Investing 102

[Sieg]

To reinforce Greg's advice:
11:16 AM Among the stocks making new 52 week highs as year end approaches are faithful big-caps across a number of industries: Wal-Mart (WMT), Pfizer (PFE), Verizon (VZ), and McDonald's (MCD). All yield more than the 10-year Treasury and likely have more adaptive managements than that in D.C. What's not to like?

[RECOVERY ROOM]

Originally Posted by Sieg

To reinforce Greg's advice:
11:16 AM Among the stocks making new 52 week highs as year end approaches are faithful big-caps across a number of industries: Wal-Mart (WMT), Pfizer (PFE), Verizon (VZ), and McDonald's (MCD). All yield more than the 10-year Treasury and likely have more adaptive managements than that in D.C. What's not to like?

Its kinda addicting isn't it... .

[GregWeld]

Here's what is addicting.... my Schwab account is UP over 100 grand in the last two days... and I just sat here watching CNBC and blabbing on Lat G....

Now - those are "paper gains" -- but over all -- my account in that particular brokerage (I use a few) -- is UP "on paper" more than I've spent this year... That is CAPITAL GROWTH.

Some days the account is DOWN -- some days up a little -- some days it's up OMG... but overall -- that "chart" I'm always referring to is low on the left and climbing to the right.

Here's another little "funny". I invested in a company (start up money) 7+ years ago. Bought a bunch of shares dirt cheap -- they are not "liquid" because they're not publicly traded so it's really "dead money".... then the company went public -- and "on paper" that investment was HUGE (imagine buying at .56 a share and watching it go to $28 a share!)... then the "market" had it's hiccups -- and I watched those shares "on paper" drop to $1.70 a share.... oh the horror -- right? But I still had a 300% gain on them at that low ridiculous price! So I watched millions turn into "not much".... but I didn't spend those "paper gains" -- I didn't borrow on those "paper gains" -- and when those "paper gains" weren't so much - it was just a sigh.... Then a year or so more of time goes by and the shares are at $5 -- then $10 -- then $17... then somebody buys the company out and those paper gains are REAL MONEY paid in cash.... @ $34 per share....

My point -- it took lots of TIME (7 or 8 years!)..... and there was lots of "paper gain" (which means nada!) and there was lots of "woulda/shoulda/coulda".... but I knew the company - believed in the original investment -- so rather than selling at the bottom - I just held on.... and bingo THE LUCKIEST MAN ALIVE comes knocking...

The other "point" is that you have to take the good with the bad --- the highs and lows - keep your wits about you - don't panic - UNDERSTAND what you have invested in and WHY.... (in this case it was some "gambling" money so I was okay with them being down and the investment being worth zip).

Had I NOT played the game (think of an ante in a poker game - can't play if you don't ante up!) I would never have gotten the reward. And trust me - for every "winner" I can tell you about MANY losers!

BUY GOOD STUFF -- DO NOT GAMBLE -- UNDERSTAND WHY YOU BUY -- GIVE IT SOME TIME (not a half hour!).

I have enough NORMAL investments that I can afford to dabble in RISKY stuff.... DO NOT GO THERE because you will LOSE more than you will make. This thread is about SAVINGS and INVESTING - not gambling and getting rich quick. Please don't lose sight of that. It's also about THEORY not actual names to invest in. Do your research - KNOW WHY YOU BUY -- have the investments meet YOUR requirements - and that depends on age - knowledge of the industry your investing in - what type of account it is, i.e., is it a retirement account or an account for college for kids - or are you just wanting to play around and TRY to make some money (please don't tell me about this!)....

[Sieg]

Numbers like that make me giddy.

My shinning star of the day even after it dropped big:
Oracle - 480 $12,369.60 $25.77 -$3.40 $2,789.95 +$9,579.65 +343.36%

It's one of the few stocks I timed and bought right.

[GregWeld]

Originally Posted by Sieg

Numbers like that make me giddy.

My shinning star of the day even after it dropped big:
Oracle - 480 $12,369.60 $25.77 -$3.40 $2,789.95 +$9,579.65 +343.36%

It's one of the few stocks I timed and bought right.

Stuff going UP always feels better than stuff going DOWN.... and for every 10 stocks invested in - 2 will be winners - 3 will be "okay" -- 2 or 3 will be even -- and 2 or 3 will SUCK!

The winners will make up for the losers and the "okays" will be your real gain... Trust me folks - you will NEVER get all 10 stocks "right". But if you're in 10 stocks you'll be in the game!

Good call on the Oracle. One stock I've never bought - since I live in the land that Bill Gates owns and he and Larry are mortal combatants! But it's been a great stock over a very long period of time!

This brings up some RULES -- and I don't know what they are -- other than I've heard them mentioned from time to time. Something along the lines of "the stock market advances on 3 or 4 DAYS in a year - and if you're not in the market on those days - your annual gains will be next to nothing". Don't quote me on the number of days etc - but it's a very small number of days that the market move up BIG... and those days - are to me - the days that remind you why you are in the market (and not OUT of the market). Those days WILL come the week right after you sell.... and you just watch them slip through your fingers.... Trust me - I've experienced that pain.

[Sieg]

Originally Posted by GregWeld

"the stock market advances on 3 or 4 DAYS in a year - and if you're not in the market on those days - your annual gains will be next to nothing". Don't quote me on the number of days etc - but it's a very small number of days that the market move up BIG... and those days - are to me - the days that remind you why you are in the market (and not OUT of the market). Those days WILL come the week right after you sell.... and you just watch them slip through your fingers.... Trust me - I've experienced that pain.

How did you know I had lunch today with the guy I bought those 100 shares of Nike from? I live in the land of Nike and still have issues wearing their shoes, partly because their lasts are a little narrow.

Back to a positive: Do you have any PCL?

[GregWeld]

Originally Posted by Sieg

How did you know I had lunch today with the guy I bought those 100 shares of Nike from? I live in the land of Nike and still have issues wearing their shoes, partly because their lasts are a little narrow.

Back to a positive: Do you have any PCL?

I can't wear Nike either... for the very reason you point out. Well -- that and my buddy is the CEO of Brooks...

Nope -- no Plumb Creek.