Investing 102

[SSLance]

Originally Posted by GregWeld

By the way -- My point was that does anyone really know or think they know why the market works the way it does... I certainly don't. One week you're clicking on all 8 -- the next week the market is going up and your stuff is all going nowhere... They report bad news on the TV and the market goes up - they report good news and the market goes down.

I've never been able to get it.

Let's just look at Microsoft the COMPANY -- they just kill it in profit - sales - money in the bank... and Microsoft the STOCK goes nowhere for 10 years. Go figure.

Another money losing company has a decent quarter and the stock puts on $10 a share. Go figure.

This is basically in a nutshell...what drove me from the market in 2011. It just didn't make any sense, especially to an analytical person like myself.

The Steady Eddie dividend income investing approach is different though...as I have been shown.

The wife made her first purchase yesterday, I walked her through putting the order in on the phone. The company announces earnings today...should be interesting to watch her response.

[GregWeld]

Originally Posted by SSLance

This is basically in a nutshell...what drove me from the market in 2011. It just didn't make any sense, especially to an analytical person like myself.

The Steady Eddie dividend income investing approach is different though...as I have been shown.

The wife made her first purchase yesterday, I walked her through putting the order in on the phone. The company announces earnings today...should be interesting to watch her response.

Dividends and "best of class" and Total Return is what will make you money longer term and get you a good nights sleep. Let the gyrations be what they will because nobody can guess what they're going to be tomorrow or next month. I like to FOLLOW the market... I like to be AWARE of trends... I want to be INFORMED...

I used to absolutely freak out if a stock I owned went down a dollar. Never mind that the dollar was .02% of the value... That was it! SELL! SELL IT ALL!

That is a great way to go thru a lot of money. Because then the next day it would go UP 3% and I'd buy it all back.

That was back in the 80's and 90's... I've learned how to make money since then.

[GregWeld]

Here's exactly what I was just posting about!!


Check out the move in Sturm Ruger (RGR) the gun company.


The earnings and profit and sales just reported were absolutely off the charts good.... the Stock however is selling off $5


Would ANYONE think that if a company grew 40% - that their stock would sell off. Go figure.


Again - we are NOT using names to discuss their particular merits of ownership - it just happens to be a perfect EXAMPLE of the market and the thinking etc. I DO NOT own this but know that other readers do. It's been a terrific growth stock.

[SSLance]

Well, her stock came out with terrible earnings...and is up 4% on the day.

[GregWeld]

So she bought Target (TGT)....


Probably a good buy in time since the news is worse than the long term growth of the company. It just doesn't pay enough dividend % for me but the growth has been stellar!

[SSLance]

It fits into the buy what you know theory perfectly.

I told her while she was looking at it to pay attention to this...Do you still like shopping at the store, do they still offer everything they offered before, are the registers all staffed and the store kept clean and shopping experience good?

If so, pay no attention to the new cycle items in regard to the breach...that will pass and the stock should come back as long as the shopping experiences stay the same as they were before.

There are other factors also involved of course, but it's a company that she knows and will keep an eye on from the customer's perspective.

[GregWeld]

And that is the PROPER way to invest!!!

Originally Posted by SSLance

It fits into the buy what you know theory perfectly.

I told her while she was looking at it to pay attention to this...Do you still like shopping at the store, do they still offer everything they offered before, are the registers all staffed and the store kept clean and shopping experience good?

If so, pay no attention to the new cycle items in regard to the breach...that will pass and the stock should come back as long as the shopping experiences stay the same as they were before.

There are other factors also involved of course, but it's a company that she knows and will keep an eye on from the customer's perspective.