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Originally Posted by AMSOILGUY
Thanks. That helps me understand it better. Not sure if it's something I would chase. Its all about comfort and that seems like a lot of variables to consider.
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If it's too complicated to understand the business you're thinking about being a partner in (as that is what buying the stock makes you - a partner).... stay away from it (whatever "it" is). There are far too many big great companies that you can invest in that are "easy" to click with. Why make life complicated.
I have used several companies over the years to "park" cash.... a couple ETF's (JNK and HYG and PFF)... GE.... NLY....KO... MO.... PM... AT&T and VZ. These are all "steady" shares that pay decent dividends. What I find about JNK and HYG and PFF is that they pay MONTHLY so I don't have to park for an entire quarter in order to pick up the dividend. But I'm talking about what would be quite large amounts of money for "most" folks reading this. As an example -- I hold over 1MM in EACH JNK and PFF currently (30,000 shares of each). Those two pay me over 10 grand per month... but --- big BUTT --- doesn't take much of a change when you're holding that many shares and you can lose way more than you're getting. This is okay for someone like me -- because I'm watching this stuff DAILY -- and perhaps multiple times per day. These are not buy and forget "investments"... they're "I have some cash I don't know what to do with right now and want to make some pocket money" buys.
This is why - throughout this thread I've preached to invest in best of breed stocks that a guy knows what the company does... That the average guy can buy with confidence and not need to check the price 8 times a day.... (I've got nothing better to do).