Investing 102

[pw2006]

Greg's post reminded me to look at my account today and I started cracking up...

Here's interest from the cash sitting in one of my accounts (lazy workers)...

04/27/2012
SCHWAB1 INT 03/29-04/26
type: INTEREST
$6.52

Here's the dividend from about the same amount of money parked in a fairly conservative investment (more productive workers)...
05/07/2012
LQD ISHARES IBOXX INVESTOP IBOXX $ INVESTOP CORP
type: ORD INC DIV REINV.
$1,014.80

The point is, it is better to have your money working (even in something boring like LQD), versus lazing under a shade tree collecting dust. After puking in my mouth a little, I put some of those lazy dogs back to work today.

[GregWeld]

Originally Posted by pw2006

Greg's post reminded me to look at my account today and I started cracking up...

Here's interest from the cash sitting in one of my accounts (lazy workers)...

04/27/2012
SCHWAB1 INT 03/29-04/26
type: INTEREST
$6.52

Here's the dividend from about the same amount of money parked in a fairly conservative investment (more productive workers)...
05/07/2012
LQD ISHARES IBOXX INVESTOP IBOXX $ INVESTOP CORP
type: ORD INC DIV REINV.
$1,014.80

The point is, it is better to have your money working (even in something boring like LQD), versus lazing under a shade tree collecting dust. After puking in my mouth a little, I put some of those lazy dogs back to work today.

SUCH A GOOD EYE OPENER!!

I love it!!

[GregWeld]

FACEYBOOK


Okay -- I've had about a zillion emails / PM's / Calls asking if "I should - could - would" buy into the FACEBOOK IPO. So here's my take on it - it's GAMBLING - it's HYPE - but it also appears to be BIG....

SO because of my "accounts" -- I've been "allowed" to get into the IPO at offering price ($28 to $35) one of my brokerages. I have asked for 2000 shares. Remember that this is 'over subscribed' so I might not get any - I might get 100 I might get 10.... I'll get what I get and pay the "set" price at OPEN.

I would NOT buy RETAIL -- in other words --- the first trades AFTER the IPO set price! That could be 60 - 70 - 80 - 100 who knows -- but since I can get in at the set price - I stand a chance of having a gain.

I'm sharing this - as I do my other "investment life" as a "here's how all this crap works investing 102 experience". So as usual -- this is a "it takes money to make money" moment. I wouldn't be allowed into the IPO if I didn't already have a substantial account! The guy that needs it the least - gets the most... I don't happen to like that morally but it is what it is.

This is expected to price TOMORROW --- so you can all live vicariously and see if I sink or swim. I don't like Facebook - I don't use it - but EVERYBODY but me does... I think it's a fad but I'm not against making money - regardless of what I think.

[toy71camaro]

Nice!

the question is, do you hold or do you sell for a quick 2x-3x profit if it goes that route... That'd be the hard decision for me to make. LOL.

i agree with the "fad" comment. its the "best thing" out right now, but it only takes one good competitor to come up with the "next best thing" to knock it off its block.

on a side note, i use it for personal use (keeping up with friends/family) AND for my freelance photo business (www.facebook.com/albertd.photography). It makes a GREAT small business advertising tool!!

[Rybar]

Greg what's going on!!! Hope you make a bundle buddy.

Can you buy some for me at 28-35 I'll gladly take them off your hands.

[GregWeld]

Originally Posted by Rybar

Greg what's going on!!! Hope you make a bundle buddy.

Can you buy some for me at 28-35 I'll gladly take them off your hands.

I'd do that if it was legal tax wise.... but it's the old "fair market" rule that kicks in.

Like I said -- if I get it for the IPO set price -- great - otherwise I wouldn't bother.

[Flash68]

Did your brokerage ask you about holding it for awhile? I ask because my buddy got offered to buy some as well but they asked him (not required) to hold it for a bit (I think 90 days?) before selling. Very casual and nothing on paper. I found that kinda strange.

[GregWeld]

Originally Posted by toy71camaro

Nice!

the question is, do you hold or do you sell for a quick 2x-3x profit if it goes that route... That'd be the hard decision for me to make. LOL.

i agree with the "fad" comment. its the "best thing" out right now, but it only takes one good competitor to come up with the "next best thing" to knock it off its block.

on a side note, i use it for personal use (keeping up with friends/family) AND for my freelance photo business (www.facebook.com/albertd.photography). It makes a GREAT small business advertising tool!!

Great question Albert -- and regardless of what you do - you'll always second guess it and do it WRONG. Sell and it'll go to $1000 hold and it goes nowhere and you wish you'd have flipped it when you had a double... ME? I'll do it the conservative way -- if it goes gangbusters I'll sell some and hold the house's money.... It's the old pigs get fat and hogs get slaughtered. Of course that depends if I get any at all...

[Vegas69]

Originally Posted by GregWeld

FACEYBOOK


Okay -- I've had about a zillion emails / PM's / Calls asking if "I should - could - would" buy into the FACEBOOK IPO. So here's my take on it - it's GAMBLING - it's HYPE - but it also appears to be BIG....

SO because of my "accounts" -- I've been "allowed" to get into the IPO at offering price ($28 to $35) one of my brokerages. I have asked for 2000 shares. Remember that this is 'over subscribed' so I might not get any - I might get 100 I might get 10.... I'll get what I get and pay the "set" price at OPEN.

I would NOT buy RETAIL -- in other words --- the first trades AFTER the IPO set price! That could be 60 - 70 - 80 - 100 who knows -- but since I can get in at the set price - I stand a chance of having a gain.

I'm sharing this - as I do my other "investment life" as a "here's how all this crap works investing 102 experience". So as usual -- this is a "it takes money to make money" moment. I wouldn't be allowed into the IPO if I didn't already have a substantial account! The guy that needs it the least - gets the most... I don't happen to like that morally but it is what it is.

This is expected to price TOMORROW --- so you can all live vicariously and see if I sink or swim. I don't like Facebook - I don't use it - but EVERYBODY but me does... I think it's a fad but I'm not against making money - regardless of what I think.

Seems like a strange investment for a website you've never experienced. What's your alias? John Doe Jack Smack Rodney Snodgrass??

[GregWeld]

Originally Posted by Vegas69

Seems like a strange investment for a website you've never experienced. What's your alias? John Doe Jack Smack Rodney Snodgrass??

"Tittykaka"


I don't think I'd refer to it as an "investment".... I'd call it gambling. Which is why if it pops - I'll dump some. And I highly doubt I'll get the 2000 shares requested - but if I did - that would be 70 grand... My thinking is I might get 100.

BTW right there is the lesson for "102" -- while 70K seems like a lot -- it's money that % wise for me would be like finding a nickel in the street... so if I lost it - I wouldn't notice. Most everyone that's asked me about FaceyKissyBook really can't afford to gamble like that and shouldn't be invested in it yet they're the ones that will have to pay retail - are the most eager to jump into it - and are the least sophisticated investors. AKA: The ones that should not be buying it - but will anyway.