Investing 102

[Woody]

Originally Posted by GregWeld

That's what I've been trying to PREACH -- get started -- post it up if you feel like it - let's all discuss it -- rip it apart - or learn from it (MSFT?) etc. but get started is the KEY point.

WITH THAT IN MIND -- I'd love to see "you all" post up some names and the reasons you think they're a good candidate for ownership.... let's get it up to 10 names -- a basic "portfolio" if you will.... and see what that looks like??

Kind of a "on paper" investment club??

Other than the stocks you have identified in prior posts as good candidates, I have three that I would like your thought on.

United Technologies (UTX)
10 year price increase 135% (good chart); Dividend increased 291% over last ten years, and good EPS growth rate. Dividend rate 2.65%

Lockhead Martin (LMT)
Like it for the same reasons as UTX, but has even larger increases in price, dividend growth and EPS growth than UTX. Dividend Rate higher than many of the stocks that were discussed at 4.95%. However, this company relies heavily on government contracts. Does that make it too risky?

Travelers Group (TRV)
Insurance play; Has had less of a price increase and dividend increase than either UTX or LMT. Dividend rate 2.77%.

[GregWeld]

Originally Posted by Woody

Other than the stocks you have identified in prior posts as good candidates, I have three that I would like your thought on.

United Technologies (UTX)
10 year price increase 135% (good chart); Dividend increased 291% over last ten years, and good EPS growth rate. Dividend rate 2.65%

Lockhead Martin (LMT)
Like it for the same reasons as UTX, but has even larger increases in price, dividend growth and EPS growth than UTX. Dividend Rate higher than many of the stocks that were discussed at 4.95%. However, this company relies heavily on government contracts. Does that make it too risky?

Travelers Group (TRV)
Insurance play; Has had less of a price increase and dividend increase than either UTX or LMT. Dividend rate 2.77%.

Woody ---


All good picks....

So here's just "my thoughts".... because you raised the question. UTX and LMT "rely" on government spending (defense spending) and we're trying to wind down Iraq and Afghanistan... and we're in a huge budget crisis... so I might loose a bit of sleep worrying about cuts here. So - remember that I am retired - I don't like to worry and go for a higher dividend payout (which really affects your compounding over time)... and so for me personally - I'd pick other names without the POTENTIAL for downside risk. BUT when you look at their charts -- they're good charts... so maybe that worry is all much ado about nothing. BUT - I always try to tell myself - if there is other stuff to buy that DOES NOT have that component - then why wouldn't I just buy the other stuff and leave these alone? It's only a game I play with myself - but it is the way I think. For INVESTING 102 - I'm trying to just type out some THOUGHTS a guy should ask himself.

TRAVELERS INSURANCE (TRV) - Nice chart - big name - I understand the business.... and would certainly feel comfortable owning this. It would be a "steady eddy" purchase for a portfolio - counter balance to something else I might buy that is a higher paying dividend but with more "risk" (to use one or two names for comparison sake -- JNK - HYG - NLY that all pay big dividends but have higher risk!)... so that's how/why I'd own this. I use Johnson and Johnson (JNJ) and Kraft (KFT) and AT&T (T) for this kind of "balance".

[Stuart Adams]

This has been a very good and interesting thread.

Greg,I know it feels good to help others, you da man.

[GregWeld]

Originally Posted by Stuart Adams

This has been a very good and interesting thread.

Greg,I know it feels good to help others, you da man.

Thanks Stuart! I love this stuff. Hot rodding, and investing, are something I'm passionate about. SO this thread is right up my alley - I'm on Lat G - discussing stuff that helps others whether it's car parts / welders / or investing. What's not to like?

Being useless and retired - my day starts out around 6AM with coffee - the computer on my lap - and CNBC on the tube... eventually I mosey on out to the shed...

EEEEEEEEEEEEEEHHHHHHHHHHHAAAAAAAA

[Stuart Adams]

Originally Posted by GregWeld

Thanks Stuart! I love this stuff. Hot rodding, and investing, are something I'm passionate about. SO this thread is right up my alley - I'm on Lat G - discussing stuff that helps others whether it's car parts / welders / or investing. What's not to like?

Being useless and retired - my day starts out around 6AM with coffee - the computer on my lap - and CNBC on the tube... eventually I mosey on out to the shed...

EEEEEEEEEEEEEEHHHHHHHHHHHAAAAAAAA

That's fantastic. You have a great job..