Investing 102

[mdprovee]

Greg, I need to thank you again. By looking at this thread, it made me think. I made $25 on a dividend, and paid cash for home repair, truck repair, and other odds and ends. Even had a little left over.

Thanks, and the next dinner is on me.

[GregWeld]

Originally Posted by mdprovee

Greg, I need to thank you again. By looking at this thread, it made me think. I made $25 on a dividend, and paid cash for home repair, truck repair, and other odds and ends. Even had a little left over.

Thanks, and the next dinner is on me.

So here's the deal ---- we all get into a grove -- and one of those groves is NOT saving any money - and what happens is -- all of a sudden years have slipped by and we still aren't into the saving mode... I can tell you that at nearly 60 years old - how fast time has gone by! OMG! I was just 20 something!

So good to hear you are jumping all over it - because it's that same father time that makes that $25 dividend turn into $100's of dollars.

[GregWeld]

Very interesting information for INVESTING 102.... at Berkshire Hathaway annual meeting - Warren Buffet was "cheering stocks DOWN"! Why did he want the DOW to move DOWN?? Because on Friday he put 60 million to work - and planned to put more to work early this week and he wants to "get more for my money".

That must explain why he's one of the worlds richest men! He's BUYING when the market is DOWN. He actually understands the OVER TIME - if he buys when the market sucks - that he will be rewarded long term.

I've been cheerleading this "idea" for this whole thread...

Of course everyone "waits" for the perfect time to "get in". There really isn't any good answer or signal or news that you can say "now is the time because it's not going any lower".... so this is not what I'm trying to say. What I'm pointing out is that when you see a stock you like -- and the market is down -- don't be afraid to pounce! Will it go lower. Yeah! You can bet on it. But if you've been watching a stock and it's moving higher and higher and all of a sudden the market is selling off you need to get a mindset that says "GREAT" I'll buy some! It's on sale!

Be like Warren Buffet!

[ErikLS2]

Pretty good list I found looking around about dividend stocks:

http://seekingalpha.com/article/4634...-paying-stocks

[GregWeld]

Originally Posted by ErikLS2

Pretty good list I found looking around about dividend stocks:

http://seekingalpha.com/article/4634...-paying-stocks

Good list Erik!

The only problem I have with it is that it's TOO conservative if a guy only owned those big cap big dow names. The yield on them is just not enough - which is why I pitch -- offset some big cap dow stuff like McDonalds and Coke - with a name that pays 6 or 7%.... and has a bit more risk. If you don't do that - you end up with a portfolio paying 3% or less - and that won't keep up with inflation. It'll grow - and it'll be safe - ya just need to be somewhere in the middle... Too safe is where old guys like me reside.

[RECOVERY ROOM]

Your not that old yet

[GregWeld]

I used todays weakness in McDonalds to add a 1000 shares to my position.

I also found an interesting dividend/income/growth play (I bought 10,000 shares) in Black Rock Limited Duration (BLW) that pays a monthly dividend of 10 cents... which is currently 7+ %.

Remember I'm retired -- so income generation is my goal. Each of you have to temper your investments to your own goals. However, INCOME - even if you don't need it NOW - can be reinvested. So just because it's income for me, now, doesn't mean it's not a good investment for someone just looking to grow their portfolio.

[strtcar]

Guys, checkout DOMK, it was .67 a few weeks ago, now over $4. They make solarpowered case for ipad, iphone, and fire. Ipad case comes out in less than 1 month. The company has no sales at all but I think it could be a good stock to make some quick money.

I've been following them for few months now, and the last week its been crazy, shooting up to 52week high in the first 15mins of the day then coming back down to "normal". Will be neat to watch it as the product launch gets closer. My guess it will tank after earnings come out, but who knows.

[GregWeld]

Originally Posted by strtcar

Guys, checkout DOMK, it was .67 a few weeks ago, now over $4. They make solarpowered case for ipad, iphone, and fire. Ipad case comes out in less than 1 month. The company has no sales at all but I think it could be a good stock to make some quick money.

I've been following them for few months now, and the last week its been crazy, shooting up to 52week high in the first 15mins of the day then coming back down to "normal". Will be neat to watch it as the product launch gets closer. My guess it will tank after earnings come out, but who knows.

Maybe we should start a "GAMBLING 102" thread... because that's what this is. It's not investing.

[GregWeld]

The next several weeks will show you why you want to own stuff that PAYS you to own it!

Remember too - all you newbs out there.... that when we say Sell in May and go away... this is a historically week period (summer)... and that actually works in your favor if you're re-investing your dividend or plan to put more money to work. If you re-invest - you'll buy more shares - which pays off later - and if you've got new money - you can put it to work with cheaper prices.

Personally I've always come into this period with a nice cash position waiting to add to my portfolio - and it's almost always worked out beautifully.

The other things you'll see is that people tend to sell their WINNERS -- so stocks that have had a great run (profit) get sold the deepest because it's so easy just to skim some off the top. People tend NOT to sell the losers... they hold them. So you'll see the biggest haircuts in the biggest winners.

Pay no attention to that noise out there... it's trader talk. You guys are INVESTORS!