Investing 102

[toy71camaro]

yup.. quite the pull back for my divvy stocks today.. roughly 2%.

but, that also means that possibly my next CVX and ED divvy payments will be buying just a tad more of a share this time around thanks to the pullback since they both pay in a couple weeks.

We'll see. a 2% pullback (just today) isnt going to change a whole lot on my paper gains. lol

[GregWeld]

Originally Posted by toy71camaro

yup.. quite the pull back for my divvy stocks today.. roughly 2%.

but, that also means that possibly my next CVX and ED divvy payments will be buying just a tad more of a share this time around thanks to the pullback since they both pay in a couple weeks.

We'll see. a 2% pullback (just today) isnt going to change a whole lot on my paper gains. lol

I'd be prepared for about a 10% plus pullback --- because the market ALWAYS over corrects --- just as it shoots the moon on the up side... then people who sold start looking around and saying -- Hey! Now I can get 3% on JNJ (made up that example) and start buying again. In order to make money -- your money HAS to be working... it can't be sitting in cash.

[GregWeld]

One of the guys asks me ---- So what do I do if I'm 40 and have 25 years to retire? What do I do if I'm 50 and have 15 years to retire? What do I do if I'm 60 and have 5 years til retirement?


To me -- this is the best question ever....


My response:


What happens when you retire? Do you die?

Oh wait.... maybe you'll live another 25 years! So your REAL TIME HORIZON is 50 years if you're 40.... 40 years if you're 50.... and 30 years if you're 60!


That's the real way to think about it.... 'cause ya just don't up and die because you retired. Ask me how much more money I spend being retired than I ever did working. And ask me (retired some 22 years now) what things cost me 22 years ago versus now! Retirement isn't the end of spending and it isn't the end of you! Just keep doing. Keep doing what got you to retirement.

In the old days -- they advised people to switch from stocks to bonds and blah blah blah... to which I've seen more than my fair share of people "out live" their useful cash flow. Had they stuck with stocks and real estate -- they'd have lived a whole lot better.

That being said --- I don't invest in Faceybook -- or Netflix -- or any of the other "sure fired winners" either anymore. I stick to good old fashioned basics --- just like we've discussed here. You don't start (or continue) to gamble at 60 (which I'll be in August). But you don't up and die either!

[Steve_O]

SO, I made my first purchase in my Schwab account this morning, and...

True to predictions, the stock immediately lost value! Good thing I'm in it
for the long haul.

Next challenge, locate enough Best of Breed companies for my IRA account
funds.

Steve O

[GregWeld]

Originally Posted by Steve_O

SO, I made my first purchase in my Schwab account this morning, and...

True to predictions, the stock immediately lost value! Good thing I'm in it
for the long haul.

Next challenge, locate enough Best of Breed companies for my IRA account
funds.

Steve O

When that happens --- pull up the 5 year chart --- or longer if you can find one... and look at it. How far down is it on the left vs the right side.... and think about that TREND.... Now if you zoom in -- you'll see all the zigs and zags... Don't worry about the zigs and zags --- zoom back out and stare at the trend line.... TIME is your friend. Keep at it!

[GregWeld]

The author of this article must be reading this thread....



He does do one interesting calculation which I've never even thought of - and that is what happens to the % if a company grows the dividend over time...
Interestingly -- I've stated here many times -- that money doubles about every 10 years (based on a 7% interest rate/dividend rate etc). Well guess what? So does the dividend % if a company increases it at about that same rate! DOH!

Read the article and it will make sense.

Also note the small number of shares this "portfolio" is working with.... yet the important part to me is -- that the author has a plan -- is working that plan -- and he understands the market and what his goal is.


http://seekingalpha.com/article/1474...g_income&ifp=0

[Steve_O]

I've spent some time looking for places to put my 'employees',
and find that my list is heavy on consumer staples. Can anyone suggest
a few things that they have, or are considering, so that I can
broaden my search?

The list I have is:

Philip Morris
Coca Cola
Costco
Altria
Kimberly Clark
Nike
McDonalds
Consolidated Edison
Southern Cos
AT & T
Johnson & Johnson
Eli Lilly
Merck
Caterpillar
Chevron
Kinder Morgan
National Retail

Also, I would probably consider these steady-eddy type picks.
I would also like to consider one or two that might be more 'exciting',
so if you like a company that has some growth potential, I may
have some room for a small share in something slightly riskier.

Thanks for all the good info shared on this thread, and for the good
things ahead!

Steve O