Quote:
Originally Posted by Brewtal66
Hi Greg,
Just started going through this thread. Not sure what got me to click on it last week, but I did and have read the first 20+ pages so far. I opened up the brokerage account with Schwab, and hoping to put some money in there later today.
I do have a couple questions for you though if you don't mind.
1. I'm looking at Target(TGT) stock. I shop there weekly, so I have interest in it. If I look on the 5 year snapshop, it's low on the left, higher on the right, with increasing dividends. If I hit the research to Total Return on Schwab, the 5 year result is +65.7%. I know this probably isn't as high as some others, but would this be a good investment to get my feet wet?
So this is never going to be about "Me" and what "I" think YOU should own or not own. Having said that -- you have demonstrated the ability to comprehend the basic principals and that is 100% the goal here.
Now -- The above information you posted - is awesome.... and the reasoning sound. Now compare all of the information above against the "competition" and see if there is a better (or worse!) investment. Target should be compared against similar retailers. Who has had the best track record - who looks best going forward? Who has growth left?
Once you have done THAT research -- then you've narrowed it down - and CONFIRMED or denied what you believe. IN the end --- YOU have to like the stock and understand why you picked it. Otherwise - when they drop $2 a share after Xmas (just making this up) you'll be freaked out and sell at a loss. THAT is what we're trying to avoid.
2. On one of the pages you stated you owned 21 different stocks. But on another page I see you showed your dividends, which was more more than 21 different stocks. Is that right? I feel like I'm getting something confused. You also mention having only one account? as in one Schwab account? Not that any of this really matters, just trying to keep everything straight with all the lingo and such.
You'll need 100K invested before you get to NEEDING to own 20+ names... You're referring to the 5% rule.... and those rules need to be adjusted to fit teh circumstances.
Thanks for writing all this up. You've inspired me and got me started towards investing. I always use to say that I didn't like investing in the stock market since I like tangible assets. For example, I have a second house that I rent out and since the tenants are paying the mortgage on that, I always felt like that was going in my pocket as a retirement. But I feel like that's just not enough. I'd like to own and rent out more houses, but I don't want all my eggs in one basket either.
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Real estate is a great investment - just not the only investment..... and frankly -- many other investments have better returns -- but YOU have done it right IMHO -- Getting a real estate investment going EARLY will work out great in the end - because of the length of time to pay off the mortgage..... 30 years or even 15 years is a LONG TIME - and it's nice to be able to pocket the payment in retirement! Good for you!