Investing 102

[Sieg]

Originally Posted by GregWeld

I would never buy 5 shares - of anything....

2 grand to invest can get you good companies - with share prices below $50 and that pay a dividend.

The response answers my open ended statement.

I imagine there are number of shares vs price per share ratio's out there to aide in the decision. My basic fundamentals have been minimum of 100 shares with a price range of 20-40 and above 3.5% dividend. My recent additions have been MO, VZ, PFE, XLS.
I've been watching T closely as that dividend is hard to ignore even though it weights the portfolio I don't see the sector declining anytime soon.

Thanks again Greg, the educational value of this thread continues to compound.

[GregWeld]

Originally Posted by Sieg

The response answers my open ended statement.

I imagine there are number of shares vs price per share ratio's out there to aide in the decision. My basic fundamentals have been minimum of 100 shares with a price range of 20-40 and above 3.5% dividend. My recent additions have been MO, VZ, PFE, XLS.
I've been watching T closely as that dividend is hard to ignore even though it weights the portfolio I don't see the sector declining anytime soon.

Thanks again Greg, the educational value of this thread continues to compound.

I don't want to get into recommending individual stocks... that's a dicey business... and I'm not a broker or a friggin' stock guru (Cramer)... which is why I'm trying to stick to PRINCIPLES and THOUGHT PROCESS (for NEWBS)...

I agree that if you're a smaller investor -- you don't need to own TWO TELECOS... Pick the one you do business with - or like - or just want the dividend from. These are "steady eddies" with nice dividend streams... which is why and how I use them.


You might want to look into a holding I have - PFF - this is an ETF (exchanged traded fund - so is similar to a mutual fund). PFF invests in PREFERRED S&P dividend payers... It pays MONTHLY... and is currently yielding 6.99%

Read what they're into --- and make your own decisions based on YOUR research and needs NOT my "recommendation". I'm picking this stock (ETF) out as a way for a smaller investor to get some yield - get some diversity without having to pick several individual shares. The price will let you "in" .

I like to buy preferred shares if the yield is right - and it's in a name I know.... the DIFFERENCE is THEY PAY INTEREST not a dividend so the tax treatment is ordinary income. So watch out for that if you're buying that kind of thing OUTSIDE an IRA/SEP/ROTH type account.

WATCH OUT FOR WORDING --- DISTRIBUTION YIELD vs QUALIFIED DIVIDEND

One (DY) is ordinary tax and one (QD) is 15% tax max.

[Sieg]

I understand the recommendation issues. I wasn't fishing for a blessing, just putting my cards on the table as an one example.......I guess. I'm always open to constructive criticism or speculation, everyone's wired a little differently and the more examples the better to some degree.

Personal preference vs. portfolio balance is a real challenge at times. This stock buying is similar to balancing wants and needs in the good old fashion buffet line.

I've been researching EFT's and one will most likely be my final purchase and I'll be done with the buying frenzy with the exception of some long over-due house cleaning when the time is right, then I'll sit back and watch results and adjust as needed.

PS - I trust you more than Cramer.........besides, you're taller.

[GregWeld]

Originally Posted by Sieg

Personal preference vs. portfolio balance is a real challenge at times. This stock buying is similar to balancing wants and needs in the good old fashion buffet line.

I totally agree -- there's too many choices out there... and it can be very hard when it's real money - and you're having to make choices.

That is why I've really tried to use EXAMPLES to discuss -- more for the THOUGHTS rather than the actual stock/etf/mutual fund being used for the discussion.

Just like my "I bought X" post -- Nobody should feel that's what THEY should do -- I'm just using the example so I can lead into the thought behind the buy or sale. I think that's where this thread is useful -- the discussion of the reasoning... and trying to BUILD on that reasoning by adding some tidbits along the way... so people can make their own decisions --- I don't care if they're only choosing which mutual fund to buy! At least they might look into them a bit more -- and use some thought process to choose A from B. If not -- we're all just wasting our time -- and I don't think we are. At least I hope not.

[Sieg]

Originally Posted by GregWeld

I totally agree -- there's too many choices out there... and it can be very hard when it's real money - and you're having to make choices.

That is why I've really tried to use EXAMPLES to discuss -- more for the THOUGHTS rather than the actual stock/etf/mutual fund being used for the discussion.

Just like my "I bought X" post -- Nobody should feel that's what THEY should do -- I'm just using the example so I can lead into the thought behind the buy or sale. I think that's where this thread is useful -- the discussion of the reasoning... and trying to BUILD on that reasoning by adding some tidbits along the way... so people can make their own decisions --- I don't care if they're only choosing which mutual fund to buy! At least they might look into them a bit more -- and use some thought process to choose A from B. If not -- we're all just wasting our time -- and I don't think we are. At least I hope not.

I doubt anyone following this thread has perceived it as a waste of time. Being able to observe insights and actions from the numerous contributors is very educational and I haven't noticed anyone making a move that lead me to think WTF did you do that for. One upside to all the choices, provided reasonable fundamentals are applied is there are a lot of nutritional choices that can satisfy the individual's appetite.

Engaging or in my case reengaging with more knowledge and developing a better feel for the big market picture with a fundamentalist focus has been emotionally rewarding in the short-term, hopefully, thanks to insight provided in this thread it will be financially rewarding long-term.

[GregWeld]

Since we're not hearing from many varied posters -- I'm wondering if there is "too much" information and maybe it needs to be dialed back...

There really only seems to be 4 or 5 posters lately -- and that tells me maybe folks have stopped reading????

[Bucketlist2012]

Originally Posted by GregWeld

Since we're not hearing from many varied posters -- I'm wondering if there is "too much" information and maybe it needs to be dialed back...

There really only seems to be 4 or 5 posters lately -- and that tells me maybe folks have stopped reading????

No, I have not stopped reading... Please continue to share.

For me, again I am doing something different, and I would rather be listening than talking.. I do not want to come on as the somewhat lucky rookie, sharing my speculation/investing strategy..

Although it works, I am learning so much on this thread..

I ALWAYS check this thread...So please continue.

It would be a crime , if you stopped.. Money and Hot Rods and the Good Life, are all needed..

Speaking of that, I may be gone doing whatever I want. Haircut, Check on my Car build...

But I will check back soon. you can count on that.

Mike V

[Woody]

Originally Posted by GregWeld

Since we're not hearing from many varied posters -- I'm wondering if there is "too much" information and maybe it needs to be dialed back...

There really only seems to be 4 or 5 posters lately -- and that tells me maybe folks have stopped reading????

Greg,

I haven't been posting much lately, but I still check this thread several times a day. I think you are providing some great information which has really got me more interested in researching individual stocks.

One of the sectors that I have not seen mentioned yet is alcohol. I figured it should rank up there with tobacco. I was doing some research on alcohol stocks and came across DEO. The dividend is slightly less than 3.0, but the stock has a pretty good growth record over the last 10 years. It looked to me to be one of the better choices in this industry. Any thoughts about the alcohol industry. I also took a look at BUD, TAP, SAM,HINKY, & PDRDF. SAM has had phenominal growth, but does not pay a dividend.

Thanks

[lmnop]

Hi Greg
As you can see this is my first post. I have been reading this thread from the beginning and will continue to do so. I come to this site because I love all the car builds, as I am not in the position to build a car yet, I just read. I feel lucky I stumbled across this thread as I have learned a lot about investing and I am appreciative that you have opened some of you financial information so others can learn. I also feel it is very brave. 99% of my investments are in real estate because it is what I know I always looked at the stock market like magic box that I would never understand. By breaking it down so simply you have alleviated some of my fear and I now look forward to diversifying and buying stock in the in the places I shop in and the professions that I know. It is funny how many times I have looked at a busy store and said to myself “they must be doing really well” I never thought to see if I could buy shares so I could start doing really well too. Thanks for all the great information and I will continue to read this thread and the bubble top thread although one needs some more pictures.
Ray

[Payton King]

lots of hits with few posters but the information is condensed, consice and full of everyday reason.

There are always things going on that move markets and provide good discussion to make a point. IE the last earnings report.

Other topics are worthy of discsussion even though they may not be reccommended for what you are trying to do here, but it would give the readers more information and broader knowledge.