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Quote:

Originally Posted by SBDave (Post 608731)

am a partner in a craft brewery.
I've been wanting to get into real estate but my location makes it somewhat prohibitive (Santa Barbara, CA).

Thanks!
Dave

Nice! Which one?

Faction Brewing in Alameda, CA

http://factionbrewing.com

I'm a small partner :happy23:

Dave, if you've read to page 57 already, you should have the basics down. Now, it's just time to start applying that info to various stocks/companies that interest you. Analyze them to see if they are worth owning. You can give us a report on your choices and why you like them. From there, we can see if you're thinking things through correctly. It's the method that matters.

You may want to see if you can consolidate some of your accounts, too. It could help you save some fees and simplify what you're looking at. I love Roth accounts.

Quote:

Originally Posted by SBDave (Post 608743)

Faction Brewing in Alameda, CA

http://factionbrewing.com

I'm a small partner :happy23:

That's awesome. I just took my wife and son there last weekend and had a couple beers and lunch (from Scolari's) on the patio there. Killer scenery.

I must say the people working the bar need to turn over the customers quicker... leaving lots of dollars on the table. :D

Good beer! Hope it works out well for ya. :cheers:

Nice! The beer and view are pretty hard to beat. I know what you mean about the bar tenders, although it can be outside their control i.e. people ordering samplers, growlers or picking up kegs. My brother said one time a bus with 50 people from Google showed up half hour before they were supposed to close :drowninga: The business is doing very well though!

Would love to talk more beer but I've gotta go find out what my money is doing.

Thanks to Greg and everyone sharing in this thread, what I learn here will no doubt help not only me but my family and friends as well.

Dave

SBDave....

You can read this thread as your time and interest permits... it's quite repetitive... and as Trey (WSSix) said... you've probably got the basic info by page 57. As in most of these threads - they wonder about as people ask questions etc... and there are "details" regarding various philosophies etc. But basically it's about NOT trying to time the market - trying not the 'trade' the market and about buying best of breed companies that you understand and trust them.

The rest is about various ways to do research - and from time to time - individual stocks are discussed in a ways (the intent) to help people "THINK". It's about teaching how to fish rather than "buy this and don't buy this" (catching you a fish).

The other thing you'll see here repeatedly - is myself and others - goading people into getting into "investing/saving" so their lives will be better down the road - regardless of the ability/amounts.

Put a buck in a jar for each page you read.... LOL

Feel free to chime in, add, ask, discuss.... some of us are as hooked on this stuff as we are on cars.

Quote:

Originally Posted by GregWeld (Post 608173)

In our personal situation - "retirement" accounts don't make any sense. I've already BEEN retired 23 years... Gwen has retired TWICE... and she's younger than I am. So the point it - in a retirement account we'd have money tied up that we'd have no access too. Having said that we do have them and they're 7 figure accounts... but that's because they were well invested and have been for many years.

Now --- You have to be really really careful about buying REAL ESTATE investments AKA "passive" investments inside a retirement account. I have done that - mistakenly - and that IRA had to file an income tax form every year and pay taxes. I'm not a "tax" guy... Taxes are way too complicated for my feeble brain - and my stuff if far far too complicated (last years filing was almost 200 pages!). So I stay away from stuff I don't understand as I've made that mistake in the past.

The other thing is -- DIVIDENDS -- are taxed at 20%. They're NOT "earned income" or interest... and the LLC's I've invested in are DIVIDEND paying set ups. That -- and much of the income - if not all of it - is offset by the DEPRECIATION that you get (again - complicated and much more to it than meets the eye). I first got into real estate LLC's via my tax accountant... so since he put his money where his mouth is - and understood our situation - if he said I should do it - I did. Other than that.... I'm an idiot about most of it. The part I do know -- every one of them has worked out in OMG fashion... OMG as in GREAT.

Thanks for your reply on this Greg

Quote:

Originally Posted by GregWeld (Post 607899)

I haven't posted much lately -- mostly - because the thread just gets longer and longer --- but there really isn't much "new" to add to the thought process that is BASIC investing. Basic investing is so simple. You save some money - buy some shares in a great company that pays a dividend... add to the pile as you can.

So having said that -- I always have "cash" that isn't doing anything. Don't ask me why... because I have no answer. I just like a margin of cash that is ready for "whatever". We're not talking about $500 either... so it's really dumb.

Summer is a time when the market typically just drips AWAY day after day. People get busy with vacations... there's not much news... and the market just takes a break. So - knowing that... This is when I usually look to pick away at adding a name or adding to a position. But -- always the big butt -- like everyone else... I'm on the fence watching the affect that a FED rate hike will look like. Do we get crushed (temporarily)? Does the market shrug it off? Is the signal from the FED that the economy is doing well - so the market should be good because business is good (that is the bottom line after all)?

The other thing that runs thru your (and mine) head is always -- is the market overvalued (too high) and I should wait for a big pullback?? So having said that -- I want you to pull up a 5 year chart of BlackRock (BLK).... this is a rhetorical question... at what point in the last five years would that chart (if you did NOT have this historical look now) tell you it's overvalued and to wait for a buy? LOL

Thus my post today... HOPEFULLY this thread - if it's done nothing else - has taught you to take a far longer term approach to your investing. Are we investing for what might happen 6 months from now - or are we investing for 20 YEARS from now??

A friend of mine recently opened "The World War 2 Aviation Museum in Colorado Springs, CO. Not something to many of your friends do and being a huge WW2 aviation geek, Laurie and I drove over the hill to take the tour and get caught up with my friend. While there we also toured his restoration shop and got a pretty up close look at a few "special" aircraft that are being restored. One being a P-38 Lightening called "White 33". It was flown by both of WW2's leading aces and will be part of Paul Allens collection when finished. The history attached to this particular P-38 increases the value greatly. One would think that a person like Paul Allen would be first in line for an aircraft like this, but he actually got lucky. Another client started the project. He was a rich man when he went to bed one night and woke up the next day to find that he was penniless.

This really got me thinking. There's a lot that can go wrong in the world, but assets that play on a global scale (such as a priceless WW2 airplane) would be a good investment....wouldn't they?

Quote:

Originally Posted by Spiffav8 (Post 609284)

A friend of mine recently opened "The World War 2 Aviation Museum in Colorado Springs, CO. Not something to many of your friends do and being a huge WW2 aviation geek, Laurie and I drove over the hill to take the tour and get caught up with my friend. While there we also toured his restoration shop and got a pretty up close look at a few "special" aircraft that are being restored. One being a P-38 Lightening called "White 33". It was flown by both of WW2's leading aces and will be part of Paul Allens collection when finished. The history attached to this particular P-38 increases the value greatly. One would think that a person like Paul Allen would be first in line for an aircraft like this, but he actually got lucky. Another client started the project. He was a rich man when he went to bed one night and woke up the next day to find that he was penniless.

This really got me thinking. There's a lot that can go wrong in the world, but assets that play on a global scale (such as a priceless WW2 airplane) would be a good investment....wouldn't they?

There's two kinds of assets. Liquid and Illiquid. You need more liquid assets in order to be able to hold on to, and buy, illiquid assets.

Houses - art - cars - planes - property - etc are illiquid. They can be very tough to sell in "down" markets. When that happens the value sinks. You want to be a BUYER of illiquid assets in down markets. BUT.... There's always the big butt in the room.... in order for that to take place you have to have plenty of liquid assets. Liquid assets are stocks and bonds and cash. These also have down markets so even liquid assets such as stocks and bonds - while being liquid - creating the liquidity can create losses.

So -- what you always strive for is to have enough INCOME (cash flow) so that you never have to sell in down markets... you can just buy in those markets - hold on to the asset - and continue to have fun.

That's why rich people get richer and poor people get poorer.... Poor is a relative term and doesn't have to describe those that are destitute. Poor can be "cash poor" or "cash flow negative".... thus forcing sales of assets at below market value.

To me -- being "poor" could / does - describe someone that has to sell one car to buy another... or to fund the next project. That's not good management of assets. Because it often leads to the loss of both. That's "cash poor". A person should be able to fund these kinds of assets during good and bad times out of cash flow.

It's funny because all assets FALL in unison. Think of this last "big recession".... car values went south at the same time as housing... and the stock market. The folks that didn't survive - or took big losses - where the ones that didn't have adequate liquidity or liquid assets. Those that did - bought stuff at huge discounts and are now making a killing.

I've got a customer that has a pretty impressive car collection, cars that have real history or are "1 of" some low number. I'm not sure what the collection is worth but like anything else it rises and falls with the tide. I'm not sure how it came up but we got on the subject of the bozo in the White House and all the great things he's done for this country....:snapout: Apperently with one swipe of Obamas pen, the ivory business took a dump, as in doesn't exist anymore. Illegal to trade, ship, sell, legally you can't give it away. What does this have to do with anything? My customer took a multi million dollar hit overnight with a portion of his business, he still has the cars, the big house and a successful business because all his eggs weren't in one basket. The people in the industry that all they dealt with was ivory...have nothing or very little. These guys aren't street vendors selling goods to tourist but high end art dealers trading globally.
DIVERSIFY!