Investing 102

[Bucketlist2012]

Again Greg..Thanks for taking the Time to give your input on things...

[GregWeld]

Originally Posted by Bucketlist2012

Again Greg..Thanks for taking the Time to give your input on things...

My input isn't worth the paper it's written on.... it's just the ramblings of a worn out old guy with nothing better to do. Hey! That sounds like a description of CONGRESS!!



NOTE TO TONY.... how many people do you know that have the ability to safely store precious metals? If you pay for offsite storage you've lost your ability to access in an emergency... so it needs to be at home. I don't know about you -- but I'm not storing 50/100 grand or more in "cash"/"metals" in my house. And I have some pretty bitchin' safes (at least TWO of them and they're far larger than the average guys!) It's hard to keep a secret -- and these days -- with kids posting crap on the internet -- who knows what they tell their friends and then their friends tell someone else - and the next thing you know you're duct taped to a chair with a gun to your head or worse. No thanks.

I think that's why they invented BANKS in the first place. I don't keep stock certificates either. They're all electronic -- somewhere...

I guess that after 200+ years -- I have to place some faith in my government even as F'd up as they seem to be... ya gotta trust someone... and if our government goes to hell... I don't think we'll be worrying about a few lousy bucks stored out back in our buried coffee cans.

Take the money - put it in a brokerage - invest it wisely - let it grow... let it EARN money... next thing you know - you'll only be worried about which car you're going to have to wash tomorrow before you head off to a show somewhere.

[toy71camaro]

crazy week this week in the market (from my portfolio's perspective). Big Gain followed by big loss, followed by KO shooting up 5+% in one day, and now my KMB is hitting 4+% today. crazy.

[GregWeld]

Albert,


#1 -- I hope your Dad is doing fine!



#2 -- The "market" is always a hoot when things are going well.... Nothing better than "money for nothing" <stolen from the old Dire Straits song>

[GregWeld]

Bob...... Your Sturm Ruger stock reports earnings after the bell today... will be very interesting to see their sales numbers! My guess is they've sold every thing they had made at full price!

[96z28ss]

Originally Posted by GregWeld

Bob...... Your Strum Ruger stock reports earnings after the bell today... will be very interesting to see their sales numbers! My guess is they've sold every thing they had made at full price!

Well It had a pretty big sell off, but I held on to it. I don't think it will be a question of "are they going to beat the estimates" rather than " how much did they beat them by" Its up over 3% today I'm guessing they excpect things to be good.
I also bought OLN cause of the ammo. DHS buying ammo at an alarming rate, and consumers seeing a serious ammo shortage right now, this stock should do good also.

[96z28ss]

Originally Posted by GregWeld

Bob...... Your Strum Ruger stock reports earnings after the bell today... will be very interesting to see their sales numbers! My guess is they've sold every thing they had made at full price!

yep they had a 53% jump!!

[GregWeld]

So.... with all the traveling lately --- and the "bringing home" the rig... I've been distracted to say the least. The beauty of income investing is that you can be distracted and the cash keeps flowing IN. The $18K from Annaly (NLY) I picked up on the 29th and the $9K from AT&T (T) posted yesterday - just about paid for the fuel burned last week.


With the distraction --- I'd completely forgotten about Bitcoin.... apparently the IRS HASN'T!


While the accounts are "digital" like a Swiss bank... in an audit... you'd have to disclose the transactions. You'd also likely be asked about the unexplained deposits in your checking account. Audits - if they smell fishy - can be especially nasty. Remember too... that trying to hide "income" is the crime. Filing false income taxes is not something that should be taken lightly. I'm not saying anyone is doing this - I'm saying it might be tempting given that Bitcoin is not going to 1099 you like your Schwab account is going to... so it might be "tempting" to just forget about this little extra dough.


http://www.forbes.com/sites/robertwo...ut-of-bitcoin/




This reminds me of a guy that used to work for me. He owned lots of rental property - and had his hand in a restaurant/night club... etc. So he gets an audit - and he proudly takes all his receipts down etc showing that while he made great money - he also expensed nearly every dime. Weeks went by and he finally hears from Uncle Sam... he owed $18K!! Of course he immediately proclaimed that was impossible..... but -- said the IRS officer -- his check book showed NO checks written for cash -- or to a grocery store -- or to the dry cleaners etc.... so asks the agent "what did you live on"?? Thus Robert wrote them a check right then and there rather than risk an even more onerous audit!! He's still laughing about this little "exchange". He also learned a good lesson. Mind you --- this was around 1974 or so -- and 18K was a chunk of change!

[Bucketlist2012]

Originally Posted by GregWeld

Albert,


#1 -- I hope your Dad is doing fine!



#2 -- The "market" is always a hoot when things are going well.... Nothing better than "money for nothing" <stolen from the old Dire Straits song>

Same Song...."And your Chicks for Free"....Boy we all know they are not free..

Oh I am in Contract on three rental properties......I decided to Diversify even more ....I will know more this next week...Not expensive homes at all, Actually cheap ones, but Positive Cash flow if I get them....

[GregWeld]

Originally Posted by Bucketlist2012

Same Song...."And your Chicks for Free"....Boy we all know they are not free..

Oh I am in Contract on three rental properties......I decided to Diversify even more ....I will know more this next week...Not expensive homes at all, Actually cheap ones, but Positive Cash flow if I get them....

Smart Mike! We all know that housing went UP too much and came DOWN too much. While you might have missed the very bottom - they are still relatively "cheap". Interest rates are cheap and won't stay that way forever. The key is positive cash flow!

I personally like to invest in LLC's that are professionally managed and own class A apartments. They typically pay a 7+% rate (taxable - but offset with depreciation). And in fact I'm now looking at a mixed use building with 48 units and a 30,000 square foot retail rental (long term leased)...


Rentals like houses and apartments are LONG TERM guys --- they tie up your cash -- and have relatively large buy and sell commissions --- so aren't something you can just flip out of. However, they have nice long term capital appreciation - come with some nice taxable incentives - and can spin off great cash flow that generally increases over time. Be prepared for a 7 plus year holding period.