Investing 102

[Vegas69]

Looks like my purchase of Costco was just in time.

[GregWeld]

Originally Posted by Vegas69

Looks like my purchase of Costco was just in time.

That's the thing about investing. There's never a good time in anyone's mind. That's the biggest hurdle to get over. Doesn't make any difference if a guy is buying $100 -- $1000 -- $10,000 or a million at a time.... I personally guarantee the stock you picked WILL be lower than your cost basis at some point. Usually 15 minutes after a guy buys. I will also guarantee the shares will be higher right after you sell. It's that long space in-between where the money is made.

The other day I decided to cut my holdings in British Petroleum Prudhoe Bay Trust (BPT) by half... I held 20,000 shares and while it pays a huge dividend percentage -- There's other stuff I want to buy -- and I like to always have pretty substantial cash positions. So I put in a limit sell order at $92 - which was well above the current trades... I put in orders like that and then go do something else. If they get sold fine - if not - the shares are still in my account and we'll try it another day. Of course they sold - and the shares closed the day at $92.50. 50 cents per share @ 10,000 shares is $5,000.... So I left a little on the table. But I don't get caught up in that - because I know I'll never ever get it "right". I just do what I want/need to do. I still had a very nice gain in the shares on top of the outsized dividends collected.

My point -- it takes time to get over "losing" the last nickel of gain.... and it takes time to get your mind right that no matter when you buy - you probably could have waited and bought cheaper. In the long run - it just doesn't matter.
You do get used to it.

Kind of like the housing market. Most must sell to buy another.... we wouldn't buy another if we thought the market was going to hell.. so at some point we must put up a for sale sign -- close a deal - and take the plunge into the next home. We just KNOW that it's going up over time so we're okay with it. I never can figure out why that's okay but stocks are thought of differently.

[Vegas69]

I was just kidding around since you mentioned your trip to Costco.

[GregWeld]

Originally Posted by Vegas69

I was just kidding around since you mentioned your trip to Costco.

Still gave me good segue for a good post!


I don't own Costco (COST) because the dividend is just too low for
me... but it's a good well run outfit.

[Vegas69]

I sold off Target and bought Costco. The retail market seems saturated, Costco appears to have somewhat of a niche. I'm not going down there and wasting 3 hours of my Saturday for bulk jalapenos and two cents off gas, but hey, I see value there.

[GregWeld]

Originally Posted by Vegas69

I sold off Target and bought Costco. The retail market seems saturated, Costco appears to have somewhat of a niche. I'm not going down there and wasting 3 hours of my Saturday for bulk jalapenos and two cents off gas, but hey, I see value there.

I drove the 2 hours to Twin Falls - specifically to go to Costco to buy a Windows Laptop. ONE item - in and out. Done. LOL I'm a Mac guy - but needed an up to date Windows machine for the AiM SmartyCam I'm setting up in the Lotus (if it works I'll get one for the Mustang too). My point of all this ----- by the time I cruised the aisles I'd blown thru a grand... And that's where they get ya. Everyone that bothers to go there - runs thru all the aisles and finds all manor of stuff they didn't know they needed. I just ASSume that whatever I put on the cart is the best price I'm going to get on that item.

[glassman]

Originally Posted by GregWeld

I drove the 2 hours to Twin Falls - specifically to go to Costco to buy a Windows Laptop. ONE item - in and out. Done. LOL I'm a Mac guy - but needed an up to date Windows machine for the AiM SmartyCam I'm setting up in the Lotus (if it works I'll get one for the Mustang too). My point of all this ----- by the time I cruised the aisles I'd blown thru a grand... And that's where they get ya. Everyone that bothers to go there - runs thru all the aisles and finds all manor of stuff they didn't know they needed. I just ASSume that whatever I put on the cart is the best price I'm going to get on that item.

So I can sleep knowing you got enough stock of cheeseballs for said moderator?

[WSSix]

I don't mind of you keep blowing through cash while in COSTCO at all, Greg. That one has been a sneaker for me. I got it as a steady eddy since the dividend was so low. Right now, it's going well with capital gains which I was not expecting. More proof that you just have to get in if you want to make money instead of waiting on the sidelines for the "right time".