First the easy one:

VM Ware


I am currently a large holder of EMC stock --- which owns 85% of VM Ware -- and having just sold a company to EMC that specialized in digital clustered storage (big sales into the cloud) = that company (Isilon Systems) is now owned by EMC...

VM WARE allows users to use their "computers" as Virtual Machines -- so in real quicky terms --- their software allows a large company to operate on several different OS (operating systems) and have the "clients" (user machines) operate as virtual machines. With all the different OS out there now -- iOS - Unix - Windows (whatever version) etc and then you're really running the company on something by IBM or whatever.... so basically VM Ware allows this all to take place and all the "clients" can receive changes from IT etc. So in large workplace situations it's a wonderful "fix" for a complicated problem. Hope that makes sense.

An individual can run Win (X) on their Apple (iOS) using VM Ware product... so it allows iOS to be the basic machine OS -- and allow you to run Win (X) in "virtual" mode. Pretty cool stuff and lots of people are using this product because lots of people are running Macs in a Windows world...

So you can OWN EMC stock and actually own 85% of VM Ware -- or you can just own VM Ware...

When VM Ware does well -- EMC gets a kick in it's stock because of it. EMC of course is a VERY large company compared to VM Ware.


+++++++++++++++++++++++++++++


Kinder Morgan is a little more complicated -- KMP -- Kinder Morgan Partners is a "MASTER LIMITED PARTNERSHIP" and as such has to pass most of their income on to it's partners -- when you own this stock you are a "partner". Thus a nice dividend payer (provided of course that the income stream is good!

KMP -- OWNS substantially the other two stocks - KMI and KMR....and they're all set up in a very complicated inter-related way to run and or spin off "income" from their businesses. It's so complicated that it isn't really worth trying to understand --- because in the real world that we function in --- we just want to own good companies that pay good dividends. That would be KMP --- the main Master LLP....

When you do the research -- you'll find that just owning KMP is the way to play. The growth is outstanding - the dividend is stellar -- and the other two entities -- not so much. KMR pays no dividend and actually operates more like a secondary offering to raise cash for KMP... DUDE -- your head will spin trying to figure it all out.

Now -- let's talk about you listening to CRAMER......

He will make your head spin like Beetlejuice! I listen to him all the time -- he's brilliant... his wife is more brilliant.. BUT == THEIR BACKGROUND IS TRADING....

He can't seem to get far from that trader mentality. If you listen to him and follow his advice you'll lose money. I used to -- and bought all his news letters and all his "inner workings" crap -- on which - HE made money selling to dumbasses like me.

I LOVE to listen to him --- and he makes money -- but you'll be all over the board trying to invest with him and his reasoning and strategies. FUGIDABUDIT!

INVESTING 102 is all about stopping all that nonsense and noise --- and just doing what is RIGHT --- which is buy best of breed -- you don't need ANYONE to tell you what those are - you already know the names of the 20 or so companies you'll need to invest in..... AND all you need to do is pick a name --- compare other companies in that sector -- and you'll come up with "Best of breed" ---- Best of breed stocks get you the LONG TERM proven growth -- get you the dividend, and give you stability which gives you a good nights sleep thru thick and thin. That way you don't freak out and sell LOW --- and then buy back HIGH... :rofl:

Where would I see this type of news? Schwab or Fidelity's websites, CNNMoney, .... ??

Thanks for all the insight you guys provide to this thread!!

Well Bill -- Good question!

I get a lot of that kind of info because I get up early -- and watch CNBC... and they are always squawking (that's a CNBC pun) about stuff like that.

Schwab etc -- I don't think so. They don't really do the "news thing" like that. Wall Street Journal would mention it... Maybe CNNMoney --- I don't read that site - but then you'd have to catch a story about it... so not sure you could depend on the old "heads up" kind of thing that you'd get from shows like CNBC or Bloomberg.

Greg, I agree on Cramer. Like I said I never watch him but I do think he knows what he's talking about. It's just nothing for the regular investor to pay attention to.

LOL --- Remember when I write -- I'm writing for EVERYONE that reads... so that wasn't aimed AT you.... it's more a general "here's my take on Cramer".

I think the guy is brilliant... but not an "investing 102" kinda guy. He's very sophisticated -- has more info at the tip of his tongue than about 90 guys do... but he's "too broad" and he's too out in front and makes too many calls buy sell and hold... :lol:

What I use him for is good general "fast" knowledge and he seems to have a very good overall take on many "situations". If I was just starting out in investing -- I wouldn't have a clue what he's talking about most of the time.

I think that after doing this for awhile -- what I've come down to believe is that you don't need to know every little detail about 10 gazillion stocks... That is the "noise" I refer to.

I wouldn't know how to start my day without him - but the guy I really miss is Mark Haines!

http://media.idownloadblog.com/wp-co...ple-Event.jpeg

http://www.bloomberg.com/news/2012-0...ash-hoard.html

The Apple movement is getting very interesting and educational.

Okay so here's the NOISE take on this... people will be talking for weeks about how much cash on hand - and what they should do with it etc... but that is NOISE. What you should focus on as an investor - regardless of what company - is all the simple stuff we've been discussing. My take on Apple -- GREAT COMPANY - beyond stellar growth.... no dividend but the growth makes up for that in spades... as long as we can go to the mall and see LINES of people buying stuff... how can you go wrong with a company like that? How many other companies have people lined up to spend $200 to $2000 a pop?

But I wouldn't "speculate" buying a company hoping they suddenly pay a dividend.... cause the minute you do that - they do something 180* out from that. So I'd just buy based on all the things I KNOW now... and whatever happens happens.

Does that make sense?

It definitely makes sense.

The early analyst noise this morning about the stock target prices of $500 to $540 and one even speculating $599 left me unable to comprehend due to lack of knowledge. Then the early volume had a major spike that lead to 34.2 million shares for the day and the stock closes up $26 dollars for the day.

The popularity of their products can't be denied but I wonder how long their products can hold premium retail prices. In one way it appears they could be building one really big bubble.

The lack of dividend and the share price are tough to swallow for a little guy like me. I also don't perceive the company as overly generous in respect to their customer or share holder. I guess 5 shares and pray for a split may be better than the what if senerio. :willy:

Greg, Mark was the guy on CNBC that just died ??? That guy I liked. I like Kudlow too.. There is a lot of noise about the ups and downs, but I need to watch something in the early AM with Coffee. I don't buy on the info, but it is good to get different perspectives on investments.

Cramer is moving at a fast pace, but I watch him sometimes to see where he is headed.. but don't blink, cause you will miss 5 things that he just said...hyper guy Cramer is...

I would never buy 5 shares - of anything....

2 grand to invest can get you good companies - with share prices below $50 and that pay a dividend.

Yes... Sadly Mark passed away suddenly. That guy could really drill down on the root issues.

My routine is up early - coffee pot - auger down in my corner of the sofa - put CNBC on and fire up the laptop. Check all the news and anything that might affect my stocks (looking for BIG NEWS - not noise)... and then read Lat G... :D

Being retired has it's pluses!

In fairness of reporting --- I used the weakness in AT&T (T) to add 5000 shares this morning. The dividend is huge -- and the "earnings miss" is explainable via the huge amount of iPhones they sold in the quarter (this costs them up front but builds revenues going forward) and the T-Mobile costs to take down that deal. I don't mind an earnings miss if it's not a lack of sales!


I also added 2000 shares of Kinder Morgan Partners (KMP) because they go ex-dividend (ex-dividend means anyone that owns it before that date gets this quarters dividend) on the 31st. It's been a stellar performer and pays a huge dividend.

Here's the investing 102 lesson on "ex-dividend"... you can choose to pick up the dividend (as I have done with this purchase).... or you can buy the stock on the dip that "USUALLY HAPPENS" after they pay the dividend - lowering your cost basis (which is half a dozen to one 6 to the other).... Since I live off my dividends -- I chose to add the shares now and get the cash. I already have a huge gain in the shares which equals half of what I just invested...

Greg, Yes suddenly ...That was sad... That was my morning routine ever since I almost died in 2009. Since then I have been recovering. So i get the suddenly you're dead thing really good.

Now you know why I have been taking large chunks of life..I won't stop taking chunks of life from now on.. A couple of near death's will focus you really quick.

Tim Russert was another guy, not financial, but could get to the roots..fairly unbiased too. Dead suddenly.

Yes, Cats, Coffee, CNBC, and checking LatG and my portfolio. And check the news mainly to learn more. Since I don't move my assets too much, the noise is just that.. NOISE.. Yesterday, and today have been quite nice..:woot:

Sure only unrealized gains, but still nice to wake up to large gains:woot: :cheers: :lateral:

Oh man, I must really read your posts... Well done... At 52, I am now living off Dividends.. i am not doing too bad, but I see that i am not getting everything I can, out of my money YET>

Your knowledge is great.. I am learning how to maximize my Money. I own a lot of KMP.. It has never let me down.. I will double check before the 31.. i may add more...I am a energy distribution whore...

The response answers my open ended statement.

I imagine there are number of shares vs price per share ratio's out there to aide in the decision. My basic fundamentals have been minimum of 100 shares with a price range of 20-40 and above 3.5% dividend. My recent additions have been MO, VZ, PFE, XLS.
I've been watching T closely as that dividend is hard to ignore even though it weights the portfolio I don't see the sector declining anytime soon.

Thanks again Greg, the educational value of this thread continues to compound. :thumbsup:

I don't want to get into recommending individual stocks... that's a dicey business... and I'm not a broker or a friggin' stock guru (Cramer)... which is why I'm trying to stick to PRINCIPLES and THOUGHT PROCESS (for NEWBS)...

I agree that if you're a smaller investor -- you don't need to own TWO TELECOS... Pick the one you do business with - or like - or just want the dividend from. These are "steady eddies" with nice dividend streams... which is why and how I use them.


You might want to look into a holding I have - PFF - this is an ETF (exchanged traded fund - so is similar to a mutual fund). PFF invests in PREFERRED S&P dividend payers... It pays MONTHLY... and is currently yielding 6.99%

Read what they're into --- and make your own decisions based on YOUR research and needs NOT my "recommendation". I'm picking this stock (ETF) out as a way for a smaller investor to get some yield - get some diversity without having to pick several individual shares. The price will let you "in" .

I like to buy preferred shares if the yield is right - and it's in a name I know.... the DIFFERENCE is THEY PAY INTEREST not a dividend so the tax treatment is ordinary income. So watch out for that if you're buying that kind of thing OUTSIDE an IRA/SEP/ROTH type account.

WATCH OUT FOR WORDING --- DISTRIBUTION YIELD vs QUALIFIED DIVIDEND

One (DY) is ordinary tax and one (QD) is 15% tax max.

I got a good chuckle out of that.... So that was my "lesson" on "earnings season".... this time around "earnings" seem to be going OUR WAY.... they can easily go the other way.... but I was trying to bring them up so people might pay just a bit of attention to them and to get a relationship of what happens to the market "in general".... so the next time we're in "the season" -- people will understand what the heck the talking heads are squawking about.


RE: Unrealized gains -- and the market

When I started 2011 I had great gains going into the beginning of the year - then thru summer (the summer swoon = Sell in May and go away) - all my gains were erased and I went negative (I used that period to ADD to positions)... and by the end of the year I had all my gains back plus (and I'd collected all those wonderful dividends on top of that!)

FOLKS READING THIS --- Let me tell you that when things are going WELL -- it's real easy to be an investor! It's easy to look real smart - and everything you touch turns to gold.... I can tell you that when things go south -- it's FAR FAR HARDER TO BUY and STAY INVESTED.... and everything you do looks like you're an idiot. THAT is when you go back to the charts -- look at them -- long term -- look at that dividend -- and look at what you're into... and sit back and relax. That's when you need to be COMFORTABLE with what you own. That will test your fortitude... it will push every panic button... and you'll quickly find out your "tolerance" levels. If you panic and SELL during these periods -- I'll be the guy buying the shares you're dumping and I'll pick up the gains when they come back.... :woot:

I understand the recommendation issues. I wasn't fishing for a blessing, just putting my cards on the table as an one example.......I guess. I'm always open to constructive criticism or speculation, everyone's wired a little differently and the more examples the better to some degree.

Personal preference vs. portfolio balance is a real challenge at times. This stock buying is similar to balancing wants and needs in the good old fashion buffet line.

I've been researching EFT's and one will most likely be my final purchase and I'll be done with the buying frenzy with the exception of some long over-due house cleaning when the time is right, then I'll sit back and watch results and adjust as needed.

PS - I trust you more than Cramer.........besides, you're taller. :thumbsup:

I totally agree -- there's too many choices out there... and it can be very hard when it's real money - and you're having to make choices.

That is why I've really tried to use EXAMPLES to discuss -- more for the THOUGHTS rather than the actual stock/etf/mutual fund being used for the discussion.

Just like my "I bought X" post -- Nobody should feel that's what THEY should do -- I'm just using the example so I can lead into the thought behind the buy or sale. I think that's where this thread is useful -- the discussion of the reasoning... and trying to BUILD on that reasoning by adding some tidbits along the way... so people can make their own decisions --- I don't care if they're only choosing which mutual fund to buy! At least they might look into them a bit more -- and use some thought process to choose A from B. If not -- we're all just wasting our time -- and I don't think we are. At least I hope not. :faint:

I doubt anyone following this thread has perceived it as a waste of time. Being able to observe insights and actions from the numerous contributors is very educational and I haven't noticed anyone making a move that lead me to think WTF did you do that for. One upside to all the choices, provided reasonable fundamentals are applied is there are a lot of nutritional choices that can satisfy the individual's appetite.

Engaging or in my case reengaging with more knowledge and developing a better feel for the big market picture with a fundamentalist focus has been emotionally rewarding in the short-term, hopefully, thanks to insight provided in this thread it will be financially rewarding long-term. :thumbsup:

Since we're not hearing from many varied posters -- I'm wondering if there is "too much" information and maybe it needs to be dialed back...

There really only seems to be 4 or 5 posters lately -- and that tells me maybe folks have stopped reading????

No, I have not stopped reading... Please continue to share.:cheers:

For me, again I am doing something different, and I would rather be listening than talking.. I do not want to come on as the somewhat lucky rookie, sharing my speculation/investing strategy..

Although it works, I am learning so much on this thread..:thumbsup:

I ALWAYS check this thread...So please continue.:lateral:

It would be a crime , if you stopped.. Money and Hot Rods and the Good Life, are all needed..

Speaking of that, I may be gone doing whatever I want. Haircut, Check on my Car build...

But I will check back soon. you can count on that.

Mike V:woot:

Thanks Mike -- it just occurred to me that only you - Sieg - and a couple others are asking questions or participating... so got to thinking that maybe it's gone sour somehow. :thumbsup:

Haven't posted in this thread yet, but reading every post along the way. No, I don't think it's gone south at all... Hopefully others, like myself, enjoy reading and finding motivation in it. :cheers:

I am following the thread and trying to use the advice given. I just don't have anything useful to add so I am keeping quiet.

Using the advice here I have made a little money in my Schwab account and my 401k. It has been an interesting ride so far and it takes a lot to remind myself that I am investing and not trading.... :lol:

My best success to date is CAT, my biggest flub to date is VZ. It's only been three and a half weeks so let's see where I am in a year.

Thanks,
Don

No its good reading.
I wouldn't dial it back. I've been reading and am starting to do some research.
I have a couple 401k's from employers I even have a pension from one. I don't have any stocks at this time thats why I haven't posted. I'm sure its the same with others. I'm taking it all in.

Hi Greg
As you can see this is my first post. I have been reading this thread from the beginning and will continue to do so. I come to this site because I love all the car builds, as I am not in the position to build a car yet, I just read. I feel lucky I stumbled across this thread as I have learned a lot about investing and I am appreciative that you have opened some of you financial information so others can learn. I also feel it is very brave. 99% of my investments are in real estate because it is what I know I always looked at the stock market like magic box that I would never understand. By breaking it down so simply you have alleviated some of my fear and I now look forward to diversifying and buying stock in the in the places I shop in and the professions that I know. It is funny how many times I have looked at a busy store and said to myself “they must be doing really well” I never thought to see if I could buy shares so I could start doing really well too. Thanks for all the great information and I will continue to read this thread and the bubble top thread although one needs some more pictures.
Ray

I think you should keep going
 

lots of hits with few posters but the information is condensed, consice and full of everyday reason.

There are always things going on that move markets and provide good discussion to make a point. IE the last earnings report.

Other topics are worthy of discsussion even though they may not be reccommended for what you are trying to do here, but it would give the readers more information and broader knowledge.

Since CNBC came up it should probably be suggested, at least to the NEWB investors on here, that it should not be used to make investment decisions. They have to fill their air with stuff (NOISE), much of which is a bunch of "experts" doing nothing more than predicting the future. They don't have any better a crystal ball than anyone reading this thread. It is a good source for financial news and you can even use it to learn about companies that you can then RESEARCH before you invest in them. Just don't dump any of your money into a stock just because someone on there likes it. But, if they happen to say have a CEO on and you like the business philosophy or a new product they have coming out or what have you, then do some homework on the company and THEN decide if you want to become an owner of it.

Speaking for myself, at the pace this thread is moving a recap wouldn't hurt for those trying to "catch up" with the info provided. I try and understand what is said before moving ahead so that i don't get lost. There are various levels of investment understanding between us and I can see how it would be easy for someone just jumping aboard the investment ship to quickly get thrown overboard. This thread has taken on a life of its own. 55 pages and counting.

I applaud you for providing such a wealth of information. I have made some moves that I probably wouldn't have made without this information. All I need to do now is continue to apply it and watch my money grow.

LOL it was at 55 pages when I started my response. This thread would be an ideal investment with the steady growth its getting.

You bet.... Never stop...It should never be sour, because it is so important..

You are sharing and in a way, giving back to people by your success...

I do it on a money management level, but I am not comfortable giving investment advise , except the most basic stuff because I can only explain what I know...Again, I consider myself a novice...

Kudos on having the knowledge and sharing...:lateral: :cheers: :woot:

I really feel the need to re-read my homework too...:cheers:

Well okay then!:thumbsup:

I see we have a lot of readers -- and just not posters. I was really starting to think that it was a private conversation between about 5 people. So thanks for the feedback. There's no way to tell if it's of any interest to a broad swath of folks - particularly when everyone is so "quiet".

I'm on a flight to Ontario, CA to meet up with "the boys" for Grand National Roadster Show this weekend so will try to give some thoughts to a "recap" post as requested when I have a quiet moment to gather my thoughts.

It'll be hard to switch off the background NOISE I'll no doubt get down here... I'll have about 5 or 6 tall guys trying to beat me down 24/7!! :unibrow: Rodger and I have build stuff to go over etc...

Don -- If you owned 20 or 300 individual stocks -- those "flubs" will move about with time... Remember the little dude on Wall street that takes YOUR latest purchase (investment) straight to the dog house 15 seconds after you hit the buy button!

So CAT --- which has had a very nice run contrary to what Europe and China and the USA have been telling you (which is building stuff STINKS)... just turned in a stellar quarter! But remember that you need GROWTH (which CAT is showing us it has) to trade off for the dismal 1.56% dividend payout... whereas VZ has that nice 5.56%... so VZ is paying you to wait for the stock to catch up.

What we're seeing -- and have seen -- and will continue to see with the big wireless guys is huge build out costs trying to one up each other with capacity and speed etc - and then you add the subscriber costs... every time someone buys an iPhone -- these guys are PAYING APPLE about $400 for each one of those! Good for Apple -- not so hot for the bottom-line of VZ and T... and now T-Mobile. But those subscribers are paying premium monthly bills so eventually the cash flows to the bottom line. In the meantime you get a nice quarterly payout. :woot:

:hail:

I can't say it any better than that, and here is some good data on the cellular industry:
http://www.pcmag.com/article2/0,2817,2397688,00.asp

Highlight:
"Approximately 44 percent of Americans now own smartphones, up from 18 percent two years ago, "

That's phenomenal growth, and like Greg said it takes a lot of infrastructure/cost to keep all of these data users happy...but at $20+ per month, per data device, they are raking in the cash. And with only 2 or 3 real players in the US, it's not hard to see who is holding the rakes. (Although, I also bought Sprint (S) at $5 and so far that's not panning out well at all).

AND

That leaves a large majority as untapped data plan customers...data is a cash cow, and it's only in its infancy. IMHO.

Greg,

I haven't been posting much lately, but I still check this thread several times a day. I think you are providing some great information which has really got me more interested in researching individual stocks.

One of the sectors that I have not seen mentioned yet is alcohol. I figured it should rank up there with tobacco. I was doing some research on alcohol stocks and came across DEO. The dividend is slightly less than 3.0, but the stock has a pretty good growth record over the last 10 years. It looked to me to be one of the better choices in this industry. Any thoughts about the alcohol industry. I also took a look at BUD, TAP, SAM,HINKY, & PDRDF. SAM has had phenominal growth, but does not pay a dividend.

Thanks

I'm still reading---several times a day, and sometimes re-reading. Please keep it up. I'm still learning daily. I think some of us who previously have not been "investors" (besides typical 401K type investments) perhaps don't have a lot of input because we are learning from reading and watching since we don't have the personal knowledge to "help". I personally am learning a lot.

Thanks-I look forward to every post!

I read this thread everyday, sometime several. If I don't I fall way behind real quick. Thread is more of a seminar for me, sit back, listen to the speakers, and try to understand it all. I have enjoyed everybit of it and hope to apply some of it very soon.

Great feedback it's nice to see so many people taking this to heart!

If I may, I'll speculate that like myself many might be hesitant to post comments or questions for fear of exposing their perceived lack of investing/financial knowledge or be labeled neglegent for not addressing investing or retirement funding matters earlier in their life.

What I've observed is the key contributors in this thread have a reasonable amount of experience, put a lot of effort into their delivery to insure they are sensitive to the "other" issues, and have a genuine desire to help fellow car enthusiasts.

The common objective appears to be getting people engaged and learning about fundamental investment principles and strategies, thus creating opportunities for themselves to improve their financial position and quality of life.......no matter what the age or phase. What I really appreciate is that the information is not being handed to us on a silver platter, we're being forced to think and investigate which greatly adds to the value of the lesson.

Please don't hesitate to participate, more participation creates more learning opportunitites, which deliver more qualified dividends to the participants. :thumbsup: