Investing 102

[ErikLS2]

I've always been a tad skeptical of these earnings reports that come out. Now, they do have to follow a set of rules being public companies and all but they are still afforded some flexibility in how they account for various things. So, in my opinion these reports don't tell the WHOLE story many times.

I do think it's wise to watch the earnings reports for companies you are invested in but Greg makes a key point in paying attention to any dividend they pay out. If they aren't bringing the money in, they sure can't be paying it out. It's a lot harder in my opnion to fudge anything here.

Still, I don't think I would pay that much attention to a low earnings report if the company is in a growing or strong industry and there are many other reasons to like them. If anything, I would use a weak period to buy more, as has been said already.

I'm thinking about gambling a little on Bank of America (BAC). It's been very low for a while and like Buffet says, there's no way to know WHEN a stock will rebound, but I can't see them going away totally. Plus, when everyone is fearful of something is the best time to buy it.

[Bucketlist2012]

Originally Posted by ErikLS2

I've always been a tad skeptical of these earnings reports that come out. Now, they do have to follow a set of rules being public companies and all but they are still afforded some flexibility in how they account for various things. So, in my opinion these reports don't tell the WHOLE story many times.

I do think it's wise to watch the earnings reports for companies you are invested in but Greg makes a key point in paying attention to any dividend they pay out. If they aren't bringing the money in, they sure can't be paying it out. It's a lot harder in my opnion to fudge anything here.

Still, I don't think I would pay that much attention to a low earnings report if the company is in a growing or strong industry and there are many other reasons to like them. If anything, I would use a weak period to buy more, as has been said already.

I'm thinking about gambling a little on Bank of America (BAC). It's been very low for a while and like Buffet says, there's no way to know WHEN a stock will rebound, but I can't see them going away totally. Plus, when everyone is fearful of something is the best time to buy it.

We all know you can never time the bottom, and sometimes when you buy into something you know will turn around, you take a hit at first as it bounces, but in the end, most of mine have gone up to where I thought they would go. It just takes the courage to buy at those times..

A few of my good performers fell more when i got into them, but they all did go back up.. The first few days were not good.. but great since then..

[GregWeld]

Originally Posted by ErikLS2

I'm thinking about gambling a little on Bank of America (BAC). It's been very low for a while and like Buffet says, there's no way to know WHEN a stock will rebound, but I can't see them going away totally. Plus, when everyone is fearful of something is the best time to buy it.

If you can afford to buy and hold... I agree with you. I think we can agree that the likelihood of BAC going away is pretty much NADA.... and it's certainly LOW (historically).

Those that bought FORD @ $2 or $3 a share certainly have been rewarded!

But also don't forget that if you were a GM shareholder -- you got ZIP -- So size and the "they've been around forever" statement has been shown to not hold up so well... I mean - Who'd a thunk it!?!?

Just make sure when you put in SPECULATIVE $$$ -- that that is exactly what that money is for... because regardless of how low a stock has gone - it can always go lower! So you'll have to be patient and it should only be money you can truly afford to loose. Everyone should have a fund for buys like this.... provided they account for all the above and already have good safe money - and cash that they can get should they need some. That way you don't get frightened and sell out..... 'cause the little wall street dude will double it a week after you sell.

Did I ever mention how much I hate that little guy??