Investing 102

[XLexusTech]

Same boat... I have been here for a few years now... tried rentals... too much stress... tried peer to peer lending... in 3 years my Avg rate of return is 5.4% year over year.. beats a CD or a bank account but I keep looking at some of my holdings saying if I has put that peer to peer money in that one investment 3 years ago I would be way up...

So you learn.. you try things and you diversify..

Originally Posted by Vegas69

I'm not concerned about my stock holdings as I'm holding long term. I just feel there are new opportunities for growth outside of stocks in a fearful market or next cycle. While the stocks take a hit, I'd like to try to capitalize on something that thrives in a down cycle.

I'll be researching it and will share if I find some ideas.

"The money is made when the market is most pessimistic."

I don't recall where I saw this, but I think it holds the key.

[GregWeld]

Originally Posted by XLexusTech

Same boat... I have been here for a few years now... tried rentals... too much stress... tried peer to peer lending... in 3 years my Avg rate of return is 5.4% year over year.. beats a CD or a bank account but I keep looking at some of my holdings saying if I has put that peer to peer money in that one investment 3 years ago I would be way up...

So you learn.. you try things and you diversify..

EGG SACK LEE!


Regardless of what you're invested in -- the stuff MOVES AROUND!! Housing isn't always UP -- the market isn't always UP -- rentals aren't always profitable -- commercial can sit empty and require huge TI's (tenant improvements).

Oil has sucked -- okay --- if you BOUGHT oil when it sucked -- you're looking pretty smart right now..... if you bought rentals when the housing market sucked -- you're looking pretty smart right now..... if you bought stocks one or two years ago or even better - FIVE years ago.... you're looking pretty smart right now.

TIME will heal most things investment wise as long as they're not hemorrhaging cash... even better if they CREATE cash along the way.

What's my point? I don't know ---- maybe it's just that if you don't get in a play around ---- you'll NEVER get anywhere. And if you buy the wrong stuff and gamble --- you may never get anywhere. But if you buy good stuff and it pays you a dividend..... you may have a gain one day.


LOL


It's so simple. It truly is.

[Vegas69]

I get what you guys are saying and agree for the most part as I do have different buckets and timing things is difficult, especially with stocks. I just feel that there are indicators and people do make intelligent predictions and moves based on analysis. I can tell you that's how I've been successful in my real estate investments and business. Staying educated and adaptable.

I guess my point is, where's the best opportunity for growth in the short term.

We are 7 years into an escalating stock market and 5+ years into appreciating real estate in most markets. The tide always changes, I'm trying to figure out the best opportunities in the next cycle when stocks and housing aren't so robust. I suppose it may be a situation where you have to live it. I would think the past would leave clues, however.

[GregWeld]

Originally Posted by Vegas69

I get what you guys are saying and agree for the most part as I do have different buckets and timing things is difficult, especially with stocks. I just feel that there are indicators and people do make intelligent predictions and moves based on analysis. I can tell you that's how I've been successful in my real estate investments and business. Staying educated and adaptable.

I guess my point is, where's the best opportunity for growth in the short term.

We are 7 years into an escalating stock market and 5+ years into appreciating real estate in most markets. The tide always changes, I'm trying to figure out the best opportunities in the next cycle when stocks and housing aren't so robust. I suppose it may be a situation where you have to live it. I would think the past would leave clues, however.

I'd guess the reason there's not a lot of responses is...... because who knows?


I just keep doing things the way I've always done them --- when something - whatever that is -- looks to be cheap or beat up and I think I can make money on it IN THE FUTURE -- I'm a buyer.... if I view whatever it is as too expensive right now... then I don't buy. Or perhaps I "trim" and take a loss or a profit... but my BASIC premise of investing doesn't change. Buy good stuff.... that pays you to carry the costs (or almost)... and that you know and understand. Done.

By the way --- nothing goes straight up. They go up - but never in a straight line.


How hard is it to sell some young couple a house if you didn't think that eventually they'd be making a smart decision?? We are all mostly confident that EVENTUALLY our houses should be worth more than we paid. We figure TIME is what will fix that. No different than any other investment. Sure a guy can buy a bad house in a bad neighborhood - or maybe a guy is just a lousy manager etc... I'm speaking in broad general terms.

[GregWeld]

Gotta ask -----


How many guys(gals) are happy SO FAR - that they didn't panic and sell because of the election?

[JKnight]

Originally Posted by GregWeld

Gotta ask -----


How many guys(gals) are happy SO FAR - that they didn't panic and sell because of the election?

Absolutely! Even took some profits in my taxable account where it made sense. Whoohoo $$$!!

[SSLance]

Originally Posted by GregWeld

Gotta ask -----


How many guys(gals) are happy SO FAR - that they didn't panic and sell because of the election?

Of course I'm happy I didn't sell...but I am thinking I wish I would have made my move over to Schwab a bit earlier so I could take advantage of some trades I'd like to make right now.

Hopefully my transfers will be complete tomorrow and I can dig back in. I went to a seminar at Uncle Chucks place Wednesday about the market in election cycles and cycles overall. It was very enlightening, the best part being the demonstration of their StreetSmartEdge app which I downloaded today and am beginning to get used to messing with.

[GregWeld]

Originally Posted by JKnight

Absolutely! Even took some profits in my taxable account where it made sense. Whoohoo $$$!!

Yeah --- I've been moving some stuff around...... I park cash in JNK -- and I've been lowering that steadily and buying where I have losers (ETP) and re-bought KMI - and some other stuff. Like taking down my whopping 100 shares of AMZN that were bought too high - so I bought 200 more and dropped my cost.

Originally Posted by SSLance

Of course I'm happy I didn't sell...but I am thinking I wish I would have made my move over to Schwab a bit earlier so I could take advantage of some trades I'd like to make right now.

Hopefully my transfers will be complete tomorrow and I can dig back in. I went to a seminar at Uncle Chucks place Wednesday about the market in election cycles and cycles overall. It was very enlightening, the best part being the demonstration of their StreetSmartEdge app which I downloaded today and am beginning to get used to messing with.

When we moved to Sun Valley -- there is no Schwab office anywhere near.... and while that's not critical - I also lost my bank when Bank of America closed all their branches here. So I moved those two accounts to Wells Fargo..... I thought I might have a coronary while waiting for all that crap to transfer because it was always the Schwab account that I mess with and the one that I can manipulate the earnings potential etc. While I'm no fan of Wells Fargo -- I don't think I can stand another move! LOL

[AMSOILGUY]

Originally Posted by GregWeld

Gotta ask -----


How many guys(gals) are happy SO FAR - that they didn't panic and sell because of the election?

Panic to me happens when you get caught off guard. You made it very clear in the beginning not to invest in things you don't understand or can't see changes in. No gambling! Its weird to look at down times as buying opportunities. I actually get more excited about the down days then the up days.

Call it dumb luck or maybe I was just listening but I was looking at doing new construction of a commercial building. Lots of people I was talking to kept saying that steel prices were going up. I bought 40 shares of (X) 6/27/16 for 15 bucks and now its nearing 30. Not to mention a very talked about sector since the election, I'm actually up 90%. I never thought it was possible. All my childhood all I ever heard was I wish I would have invested in that when it started or something along those lines from family.

Now how do you decide when to sell? I haven't wrapped my head around that part yet.

[GregWeld]

Originally Posted by AMSOILGUY

Panic to me happens when you get caught off guard. You made it very clear in the beginning not to invest in things you don't understand or can't see changes in. No gambling! Its weird to look at down times as buying opportunities. I actually get more excited about the down days then the up days.

Call it dumb luck or maybe I was just listening but I was looking at doing new construction of a commercial building. Lots of people I was talking to kept saying that steel prices were going up. I bought 40 shares of (X) 6/27/16 for 15 bucks and now its nearing 30. Not to mention a very talked about sector since the election, I'm actually up 90%. I never thought it was possible. All my childhood all I ever heard was I wish I would have invested in that when it started or something along those lines from family.

Now how do you decide when to sell? I haven't wrapped my head around that part yet.

********** WHEN TO SELL ?? ****************




I hope I'm awake enough to have this make sense. Selling is the hardest decision to make! Whether you're selling at a loss or trying to capture a profit (gain).

Many factors to think about here:

If you take the gain (loss) is there taxable consequences (Long term or short term gain - makes a HUGE difference in tax rate)

Taxable accounts or IRA?? Makes a big difference!

Do you no longer believe in the underlying reason you bought?

Have you identified what you plan to buy with the funds generated? What makes you think the new purchase will perform any better than what you're planning to sell?

Are you nervous because of the success? Or are you nervous because you have plans to spend the profit and don't want to lose it? Do you need to diversify still - in other words - taking some gain will allow you to spread your wings a bit more.

Is there a dividend about to be paid or going "ex date"?? Don't shoot yourself in the foot and miss a dividend payment!!


These are not argumentative questions! They're just stuff to ask yourself.


Number one question is really -- If you are feeling that you should take some gain -- then DO IT. It's just that simple. You never should feel nervous about your investments

Rarely do I sell all -- I "trim" -- because when I dump the name - the next day it'll open UP $10..... So I drip out - just like I usually drip in.