Investing 102

[Sieg]

I just watch Google break $1,000 per share..........

[GregWeld]

A couple of thoughts about the article....


Investing is a way of life... Using some criteria to pick what to invest in is something everyone must do, otherwise how could anyone make any decision to buy or sell. You must have some reason for the decision.

What I have found over the last 30 years of making these choices is that it's very easy to "justify" the purchase.... and it's very easy to be "scared out" of that decision (price drops - market drops - or some other hiccup)...

It's my belief that generally I've lost money when I've bought something I didn't really believe in --- and or --- used money that I needed for something else.

So - let's take FaceBook for an example.... "Everyone" bought the hype and the froth... and then when the shares didn't do as "expected" --- they were dumped. That's an investment trap that happens a lot and that everyone needs to be aware of. So then what happens is you were burned by "expectations" and now are wary of the next "big thing" and miss out on the shares that DO go up 100% on the first day. It's why I've just decided to steer clear of this kind of stuff. It becomes too emotional.

That is why I say that for Investing 102 -- that you simply choose stocks of companies that you like and know and understand their business. It's just a simple "criteria" that you can live with. Then you look for your investments to be somewhat diversified.

Investing only gets complicated when you start to build your portfolio and begin to have some "real" money working. What I mean by that is that once you get about 50 or 100 grand invested... and you have your 20 names.... and now you're trying to "reach" a bit. Reaching for more yield - reaching for more diversification - reaching to catch that next Google etc. But my feeling about that is that you should have an EXCELLENT base of investments and you should have a relatively good understanding of YOURSELF and what your reactions and expectations are by the time you've built your portfolio to this point. It's funny that the more money you have in the market - the less "afraid" you become. When you're starting out with $2500 -- you're almost paralyzed by the thought of investing it. That's when you need to have a criteria that is comfortable more than anything else.

[GregWeld]

Originally Posted by Sieg

I just watch Google break $1,000 per share..........

I chalk that one up as "the one that got away". What a huge miss on my part...


Ya just can't own 'em all -- at least that's how I justify that mistake.

[Sieg]

Originally Posted by GregWeld

I chalk that one up as "the one that got away". What a huge miss on my part...


Ya just can't own 'em all -- at least that's how I justify that mistake.

Up 35+% since January, pays no dividend other than that whimpy gain.

Think I'll buy 1 share just for portfolio bragging rights. LOL! Yeah I own Google.........How many shares do you have?.......Uh, enough to make me happy............if it splits a few times!

[toy71camaro]

1 bought $25 worth back in like 2006 when it was roughly $550 share. Which is like .04 shares worth. lol

It sat stagnant around that $550 price for a long long time (last year and a half or so). Its now worth $46. An 85% gain.

I also bought $25 worth of Apple at that same time. It was roughly $140/share. Its now worth $100 for a 261% gain. lol (was quite a bit more earlier this year when they were in the $600-700's).

But, all in all, even with those large gains, its not worth it to sell em. It'll be a large % of the gain in the selling fee ($8?ish) and have to mess with capital gains tax. Not worth it for a 85% ($10 gain) lol.

BUT, I can say i own some from "back in the day".

[mdprovee]

I had purchased Apple and Google at the same time. Both at around $600. Google is definately making up for my Apple.

[GregWeld]

This is why investing is so interesting -- and is so variable. I would tell a young guy (younger) to invest in some Google or Apple or similar type stock if they were so inclined.... For "retirees" like me -- they're non-starters because you're just depending on the growth in capital. Then in order to get any "income" out of them you have to sell... selling creates tax issues (short term or long term capital gains).


I'm glad you guys own some. I cashed out of my Apple when my wife retired 3 or so years ago and we then switched all of our investments to create income. I still love tracking these kinds of stocks though. I just don't buy them.

[Sieg]

These are the emails I enjoy receiving at 5 am:

Indices Price Performance for Stated Period
Market Benchmarks 3rd Quarter, 2013 1 Year 3 Year
Large-Cap Stocks +4.69 +16.72 +13.79
Small-Cap Stocks +10.21 +30.06 +18.29
International Stocks +11.56 +23.77 +8.47

Fixed Income Benchmarks (Treasury Yields as of 09/30/2013)
5-Year US Treasury Note +1.39
10-Year US Treasury Note +2.64
30-Year US Treasury Note +3.69

[toy71camaro]

Originally Posted by Sieg

I just watch Google break $1,000 per share..........

Same here. yowza.