Investing 102

[Vince@Meanstreets]

Originally Posted by Rod P

IBM looks like a gamble at -5% ytd

-5% with 68.1 Million shares I'm willing to bet he didn't see a change in dividend payout. On top if it's an automatic reinvestment with stock buys he is getting bargin stock. Next year it might be back up 12% YTD

[GregWeld]

Originally Posted by Rod P

IBM looks like a gamble at -5% ytd

Originally Posted by Vince@MSperfab

-5% with 68.1 Million shares I'm willing to bet he didn't see a change in dividend payout. On top if it's an automatic reinvestment with stock buys he is getting bargin stock. Next year it might be back up 12% YTD

Always refer to the long term charts... Lower on the left? Higher on the right?

In 2009 iBM was $80.00 - yesterday it was $183.00 - down 5% "this period" or up $100 in 4 years?


If you have 10 names in your portfolio a couple will be "under performers" and one or two might be responsible for all of your account gain. The account gain in total is what you're shooting for.

Like an autocross.... If you run 10 times... You might hit cones once in awhile but if you win overall... That's what counts.

[GregWeld]

Just to be sure. I don't love IBM. The low 2% is the main reason and the volatility in this name (like a yoyo!) is what keeps me out of it, but overall
It's been a moneymaker for those willing to stick with it.

[GregWeld]

I bought 500 shares of Twitter (TWTR) today....



So here's why I post this info. Just because someone else does doesn't mean you should. I can afford to take a very small position in a name like this. Think about the relative size of what 500 shares of a name is for me - when a typical position is 10,000 or 20,000 or 50,000 shares. If you're just building up your retirement account build a nice big base FIRST, then once you have $100K plus earning some dividends... Now you could "afford" to take on a risk like this. And you keep that risk really small in relation to your overall financial health!

Tiptoe first! I expect this name to be cut in half at some point and if it gets hit like that I'll buy another 500 and then that's it. Not another single share. If it doubles I'll take out my investment and let the house money ride. Period. It's gambling. But for me it's like gambling one dollar and then walking away. Don't get caught up in trying to make the big score.

[Rod P]

was 500 the IPO limit or are you just tip-toeing ....I don't know anything about this investment stuff but I try anything once , there was that one time I had mescal in Mexico....thank god i didn't end up in jail, that wasn't a good idea

[GregWeld]

Originally Posted by Rod P

was 500 the IPO limit or are you just tip-toeing ....I don't know anything about this investment stuff but I try anything once , there was that one time I had mescal in Mexico....thank god i didn't end up in jail, that wasn't a good idea

The 500 was just the random amount I chose to buy.




Mescal in Mexico! Now that's a gamble!

[ErikLS2]

Originally Posted by GregWeld

I bought 500 shares of Twitter (TWTR) today....



So here's why I post this info. Just because someone else does doesn't mean you should. I can afford to take a very small position in a name like this. Think about the relative size of what 500 shares of a name is for me - when a typical position is 10,000 or 20,000 or 50,000 shares. If you're just building up your retirement account build a nice big base FIRST, then once you have $100K plus earning some dividends... Now you could "afford" to take on a risk like this. And you keep that risk really small in relation to your overall financial health!

Tiptoe first! I expect this name to be cut in half at some point and if it gets hit like that I'll buy another 500 and then that's it. Not another single share. If it doubles I'll take out my investment and let the house money ride. Period. It's gambling. But for me it's like gambling one dollar and then walking away. Don't get caught up in trying to make the big score.

Thinking about a similar move on GOGO, they are setting up all the in-flight wi-fi, texting, electronic device usage. Something like 8 or 9 of the 10 biggest airlines are using them. Of course, no earnings yet, putting it all back in the business but I would think it's only a matter of time before you can get full internet on a plane ride and these guys seem like the ones that will bring it to you. Sounds like worth risking a SMALL portion of what I have on.

[gearheads78]

Well I'm done. I want to go back and read at lot of the links posted along the way but I just finished reading the last post here.

After reading all this I so wish I had started following this thread 2 years ago when it started. I would be in a much better position riding this wave up.

My 401Ks are all up but its time to really take control. I'm 40 (almost 41) years old and really disapointed in myself. I started learning about finances and retirement in my late 20's but never really did anything about it. Family and life got in the way and I realize i've wasted 12 years I could have been building a real retirement.

I've been thinking alot about this latley and finding this thread has really awaken me.

Thanks to all my fellow car buddies that have contributed to this thread!!

Also a really special thanks to GW for the information to share. I have listened to a lot of talk radio and finance shows for years but the (investing for dummies) way you explain things makes it so must eaisier for me to understand.

[gearheads78]

So this thread does a great job of talking about long term and I have a pretty good idea of what I am going to do but what about short to medium term. Where should I put money instead of .002% I get in my saving account. I've been paying about 2000-2500 a month on credit card debt and am down to 2 payments to zero on that balance.

Ive got about 20K in old company 401k money. I will be rolling that to a IRA "Investing 102" account but I need to start socking away as much as I can for a new house / shop and my 54 build. I was going to dive right in the the 54' but its going on hold a little while I get in a better financial position. I just don't want to wake up and be 60 and never built it. Its the build I've had in my head for years.

My current house was fine with me and the wife and my the wife and daughter but now with 2 yo twins added we are just going to run out of room in a short few years.

Where should I put money I will need 2-4 years from now?

[GregWeld]

Not pitching this stock AT ALL.... just thought it was funny and worth sharing is all. Remember my favorite saying is "better lucky than smart".


I'd bought Twitter (TWTR) and posted it back in November --- I'd bought 500 @ $40.82 and said that my position would be 1000 shares max. Well -- it ran another $4.00 real fast so I jumped on another 500 @ $44.38 giving me my 1000 at roughly $42.50 a share. Then Sieg and I exchanged a couple emails about this ---- with me saying NO WAY I'm sticking to my 1000 shares. Well then the damn thing was running so I bought another 1000 @ $56.91 making my 2000 average cost of $49.75


Some times you just have to get a gut feel and roll with it. Now - obviously this is not a core holding... but I know a stock running when I see one.. and I have the cash and resources to gamble just a bit - so I thought what the hell.

Today it's trading at $66.55 for a nice 33.8% unrealized gain in a month and 5 days...

In the old days I'd have flipped this out already and scooped up 33 GRAND for one month of "trading". Then I'd pay 40% income tax - and then I'd watch the damn thing run to $100 and I'd be buying back in.

I've learned a few things in the last 25 years or so -- and one of them is that sometimes you just have to take a ride. I STRONGLY do not advise this kind of gambling unless you have plenty of extra dough just waiting to be put to work! The minute you take a flier like this and actually PLAN on it going straight up -- it won't -- it'll turn south on you -- and then have your guts churning. So this is just a post because it's worked out THIS TIME.


So to any of you that followed me into this name -- Merry Xmas!


But please don't follow me just because I did something -- you know that's against the rules of logical thinking -- it's gambling at it's very worst... which is great fun when it's going your way -- and it sucks HUGE when it doesn't.

My plan is to sell half if I get to a "double" --- then I will be playing with house money - just like at the casino. If it just holds here for a year - I'd be happy as a clam -- then I'd sell some and only pay 20% long term capital gains tax. In the meantime -- one hint of bad news and I loose my ass... So we'll see.

Originally Posted by GregWeld

I bought 500 shares of Twitter (TWTR) today....



So here's why I post this info. Just because someone else does doesn't mean you should. I can afford to take a very small position in a name like this. Think about the relative size of what 500 shares of a name is for me - when a typical position is 10,000 or 20,000 or 50,000 shares. If you're just building up your retirement account build a nice big base FIRST, then once you have $100K plus earning some dividends... Now you could "afford" to take on a risk like this. And you keep that risk really small in relation to your overall financial health!

Tiptoe first! I expect this name to be cut in half at some point and if it gets hit like that I'll buy another 500 and then that's it. Not another single share. If it doubles I'll take out my investment and let the house money ride. Period. It's gambling. But for me it's like gambling one dollar and then walking away. Don't get caught up in trying to make the big score.