Investing 102

[GregWeld]

Thanks Mike -- it just occurred to me that only you - Sieg - and a couple others are asking questions or participating... so got to thinking that maybe it's gone sour somehow.

[carbuff]

Haven't posted in this thread yet, but reading every post along the way. No, I don't think it's gone south at all... Hopefully others, like myself, enjoy reading and finding motivation in it.

[dhutton]

Originally Posted by GregWeld

Thanks Mike -- it just occurred to me that only you - Sieg - and a couple others are asking questions or participating... so got to thinking that maybe it's gone sour somehow.

I am following the thread and trying to use the advice given. I just don't have anything useful to add so I am keeping quiet.

Using the advice here I have made a little money in my Schwab account and my 401k. It has been an interesting ride so far and it takes a lot to remind myself that I am investing and not trading....

My best success to date is CAT, my biggest flub to date is VZ. It's only been three and a half weeks so let's see where I am in a year.

Thanks,
Don

[GregWeld]

Originally Posted by dhutton

My best success to date is CAT, my biggest flub to date is VZ. It's only been three and a half weeks so let's see where I am in a year.

Thanks,
Don

Don -- If you owned 20 or 300 individual stocks -- those "flubs" will move about with time... Remember the little dude on Wall street that takes YOUR latest purchase (investment) straight to the dog house 15 seconds after you hit the buy button!

So CAT --- which has had a very nice run contrary to what Europe and China and the USA have been telling you (which is building stuff STINKS)... just turned in a stellar quarter! But remember that you need GROWTH (which CAT is showing us it has) to trade off for the dismal 1.56% dividend payout... whereas VZ has that nice 5.56%... so VZ is paying you to wait for the stock to catch up.

What we're seeing -- and have seen -- and will continue to see with the big wireless guys is huge build out costs trying to one up each other with capacity and speed etc - and then you add the subscriber costs... every time someone buys an iPhone -- these guys are PAYING APPLE about $400 for each one of those! Good for Apple -- not so hot for the bottom-line of VZ and T... and now T-Mobile. But those subscribers are paying premium monthly bills so eventually the cash flows to the bottom line. In the meantime you get a nice quarterly payout.

[sik68]

I can't say it any better than that, and here is some good data on the cellular industry:
http://www.pcmag.com/article2/0,2817,2397688,00.asp

Highlight:
"Approximately 44 percent of Americans now own smartphones, up from 18 percent two years ago, "

That's phenomenal growth, and like Greg said it takes a lot of infrastructure/cost to keep all of these data users happy...but at $20+ per month, per data device, they are raking in the cash. And with only 2 or 3 real players in the US, it's not hard to see who is holding the rakes. (Although, I also bought Sprint (S) at $5 and so far that's not panning out well at all).

AND

That leaves a large majority as untapped data plan customers...data is a cash cow, and it's only in its infancy. IMHO.

[96z28ss]

No its good reading.
I wouldn't dial it back. I've been reading and am starting to do some research.
I have a couple 401k's from employers I even have a pension from one. I don't have any stocks at this time thats why I haven't posted. I'm sure its the same with others. I'm taking it all in.

[Bucketlist2012]

Originally Posted by GregWeld

Thanks Mike -- it just occurred to me that only you - Sieg - and a couple others are asking questions or participating... so got to thinking that maybe it's gone sour somehow.

You bet.... Never stop...It should never be sour, because it is so important..

You are sharing and in a way, giving back to people by your success...

I do it on a money management level, but I am not comfortable giving investment advise , except the most basic stuff because I can only explain what I know...Again, I consider myself a novice...

Kudos on having the knowledge and sharing...