Investing 102

[GregWeld]

Originally Posted by CRCRFT78

Out of curiousity, how do some of you decide how many shares to buy? I base it on what I can afford given the amount of money I have at that particular moment. For example, Greg, you picked up 400 shares of Apple & 1000 shares of Chipotle Mexican Grill, how did you come up with those numbers? Why not 500/800 shares? Just wondering everyones technique when it comes to picking shares.

It's a good question but one without a correct answer....

I actually "adjusted" yesterdays purchase after thinking about it -- and sold 500 CMG and bought 200 more AAPL.... so now have 500 CMG and 600 AAPL...

I look at my cash -- and the account that the stock I want to buy is in... and then my LIMIT is 2 or 3% of investable funds. Most people use 5% - but 5% for me gets to be a pretty big $ amount... so it's all just based on what your situation is.

I ALWAYS try to keep a pretty sizable cash position as well.... cash is always king -- you never have to sell into a down period (that can last 2 or 3 years) and you always FEEL BETTER having cash... so I could make that a consideration as well.

[GregWeld]

Originally Posted by Bow Tie 67

Good one, Lol.

I added to my STD position today which drops my price per share, not to mention the next dividend, if history repeats itself, will be the big one of the year. " fingers crossed "

I had 20,000 shares and added 10,000 today. I waited until they were down a $1 from my average cost... to add (average down) to this position. They go "ex dividend" on the 10th and they're paying 11% at these prices (remember the percentage of div goes UP when the stock price goes down).

Personally -- I wouldn't "talk up" this kind of a position because of the volatility... and the "unsure" footing european banks are on. Actually the unsure footing the euro GOVERNMENTS are on..... but I think the risk/reward is decent over the long run. I look at it this way -- this stock has a higher chance of going up 25% than Microsoft does. Although MSFT has had a decent run lately... so that's an unfair statement.

[GregWeld]

Hey -- How's that gold trade working out for you guys??


OMG....

[Tony_SS]

Originally Posted by GregWeld

Hey -- How's that gold trade working out for you guys??


OMG....

Just like stocks... long term success. You get paid to wait.

I wish I could afford to buy into gold, now would be a great time!

Greg, PM coming your way...

[Bucketlist2012]

Originally Posted by GregWeld

Hey -- How's that gold trade working out for you guys??


OMG....

Actually really good..Not today.

But I have been long for years, but that is why I never recommend what I am doing in certain areas of my mix...Because if you weren't in early, watch out..

But over the last 10 years ? Good..Really good. crazy Gains..

I still see QE4 coming ...I may get off the crazy train within the next 12 months, if QE4 doesn't happen. But it will.

Also plenty of Dividend payers in my Mix.. 14 of the 18 assets that I own are Dividend payers..

But I don't see the Commodity run over yet..Along with the gains my eyebrows should grow back tomorrow..They will print more money soon..

EDIT...One day of tree shaking is no big deal....Back up 2 Grand this morning, in the first Hour....Wait until they bail out more home loans, and just wait until they bail out the Student Loans..

More printing on the way....And when that happens ? I will be waiting.

So yes, Commodities have and will be very good to be..

[Tony_SS]

Originally Posted by Bucketlist2012

Actually really good..Not today.

But I have been long for years, but that is why I never recommend what I am doing in certain areas of my mix...Because if you weren't in early, watch out..

But over the last 10 years ? Good..Really good. crazy Gains..

I still see QE4 coming ...I may get off the crazy train within the next 12 months, if QE4 doesn't happen. But it will.

Also plenty of Dividend payers in my Mix.. 14 of the 18 assets that I own are Dividend payers..

But I don't see the Commodity run over yet..Along with the gains my eyebrows should grow back tomorrow..They will print more money soon..

Here's my theory... Gold hit a huge bubble with all the hype when you started seeing commercials on tv and radio. It's being deflated now, and they can attempt to suppress it, but they can't control the market, the trajectory is still going no where but up as long as they keep printing dollars.

[Bucketlist2012]

Originally Posted by Tony_SS

Here's my theory... Gold hit a huge bubble with all the hype when you started seeing commercials on tv and radio. It's being deflated now, and they can attempt to suppress it, but they can't control the market, the trajectory is still going no where but up as long as they keep printing dollars.

There are many more bailouts in the works... The Housing that they tried to SAY is ok, is not OK...More government aid is happening and will happen..

Recently BEFORE they bail out the student Loans, they added the Illegal alien loans to the books..They will bail that out soon..

People can try to say that gold will fall, HELL they wish it will so they can be Right...Wrong...

Stimulus will continue...Printing will continue...Commodities will stay high..

People say it is overvalued....Nope...Just wait...I guess I have made my post, and now let time be the guide...we will see , won't we ?

[GregWeld]

Note that AT&T went "ex dividend" today.

[GregWeld]

Originally Posted by Bucketlist2012

There are many more bailouts in the works... The Housing that they tried to SAY is ok, is not OK...More government aid is happening and will happen..

In my market -- and I'm trying to buy houses in Portland Oregon ($350K range) and Seattle Washington ($800K range) - the market is HOT...

Every house we've had interest in has gone pending before we can even think about making an offer. There are now BIDDING WARS going on with multiple offers and back up offers.

I have two friends here (Seattle) in the business. Art called yesterday to tell me about a house - and then said a house he just listed at 1.3 million - had FIVE full price offers and one offer at 1.4 million.

Remember that the list of LARGE companies that are doing well headquartered here in the Seattle area will blow your mind... it's just that people don't think about lowly Seattle as ANYONES headquarters for anything.... but it is. High pay - high quality jobs make high priced housing.

[Tony_SS]

Originally Posted by GregWeld

In my market -- and I'm trying to buy houses in Portland Oregon ($350K range) and Seattle Washington ($800K range) - the market is HOT...

Every house we've had interest in has gone pending before we can even think about making an offer. There are now BIDDING WARS going on with multiple offers and back up offers.

I have two friends here (Seattle) in the business. Art called yesterday to tell me about a house - and then said a house he just listed at 1.3 million - had FIVE full price offers and one offer at 1.4 million.

Remember that the list of LARGE companies that are doing well headquartered here in the Seattle area will blow your mind... it's just that people don't think about lowly Seattle as ANYONES headquarters for anything.... but it is. High pay - high quality jobs make high priced housing.

Beware! The same thing was going on everywhere before the bubble.. IMO, thats a sure sign of one, where people drive up values in a frenzy.. they end up overvalued and crash down.. the PNW is a fad right now I believe.. a year from now it will crash, IMO.

Here in the midwest we have been stable, but declining still. We have not seen the bottom in housing, no way. But that won't stop new bubbles from forming elsewhere with these ultra low rates the Fed is holding.