Investing 102 - Lateral-g Forums

toy71camaro · #1 03-01-2012, 09:25 AM

I cant tell for sure... Im having a tough time getting a chart to show exactly what i want (graph of share price. seems most show growth when comparing two stocks)...

anyhow, it seems as if they two counter each other, as in, if PEP is doing WELL, KO isn't so well, then, a year or two later KO catches up, surpasses PEP, an PEP takes a little "hiatus" for a couple years, then catches back up and surpasses KO, KO takes a little hiatus and repeats.. lol

in the end, it doesnt matter a ton either way.. but just trying to "figure" how to analyze a pair of stocks to try and help me determine which to purchase... (when, if the above seems true, PEP is on the "slide" it seems, so going that rough may result in a continued slide for a while = more shares for less $. couple years from now it will catch back up to KO), and then vice versa...

again, just thinking out load, using these two companies as an example so i can learn to apply my decision making process to other companies when i review them too.

Edit... all in all, i am breaking the rule of investing 102.. im comparing "timing" of the buy, which isnt as important as JUST BUYING ONE. lol

CRCRFT78 · #2 03-01-2012, 09:41 AM

What you want to remember also is what has been repeated throughout this thread. When the market starts to dip, a lot of investors will panic and sell. That's when you want to buy more. Pepsi/Coke are not here today/gone tomorrow companies. They will take their hits but will continue to move in the right direction. Steady eddies as Greg would say.

toy71camaro · #3 03-01-2012, 09:46 AM

Right.. i was just trying better understand the "comparison" process, so i could apply it to the rest of what i compare. I actually picked those two simply because of the article posted yesterday was talking about KO.

Thanks again for just letting me "spill out" my thought/reasoning process. LOL.

BTW, Greg... How's Bellevue doing? I was up there once as a kid (early 90's). My dads uncle was a VP or some sort of "higher up" at the Bellevue Square Mall. We went and stayed with him for a few days for a visit.

Nice place up there.

**GregWeld** · #4 03-01-2012, 10:01 AM

Quote:

Originally Posted by toy71camaro

Right.. i was just trying better understand the "comparison" process, so i could apply it to the rest of what i compare. I actually picked those two simply because of the article posted yesterday was talking about KO.

Thanks again for just letting me "spill out" my thought/reasoning process. LOL.

BTW, Greg... How's Bellevue doing? I was up there once as a kid (early 90's). My dads uncle was a VP or some sort of "higher up" at the Bellevue Square Mall. We went and stayed with him for a few days for a visit.

Nice place up there.

#1 -- You're doing exactly what these forums are designed to do... BS'n with people = like hanging out in the garage together!

Bellevue -- or as I like to call it -- BLAHview.... I've been here since 1984... I used to be able to see Mount Rainer from downtown -- that view has since been hidden behind all the high-rises! Bellevue Square has doubled or tripled and they now have a sky bridge going across the street to Lincoln Center... a whole 'nother shopping bunch of crap. Kemper Freeman Jr basically owns all of downtown... and he's done a real good job of developing it INHO.

toy71camaro · #5 03-01-2012, 10:18 AM

ah, sorry you lost your view. lol.

I remember that mall was pretty snazzy. the "skywalk" sounds familiar. it's been so long since ive been there (was probably 12-13 at the time), have a hard time remember some things.

They were "very well off", and i remember my Aunt taking us and "showing us around town" lol.

Anywho, back to investing 102 i suppose

toy71camaro · #6 03-01-2012, 10:39 AM

My next "research"... is to figure out the "diversity" aspect of all this.

ie. what sectors for stocks? what about bonds? and the other "options" (not familiar with any of this yet).

which ones to "play now" and which ones to "wait for a change (invest in the "play now group"), and play later", etc.

**GregWeld** · #7 03-01-2012, 02:02 PM

Here's a real life STEADY EDDY "terbacky" (aka: Sin stock) stock... People poo poo stuff like this because they all want to own the big hitters... That, and nobody is talking about the price per share at the grocery store... LOL

I own 6,500 PHILIP MORRIS (PM) @ todays closing price $84.23 for a total of $547,495.00 market value -- My average cost per share is $68.55 for a total investment of $445,564.60 --- So I have an UNREALIZED capital gain of +$101,930.40

My first buy was 2/03/11 @ $57.80 per share

4 more buys at various levels on the way up for a total of SIX buy ins

My last buy was 2/10/12 @ $80.40 per share

The point here is -- I was scaling in -- I don't really care that the price went UP from where I first bought it -- in fact I'M VERY HAPPY it was doing that! It's doing EXACTLY what I want it to do!

My AVERAGE cost is still only $68.55 per share

And I've collected $8,700.00 in dividends along the way....

Again - everyones actual positions are going to be scaled to THEM... I'm just using a real life actual example to show the affects of scaling in.... and that I just INVESTED in a dividend paying stock that is boring to the maximum.... but I'm very happy owning it. I don't really care whether people are smoking or not (I don't and I hate smoking!) --- it's an INVESTMENT I can live with, even if the buyers of the product can't!

**GregWeld** · #8 03-01-2012, 05:03 PM

Quote:

Originally Posted by toy71camaro

They were "very well off", and i remember my Aunt taking us and "showing us around town" lol.

Bellevue is the Beverly Hills of Washington... there are so many high tech companies here... and national headquarters for many really well known companies. When I start to rattle them off for people -- they're blown away...

Microsoft - Amazon - Starbucks - Costco - Paccar (Kenworth and Peterbilt trucks) - Zillow - Expedia - Nordstrom - Alaska Airlines - Nintendo - T Mobile... just to name a couple.

toy71camaro · #9 03-01-2012, 05:08 PM

a couple... hahaha... yeah, i do remember it being pretty nice around there!

**GregWeld** · #10 03-01-2012, 09:53 AM

Quote:

Originally Posted by toy71camaro

Edit... all in all, i am breaking the rule of investing 102.. im comparing "timing" of the buy, which isnt as important as JUST BUYING ONE. lol

Albert -- You are doing what this thread has been trying to get people to do... just compare -- think about them (any company) -- scale in if at all possible... and you're not really "timing" the market by seeing that a company may temporarily be down while the other is up... What you need to do when you see something like that is to try to figure out WHY that is so. Dig a little deeper... Google some news -- go back a bit and try to see if there was an "earnings miss" -- or a takeover of another company that has temporarily got the company off track... Try to FIND something that may explain the "issue". Some times you'll find nothing -- and sometimes you'll learn something that makes you like the company even more. In the end -- you're buying a piece of the company and the management - and the products they make.... and you need to feel good about that choice.

If 10 years from now -- you're only up 67% vs the other company up 85%... you really didn't make a "mistake"... and if during that 10 year period there was a point in which the companies were trading down -- and you held your position because you were comfortable owning it.. then that is what really matters.

We're preaching DIVERSITY as well here -- this is just ONE pick out of the 10 plus companies you're going to choose.... If you were at the horse races and you're picks finished 1st -- 3rd -- and 4th... you're still a winner.