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Good question Mike..... and the answer to A is IDK....

The answer to B is — yes and no.

The P/E ratio doesn’t change - so the stocks actual representative value is static....in the sense that a split doesn’t “Add” value... but making the stock affordable to purchase by a broader range of investors, I think would help it increase in price.

Someone like me that buys 10,000 to 30,000 shares of a name — and I hold 200 of Amazon (AMZN)? But the point of making it more or less valuable doesn’t change....

Let’s say they did a 10 for 1 — so I’d now have 2000 shares... Now does it go up and down $2.00 a day vs $20 ?? Doesn’t really matter... it’s the same money.

Let’s go back a few years — since this thread began — and all the original contributors - asking questions - question #1

Isn’t the market too high and should I wait for it to come down.......


To which I repeatedly stated....


The chart is lower on the left and higher on the right.....


So I ask the old folks here —- a rhetorical question.


Do ya think ya shoulda waited???? LOL


My last post to this thread - ever. I’ve made all the points I could ever make. Take it and run with it — or sit on your hands and fret.

Thanks for the guidance ..” so long and thanks for all the fish”.

Ps I hope that made you smile

Greg, I'd like to say thanks for all your guidance. I pay much more attentin to my retirement since this thread started. My son manages his own Roth account with Schwab from his phone. I got him to start w/$1200.00 when he was 12.$1300. when he was 13. He's now 20 and actually knows more about money management than I ever did when I was 40. This is all thanks to you and all the other contributors to this thread. Thanks sincerely.

Greg,
As many have said, thank you for your effort in this thread. As I told you in person, I am literally 6 figures ahead of where I was when this thread started. I attribute 99% of that to the knowledge gained here. Thanks for all that you do!

You Da Best, Greg!

You've peaked my interest in the financial world. I preach these concepts now to anyone who'd listen.

Thanks for always helping us out, and putting it in car guy terms. ;)

Now... were's that Investing 103 thread at..... :idea:

Thanks Greg for your help and guidance. My fund has just grown and my dependence on credit has diminished since reading this thread. Cant thank you enough, you are the best there is!!!

Thanks Greg! I wouldn't have started investing or understood the importance of it at all if it wasn't for this thread. Thanks for showing us new ways to think about finances!

so I recently liquidated my holdings in STX, I didnt like the volatility of the stock and nand memory

I liked the dividend but after a few years of being positive, I was underwater with them for ~6-7 years

Anyways this june they went up to my cost basis and I jumped

Any suggestions what tech company is looking solid right now?
I was looking at IBM, I like their dividend and its a big name and seems like they are better diversified in terms of revenue streams than Seagate

Another name that I thought of was intel, but not sure

thoughts? suggestions?

I am very leery of the FAANG stocks

:bow::bow::bow::bow::bow:

Thanks Greg

my portfolio is what it is because of your advice, and since starting reading this thread I am more than double where I Was

Just found this thread mucken' around the forums. Some good advice buried in here!

We hope it helps you out.

So I figured I Would keep the fun up in this thread.

Not sure if its a Investing 102 level topic, but my employer just rolled out an ESPP (employee stock)

its pretty good, you get a 15% discount on a three month lookback

So I am going to start buying the max and immediately selling, I was looking into it and to get a tax advantaged sell I have to hold it for 2 years...

so I have decided to sell it and add it to my portfolio

In addition to that, I am targeting to retire early in the next 10-15 years

10 might be tight with the 4% rule, but 15 is 100% doable

I am thinking try to partially retire in the next 10 and still work part time

That being said I just bought some MSM and KMI right before the exdiv date :G-Dub:

Did a bit of year end calculating yesterday. Our retirement portfolio is 42% invested in growth dividend stocks and the rest is in cash and we still managed 11.9% return for 2019.

I'm perfectly happy with that. I imagine those that were more fully invested did much better.

Happy New Year everyone.

My IRA is mostly invested in stocks.... up 23% in 2019. Decent. :)

Happy New Year.

Same. My professionally managed portfolios did very well in 19. My brokerage account that I manage, not so much, lol. I'm still too invested in oil in that account to have any big changes currently. I'm still loving the dividends though so I'm just let it continue to sit.

Hope 19 was good for everyone else, too. Here's to a great 20, as well. :trophy-1302: :G-Dub:

I feel like this is the time Weld would be telling us to hang tight... We all bought quality companies and they'll be the first ones to recover once the nonsense goes away.

Personally, I think the huge players are the ones driving this spiral...building opportunities strictly for themselves. Long ago I would have been anxious but thanks to the learning gathered in this thread...I'm still sleeping well.

I hear Greg in my head saying "there has been no fundemental changes in the good dividend paying companies you've chosen, so, wait it out"

If my dad, whose broke at 75 years old, had just "let it ride" during the 08/09 fiasco, he'd have about a mill in the market, collecting his 5-7% (of taxable) inclome plus SS.

Nothing wrong with working til u die, just don't "have' to work....

It's a fun week if you're in Dow industrials . . . :disgusted:

If you're in biotechs, you might retire early (this week). :G-Dub:

The best learning comes, usually, only with pain. I learned that from Rocky (who ironically didn't seem to learn much through all of those sequels).

Passive investing, to place Rocky in the spotlight yet again, is about as good as blocking punches with your face right now. Can you stomach a 4000-point dip?

There's a happy medium here somewhere, perhaps in the sense that peripheral vision (i.e., research with an open mind) can do wonders for your outlook, so long as you take the time to develop it. This statement has cost me thousands, by the way . . .

Which Bio techs ? :headspin:

Yep, I've already moved money into the brokerage account so I can buy as soon as things start turning around. I really don't understand this dip. Sure, I expect a lot of companies to be affected by the virus, but not to this extent. I think people are just panicking to panic. The media isn't helping either. So I'll just sit back and wait patiently.

I do like the bit I heard about one company that makes masks suddenly having their stock go through the roof :lol:

Greg also taught us not to catch a falling knife.

All it takes for a market to change is pessimism and fear. One of my good buddies was freaking out this week because Sam’s club was out of tee pee. Apparently there is a supply buying frenzy out there. Many in society are so warped by the media and it’s really too bad. Personally, I’m 20+ years away from withdrawing any retirement funds so it can do whatever. Next time the market makes a big run, it may be time for some change in my strategy. At some point a hair cut effects the lifestyle you’ve planned and invested to provide. Don’t wait until it’s too late to ride out another cycle.

I think Greg would have sold some positions to rebuy on the dip. How many is anyone's guess.

Agreed. I had a crazy year and I wanted to take some money off the table. Doing so was gong to be at a big tax burdon as i was alreay in the 35% bracket... so I didn't. I still buy 2x a week and dollar cost average... so long run this dip should work in my favor .. assuming it bounces back before 2023 (my retirement year goal)

Monday's looking like more of the same thing: going south.

While last week's "good times" actually gave a lot of traders a terrible day(s), many had a good week last week trading (not investing) in companies that are claiming to be working on vaccines and whatnot for coronavirus. As Trey mentioned, even companies that sell painter's/SARS masks had their stocks skyrocketing last week (Home Depot even put sales limits on them). We're talking multiples of doubling in value, some going many, many times their value. Generally, these are crappy companies, however, and you do not want your money near them long-term or passively . . .

Example tickers found here: https://finviz.com/.

The point here is that in stocks, there is always a bright side, so long as you are willing to burn your money in a Dumpster fire! :relax:

And yet...today turned out to be a day with the biggest single day upside since 2009...Stay the course my friends, none of us will time each big move perfectly.

and today was crap again, lol. Wild swings for sure. The only move I've made so far is on a utility because it's a utility. It should be largely unaffected by all of this. I figure it's panic for sure in this area so I'll take advantage of the situation.

My Hasbro is looking great right now, but it will be affected by what's happening in China. Long term I expect it to be fine so I'll probably move on it soon. I fully expect it to take time to recover. It's just at a great price point for me right now.

Seriously, crazy times we’re living in for sure! We knew we had to be close to the next recession, but who knew what the catalyst would be this time. The fact that the market dropped this badly on the same day the Fed cut rates 50 bps is really telling about the level of pandemic concerns. We may see a good bit more downside, but things are definitely on sale compared to a few months ago! I’ll try to keep gathering cash and be ready to deploy when things start to stabilize.

Good points here, especially regarding the rate cut. The first thing that came to mind when word on that came out was the following: confidence in corporate U.S.A. When the last big dip in Dec. of 2018 happened, there was a lot more talk of the impossibility of the big companies being able to handle the present pile of commercial paper (read: massive debt). In other words, the Fed is making moves that should creep us out, but they'll be the last ones to explain . . .

On the positive side, biotechs and other panic-related stocks are still puttin' out. Volatility can be fun, but very expensive.

It seems to me that the government is trying to escape the natural laws of this life. That being the ebb and flow of everything. Does the economy really need stimulated again? All I can think is that when the old you know what hits the fan, it will be worse than if they would just leave well enough alone. Unemployment is the lowest it's been in 50 years! Real estate values have recovered, people are making money, the stock market is at record levels. Maybe they should've saved that mulligan for another day.

some persoective
 

its not as bad as you think... Granted... it dipped but the bottom has not fallen out .... stay the course my friends.. Long game and don't try to time the market... look for great deals on dip and dont panic..

That's basically why I went ahead and completed my moves today. I was looking at the present values and they were all below if not well below my cost basis and their recent values. I figured, I'm buying on sale. It may not be the best sale price but it's still on sale. I expect more volatility concerning the Coronavirus and, more importantly, peoples reactions to the virus. Nothing I just did was on a massive scale, but I don't think I missed an opportunity. In the end this will pass and it'll all work out.

Todd, truer words have rarely been spoken. I think you’re right, the economy didn’t need that move and with every cut they reduce the effectiveness of the tools in their arsenal.

I agree with you guys. I also gotta say the ideals Greg preached in this thread have given me a little more confidence these days by reinforcing what I was kinda/sorta/pretty sure I already knew.

A lot of stocks on sale at the moment with the whole OPEC issue and it's a sea of red in my portfolio but I gotta think long term!

Looking for deals .. :y0!:

For sure. This is too cheap to ignore. I've already moved more out of savings. Again, nothing major as I still want to be balanced and secure in all my accounts.

Shopping for deals here too! :D :D

Nice to see you chime in Albert, hope all is well....

This market is getting more and more sensitive, very roller coastery

I haven't bought much on my own, just maxing out my 401k safe harbor plan (26k for me 26k for wifey) and have a small independent manager/broker doing it. No sure I'll be able to retire in 7 years (61), but the house is almost paid for (1.3 here in the Bay Area) and business is paid for, so, overall inhttps://lateral-g.net/forums/images/smilies/thankyou.gif pretty good shape.

But, the old adage is invest in what you know, and I sell a ton on melted sand. On the other hand, I need divi's that pay when I'm a sleeping...

Mike,

All is great here! trying to enjoy this nice weather (except for today). Baseball season has started and kept me busy (coaching 14u boys) and spare time enjoying a new toy I got last year (09 HD Dyna). First bike. Been fun!!

Anyhow, I had a little capital set aside (about 20%) since I rolled my old 401k into a roth a year and a half ago. I've put about 10% to work in the past couple weeks sell of, into solid dividend champs. still waiting to figure out where the bottom might be for the other $ to get put in. Aside from that, my parents asked me to take over their 401k as they're just hitting retirement. Luckily they sold everything to move it to an IRA mid 2019. I've slowly been creeping in on this big downturn, its been great timing on that front. lol. But again, still waiting to see how bad this gets. They've still got about 60% not invested yet. Again, long term big name brands with long histories of dividends that start low on the left and high on the right. Just like good ole Greg taught us.

Been an interesting couple weeks. Hard not to buy buy buy when it keeps going all red like this! lol

Nothing like a Trump tweet to change one's financial picture . . . Ouch!