Investing 102

[GregWeld]

Not to turn this thread into the "stock pick of the day" kind of thread....

There have been a couple of "picks" by readers that are "gambles" or at least that's what they are in my opinion....

So this is outside Investing 102 --- but a stock I might purchase if I want to stick with my usual - when they're selling, I'm buying - mode of operation...

I'm looking at Banco Santander (STD) which I used to own - but it's now down around $7 a share (terrible PRICE performance) - but at this depressed level - it's paying a 12+% dividend.

This wouldn't be for the faint of wallet/heart - because this bank is squarely in the eurozone fight for it's life...

[Bucketlist2012]

Originally Posted by GregWeld

Good to hear! I'm not a "contrarian" - but I do tend to buy when the other guys are running for their lives.... This same "habit" served me well with buying class A apartment complexes in Scottsdale, AriDzona during the savings and loan crisis days... We could buy them from the RTC or the lenders... for 50 cents on the dollar. Those where the days buddy -- Cash was king (still is)... and there were deals to be had if you had the cojones!

I remember those days, but I was too stupid to have money.

Again, i was very fortunate to wake up at the right time in life, my 40's and around 2005.. You could see what was coming, and i was lucky enough to be patient, and to put lots of money out there in 2009...

I am still a novice, and have a lot to learn. my Wife doesn't think so because her Life is cushy sweet, But I know better... At 52, i am just getting started..2008/2009 was the opportunity of a Lifetime..Like a dream..

Ah Greg, the old days...Cash would just sit there and make double digits in the bank.. But I was too stupid then..Spending faster than I made it..Leverage....Not good..

But again, in between a kitchen remodel, my car being pampered at East bay Muscle cars, and all the other fires I have lit, i will be following your Tips, and advise...

I think while we get dividends for our money, things will be volatile for a while with the Euro, and sabre rattling all over the world.. the printing and spending. The Left vs. the Right.

And I am with you, a big Dip would just be a buy op for my dry powder..I had more powder, but I budgeted some cash for my car because ...well, I just had to..

Thanks for the thread, and advise..

[GregWeld]

We all -- always have to have cash for car projects... Hell -- I've spent more money on cars and shops and tools and stuff than anyone I know but Charley...

BUT -- the ever present big butt -- I did that AFTER I could afford to. Like I always tell the kids -- "you can't spend your way to wealth". So I'm all for crazy car stuff... but it's my savings and investing that allows me to be able to do that. Another thing I tell my kids (they don't listen) is -- if you get $1000 for a bonus -- save HALF -- and blow the other half... but it's the saving half that will pay off in the end.

Had a buddy - he was budgeting $85K for a 3 year car build... and we got to discussing that. He had no money in the bank - but was willing to spend $85K building a car (that was going to cost him $125K.... like we all know!). He was YOUNG at 30 years old.... All I could do in my head was run the numbers that if he had the ABILITY to spend $85K in three years -- what he could SAVE and how much car he could build when he was 50 and pay cash and not bat an eye. But he started building the car anyway - then the overtime went away - then the house - and the car....

[Bucketlist2012]

Originally Posted by GregWeld

We all -- always have to have cash for car projects... Hell -- I've spent more money on cars and shops and tools and stuff than anyone I know but Charley...

BUT -- the ever present big butt -- I did that AFTER I could afford to. Like I always tell the kids -- "you can't spend your way to wealth". So I'm all for crazy car stuff... but it's my savings and investing that allows me to be able to do that. Another thing I tell my kids (they don't listen) is -- if you get $1000 for a bonus -- save HALF -- and blow the other half... but it's the saving half that will pay off in the end.

Had a buddy - he was budgeting $85K for a 3 year car build... and we got to discussing that. He had no money in the bank - but was willing to spend $85K building a car (that was going to cost him $125K.... like we all know!). He was YOUNG at 30 years old.... All I could do in my head was run the numbers that if he had the ABILITY to spend $85K in three years -- what he could SAVE and how much car he could build when he was 50 and pay cash and not bat an eye. But he started building the car anyway - then the overtime went away - then the house - and the car....

I know.. Simple money management first..

I roll debt free except a small 4% fixed mortgage. no other debt.. Keep the emergency fund of dead presidents in a different account.. .5%, but it is my sleep at night cash knowing I have it.. I have an account with Schwab, no day Trading.. Keep an eye on my NET worth, rather than the amount of assets. you and I both know that what looks like a Rich life, may be someone Hocked up to their eyeballs , and they own nothing.. If people could understand that first, then they probably could invest, because they would have money.

i have watched this thread and waited to comment because i am still newish to investing. Sure I own McDonalds, and Kinder Morgan, and i rode the commodity train from 2008 to now, just like the Big Banks did..Holy crap, they made 55% on their money in the first quarter of last year, in commodities, with our money !! I just tagged along for the ride.

But you have skills brother...I can see that, and I thank you for sharing..

[GregWeld]

Thanks Solar.... I really don't have any special knowledge or skills... what I'm trying to bring to the table is blue jeans and t-shirt common sense...

[Bucketlist2012]

Originally Posted by GregWeld

Thanks Solar.... I really don't have any special knowledge or skills... what I'm trying to bring to the table is blue jeans and t-shirt common sense...

Haha..that is the skill...

Taking some of the mumbo jumbo they try to feed us, and to break it down to common sense, and also adding in the yield numbers, and other knowledge about certain investments.. Sure they are accessable to everyone, but hearing it another way is refreshing.

I don't expect the answer to it all, but success leaves clues...And I am constantly hungry for knowledge..

Oh, and Solar used to be my Career until 2008 came along..

Medical issues, and the golden opportunity , changed all that, for the better...

[dhutton]

Just wanted to say thanks to Trey for starting this thread and Greg (and others) for taking the time to post here and get me going. I sold my Firebird a few months back and I've taken that money and opened a Schwab account. I picked 12 stocks (aka Don's Dirty Dozen ), a few have done well, a few are possibly shaping up to be turkeys but overall the advice here has gotten me on a good start.

Thanks again,
Don

[Bow Tie 67]

Two days to finish getting through this thread. Thanks to all who have contributed, and a special thanks to Greg.

I have been planing on sitting down with my daughters ( 18 and 19 ) to talk finances. This thread lit a fire under my rump, I am excited as they are young enough were it can make an enormous difference.

As far as I go, I'm getting ready to move my Roth over to the brokerage account. The credit union is only paying .750% I want control of it.

Scottrade account:

Own Ford

Played with AMR recently ouch!!


Added:

Verizon
Merck
Altria
Kinder Morgan


I'm one that has never been diversified and always made the wrong choice.

I own SNWT not sure why just a click of the keyboard, Duh! look if you dare. reverse split to 5000 shares worth $12 now started with $1500

I'm liking the steady less risky approach to well known names.




....

[pw2006]

Originally Posted by GregWeld

Not to turn this thread into the "stock pick of the day" kind of thread....

There have been a couple of "picks" by readers that are "gambles" or at least that's what they are in my opinion....

So this is outside Investing 102 --- but a stock I might purchase if I want to stick with my usual - when they're selling, I'm buying - mode of operation...

I'm looking at Banco Santander (STD) which I used to own - but it's now down around $7 a share (terrible PRICE performance) - but at this depressed level - it's paying a 12+% dividend.

This wouldn't be for the faint of wallet/heart - because this bank is squarely in the eurozone fight for it's life...

Don't let the ticker symbol scare you , this one looks very interesting. Lots of bad news has driven this stock down and they have been selling assets to increase their capital requirement. Despite the Euromess and selling some of their assets, they have stated that their intention is to maintain the dividend. They compare very favorably to their peers on many of the financial ratios (PE, price to book, net profit margin, etc), and they have a HUGE dividend. Like Greg said, this is not for the faint of heart as it will take a while for Europe to dig their way out of the current mess, but with a 12%+ yield, you are getting paid pretty good to wait.

[Bow Tie 67]

Here's a question, I refinanced to a 15 year fixed 3.375% loan. I'm paying extra principle to cut the loan to 9 years according to one online calculator an investment with a 6% return suggested go with investing vs buy down. Thoughts?