Investing 102

[toy71camaro]

Originally Posted by CRCRFT78

Fortune mag just had a write up about Annaly I believe last month. You have to wonder though, once everyone starts talking about it is it too late. Just thinking back to Gregs comment about "once the clerk at the store tells you about it, its too late". I have also been thinking of adding them to my portfolio though.

Same here... thats why i posted my comment.. seems they are the "buzz" (them and apple)... which kinda makes me "wonder".

[CRCRFT78]

Actually It has been talked about since 2008/2009..

It was a top pick back then.. So was chesapeake energy.

I have been studying for years, and a lot of what is being talked about today, was talked about then. So they are still strong, and look to stay that way.

But do not overweigh in annaly..

or anything else.

This is why its good to have some of you experienced investors chime in. Help keep us newbies from screwing ourselves.

[Bucketlist2012]

Originally Posted by CRCRFT78

This is why its good to have some of you experienced investors chime in. Help keep us newbies from screwing ourselves.

I am a newbie compared to Greg, so I am here to just share thoughts.

But for sure, we cannot get greedy looking to double digit gains or Annaly, and just overbuy..

But in my strategy, I have in the past, looked to common themes from different sources..And they have sang the same tune for a long time now...

Not just investing , but money management, too... When several sources are all talking about certain things to do, I at least check them out.. See why they like it, or what they think will happen going forward..

Also Kiplinger's talks of Stock's fighting inflation, and not just TIPS, or Gold...

But today has been a reading day for me...There is just so much to learn..A life long journey, and I am bitten by the bug to do the best that I can..

[Bucketlist2012]

Another one to ask Greg about that has been talked about for years..

TVA.. Tennessee valley authority.

Energy distribution. I could not look up the data, but i am throwing it out there for discussion..

[GregWeld]

Originally Posted by toy71camaro

So... Now i am covered in these sectors within my ROTH:

Retail/Wholesale (MCD) 19%
Comp&Tech (MSFT, CSCO, APPL) 16% (before "Investing 102" purchase)
Utilities (ED) 26%
Consumer Staples (MO) 26%
Aerospace (LMT) 5% (before "Investing 102" purchase)
Medical (PFE) 5% (before "Investing 102" purchase)

What sectors would be a good offset for these? My next two considerations for next weeks purchase ($2k) would be possibly be in Finance, and Oil/Energy. Just trying to gauge where to invest my "time" to research.

Several good names in "energy" --- with good dividends etc... Connoco Phillips == Chevron -- Exxon... or the pipes -- Enbridge Energy Partners - Kinder Morgan Partners -

You'll just have to do some digging around. (Oil pun - get it?)

[GregWeld]

Originally Posted by CRCRFT78

Looking at my IRA I've noticed Pepsi is -7.72%, Consolidated Edison is -6.93% & Disney is -2.34% since purchase. Is -5% just your benchmark for scaling in or is that one of those unwritten suggestions for investors?

No particular "rules" that I use... I just prefer to buy on down days. Sometimes waiting for a down day is futile because "down" is relative - if the stock has gone UP 20% while you waited for your down 5% move -- that ain't so brilliant!

I prefer not to try to time the market -- I just buy "some" -- wait and watch -- and maybe buy some more - up or down - there's no rules - this is all just a giant "who the hell knows" game. It's more a gut feeling for when over any thing else. Nobody has a crystal ball.

What I was trying to point out - using your three names listed here - is that I'd add to my Con Ed or Pepsi before adding to Disney -- given the percentages listed.

[GregWeld]

Originally Posted by CRCRFT78

Well I've been itching to add to my stocks so I just purchased 10 more shares of Pepsi @ $62.29 ($622.90). Combined with the initial 15 shares I purchased at $67.51 ($1012.65). Which comes out to an average of $65.42 per share. With the stock being down -7.73%, and with the intention of holding for the long term I thought now is as good a time as ever.

Sorry theres no real purpose for this post, just excited to add to my investments and looking forward to what the future holds for me once these start to pay off.

You've been reading!! And learning!!

This is the best example YET --- doing what should be done -- you've bought good quality best of breed companies -- and then when you wanted to you added -- showing you're an INVESTOR!

I will sleep well tonight knowing that somebody "get's it"!!!

[GregWeld]

Originally Posted by CRCRFT78

Greg, regarding Banco Santander, can you give us some insight about the ADR fees and how do they affect your overall ROI? Banco Santander has been a name I've been watching but being a newbie I want to make sure its something I understand before spending money on. Would this be stock to purchase for my IRA (my retirement) or my Schwab (money I have no attachment to if lost) account.

ADR's --- American Depository Receipts

There are fees associated with any ADR -- by the institution that holds the underlying securities...

So here's what that "dividend" payment looks like for Banco Santander (STD) the last time I got a dividend. I actually had a position in this name - then sold it - and waited for a little better news on the euro debt crisis -- then have scaled back into it just in the last month or so.


05/09/2011 STD BANCO SANTANDER SA ADR FSPONSORED ADR
type: FOREIGN TAX PAID
-$322.64

05/09/2011 STD BANCO SANTANDER SA ADR FSPONSORED ADR
type: QUALIFIED DIV
$1,698.13

So as you can see -- the $1700 dividend was actually $1400.... and I'll claim the foreign tax paid on my income taxes.

I like the dividend on this bank over other banks - and I don't expect the name to turn around over night. Some times you have to have a brass set to own some of this junk. I fortunately can buy stuff like this... not sure anyone else should be. It's high risk.

[GregWeld]

Re: Annaly Capital Management -- or any other 'name' like this....

I'm not the resident stock guru - nor resident stock picker... I really am quite uncomfortable discussing various names like this because you all have different reasons for your investments - different tolerances for risk - different goals - incomes etc.

Here's something also worth repeating:

If you don't know the name -- and don't understand the business the company is in ---- DON'T BUY IT! Because when something goes sideways --- you won't know why you own the name - and won't have any connection with it -- and that's SCARY!

I've been preaching since the beginning of this thread about investing in names you know... and there's no sense in investing outside your comfort level until you own all the "regular good stuff"... why go looking for trouble?

This is Investing 102....

Some of this stuff is for sophisticated investors that understand the risks associated with investments like junk bonds - and mortgage REITS etc. When you start playing with this stuff you better know what you're doing and be on top of the news - and trends etc.

Not saying that I'm sophisticated and you're not --- I'm just once again writing for ALL that read these threads... Please start out investing in all the best of breed - good dividend payers - steady eddies -- and live with that stuff for awhile -- before you start jumping into companies that make nothing... ya don't know what they even do... or what affects their earnings etc.

[CRCRFT78]

Thank you for the explanation on Annaly Capital Management. I agree I will have to learn more before jumping into something like this.