Thread: Investing 102
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Old 12-16-2011, 11:13 AM
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GregWeld GregWeld is offline
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Originally Posted by GregWeld View Post
Well good for you -- you've at least got a start!

Okay -- stock by stock - you've got DIVERSITY - you have Apple (retail/tech) - you've got NIKE (retail) - Caterpillar (industrial) - Disney (entertainment) - Harley (manufacturer/retail/automotive).

I think Harley is too "faddish" for me to invest in... Sorry.

Don't buy anymore "retail" - you have enough exposure there. You really have 3 out of 5 that relies on some sort of CONSUMER buying at retail.

ALSO -- every one of these pays a dividend but they pay a very SMALL (under the rate of inflation) dividend... so on my screen they'd have to have a larger than normal stock price appreciation in order for me to buy them. So for your next investments try to pick a couple with higher dividends... AT&T -- VERIZON -- KINDER MORGAN PARTNERS - PHILLIP MORSE - ALTRIA... they all pay more than the rate of inflation AND have price growth...

Hey -- Here's what I've been preaching! Look at a FIVE YEAR chart of NIKE --- Symbol NKE http://www.google.com/finance?q=NYSE%3ANKE

Expand this chart out 5 years... using the time choices in BLUE at top of the chart.

Check it out -- in 2007 the split 2 for 1 -- so if you owned 50 shares in December 2006 - you now have 100 shares! And they've increased the dividend payout along the way. They used to pay .19 per share per quarter and they're now paying almost double that! And the stock price has almost doubled in the same 5 year period!

So you have twice and many shares - paying twice as much dividend - and the price has doubled.

If you put the same $1,000 in the bank savings account 5 years ago -- you'd have about $1,010 now! WHOO HOO!
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