Investing 102

[JKnight]

We're giving it all back, plus a little more today though!

If you were looking for a time to say things are going "on sale", this might be it.

[toy71camaro]

blame it on me.. i set my 401k account to be completely re-balanced last night... LOL.

[GregWeld]

Originally Posted by JKnight

We're giving it all back, plus a little more today though!

If you were looking for a time to say things are going "on sale", this might be it.

I don't know -- I was UP 48 grand on Tuesday and only down 11 grand today (Wednesday) so that's a net two gain gain.

Originally Posted by toy71camaro

blame it on me.. i set my 401k account to be completely re-balanced last night... LOL.

Okay - let me repeat this.... The little man on Wall Street knows your every move and he WILL take 'em down the day after you buy - and he'll take 'em up the day after you sell...


Happens every time.

[GregWeld]

I'll tell you what's been saving my bacon on this TINY selloff.. ALTRIA (MO)...

I own 40,000 shares of it -- and it's been UP while most everything else seems to be selling off a bit. That combined with JNK --- which HAS BEEN a steady eddy...

Sometimes owing stocks that don't go down very much (the steady eddies) -- is every bit as good as owning stocks that go up. In a poopie market that is.

They're like having an employee that isn't the best worker or even the smartest - but they show up EVERY DAY without fail... and put in a a days work. They're RELIABLE.

[toy71camaro]

MO is one of my stable ones as well.. Its up 16% since i first jumped into it last year. But at one point it was down a percent or two. But since im in this for the long haul, i got 30+ years to go. So I aint worried about the dips (in fact, we welcome them!). I would consider "selling some profits", but the cost of the trade would take to large of chunk out of the profit to make it worthwhile (IMO). $1k invested last year, its up ~16%, so im +$160. And a sale would cost me ~$9. So thats a 5% cut.



On another note, here's some good news to us Coke owners.. We got a 10% Div increase today! http://seekingalpha.com/article/1210...y?source=kizur

[GregWeld]

Originally Posted by toy71camaro

MO is one of my stable ones as well.. Its up 16% since i first jumped into it last year. But at one point it was down a percent or two. But since im in this for the long haul, i got 30+ years to go. So I aint worried about the dips (in fact, we welcome them!). I would consider "selling some profits", but the cost of the trade would take to large of chunk out of the profit to make it worthwhile (IMO). $1k invested last year, its up ~16%, so im +$160. And a sale would cost me ~$9. So thats a 5% cut.



On another note, here's some good news to us Coke owners.. We got a 10% Div increase today! http://seekingalpha.com/article/1210...y?source=kizur

Of course "taking a profit" is not to be misconstrued as just taking any old profit. It has to be an individual case by case basis. When I look at MY account and I see a stock I've bought has gone up 30%... I might - MIGHT - decided to take HALF that gain... That doesn't mean I sell have that stock -- I sell enough to equal HALF the gain. For instance -- I own 100K of stock - it's now 130K -- I might sell 15 to 20K of shares and then use that money to either buy another stock - average some loser down - or maybe I just pay my bills with it. Either way -- it's a gain... BUT I'm not talking about taking half of a $100 gain. Come on guys -- that's not going to make or break you... SO many of these rules are to be learned now - and exercised LATER when you really start to build your accounts up. AND if I think a stock has a lot more to go... then I wouldn't sell any of it if I've bought it for long term and think it's still a buy. This is something you learn and begin to feel. I look at it as "would I buy more shares here?" Or - "man that was a lucky buy... and I need to be conservative?"

[toy71camaro]

Originally Posted by GregWeld

Of course "taking a profit" is not to be misconstrued as just taking any old profit. It has to be an individual case by case basis. When I look at MY account and I see a stock I've bought has gone up 30%... I might - MIGHT - decided to take HALF that gain... That doesn't mean I sell have that stock -- I sell enough to equal HALF the gain. For instance -- I own 100K of stock - it's now 130K -- I might sell 15 to 20K of shares and then use that money to either buy another stock - average some loser down - or maybe I just pay my bills with it. Either way -- it's a gain... BUT I'm not talking about taking half of a $100 gain. Come on guys -- that's not going to make or break you... SO many of these rules are to be learned now - and exercised LATER when you really start to build your accounts up. AND if I think a stock has a lot more to go... then I wouldn't sell any of it if I've bought it for long term and think it's still a buy. This is something you learn and begin to feel. I look at it as "would I buy more shares here?" Or - "man that was a lucky buy... and I need to be conservative?"

Right.. which is why i threw in my measly $ amounts to show what kind of "profit" i had. And show the cost side that would be incurred IF I acted upon trying to "take" that profit. (ie. Bad idea).

Good explanation.

[bobcat68rs]

I have to say this is a great thread. I understand the long term investment concept, but what if the long term isn't really an option? by that I mean 12 to 15 years before retirement. To little to late? just wondering how to improve things down the road.

[toy71camaro]

Originally Posted by bobcat68rs

I have to say this is a great thread. I understand the long term investment concept, but what if the long term isn't really an option? by that I mean 12 to 15 years before retirement. To little to late? just wondering how to improve things down the road.

Bob,

I am of course, no expert in this. I'm learning from this thread and on my own as I go.

But I have similar questions. Not for myself, but for my parents (61 and 59). Right now, their 401k sits in who knows what funds, making who knows what (squat? hopefully not).

I've been trying to get myself informed enough, to be able to jump in with them and work their situation out to better themselves, their window is a little shorter than yours due to health reasons (dad, 61, already medically retired and about to go under for heart and kidney transplant within the next few months/year).

My thoughts on the whole thing is getting in with good, long term, dividend growth stocks. Mainly "steady eddies", as to not "gamble" so much, but play it safe. Continue to review their account on a quarterly/yearly basis and "trim the fat". If we're actively watching it, i wouldnt be to crazily concerned about a huge downside in the market. Not that we can see it coming, but investing in solid dividend players should still prove to be profitable (ie. Coke, who's increased their dividend for 50+ years. Even in a down market, the dividend should still go up (or at least stay the same)).

Thats my thoughts on it anyway, but I am curious as to others opinions as well, as this is something I am interested in knowing. Good question to bring up!

[GregWeld]

Originally Posted by bobcat68rs

I have to say this is a great thread. I understand the long term investment concept, but what if the long term isn't really an option? by that I mean 12 to 15 years before retirement. To little to late? just wondering how to improve things down the road.

Anything over about 3 years would be "long term" -- Then there is LONGER term -- which you'd be in. 10+ years is LONG TERM.


Now I would respond to your next statement --- When do you EVER feel it's "too late" to save some money or invest??

And -- Are you planning to die in 12 to 15 years -- or do you plan to live many years beyond that? If so - how many? 10 more years? 20? Remember that your money needs to last you to your last dying breath... And we all hope that's many many years from now.