Investing 102

[dhutton]

Originally Posted by GregWeld

#4 --- If you "have to work" until you're 65 or 70..... or beyond.... it's an epic failure of personal responsibility.

If it spurs on ONE person to kick themselves into a different gear - then it was worth the "statement".

I'm retiring next week on my 58th birthday thanks to this thread and a real estate investment I made 16 years ago. Thanks Greg, you have at least one more success story under your belt! It would not have been possible with the track I was on before I read this thread.

Don

[glassman]

Originally Posted by dhutton

I'm retiring next week on my 58th birthday thanks to this thread and a real estate investment I made 16 years ago. Thanks Greg, you have at least one more success story under your belt! It would not have been possible with the track I was on before I read this thread.

Don

Thats awesome Don!!! I'm ten years behind ya and hope to be getting out (full time) about the same time. I dont plan on ever retiring from what i do, i'm an expert at it and still love the technical and customer side, hate the business side (well, people who dont pay their bills, vendors that lie, customers with unrealistic expectations etc...)

But key for alot of us is, WANTING to work vs. HAVING to work...

I'm hoping this thread goes on for 15-20 years and see what happens and how many lives its touching in a positive fiscal way and hear more stories like Dons....just wish i had a crystal ball lol...

[GregWeld]

Originally Posted by dhutton

I'm retiring next week on my 58th birthday thanks to this thread and a real estate investment I made 16 years ago. Thanks Greg, you have at least one more success story under your belt! It would not have been possible with the track I was on before I read this thread.

Don

Okay -- That's just about the coolest thing ever! And that's exactly why I've poured my soul into this thread. I'm truly honored! Amazed! Kudos to you sir!

[GregWeld]

I'm a relatively early riser -- and I NEVER stop reading and listening to what's happening in the world. I knew today was going down hard - last night - when I checked what Asia was doing in their markets.

I gather KNOWLEDGE - I DO NOT stew about it. I didn't go to sleep last night with churning guts about the "money" I was going to lose in what I know is going to be a sea of red today. Rather - I went to bed thinking about which stocks I would start to pick away at with BUY orders. Perhaps a little more Apple under $100.... Altria (MO) which just raised it's dividends another 9%.... Seems people smoke no matter what (have to laugh at that sad as it is).

Here's the deal. If you own the very best of the best companies... they're still alive and well (maybe not big oil... which could catch a cold that could grow to pneumonia)...

With Altria's (MO) latest raise --- and THIS IS THE INVESTING 102 reason for posting today --- my yield on COST is 5.5% (cost is $41.33 divided into the current ANNUAL divided of $2.26... result is .05468 ..... move the decimal and that's 5.468%). THE ONLY REASON IT'S THAT HIGH ON MY COST??? BECAUSE I'M NOT SELLING AT EVERY LITTLE DIP IN THE MARKET. It's a LONG TERM hold... The company is good (all the companies I invest in are good!). I'm not in and out of the market - I'm NOT a trader - I'm an INVESTOR! When the market puts things on sale --- I try to take advantage of that. I "IMPROVE" my position when possible. There are companies I like that are on sale that I don't own.

My mindset is that no matter what I buy... it will go lower. I'm okay with that. It's like buying a rental house in a bad market -- you buy it - if you don't someone else will... and then you fix it up - rent it out - and EVENTUALLY you'll collect nice rents and the market will come back and you'll be the smartest guy in your office. : > )

I know most of you don't sit around with a pile of cash just waiting for a market correction. I get it. I'm trying to set you up for when you might some day. You need to have spent some TIME in the market - live thru it - LEARN FROM IT - and get your head wrapped around "it".... so when you CAN strike - you'll know what to do.

This thread is not your ultimate guide of buy this - sell that - move here... I'm trying to hand you THOUGHT PROCESSES... Ways to calculate things - ways to LOOK at things.

[PBarkley]

Originally Posted by GregWeld

It's a LONG TERM hold... The company is good (all the companies I invest in are good!). I'm not in and out of the market - I'm NOT a trader - I'm an INVESTOR! When the market puts things on sale --- I try to take advantage of that. I "IMPROVE" my position when possible. There are companies I like that are on sale that I don't own.

I like the part in bold. I've been bitten before by the mentality that I can be my own day trader, and I'm lucky I didn't get completely hosed in the process. I've been quietly reading this thread ever since I've joined. It really is a treasure trove of information (especially for a 30 y/o like myself), and I thank you for that.

There is definitely opportunity to be had today for those with the cash, haha.

[SSLance]

I'm going shopping today as well...

[GregWeld]

Originally Posted by SSLance

I'm going shopping today as well...

I couldn't log into my WELLS FARGO account that I use for examples on this thread (trust me - I don't tell you Aholes EVERYTHING).... So I texted my team at the bank... which resulted in an immediate phone call from them.

I put just over 1MM "to work" (I always maintain a pretty sizable cash horde). By the time I tried to log into the account -- and the manual buy order was placed - -ALTRIA (MO) moved from $49.97 to $50.24 (my fill).... on a 5000 share order -- that's a big move (a cost to me!!). I had to switch from LIMIT orders to MARKET orders because the market was moving to the upside so fast. I could write a book about that "strategy" -- you have to move and make decisions in a fast moving market - that you WOULD NOT do in a "normal" moving market. If you're buying 100 or 10 shares - this isn't going to make or break you - and if you WANT the shares... and you should have decided that weeks or months before the actual action...

I bought AAPL -- NFLX -- MO -- T -- KMI

An hour later - I still don't have order confirmations.

[WSSix]

Congrats Don! Best of luck to you in your retirement.

I had some extra bonus money I decided to dump into my brokerage account instead of savings. I'm looking at making some purchases today.

[GregWeld]

Originally Posted by PBarkley

I like the part in bold. I've been bitten before by the mentality that I can be my own day trader, and I'm lucky I didn't get completely hosed in the process. I've been quietly reading this thread ever since I've joined. It really is a treasure trove of information (especially for a 30 y/o like myself), and I thank you for that.

There is definitely opportunity to be had today for those with the cash, haha.

Glad you are enjoying the thread!

Day trading is the fastest way to lose money I can think of. That's about the purest form of gambling. Then at the end of the year you owe the IRS taxes... and it raises your ordinary income (if done in a taxable account). Many people don't understand the tax rules of "wash sales" etc. The only way to do this is really have a great base of normal savings and investments... and then just take your "extra" money and either go to Vegas or day trade. LOL

Quickly -- a WASH SALE is where you trade the same stock -- within 30 days and have a gain -- then a loss -- The loss doesn't cancel out the gain - so you owe taxes on the gain even though you had a loss. It's a nasty rule that bites many people in a arse. That's a real basic explanation BTW.

[glassman]

Originally Posted by GregWeld

Glad you are enjoying the thread!

Day trading is the fastest way to lose money I can think of. That's about the purest form of gambling. Then at the end of the year you owe the IRS taxes... and it raises your ordinary income (if done in a taxable account). Many people don't understand the tax rules of "wash sales" etc. The only way to do this is really have a great base of normal savings and investments... and then just take your "extra" money and either go to Vegas or day trade. LOL

Quickly -- a WASH SALE is where you trade the same stock -- within 30 days and have a gain -- then a loss -- The loss doesn't cancel out the gain - so you owe taxes on the gain even though you had a loss. It's a nasty rule that bites many people in a arse. That's a real basic explanation BTW.

Pretty much how my Dad lost his buttocks in the market. Sad, but true. My bro and i now "help" him out....