Investing 102

[GregWeld]

When you have a stream of these - they quickly soothe your soul...



07/02/2012
as of
07/01/2012 KO COCA COLA COMPANY
type: QUALIFIED DIV
$2,040.00
04/02/2012
as of
04/01/2012 KO COCA COLA COMPANY
type: QUALIFIED DIV
$1,530.00
12/15/2011 KO COCA COLA COMPANY
type: QUALIFIED DIV
$940.00
10/03/2011
as of
10/01/2011 KO COCA COLA COMPANY
type: QUALIFIED DIV
$940.00
07/01/2011 KO COCA COLA COMPANY
type: QUALIFIED DIV
$940.00
04/01/2011 KO COCA COLA COMPANY
type: QUALIFIED DIV
$940.00

[Bucketlist2012]

DAMN YOU GUYS !!!

I mention BPT and it goes down today...

Which one of you bought some ??? Yes you ...


All is OK, my SDRL, SeaDrill, made up for any loss that BPT had today...

It pays to have more than one Energy stock...I have a few...

The little man knew you bought some and took it down today...

[XLexusTech]

Originally Posted by Bucketlist2012

DAMN YOU GUYS !!!

I mention BPT and it goes down today...

Which one of you bought some ??? Yes you ...


All is OK, my SDRL, SeaDrill, made up for any loss that BPT had today...

It pays to have more than one Energy stock...I have a few...

The little man knew you bought some and took it down today...

Guilty

[Bucketlist2012]

Originally Posted by XLexusTech

Guilty

All is Good Brother...

It has been good to me for years..

Over time it should do good for you..

[GregWeld]

Originally Posted by XLexusTech

Guilty

[Bucketlist2012]

Originally Posted by GregWeld

Laugh my A$$ off..

He asked, so we shared...

I am afraid to say my PWE, and my SDRL were WAY up today..

Someone will buy and I will lose on Monday...

[GregWeld]

While watching - as I do every morning - CNBC... and seeing that the market is DOWN 82 points... I wonder how my Schwab account is doing. I use this account because it's the newest (as far as newest purchases of shares) so has the highest average cost etc. AH HA! It is UP.... so what the heck - the DOW is down and I'm up, what's with that?

I say this - to stir what YOU might be thinking when you see something similar in your accounts. True - I'm well invested and diversified - while - if you 're just starting out you might not be (YET)... but it got me to thinking that many "newbs" (new to the stock market) might not really know what the Dow and the S&P are, and or, more importantly, how they (DJIA) get their numbers.

Many people don't realize that the stocks are "price weighted" within the DJIA (Dow Jones Industrial Average)... i.e., that their stock price move is multiplied and is based on the stocks price. The higher the price - the more "important" it is and carries more weight within the average. So a 1 point move in IBM might be a 8 point move in the DOW!!

So - just using these numbers as an EXAMPLE (they're not real numbers) - IBM is weighted in the DOW and makes up 6.9% of the average... 3M makes up 7.2% of the average - while CAT makes up only 3.5%. You can see then that a move in CAT won't have nearly as much influence as a move in 3M.

So what happens is IBM might blow it's quarterly number (or might make a really nice quarter - so either way) and the DOW blows up... but on further inspection it's really IBM that is the big mover of the DOW.

The DOW is made up of the 30 largest companies - as calculated by their MARKET VALUE.. so share price X's the number of shares issued. And is heavily weighted with INDUSTRIAL companies... it's light on "tech" and many other segments of the market. It IS NOT an actual mirror on the market and your individual performance. Thus the reason for my post today.

For the last 7 of 8 days the market (the DOW) has been down... while my Schwab account has had an amazing run UP...

I like my average better than theirs!

[Bucketlist2012]

Mr.Weld..

I must agree with you. I am up nicely this morning.

[toy71camaro]

+1 up almost .2% today.

Also re-asked my work about the personal brokerage account link to be able to pick individual stocks (read: investing 102 stocks) in my 401k. They said they were going to follow up on it today and see whats up. <crosses fingers>

[GregWeld]

Funny about how all this works -- which is what I'm trying to share with everyone.... It's really just an experience thing -- not a "I know the market is going to do X tomorrow..." I'm going to tell you -- I have no friggin' idea what the market is going to do. If I knew that - I'd be rich!

What I do know -- is that when I look at this Schwab account -- which is roughly 2 years old (it was new money at the beginning of 2011 but I sat on it for 6 months before doing anything) is that I'm up 10+% in value -- and I'm getting about 5% average dividend payout on top of that...

Comparing this to the CD's - Mutual Funds - Treasury bills - My own Muni Bond account.... I'm killin' 'em. Will it last? I have no idea.... but I know I'll continue to collect cash every quarter from the dividends -- AND THAT is what I invested in... the 10% (if it holds) is just gravy.