Yeah but back then I didn't have two dimes to rub together!

Can a "Limit" order be applied to a dividend reinvestment? I only ask because that was what the original question was derived from.

Ah - no it (dividend reinvestment) can't -- that's all just done automatically.


I was perhaps confusing -- in that I was trying to make the point that the ONLY WAY someone would get the exact same price - regardless of brokerage etc - would be to enter a limit order.... otherwise every transaction is likely going to be at various prices. Just look at a chart of DAILY activity for the name.... and then look to see how many shares trade per day - and the average daily trading etc...

I love this Warren Buffettism.....



Americans LOVE stocks when they're expensive and HATE them when they're cheap.


SO TRUE!


Resist the impulse to CHASE a rising market..... but at the same time - we have to guard against the market pulling out of the station for a run and we're standing on the platform holding our putz.....

It's why I URGE YOU to just buy when you're ready.... high or low.... When the market is high - you're $1,000 will buy fewer shares.... when the market sells off and everybody runs for the hills.... you're $1,000 will buy MORE shares...

In other words GET OVER IT...... you'll get nowhere if you're not "IN" and you're not buying enough shares at any given time that it's going to make a big deal in the overall scheme of things.

Think about it -- you have $1,000 -- and you're going to buy Home Depot (HD) = that $1,000 would buy 7 shares at $135..... and so your purchase today would be 7 X 135 = $945

Had you bought at the 52 WEEK LOW -- of $109 -- you'd have bought 9 shares! So that would be 9 X 109 = $981

So had you done both those buys -- you now have 16 shares for an AVERAGE COST of $120 (add both purchase costs $945 + $981 = $1,926 divided by 16 shares.



See how that worked out?? GET OVER IT..... you're reward is ZERO if you invest ZERO.

Anyone looked a what GOLD has done lately?


Yeah ---- not a good holding. IMHO......... E - V - E - R

I couldn't bring myself to get into Gold or any of the precious metals commodity stocks at this point. The economy is still doing well. If I start to feel things slow down in my business and people aren't spending like mad, I'll reconsider.

In the meantime, I'm still buying stocks every month. It was nice to log on this week and see some MO shares bought automatically from my dividend income. :flag2:

My son already has some piggy bank money. Instead of going to Wells Fargo and losing money with inflation in a savings account, I bought him a Vanguard index fund. One whole share! I figure I'll throw his birthday and Christmas money at it every chance I get. We are already funding his 529 every month. I'm looking forward to teaching him about how to invest and manage his money at a young age.

#1 -- I hope you all have had much success with your investments this year!


#2 -- I personally L - O - V - E Cramer's #1 Tip. Here's why:

The minute I mention "I" own Annaly Capital Management (NLY) --- and "you" (the readers) go out and buy it for no other reason than because I said I owned it.... Then I decide it's time to sell -- because for me - it's reached the goals I set for it - or there's a what? Yes! A Fundamental change.... I sell but I don't say that here = or where you work (if you're following some co-workers tip) etc. You keep holding and loose your butt.... WHY? Because you have NO CLUE why you bought it - what it is - what it does - and you were too lazy to do the work to find your own investments! Oh yeah - OUCH. A couple losses in the "market" and you're forever turned off.... and you suffer yet again come retirement time.


Also -- remember how many times I say "the minute you buy, there's a guy on Wall Street yelling at everyone else --- Okay guys! He's in! Take 'er down!" Yes - a stocks price will be lower than what you paid for it at some point. You'll need to understand Tip #1 to get Tip #4





No. 1 Tips are for waiters.
No. 2 You must do the homework if you are going to own an individual stock.
No. 3 If you can't do the homework, then own an index fund.
No. 4 If you fear losing money, don't own stocks at all because they will go down as well as up.

Greg, i'm curious about the advantages of owning individual stocks vs. a low cost Vanguard index fund for the average investor?

I cancelled my whole life policy last week and I'm looking for a new bucks to toss the that money in now and moving forward. I'll still stay the course on my individual stocks, but would like something a little less hands on for this bucket.

I'd be interested in hearing more about the thought process behind cancelling a whole life insurance policy. I have one too and I often think the money could be put to work elsewhere, like in a brokerage account or IRA. Guess it would only bite me if I kick the bucket early, obviously...

On your question Todd, I've been using ETFs for the type of investing you describe. No commissions online and goal of generating the 'market return'. Primary downside with certain ETFs and mutual funds is you are buying the whole index, the good, bad, and everything in between.

It seems the best things in life are fairly simple and Whole Life isn't. Have you noticed how complicated that product is? The fact of the matter is that you can get term life for pennies on the dollar to protect your family. The more I researched Whole Life, the more I hated it!

Just to clarify my thought process, I'm 39 and 100% debt free including my house. If I kick the bucket, my family will be doing alright with our current net worth and my 20 year term life policy. If I live to be 79 which is roughly the average life expectancy of an American these days, I've paid a whole life insurance premium every month for 40 years that I don't need!!! Let's call that $100,000 in premiums for round numbers. Clearly that gets invested plus the cash value monthly amount. in my case, it was another $400 roughly for principal.

The best Whole Life policies will get you 5% on your money if you keep them FOREVER. They are so loaded up with commissions and fees the first 10 years, that you will be in the hole in most cases at that point. Many policies also surrender your cash value for the insurance amount. Your family doesn't keep both. Lastly, for you to get your money tax free, you have to BORROW your own money with interest which offsets the death benefit! Bull f#@#@#

Let's say you invest the premium amount of $200 plus the $400 in cash value you were creating in stocks, index fund, or mutual fund at 8% for 30 years. Drum roll.... You end up with over twice $$$$$! I'm talking $500,000 more! The power of compounding isn't a gradual ladder. Compounding at 8% is stronger than 5%.

Now, I'm not saying there aren't times when people SHOULD keep Whole Life. Especially if your health has declined since you got the polices or you are getting old enough where term insurance is hard to get. In my case, I aggressively paid off debt over the last 3-4 years and it eliminated the need for the extra insurance. With that being said, I would've been better off with term from the start and investing my money in a higher return vehicle.
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One thing I recently learned is that 96% of mutual funds under perform the S&P 500. The Index funds I've seen, out perform it slightly due to dividends.

You make a good point. You get the whole ball of wax instead of hand picking the best companies. I think I'll move forward with both strategies and see where they get ME in 5-10 years. I enjoy the individual stock investing.