Investing 102

[Sieg]

Originally Posted by GregWeld

A NOTE OF CAUTION SHOULD BE POSTED - By ME!

(Pssst, he's the guy that sold Apple for $410 a few months back)




Of course I'm the guy (idiot) that sold 100 shares of Nike at $10 after I'd doubled my money back in 1978.

[GregWeld]

Originally Posted by Sieg

(Pssst, he's the guy that sold Apple for $410 a few months back)




Of course I'm the guy (idiot) that sold 100 shares of Nike at $10 after I'd doubled my money back in 1978.

Do as I say - not as I do!




Remember I have been brutally honest about how I've used Apple --- "to park cash".... ditto HYG and NLY and similar. I'm a whore when it comes to those names. I'm also 'moving' a million or two into and out of these names - so the "risk reward" scenario is QUITE DIFFERENT for me than for someone that is trying to INVEST their 401 or ROTH retirement funds.

This is why I re-read my post about Apple (AAPL) and thought --- OH NO! I just mentioned some risky stuff and people will pile into them and not understand the differences --- and the lessons!

I hate to use specific names -- but it's the only way I can come up with to get some points across.

[GregWeld]

Originally Posted by Sieg

(Pssst, he's the guy that sold Apple for $410 a few months back)




Of course I'm the guy (idiot) that sold 100 shares of Nike at $10 after I'd doubled my money back in 1978.

Did I ever mention that I got to buy into the Starbucks IPO at IPO insider price? Yep -- bought 1000 shares at $17.00

That was on like Thursday or a Friday.... by Monday they went up THREE FIFTY ($21.50) and I sold the whole enchilada! Wow! I thought to myself -- I just scammed those poor suckers for a quick THIRTY FIVE HUNDRED BUCKS!! I'm a frigging GENIUS!


Oh -- Total return on Starbucks.... since it went IPO.....



TWENTY THOUSAND PERCENT. That's right... 20,000% since 1992


Yeah -- I'm a real genius!

[Bucketlist2012]

To Greg's point..

I am in position to make money no matter which way the winds blow.

You bet i am keeping an eye on the little monkey, but I will make money...

If things go as they say, I am not so sure about that, but if they do, Oh happier days for me...

But if something goes sideways, I am ready for that too..I won't have to make any sudden moves, I am just in a position of not "all or nothing', too much risk in all or nothing .. so a move one way or another will not stray my path..

[GregWeld]

Now that I just sat down and paid all my bills... which is another key to investing... i.e., GET IN CONTROL OF YOUR SPENDING. Make money FIRST - then you'll have some to spend!

Yeah - I know - easy for me to say.

Not the reason for this post though.....


My BOND broker called this morning -- mostly because we're friends (and have been for a very long time) but also because he was "pinging me" on any "new" money I might have for him to invest.

Fred has been in the biz for 40 years! I trust him - he's a great person - I know his family - He works for (an SVP) a big local brokerage (I will NEVER IN A MILLION YEARS GIVE AN INDIVIDUAL CONTROL OF MY MONEY OR MY ACCOUNTS --- NEVER! EVER! NEVER!)

We discussed "bonds" and the market and I said I'm NOT buying any more bonds, that I have enough of my investable assets in bonds and that's plenty (for me) and that I'm kicking his sorry ass in the "market"... He says to me -- and here's the SALESMAN/BROKER talking --- Well -- you've made 4% gain on your bonds!

NO -- I remind him -- I have NOT made 4% on my bonds because the entire reason to own them is for the TAX FREE INCOME -- and that I'm HOLDING TO MATURITY.... therefore -- I will have held them for 5 years (laddered so actually this is not factual but for the furthest dated ones it is) and only get my money back! NO GAIN.... because I would have had to SELL THEM to capture the current gain. SO his salesman part overrode his BRAIN... and I'm not afraid to call him on it.

It's why I don't use brokers (except for this part of my holdings).... even if they're your friend... in the end, their wallet is more important than your wallet! They're trying to make money on my money... I'm just not willing to let them!

[Sieg]

Atta Boy Tiger!

[GregWeld]

Here's another reason I love that good old dividend stream...

My account (the one I use for examples here) was DOWN 17 Grand today --- but after the closing bell ---- Terra Nitrogen (TNH) sent me a nice little check for NINE GRAND....

Part of the reason I was down 17K today was because TNH was trading off... ALL stocks trade down near equally to what they pay out in a dividend. We've touched on this earlier... but that's just the way it works. Obviously the company can't be worth as much when they're paying out... But that dividend was $4.53 per share today (I own 2000 shares) and the stock was "only" down at the close $2.73 == so I'm happy with that!!

This stock ain't for the faint of heart I can tell ya! It goes bonkers - it goes down double bonkers - next time you look it's up triple bonkers.... I'm telling ya it's a wild one!

[GregWeld]

Okay -- I'm on a roll tonight --

Here's a good article on Warren Buffet - and dividend investing. We'll have a test to see who reads this -- because there's a really interesting little tidbit in here about the dividends Berkshire gets...Amazing really! When you think about it... let's see if you guys find it as amazing as I did!

http://www.fool.com/investing/divide...arent-you.aspx