Investing 102

[WSSix]

lol, I chose OXY over Conoco. Oh well.

[GregWeld]

Don't get all caught up in small scale ups and downs... and your choices for individual stocks.

When you roll out the 10 year PRICE appreciation --- you'll see this:

OXY --- UP 553%

CVX --- UP 140%

COP --- UP 148%


No bad choices in any of these in my book. Anytime you have 100% + price appreciation (capital appreciation) AND you're getting a dividend on top of this! WTF -- no shame in this house!

[GregWeld]

Responding to the "where do I look for comparisons" question...

There's no one source for "everything"... and you can make comparisons until your brain is on fire. If you are looking for "names" in sectors -- google the ETF in that sector -- say "OIL COMPANIES" or something similar -- you'll get so much information that you'll be on overload in a nanosecond.

This is why I say -- for "investing 102" that you have little more to do than drive down a busy street and make note of the big names you see. Which one do you like - which one do you purchase from...

So let's say there's a Chevron - an ARCO - and a SHELL gas station. Just start to compare those and see where that takes you. Doing a minimum amount of research on just those three - will bring up other names... and if they're familiar - look them up -- that will bring other names to mind - or maybe they're mentioned.

The problem for most people is there are TOO MANY names once they get started. And the key is not to become a Mutual Fund and load up on all kinds of crap you don't really know anything about. Keep it simple!

Find out the SECTORS you want to investigate.... so make those big and broad.... ENERGY... within energy you'll find pipes - drillers - retailers - refiners - some that do both or whatever... but this is when I'll remind you to find names that you know! If you don't know the name and have no idea what they do or why -- then you shouldn't even bother investigating. You'll be wandering around aimlessly for weeks if you start down that path.

Unless you're running a 100 million dollar fund... keep your investing simple. Keep it diversified. Make sure you understand what you own.

There's a zillion companies -- there's very few "sectors" - so I'd start with sectors - because that will get you to see diversity. Energy - consumer - finance - transportation - Industrials - etc. So once you have that idea in your head - just google "Industrial mutual funds". What I did then - for this post - is highlighted the first "SYMBOL" that came up and said "search google" which took me to the google finance website and their chart etc -- I scrolled down to see what they top 10 holdings were.... on that particlular list there was like one company I recognized -- so I went back and found another symbol and did google search on that one - it's top ten was a who's who of Industrial companies I knew... GE -- Honeywell - United Technologies - Cummins - Catapiller etc.

My take is -- if you threw a dart at the top ten holdings of this mutual fund - did a minimum amount of research and compared these top ten industrial names - you'd find one that had great total return = paid a decent dividend = and was a company you'd want to own. Move on to another sector....

I know this sounds simple to some and overly complicated to others -- but it will work for you.

Remember the number one thing.... just getting started -- it will change your life forever. Once you're hooked on making money -- you'll find it the best addiction you've ever had.

[toy71camaro]

Originally Posted by GregWeld

So let's say there's a Chevron - an ARCO - and a SHELL gas station. Just start to compare those and see where that takes you. Doing a minimum amount of research on just those three - will bring up other names... and if they're familiar - look them up -- that will bring other names to mind - or maybe they're mentioned.

Thats somewhat how i ended up with CVX, there's quite a few of them in our town. Coupled with their dividend increases, solid returns, etc.

Originally Posted by GregWeld

There's a zillion companies -- there's very few "sectors" - so I'd start with sectors - because that will get you to see diversity. Energy - consumer - finance - transportation - Industrials - etc. So once you have that idea in your head - just google "Industrial mutual funds". What I did then - for this post - is highlighted the first "SYMBOL" that came up and said "search google" which took me to the google finance website and their chart etc -- I scrolled down to see what they top 10 holdings were.... on that particlular list there was like one company I recognized -- so I went back and found another symbol and did google search on that one - it's top ten was a who's who of Industrial companies I knew... GE -- Honeywell - United Technologies - Cummins - Catapiller etc.

duh! why didn't I think of that. That's the little piece of the puzzle i was looking for.

[GregWeld]

Originally Posted by toy71camaro

duh! why didn't I think of that. That's the little piece of the puzzle i was looking for.

That's what I'm here for!

[WSSix]

Oh, I'm not worried. I just found it funny that I was comparing those two and, like the little man that makes the stock go down right after you purchase, I end up choosing the one that doesn't separate into two companies.

Honestly not sure about the other companies but Marathon is also two "separate" companies. Marathon Petroleum and Marathon Oil. Same situation, one's upstream and the other is down stream.

I ultimately chose Oxy anyway because I do so much work for them and am aware of what they are trying to do which is expand production and cut costs. I think they'll do just fine.

[GregWeld]

Originally Posted by WSSix

I think they'll do just fine.

So do I - and the past shows they have done just fine.