Investing 102

[GregWeld]

Originally Posted by chichirone

Greg, I REALLY appreciate your insight and compliment. This thread is one of the most personally moving reads I've experienced since reading the Millionaire Next Door. Your willingness to share and provide insight to your personal situation, for the benefit to educate others has been incredibly helpful.

The healthcare, med device and pharma stocks are very familiar to me since I've been in the business for almost 20years. Call it my comfort zone. If I read your comments correctly:
1. Select one in the sector and don't duplicate
2. Quit sniffing the fertilizer. HA!
3. Be a little more focused on 5% yield...look for more risk
4. MAKE IT HAPPEN!!!! The first step is to get the Schwab account set up and get rolling.

Your insight is valuable. It is not often that one is wiling to share, educate, and also call bull**** on another's thinking. On another note, is PM and MCO still on your "sleep at night" list? I left these off my list.

Jay -- Yeah -- I've shared way too much personal info on here -- but figure WTF -- if it gets one person going on the right track - then I've done good. So I throw myself on the sword for all. LOL


I figured you had to be "in the industry" or close to it.... There is LIFE outside of work you know. Drive up and down the street and look at all those viable businesses that are just waiting for you to be a partner with them.

5% dividend doesn't have to come with risk. AT&T pays over 5% and I wouldn't classify it as risky. Altria (MO) pays 4.66% and that's not very risky... so there's plenty out there.

Philip Morse (PM) pays almost 5%... Both MO and PM are sin stocks -- I like MO because of the booze component... I don't smoke or drink -- doesn't keep me from making money off the people that do.

MCO is Moody's (the ratings agency) and I ASSume you meant McDonalds (MCD). I sold MCD awhile ago based on my belief that they're losing the fast food battle... and that the general public they appeal to has shifted to healthier restaurants. Their sales continue to slip -- and that's a "Fundamental" change I can't sleep with. Their down almost 8% in the last 3 months... that's a nasty dip and I'm glad I've moved on. If it paid a dividend - I'd be in Chipotle Mexican Grill (CMG) versus MCD. CMG is growing and MCD is shrinking.

[chichirone]

Originally Posted by GregWeld

Jay -- Yeah -- I've shared way too much personal info on here -- but figure WTF -- if it gets one person going on the right track - then I've done good. So I throw myself on the sword for all. LOL


I figured you had to be "in the industry" or close to it.... There is LIFE outside of work you know. Drive up and down the street and look at all those viable businesses that are just waiting for you to be a partner with them.

5% dividend doesn't have to come with risk. AT&T pays over 5% and I wouldn't classify it as risky. Altria (MO) pays 4.66% and that's not very risky... so there's plenty out there.

Philip Morse (PM) pays almost 5%... Both MO and PM are sin stocks -- I like MO because of the booze component... I don't smoke or drink -- doesn't keep me from making money off the people that do.

MCO is Moody's (the ratings agency) and I ASSume you meant McDonalds (MCD). I sold MCD awhile ago based on my belief that they're losing the fast food battle... and that the general public they appeal to has shifted to healthier restaurants. Their sales continue to slip -- and that's a "Fundamental" change I can't sleep with. Their down almost 8% in the last 3 months... that's a nasty dip and I'm glad I've moved on. If it paid a dividend - I'd be in Chipotle Mexican Grill (CMG) versus MCD. CMG is growing and MCD is shrinking.

Greg, thank you for your sword diving and WTF attitude. LOL! I've read nearly all 400+ pages in this thread and you continually share personal stories, opinions, ways to think differently. It's sincere counsel to get others on a track, and I don't mean the kind we all love to drive on. (BTW, you do a darn good job of that for us as well.)

Healthcare/Med Devices is what I know. Thinking back to your other posts, look at what you eat, where you shop, what you buy, and what you consume. I can't remember the last time I went to Sears so I don't own it. I drink Coke products which is why we like KO vs Pepsi and own it. You have made me realize I need to take the blinders off and look beyond what I work on and expand the horizon to research and identify alternative ways to generate wealth, demonstrated by T, low growth, well run and good payer.

MCO should have been MCD. Good ASSumption. Like Sears, I cannot recall the last time I stepped foot in a McD's. No wonder I sort of missed on that one, especially when we eat at Chipotle with more frequency than I care to admit. Just reinforces your point to reflect on your consumption behaviors. This is a really good learning point if one is just starting out.

What's your opinion of chasing 2-3 high growth stocks, not a fad stock, but one that has a shorter growth chart, is a little less mature like GPRO than the likes of T or COP as a part of a start up portfolio? Reason I ask, would a little higher risk tolerance on growth make sense to balance the "sleep well at night" buys? I believe I know the answer but am not 100% sure so that is the reason for the question.