OK the Mayans were right... my BPT is being outperformed by my FB ... dividends excluded :-)
the world is defiantly coming to an end :willy: :_paranoid

That's funny!


Faceybook looks to be making a run on the upside. It's still not for me - but I've lost hypothetical millions NOT investing in stuff like that.... So now you really have nothing to loose so you might as well hang in there.

Personally -- I like the almost $14,000 a month I get in dividend from JNK... :unibrow:


I also totally agree with the fellow you quoted that said he doesn't give anyone tips or tells anyone what he's invested in. The reasons he states are spot on! This is why I constantly say that I'm using EXAMPLES... and that people just need to learn HOW to do their own choosing! There's nothing worse than making a recommendation -- which turns out to be inappropriate for that person - and they sell the first time it goes down - because they really have no idea why the hell they bought it in the first place.

This thread is all about HOW not WHAT.... big difference in my opinion! And I hope it's helped many folks just get started. :woot:

Hahaha awesome, I'm in the exact same boat as you. :lol:

Well, tryin to pin down the future of the fam. Put in offer on a place back in our hometown (about 15 miles away from where we are currently, and we drive there 2x a day for school/daycare for the kids).

Every house has sold in that town in 2-3 days. but this one had some weaknesses that kept it from selling (close to train). I grew up near there, so I wasnt worried. Offered him 95% of what he was asking. Its been on the market 3+ weeks (very rare for this area).. He declined the offer, stating "its only been on the market a couple weeks, so we cant accept your offer right now". Then he turns around and re-lists it for 10k more the next day. LOL.

Well, we tried. Really bummed tho. Had a nice big lot to put a shop on later too.

Houses here are selling same day -- and before noon... and for full price or higher and with back up offers.

I would say that IF YOU CAN -- and you want the house -- you should just buy it. Remember that it's still "historically" low I would assume - price wise from where it was -- AND more importantly the super low interest rates.

Given the trouble HSBC is in, I think it's safe to say not only do you need to be careful with who you're invested in but also what company you're using to make those investments or hold the accounts. Wish I could say I knew it was coming or that they were even in trouble but the reason I left them was because I could get a better rate on my savings elsewhere.

So I know this thread is quiet.... frankly there's not been much to add to the learning experience.... and there hasn't been many (any) questions lately.

I will say that I put some major cash to work today. I've given a few employees a few weeks vacation - but today was "get your azz back to work day". Mostly just added to existing positions. I'm still chasing "yield"... and even more so if we're going to see higher taxes!

I think there's still a big chance that the bozos in Washington DC don't get it together --- but I think there may be a bigger chance of missing a few days of nice moves if you're sitting out. Of course this is nothing but a giant guessing game!

HOW ARE YOU GUYS DOING??

Okay Greg,

Maybe your words of wisdom can guide me. I was saving to buy a home in Los Angeles around 400k. My goal was 20% and I'm half way there. However, it seems to have turned into a sellers market and I want to put my money to work for me instead of just keeping it in savings while I meet my goal. What would you suggest I do with my funds while I wait for the next few years?

Few years?? 2? 5?


So this is really an open ended question without a lot of specifics... and I'm not an investment advisor. But I would give you some things to ask yourself and to think about.

If you have some money -- and you think housing is going UP -- why not buy a house you can afford NOW and ride the wave while you continue to save?
A rising tide floats all boats... and you could be gaining equity in a smaller house or whatever while you build up savings at the same time.

The problem with "what to do" in the meantime is that you need to be liquid if you're continuing to shop for a house. I will guarantee that if you put your money into the stock market -- in order to make a return -- that the day after you found a house to buy - the market would take a dump. Thus the age old investment advice that says "never invest money you think you might need". This can be compounded by the fact that right now the "market" is waiting on pins and needles regarding the so called fiscal cliff etc.

Now --- having said that... making .25% interest on your money won't get you very far towards that down payment...:rolleyes: And I like to use a couple high return "stocks" (they're ETF's) one is Junk bonds (JNK) and one is corporate bonds (HYG). They're "fairly stable" price wise and I park pretty large sums of dough in them just because they are stable and they pay a great monthly dividend as a percentage. Since they move in basically lock step - I don't see one being better or worse than the other. You could also look at the sin stocks -- tobacco - as a place to park some dough. Just be forewarned that without a clear direction for tax treatment etc -- anything is a gamble and a guess.

:cheers:

Nova -- Clear some space in your PM box. :cheers:

done sorry -

I agree with you about the giant guessing game. I am sitting here waiting for an opportunity to put some more money in the market thinking we will get a good correction if they don't resolve the fiscal cliff issue. On the other hand I am thinking there is going to be a big rally that I will miss out on if they do resolve the issue. I have decided that I am just going to be patient and wait it out. On days like this I am glad to be invested, but wish I had put more in at the last correction.

As far as long term dividend paying stocks, do you gus have a minimum/maximum P/E ratio you look for? I've been researching all that I can and I keep coming back to somewhere around 10-20. That doesn't necessarily mean I am going to exclude one that has a P/E of 9.99 but I am just thinking a general rule of thumb for someone like myself that is just starting out.

P/E ratios don't make you any money. What you should be studying instead is the total return... 'cause over time - that is what makes you money.

I would like to thank this thread(mainly Greg) for getting me thinking more about managing my own money(or some of it anyway). My little homemade mutual fund is doing quite well. My overal return is 27% for the year. Since i brought it up, it will probly tank tomorrow. If it was only on a larger scale, I would really have something, but its a start. Thanks Greg!

Thanks, I am really trying to keep from having analysis paralysis so that simplifies some decisions.

Still very happy with ytd results... Up around 14%. Happy with positions going into the cliff. Considering some position in a US bank, but havent identified a best of best candidate yet. SCCO has turned into a gem....

Way to go! Holy cow! 27%!!!! I'll pay you to be MY money manager!!
:lol: :thumbsup:

Yes -- and that IS what happens.... it just becomes figures figures figures... pretty soon you can't remember anything but silly numbers. I've preached on here time and again -- just keep it simple! You're not running a 3 Billion dollar money fund... nobody is going to fire you because you were half a point off the average! Buy good (make that GREAT) companies... with good total returns... that have good % dividends... NAMES YOU KNOW and LIKE the company! Kick back and retire a rich guy.


:cheers:

Think about 14% --- that's like 1400% MORE than you'd get in a C/D at the bank.... What's not to like about that?



:thumbsup: :thumbsup:

Yup... And it's better than the special funds of an investment account I have too.

My biggest 2 gainers are bank stocks. 1 is up 59% the other is up 31%. They were of course the most volatile

I'm just waiting for the first of the year. Then I'll drop my annual Roth payment into the account and buy some more stocks. I'm thinking of either going with 4 or 5 stocks. It'll be a smaller amount in each stock than what I currently have per stock but I want some more diversification. I gotta do something to keep another OXY from killing me. Hopefully byt the end of January I'll have the money transferred and stocks purchased. Unless of course the Mayans are right.

Thus the magic "5%" rule -- that no single investment be more than 5% of your portfolio... that way it can go to ZERO and would only kick your sorry butt by 5%.

Hard to stick by - and makes you trim "winners" etc - but it's a very good rule 99% of the time.

The bad part of the rule -- there's always "something wrong", right? Is that stocks like the good old days - let's say Microsoft -- or Google -- or an Apple is going GANGBUSTERS and you follow the rule faithfully and sell every time they hit 10% of your portfolio. In hindsight - that can be very painful. As me how I know that! :D But it saves you on the downside... so is worth heeding. The old Pigs get fat hogs get slaughtered!

I was reminded today via CNBC about very good point to remember...


Regardless of the tax changes etc -- if any -- those of you with funds in retirement accounts are not affected. Since those funds grow Tax DEFERRED...
and those with ROTH IRAS will never pay tax on withdrawals so those accounts are looking better and better!


Mahalo! :woot:

How many of you have had retirement plans at other employers etc. Here's something I would have NEVER thought about. It's worth just giving a few minutes thought to.

With all the changes to electronic banking etc.... WOW!



http://www.bankrate.com/financing/re...ec_id=m1078090

Wow is correct. However, I'm surprised he wasn't able to have her charged with fraud and theft. Or maybe he did and that's just not part of this story. I can understand how the plan might not be liable based on the info we've been given but that doesn't excuse the exwife's outright theft. Guess he also got a clear indication of the type of person she is.

I'll have to keep all this in mind as I'm trying to change jobs and have company retirement accounts. I know I'll have to look into rolling things over etc or possibly leaving them where they are. I'll cross the bridge when the time comes.

Trey -- I think the real issue was that HE failed to notify of a simple address change, and that alone absolved the institution from safeguarding his money/account!! Ridiculous - but it's obviously legal. So make sure all your accounts have your current mailing address!


The thief - his ex wife - is a different issue and that's criminal... but my guess is it would be hard to prosecute particularly if she could show they were married during the savings period... she might be able to lay claim to some of it. She's still a thief -- but the law is usually on THEIR side.

Wow that's just plain f***ed up. Thank goodness I'm on top of my accounts.

It's a very important point. I know with all the moving I have done since I left Georgia 2.5 years ago now that it was just easier and safer for me to list my mom's address where I grew up as my billing address. I can trust dear ole mom :D

I know another point along the same lines is family names. I'm a third. Trey is my nickname. My credit report is not intertwined with my father's but some addresses have been mixed up. I've had to do some work on my part to make sure none of my accounts have been attached to his report and visa versa. We both have good credit but it's still too important to not stay on top of in my opinion.

Question regarding the "Rule of 5"
 

so I totally get he theory... but follow me here... I maintain 6 months emergency cash.
I have a 401k (mutual funds) Account one
I have 2 + years income post tax $$ in vanguard funds... Account two
I have my 'investment' account... Account Three..... which i just reviewed against the rule of 5%.... what i found was since I only have 14 stocks in it.. the rule of 5.. cant apply.. so what to do? Buy more stocks to balance things out? or dont worry about it because my spread and available cash..already provides some safety?

BTW my stocks are a good mix of "Coffee house" stocks + a few drips and some Muni's... excluding my two gambles... FB and BPT I yield over 12% this year before dividends.. add in the two losers and I am under water...

You've stumped me because I'm not sure what you're asking.


The 5% rule just means you shouldn't have more than about 5% in any ONE single investment ---- regardless of what account they're in.


I have a buddy that would buy the same stock in his personal account - then he'd buy it in his IRA and again in his wife's IRA.... He just couldn't look at his money and think of it as all his... regardless of the names on the accounts. No amount of badgering by me could fix it. He suffered a LOT during the downturn of '08.

Forgetting the cash and other accounts.. Using a basic theoretical example..if i have a stock portfolio with 14 stocks... and 20K invested... then some HAVE to have more then 5% in them... do I buy an additional 6 and balance it out?

Ah ha --- no...... is the simple answer. This is a "guide" not a hard and fast rule and it's just to keep people from risking too much in one single investment. But now you just work to invest any new money to keep all in balance. It's like diversifying. You do that the best you can - but obviously - nobody can be perfectly diversified. You just think about it when making your choices.... Like I don't need 25% of my investments in OIL... etc. If you have 25% in oil - then you're next purchases need to be in something else.

These "rules" work better when you have more money invested. Their intent is to keep you from losing too much or being down too much. But if someone only has $2500 invested - it's pretty ridiculous to think they can stay at 5% AND be diversified. At 10K - they could then maybe be 10% per investment (1K) and have started to have some diversification. At 100K invested - now you're on your way to the 5% with 20 names and you should absolutely be diversified.

Even at my level - I can't always stick to the 5%... but I'm always aware.

Lately Apple has been killing me with their decline in share price but I'm still in the positive at 28.46%. So I opened up the little tab showing me when I purchased the shares and notice that my last purchase is down 19.26% while the rest of the shares still have a positive percentage gain. Is there a way to sell off those shares and take the loss while maintaining the positive shares in my portfolio? I recall Greg mentioning something like this but I am not quite sure if I understood Greg correctly. I haven't lost faith in Apple yet to want to sell all the shares but eliminating the shares with a loss I think would be a smart move for now. ANy opinions on this?

Posting from my phone.


Schwab has a check box you can check before any transaction that has tax lots factored in. But I'm not where I can read whether or not you can just sell shares with a loss first. U can always call your brokerage to ask questions like this.

Personally I'd hold till they report this quarter. I think their Christmas sales will be pretty strong. But that's just my guess.

Thanks for the response Greg. My curiousity got to me more than the desire to want to sell the negative shares. I just noticed the negative shares are what's affecting the overall performance by averaging down the positive shares value. This is in my Fidelity Rollover IRA account and I'm not sure I can sell just the poor performing shares without actually dealing with a broker in person.

Okay -- back from the pool now.... :unibrow:


Since you hold the stock in an IRA -- there's no provision for taking a tax loss... so unless you just don't like the stock - I'd hold it. I'd only sell if you had a TAXABLE account and wanted to do a year end "take some profits and offset some of that with a loss". But you can't do that in an IRA.

Remember that the day after you sell -- the stock will run 60 points. :willy:

..........you went down and so did the market.

Waiting for buddy dive pics. :unibrow: