Investing 102

[CRCRFT78]

Looking at my IRA I've noticed Pepsi is -7.72%, Consolidated Edison is -6.93% & Disney is -2.34% since purchase. Is -5% just your benchmark for scaling in or is that one of those unwritten suggestions for investors?

[CRCRFT78]

Well I've been itching to add to my stocks so I just purchased 10 more shares of Pepsi @ $62.29 ($622.90). Combined with the initial 15 shares I purchased at $67.51 ($1012.65). Which comes out to an average of $65.42 per share. With the stock being down -7.73%, and with the intention of holding for the long term I thought now is as good a time as ever.

Sorry theres no real purpose for this post, just excited to add to my investments and looking forward to what the future holds for me once these start to pay off.

[toy71camaro]

Originally Posted by CRCRFT78

Well I've been itching to add to my stocks so I just purchased 10 more shares of Pepsi @ $62.29 ($622.90). Combined with the initial 15 shares I purchased at $67.51 ($1012.65). Which comes out to an average of $65.42 per share. With the stock being down -7.73%, and with the intention of holding for the long term I thought now is as good a time as ever.

Sorry theres no real purpose for this post, just excited to add to my investments and looking forward to what the future holds for me once these start to pay off.

Sounds good man... its ok, i feel those "need to share moments" too. i think half mine are. hah..

Any how, i think you basically "did good".. you knew u were keeping them long term, you seen a 7% sale today, you had some cash and you took advantage of it. Does that mean next time it goes on sale for 7% off you buy it also? nah, all depends on what ya got to spend, and when, etc.

Atleast thats how i see it.

[CRCRFT78]

Albert, I had the cash just sitting there doing nothing (lazy workers) and for some reason it just never dawned on me to look at the market as "going on sale" when its down. Your comment lit a lightbulb when you said that. So buying seemed like the next logical step. Unlike most people I don't feel bad taking the loss when the market is down and I don't panic when that happens. However, after making the purchase I'm no longer worried about when my lazy workers will get back to work.

And on top of that, who doesn't like buying when things go on sale.

[toy71camaro]

LOL exactly. Thanks Greg for that little tidbit of info.

[CRCRFT78]

Greg, regarding Banco Santander, can you give us some insight about the ADR fees and how do they affect your overall ROI? Banco Santander has been a name I've been watching but being a newbie I want to make sure its something I understand before spending money on. Would this be stock to purchase for my IRA (my retirement) or my Schwab (money I have no attachment to if lost) account.

[GregWeld]

Originally Posted by CRCRFT78

Greg, regarding Banco Santander, can you give us some insight about the ADR fees and how do they affect your overall ROI? Banco Santander has been a name I've been watching but being a newbie I want to make sure its something I understand before spending money on. Would this be stock to purchase for my IRA (my retirement) or my Schwab (money I have no attachment to if lost) account.

ADR's --- American Depository Receipts

There are fees associated with any ADR -- by the institution that holds the underlying securities...

So here's what that "dividend" payment looks like for Banco Santander (STD) the last time I got a dividend. I actually had a position in this name - then sold it - and waited for a little better news on the euro debt crisis -- then have scaled back into it just in the last month or so.


05/09/2011 STD BANCO SANTANDER SA ADR FSPONSORED ADR
type: FOREIGN TAX PAID
-$322.64

05/09/2011 STD BANCO SANTANDER SA ADR FSPONSORED ADR
type: QUALIFIED DIV
$1,698.13

So as you can see -- the $1700 dividend was actually $1400.... and I'll claim the foreign tax paid on my income taxes.

I like the dividend on this bank over other banks - and I don't expect the name to turn around over night. Some times you have to have a brass set to own some of this junk. I fortunately can buy stuff like this... not sure anyone else should be. It's high risk.

[GregWeld]

Re: Annaly Capital Management -- or any other 'name' like this....

I'm not the resident stock guru - nor resident stock picker... I really am quite uncomfortable discussing various names like this because you all have different reasons for your investments - different tolerances for risk - different goals - incomes etc.

Here's something also worth repeating:

If you don't know the name -- and don't understand the business the company is in ---- DON'T BUY IT! Because when something goes sideways --- you won't know why you own the name - and won't have any connection with it -- and that's SCARY!

I've been preaching since the beginning of this thread about investing in names you know... and there's no sense in investing outside your comfort level until you own all the "regular good stuff"... why go looking for trouble?

This is Investing 102....

Some of this stuff is for sophisticated investors that understand the risks associated with investments like junk bonds - and mortgage REITS etc. When you start playing with this stuff you better know what you're doing and be on top of the news - and trends etc.

Not saying that I'm sophisticated and you're not --- I'm just once again writing for ALL that read these threads... Please start out investing in all the best of breed - good dividend payers - steady eddies -- and live with that stuff for awhile -- before you start jumping into companies that make nothing... ya don't know what they even do... or what affects their earnings etc.

[Bucketlist2012]

Originally Posted by CRCRFT78

Well I've been itching to add to my stocks so I just purchased 10 more shares of Pepsi @ $62.29 ($622.90). Combined with the initial 15 shares I purchased at $67.51 ($1012.65). Which comes out to an average of $65.42 per share. With the stock being down -7.73%, and with the intention of holding for the long term I thought now is as good a time as ever.

Sorry theres no real purpose for this post, just excited to add to my investments and looking forward to what the future holds for me once these start to pay off.

Excitement is good... You know , we never time the bottom..That is why we scale in..

Even stuff I bought on sale last time , went down before it went up..So i lost, right after I bought...But the dividends, and the rebound finally came, as i thought it would..

It is hard to part with cash, but in the end, the cash will generate nothing, and Inflation will crush you..So good job, on putting it to work..

I won't even look at mine today...because it always ends up up, just not today..

[Bucketlist2012]

Ok, enough of my usual gibber, and on to good stuff..

Ok, the reason I recommend Kiplinger's magazine is that in this issue, among a ton of great money management and investment info, it talks about Chesapeake Energy and Annaly.

So I know Greg talks about these great plays in your portfolio, and they are.

I just want you to have the magazine so that you see on paper what someone else says about these plays.

How Cheasapeake yields 6.1% and although the company profits may decline this years due to nat gas, it will pay it's interest and principal comfortably. And it also talks about some of it's long term plans.

Also info on another great play, annally..And how it may be a good play for a while to come still...

It just gives you more tools to use to make your decisions...No financial advisor needed...Research and tools...And study and Time..

So check it out if you have just bought these assets , or are thinking about it..Plus some cool , useful info in the magazine..

I have some skills...Some days my skills are better than other days...