement (18K per year). How do you plan to live once you hit 65?? It's a scary question that needs to be dealt with.

So If Im thinking of this and reading it right

I have 10 stocks, I should have all 10 sectors covered, hence why I am a little nervous about having 3 in consumer goods

So I spent a little more time looking around, looking at dividends, and ex-dividend dates

So here are my Hot Picks! haha

Consumer Discretionary I think I am going to jump on Mattel at 4.42 since Christmas is coming up

I like Target and Mcdonalds, but I think Mcdonalds is a little high for me right now, and Im not sure how Target is going to do with their stores in Canada supposedly suffering.

Consumer Staples: MO - Altria Group 4.8% dividend, Im going to wait until 10/10 on their payout to buy so I can see if I can get a little better bargain

Energy: really not sure about this one, but I am going with Shell at 4.79%, I was really tempted by Ensco and offshore drilling company at 6.36%, but Im not sure and think Shell is a safer investment

Financials: UHT Universal Health Realty 5.71% dividend, Im buying this one ASAP because the exdividend date is tomorrow

Health Care: GSK Glaxo Smith Kline: 5.61% dividend

Industrials: GE General Electric 3.40%, I was tempted by Metso 3.44%, they make alot of components for refineries, as well as NASA ground support (when I used them alot) so I am familiar with their stuff and its good quality. But GE is the bigger name with a wider market

Information Technology: Cisco 3.05%
I was tempted by Canon at 3.8% but it looks up overall, but its going down the past couple years, I think Nikon is starting to eat into their market, as well as smart phones having awesome cameras built in nowadays

Materials: BASF 3.73%, I was looking at Dow, but its dividend is 2.77%

Telecommunication Services I am torn here between Vodafone and ATT, I think I am going to just have 2 here

Utilities Con Ed, with 4.43%
I was looking at Dominion Exploration with 5.36% but seems like Con Ed is a "better name"

Finally my "Gamble" Im going to stick 5% in Adidas, they are really down since the beginning of this year, and overall they are up, and I just dont see a global brand like them going away soon

I'd own Nike before Adidas.... but again I'd do some comparison because you want your money to be "safe" and also GROW and you need to get paid to own any of em.






Ordinarily I wouldn't help anyone with picks like this -- but because you're new -- I wanted to give you some things to think about.

Captofiron....


I was reminded this morning while watching CNBC just how different TWO stocks in the same business can diverge as far as their stock goes.

Kroger (KR) vs Whole Foods (WFM)--- Kroger is UP 33+% while Whole Foods is DOWN 31+% (using a ONE YEAR chart)

There is a function in Google Finance charts where you can compare charts and it can be eyeopening!


My point is -- that just to pick A single name and hope that what you think about it is spot on -- can be deadly. Poke around a bit - compare and make sure that what YOU think, is the same thing the "MARKET" thinks. I've found that I'm often wrong. The above being a perfect example!

Here's an interesting article "Your Guide TO The Best And Worst Stocks In The Dow" that list what one could consider to be all good stocks......at least IMO.

http://seekingalpha.com/article/2488...-the-dow?ifp=0

FWIW - NKE in last place on this list I bought 25 shares in '97, splits left me with 100 shares and 555% gain.

We won't talk about the 100 shares I bought in '76 for $5 and sold when I'd double my money at $10. Life would be much different now if I would have held on to that $500 investment. :bang:

FANTASTIC ARTICLE!!!


Easy to read and understand... and really points to what I've been saying here for the last 3 years --- TOTAL RETURN is what is important!! It's not complicated and all the names in this list are companies you know. Just don't limit yourself to these companies only... it's just a comparison to make a point.

Thanks I do really appreciate the input.

Im going to go back and look at my picks again, and then see what their total returns and payout are as well as compare their graphs. I started using my google finance but havent really compared stocks side by side like that.

I think I did definitely get caught up in focusing too much on the dividend and the cost of the stock and if the chart was up overall the past 5-10+ years

back to my excel sheel :computer:

I took this from Zerohedge.com its an investment website, a lot of what they talk about is way over the head of average people. I'm reading and trying to learn.

The 7-Deadly Investing Sins


Wrath – never get angry; just fix the problem and move on.

Individuals tend to believe that investments that they, or their advisor, make should "always" work out. They don't and they won't. Getting angry about a losing bet only delays taking the appropriate actions to correct it.

"Loss aversion" is the type of thinking that can be very dangerous for investors. The best course of action is to quickly identify problems, accept that investing contains a "risk of loss," correct the issue and move on. As the age-old axiom goes: "Cut losers short and let winners run."



Greed – greed causes more investors to lose more money than at the point of a gun.

The human emotion of "greed" leads to "confirmation bias" where individuals become blinded to contrary evidence leading them to "overstay their welcome."

Individuals regularly fall prey to the notion that if they "sell" a position to realize a "profit" that they may be "missing out" on further gains. This mentality has a long and depressing history of turning unrealized gains into realized losses as the investment eventually plummets back to earth.

It is important to remember that the primary tenant of investing is to "buy low" and "sell high." While this seems completely logical, it is emotionally impossible to achieve. It is "greed" that keeps us from selling high, and "fear" that keeps us from buying low. In the end, we are only left with poor results.



Sloth – don’t be lazy; pay attention to your money because if you don’t – no one else with either.

It is quite amazing that for something that is as important to our lives as our "money" is, how little attention we actually pay to it. Not paying attention to your investments, even if you have an advisor, will lead to poor long term results. Portfolios, like a garden, must be tended to on a regular basis, "prune" by rebalancing the allocation, "weed" by selling losing positions, and "harvest" by taking profits from winners.

If you do not regularly tend to a portfolio, the bounty produced will "rot on the vine" and eventually the weeds will eventually reclaim the garden as if it never existed.



Pride – when things are going good don’t be prideful – pride leads to the fall. You are NOT smarter than the market, and it will "eat you alive" as soon as you think you are.

When it comes to investing, it is important to remember that a "rising tide lifts all boats." The other half of that story is that the opposite in also true. When markets are rising, it seems as if any investment we make works; therefore we start to think that we are "smart investors." However, the reality is that there is a huge difference between being "smart" and just being "along for the ride." Ray Dalio, head of Bridgewater which manages more than $140 billion, summed it up best:

"Betting on any market is like poker, it's a zero-sum game and the deck is stacked against the individual investor in favor of big players like Bridgewater, which has about 1,500 employees. We spend hundreds of millions of dollars on research each year and even then we don't know that we're going to win. However, it's very important for most people to know when not to make a bet because if you're going to come to the poker table you are going to have to beat me."



Lust – lusting after some investment will lead you to overpay for it.

"Chasing performance" is a guaranteed recipe for disaster as an investor. For most, by the time that "performance" is highly visible the bulk of that particular investments cyclical gains are already likely achieved.
Importantly, you can see that investment returns can vary widely from one year to the next. "Lusting" after last year's performance leads to "buying high" which ultimate leads to the second half of the cycle of "selling low."

It is very hard to "buy stuff when no one else wants it" but that is how investing is supposed to work. Importantly, if you are going to "lust," "lust" after your spouse – it is guaranteed to pay much bigger dividends.



Envy – this goes along with Lust and Greed

Being envious of someone else’s investment portfolio, or their returns, will only lead to poor decision-making over time. It is also important to remember that when individuals talk about their investments, they rarely tell you about their losers. "I made a killing with XYZ. You should have bought some" is how the line goes. However, what is often left out is that they lost more than what they gained elsewhere.

Advice is often worth exactly what you pay for it, and sometimes not even that. Do what works for you and be happy with where you are. Everything else is secondary, and only leads to making emotional decisions built around greed and lust which have disastrous long term implications.



Gluttony – never, ever over-indulge. Putting too much into one investment is a recipe for disaster.

There are a few great investors in this world than can make large concentrated bets and live to tell about it. It is also important to know that they can "afford" to be wrong - you can't.

Just like the glutton gorging on a delicious meal – it feels good until it doesn’t, and the damage is often irreversible. History is replete with tales of individuals who had all their money invested in company stock, companies like Enron, Worldcom, Global Crossing; etc. all had huge, fabulous runs and disasterous endings.

Concentrated bets are a great way to make a lot of money in the markets as long as you are "right." The problem with making concentrated bets is the ability to repeat success. More often than not individuals who try simply wind up broke.

This might sound stupid, but apparently Gilligan's Island was based on the seven deadly sins, each character represents one. I googled it, pretty funny.

Good article though.

You're banned from speaking to me on the Hall of Fame tour. Just pretend you don't know me.

That is really a great read.


Not saying that I'm smart -- rather -- I'm going to tell you that if you read this and then go back and read this thread. The very same "advice" is given over and over again right here.

Investing isn't hard - doesn't take "brilliance" - doesn't take much more than $500 to get started - doesn't require gut wrenching decisions. It does take - GETTING STARTED - doing a little homework - patience.

Buy good stuff - don't gamble - diversity the best you can at any given point - keep a heads up - buy more when the market is at it's worst - don't be a trader but do pay attention to fundamental changes and be willing to make adjustments - reinvest the dividends automatically. You will be rewarded over TIME. If your guts tell you to sell - SELL! But then don't sit on your hands - get those employees (funds) back to work!! Funds "on vacation" aren't very productive!

Investing is like a golf swing - the harder you try to swing (gambling and risk) - the deeper you'll be in the woods. You can't win the game on one hole... you have to play until the end. Best game I ever had I never hit anything longer than a 5 iron. 150 off the tee - 150 off the fairway - a chip and run - two putt for a bogey. When I try to birdie - I end up with a snowman.

I'm surprised nobody has asked about Alibaba.... and it's IPO.


Frankly -- I really haven't paid all that much attention to it because I'm "done" playing in the IPO market. That doesn't mean you younger guys shouldn't be playing with some of this stuff.

I thought Alibaba was like Amazon.. or eBay. So I decided to go visit the site. What I found - and I didn't spend more than 4 minutes poking around - is that it seemed to be mostly for business customers not individuals. When I checked on buying some 2" X 60" belts for my Burr King.... I had to buy 1000 of them or 100 of them. I also found "mostly" Chinese suppliers. While you could select which country you wanted as a manufacturer -- there would be 50 Chinese suppliers to 1 or 2 USA.

What I'd really like to know about this company is whether or not USA companies are willing to buy from them (Alibaba) or use them the way the Chinese market has. It will be very interesting to watch.

Remember too -- the STOCK (IPO) is very different from the COMPANY... there is a ton of hype on this IPO. I would "expect" it to be "the IPO" of the year... given it's size and sales etc. And IPO's can be very interesting and fun to play with. Just look at GoPro so far! Wow!

I looked at an Alibaba home page for the first time Saturday night and my initial impression was blah......

This report contradicts my impression.

Here's my "prediction" on Alibaba....


The "air" will come out of the latest hot stocks --- as the very same people that chase the "hot stocks" will sell their winners (GPRO/TSLA/CMG/AAPL/FB etc) to fund their new buys of Alibaba shares.

It may be an opportunity to buy some shares of these high fliers for you younger guys at a little discount.

If you hang around long enough -- you'll learn that there is a "disconnect" between the SHARES and the actual company performance in certain names. There are many categories of shares -- Momentum Stocks -- is just one of them. They go up quickly -- and they go down just as quickly when the new flavor of the week changes.

This does NOT mean that they're not good companies - that there's anything wrong with owning them - that they won't be good long term investments. What it does mean is "don't think you're smart" when you get in and they run to the moon....

The "smart money" gets in - makes 10 or 20 or 40% and they know when to get out and move on. Then they repeat this process. To me - it's "lemming" investing. Everybody wants to be in the latest hot deal. Lots of money to be made in these... what you don't want to be is in the last group to finally get in. Those are the people that loose while the others line their pockets.

Think about housing. The people that bought at the top still haven't recovered... while those that bought at the bottom have made a killing.

Here's some startling numbers!!! As in WOW.....




China had 618 million internet users at the end of December 2013, according to China Internet Network Information Center, or CNNIC; that figure was up 9.5% year on year but still represented less than half the national population, showing clear room for growth.

Interesting topics.. I like it. Makes us think. :)

The other half just asked if I was going to do anything with Alibabi, cuz its "supposed to be huge". She's been listening to the news. lol.

My response was basically what we've discussed here:
1. Its a gamble.
2. Everyone's hyping it up = scary.
3. Or do I sit back on Babi, and do a small stake in the "old hot stocks" like mentioned above.
4. It's a gamble.
5. All the options above are a gamble. LOL.

None of them fit my Investing 102 profile. But, would it hurt to gamble a couple hundred bucks and "let it ride" and see what happens? Maybe. It certainly ain't gonna kill me and I'm not gonna lose the farm so to speak.

So, I'm still up in the air on the whole thing. Like with any IPO. I'm not big on gambling. lol.

The points I've always tried to make here is not -- DON'T GAMBLE -- this is investing 102... beginner investing.

The KEY is to understand what constitutes gambling versus investing.

Once you understand the difference -- and have some investments -- and you want to gamble just a bit.... at least a guy will know that and go into the purchase with eyes wide open. When it does what you thought it would do = Great! When it doesn't -- understand your bet and get the F out....

I see I'm not the only one who's inherently unlucky. :sieg: :D

If you getting in when everyone else is the deal is over.


I bought our house 3 years ago and it has doubled in value in that short time. They couldn't give houses away 3 years ago.

The housing market was so bad Banks boarded up their foreclosures and let them sit for a few years to make some money on them before after everything crashed. Nobody was selling anything.

This is a good discussion because of all the recent IPO action... and frankly it also covers any "investment" that would constitute RISK/GAMBLING.


There's many scenarios that would be covered by risk/gambling vs investing.

Let's take Blackberry.... a guy could have gone bottom fishing and bought BBRY down in the $5's... BETTING that it might rise to $6.00 or $6.50

The thing here is to know what you're expectations are -- and have a plan - and know for a fact that you're betting. When it hit's your target, i.e., meets your expectations.... NOW what do you do? You're plan was to skim a quick 20%... do you stick to that and sell -- or now do you feel so smart that you turn your gamble into an investment and hold?

Are you that nimble?

Do you watch the market like a hawk?

Are you able to handle the gut wrenching that goes on if your big bet goes from a gain to a loss?

Did you have the extra cash -- or did you sell a winner to place a bet?

Are you the type that once you've made a bet and it didn't work -- do you make even larger bets trying to make up for the loss?

Once you've made a big score --- are you the type that now abandons INVESTING and turns into a trader?

These are all things most of us can't answer about ourselves until we actually "try". My story here has been to get people to THINK about these things... not to tell someone what or what not to do.

Beginners need to have some success.... and that success is easier and more lasting if they're collecting dividends and seeing some gains regardless of the size... vs losses.

Once a guy has a little cushion and wants to try to make a big quick score -- fire away! I do it all the time - I just don't talk about it here because it's not appropriate and I feel if I mention it - you all will jump in. That's not what I want anyone to do... you need to be comfortable doing these things on your own - not blindly following (lemming?) what everyone else is doing.

Personally -- I like to think about what the feelings were when I was broke... it keeps your eye on the ball a little tighter. After having some success -- I never want to experience the broke feeling again. So my RISK taking is a very very small number/percentage. That doesn't mean I'm not taking on some risk now and then. Don't be afraid of it -- but understand it and what fallout you might suffer.

We all go into everything KNOWING we're going to knock the cover off the ball... Trust me -- I've had some HUGE zeros from that. I've also had 1,000's of percents in returns. I wouldn't have the returns at all had I not taken on the risk.

The difference is I'm not playing with the kids college fund - or the emergency fund - or my retirement. Fund those first - when you're satisfied... it's okay to play just a bit.

Sears
 

How many of you remember Montgomery Ward? It went away years ago... Now it looks like Sears may be the next old line department store to fold. When I read this headline today.... I thought --- Well.... there's a fundamental change. I wonder how many people have stock in this old line company and they've owned it for 40 or 50 years... and it's possible it goes to zero.

My mother worked at Sears. I used to buy all my tools at Sears. Need a battery? Head for Sears. Need work clothes? Yep - straight to Sears. I remember as a little kid being excited because Grandma would let us go thru the Sears catalog and pick out (scribble? Circle?) everything we wanted for Xmas. I can still picture the pages and pages of the tools... you could buy the 25 pc set or the 1744 pc set complete with tool box. Man I remember dreaming over that bad boy. I still own the very first 3 drawer Craftsman box I bought when I was 13. It holds all my TIG consumables... and it's a little worse for wear... but that box still functions.

Here's my thought for the day. There's winners and losers. There's always going to be winners and losers. Certain parts of town that we remember as the shinning are now places we won't even drive near. Businesses that stumbled and lost their way... Monkey Wards... Sears.... Radio Shack.... Best Buy was almost gone... And there's winners... Amazon? Costco? Many specialty retailers have sprung up that all took a bite out of the "Sears" model. Things change. Be aware of these for investing... you want to be out of the loser and into the winners. Simple changes can power your retirement. Chipotle Mexican Grill vs McDonalds. Is this a fundamental change that lasts? I don't know and I'm not trying to use this post to make a pic one (won?) way or the other... rather I'm saying -- be aware of little changes that begin to add up and affect what you're currently invested in. Look at your investments one by one and examine them and pull your head up and look around you. News? Have you asked yourself - if you were an investor in Sears - when was the last time you shopped there? McDonalds? Did you used to go there once a week and now haven't been for... What? You can't even remember the last time? Is that worthy of paying attention to? Hell yes.

Have your shopping habits changed over the last 20 years? Amazon over Sears? Investing is pretty simple. But you do need to pay attention. Don't be caught owning the crumbling house in the bad side of town just because you were born there.... If the west side is the best side... recognize that and pack your stuff and move. In investing - don't be hidebound. Don't turn in to Grandpa that still holds Sears stock and has no idea that they're maybe the next Monkey Wards.


Just thought of another name that used to be THE STANDARD.... SONY? Used to covet a Sony TV... when was the last time you bought or even looked at - anything made by Sony?

I just found another eyeopener... and this is what I'm talking about "powering" your retirement fund... OR NOT!


Run a one year chart of Under Armor (UA) vs LuluLemon (LULU) stock.... I'm not even going to give you the numbers - ya gotta see it to believe it.


You can do this on Google Finance --- pull up the one chart (either company) and then put the other symbol in the "compare" box in the chart... and choose 1Y.

Ok, I have been stalking this thread long enough and if I am going to blame GW for making me filthy rich and selling my cars (HA!) I better participate/contribute.

The charts are crazy insightful. 1 year is plus 90% UA vs. -38% LULU...Yoga anybody? Thanks for sharing Greg! Now check the 10yr chart. I'm not going to describe it but "namaste" to LULU.

Just trying my best Jay!


As you know - 'cause I've said it enough times in the last 400 pages.... the stocks are only used as real life EXAMPLES.... and the points shouldn't be Sell LULU and buy UA.... The points are COMPARE things -- they're not always what you think. Poke around a bit. THINK!! It ain't hard and a guy can always LEARN just by making comparisons and opening their eyes to FACTS rather than "I think" or "somebody said"....


Makes you wish you'd have put 100K into UA 5 years ago instead of a car???? LOL

OUCH! I appreciate the candor and levity!

So here's our thinking...would love your feedback.

Amy and I have the rainy day fund in place. A years worth of cash on hand. We have invested in actively managed mutual funds for over 15 years, accumulating a 7 digit nest egg for longer term retirement. Our current goal is to generate more cash flow for mid-term money for our bridge years age 40-65. Managed growth over 5/10yr horizons with dividends reinvested is something we are very comfortable with. Your comment on it being a personally managed mutual fund resonates with us.

We have been looking at the following dividend stocks. I'd like to get your feedback on my "analysis" based upon share price and dividend yield. I really want to make sure I am looking at these stocks through the right set of lenses. We do not have a high tolerance for risk so the High-flyers don't interest me too much now, but as we build the portfolio, a TSLA or GPRO will become more attractive.

Symbols that interest us are:
KRFT
COP
XOM
F
PFE
MRK
SMG
T
MDT
KO

Our plan is to invest a portion of our monthly revenue, buy shares with the intent to receive dividends over the next 10 years. I am prioritizing the investments based upon yield percent of share price to get started which seems to be a low "risk" option when I evaluate the 10yr charts. I like your strategy of 5% return on the stock performance, reinvesting the dividend, and then building a portfolio that has 20-25 stocks with no more than 5% of the total invested in any one share. Time for you to tear it apart and push our thinking...I look forward to your response.

I think you have too many small dividend payers --- I'd shop for a couple that are 5% and have better TR's that a couple of your picks.

In order to diversify -- try not to double up -- i.e. the COP/XOM and the PFE/MRK...


You're to be commended by the way on your already sizable holdings -- I bow to you.

Greg, I REALLY appreciate your insight and compliment. This thread is one of the most personally moving reads I've experienced since reading the Millionaire Next Door. Your willingness to share and provide insight to your personal situation, for the benefit to educate others has been incredibly helpful.

The healthcare, med device and pharma stocks are very familiar to me since I've been in the business for almost 20years. Call it my comfort zone. If I read your comments correctly:
1. Select one in the sector and don't duplicate
2. Quit sniffing the fertilizer. HA!
3. Be a little more focused on 5% yield...look for more risk
4. MAKE IT HAPPEN!!!! The first step is to get the Schwab account set up and get rolling.

Your insight is valuable. It is not often that one is wiling to share, educate, and also call bull**** on another's thinking. On another note, is PM and MCO still on your "sleep at night" list? I left these off my list.

I agree with Greg, some good names, some others I would wipe off the list. You certainly have the discipline to sock away such a substantial amount. Clearly you have a big income, but that doesn't mean you had to save a penny! Good luck on the sale of your car.

I've owned Pfizer for a year. It's been a snoozer. Always hanging around even. CVS has been a solid performer. They are a drug dealer. ha I picked them as I see the baby boomers consuming more and more pills, unfortunately.

Greg, have you covered your philosophy on International stocks? Picking them to the make up of your portfolio.

Jay -- Yeah -- I've shared way too much personal info on here -- but figure WTF -- if it gets one person going on the right track - then I've done good. So I throw myself on the sword for all. LOL


I figured you had to be "in the industry" or close to it.... There is LIFE outside of work you know. Drive up and down the street and look at all those viable businesses that are just waiting for you to be a partner with them.

5% dividend doesn't have to come with risk. AT&T pays over 5% and I wouldn't classify it as risky. Altria (MO) pays 4.66% and that's not very risky... so there's plenty out there.

Philip Morse (PM) pays almost 5%... Both MO and PM are sin stocks -- I like MO because of the booze component... I don't smoke or drink -- doesn't keep me from making money off the people that do.

MCO is Moody's (the ratings agency) and I ASSume you meant McDonalds (MCD). I sold MCD awhile ago based on my belief that they're losing the fast food battle... and that the general public they appeal to has shifted to healthier restaurants. Their sales continue to slip -- and that's a "Fundamental" change I can't sleep with. Their down almost 8% in the last 3 months... that's a nasty dip and I'm glad I've moved on. If it paid a dividend - I'd be in Chipotle Mexican Grill (CMG) versus MCD. CMG is growing and MCD is shrinking.

Greg - it will take me a while to catch up on reading all the posts. Good stuff what I have read so far!

Give the rest of you guys some encouragement! My current employer allows us to put up to 90% of our 401 into a "self directed" brokerage. I consolidated all my previous employers accounts and put as much as my finances or the company allows into the account each year. So about 60% of my total savings are sitting in this account as of now. The neat part is that ALL the gains in this account are not taxed until later, so the growth is not hampered. I also put away as much as they let me into our HSA, once I reach a set amount they will also let me self manage the investments in that one. The HSA is really neat in that the money both in and out are tax free. I also expect that health care costs down the road are not going to be lower, so money saved there will probably get used. I have not reached a critical mass on the HSA yet, maybe at some point I will slow down on funding that one.

OK, back to the "self directed" account. Currently has ABT, BMY, CAG, INTC, JNJ, KMB, MO, MRK, NUE, RDSA, VZ, PG, and WM. INTC I picked up 2 years ago, the rest I have had longer. They are all DRIP... Dividend Reinvestment. Between these and my other holdings the average rate of return since I opened the account in August 2006 is about 21%. My investment strategy is similar to the "Dogs of the Dow" strategy (has its own web page), my "secret" is that I do not limit myself to this list or just the Dow index. Other than that, it is dumb simple. When I have some cash, the "Dogs" web page is where I start my search. Must be mid to large cap, must be growing, must be a company that I believe is sound in principal and direction, and then I look for a period where magically that stock is inexplicably priced on the low side. Some of the stocks listed I bought when the dividend rate was 4-5%, I don't recall buying any under 4%.

Oh, my other rule is a personal one. I participate in the company ESPP (employee stock purchase program), but I sell it immediately when I get it and move the money elsewhere. I hold $0 in company stock. I have too much already invested emotionally in the place, I do not need the stock performance souring my mood. Besides, as good as they are, they do not meet my stock picking criteria, the dividend is too low.

I used to have NLY and a few other similar investments in my E-Trade account... returns were great but it was kind of scary, I got out. Went back to the simple stuff I am not inclined to look at so much.