Investing 102

[GregWeld]

Originally Posted by bdahlg68

I decided earlier to add some risk to my portfolio and picked up a small position in CYOU before the dividend. So far so good. I picked the shares up for $24.73 and they paid a $3.76 special dividend. Up about 11% after the dividend is paid. Still a risky affair as this is a China stock (always the fear of fakes) and the Chinese economy has been cooling. Therefore this is a small position more for fun and to see where they go with dividends.

I'm also now green on SAN! Took a lot of patience, and a good average down when the stock was around $5. I've now trimmed back that position so it is inline with the total value of many other stocks in my portfolio. I got a little heavier than I'd like to have been in SAN, but it worked out. But, this is not always the case.

Pretty happy overall with unrealized gains YTD - nearly 14%. Hoping for continued success rest of year and beyond.

Averaging down is a very good way to work out of a "problem" stock.... IF -- it's a stock you don't mind owning for awhile. I've done this zillions of times and most of the time it's worked out real well.

One time I averaged into a 93,000 share position that eventually cost me a $1.00 per share loss.... I was trying to save an $8,000 (total) paper loss in the position. That was extreme -- but was worth the loss for the education it provided!

[bdahlg68]

Originally Posted by GregWeld

Averaging down is a very good way to work out of a "problem" stock.... IF -- it's a stock you don't mind owning for awhile. I've done this zillions of times and most of the time it's worked out real well.

One time I averaged into a 93,000 share position that eventually cost me a $1.00 per share loss.... I was trying to save an $8,000 (total) paper loss in the position. That was extreme -- but was worth the loss for the education it provided!

Yes, it does normally work but it's important that the size of the position stays in check to the rest of your portfolio. SAN was starting to "stand out" i guess you could say as a percent of my portfolio. That is where I started to get nervous - as even though I don't mind holding on to it for the next 25 years, I don't want to lock up that much of my portfolio for that long. At one point it was almost 15% of my portfolio! So I've since averaged out of the position and parked that money elsewhere for other opportunities....

[GregWeld]

Just a "thought" as long as I'm blabbing here....

I'm NOT anti taxes... I DO use the tax laws to my advantage... and I DO have people that know where we should be invested in order to minimize my tax bill and get the best returns... Having said that - my tax bill for 2011 was 1.7MM so I'm pretty comfortable in my skin knowing that I paid my "fair share". 1.7MM and I still only get ONE vote...

What I am AGAINST is WASTE.... and it's my personal belief that the government can waste more money than anyone in the history of man.

I also believe that people always spend more than they earn... and the government is no different. Give them more money and they'll spend it and some more.

I am also firmly against the 'them vs us' pitch that's being used to generate dissension and division in America. America has always been only about US - together - and about how we fix OUR problems.

I watched a discussion on CNBC this morning about the "Americas Cup" sailing race -- and the BILLIONAIRES BOATS.... The takeaway was that spending zillions on these racing boats was GOOD for everyone because of the solutions they bring to issues etc - that - (think Carbon Fiber in race cars - that was super exotic only a few years ago!) eventually make their way down to "us". Without this excessive spending -- things tend NOT to advance. We've all benefited from the Carbon Fiber parts "invented" at some great expense to someone that went before us. So I'm all for it.

Chevy spent a fortune racing aluminum blocks in order to eventually give us the LS engine series... Well... IMHO I'm glad they did!

[Tony_SS]

Agree with ya Greg. I think part of the problem that divides us is intentional by the media and politicians. We are all the same and have more in common, but anytime you hear something from the media or politicians, it's always a matter of sex, race, class or religion. Anyway...

I'm no expert in this field, but what do you all make of Soros dumping his stocking and buying over a million worth of gold stock?

[GregWeld]

Originally Posted by Tony_SS

Agree with ya Greg. I think part of the problem that divides us is intentional by the media and politicians. We are all the same and have more in common, but anytime you hear something from the media or politicians, it's always a matter of sex, race, class or religion. Anyway...

I'm no expert in this field, but what do you all make of Soros dumping his stocking and buying over a million worth of gold stock?

One million to George Soros is like $1 to you and I....

It was pointed out the other day on CNBC that Soros doesn't run his own money anymore - he's 80 some years old - quit his hedge fund and returned all the client money - and now has the lions share of his personal money run by several different firms.

I'd need more facts -- or to see where this info is coming from to be able to have any opinion one way or the other.

[Tony_SS]

Originally Posted by GregWeld

One million to George Soros is like $1 to you and I....

It was pointed out the other day on CNBC that Soros doesn't run his own money anymore - he's 80 some years old - quit his hedge fund and returned all the client money - and now has the lions share of his personal money run by several different firms.

I'd need more facts -- or to see where this info is coming from to be able to have any opinion one way or the other.

Yes, and I'd need more facts to firmly believe what CNBC is saying as well.... at 80yrs old would you let 'others' handle your affairs after you've been doing it all your life? I find that hard to believe, but this is a good point that 1 million isn't much to him.

[GregWeld]

Originally Posted by Tony_SS

Yes, and I'd need more facts to firmly believe what CNBC is saying as well.... at 80yrs old would you let 'others' handle your affairs after you've been doing it all your life? I find that hard to believe, but this is a good point that 1 million isn't much to him.

They interview him all the time -- so that info is from "him" via CNBC.


He's marrying some super young chick.... so he's maybe playing with her more than his money. He's got plenty!

[glassman]

Greg, I haven't been in front of my personal pc since Wed eve. Just checked in this morning and In those two days you've provided me with more info than i've learned in my 46 years on this planet. BIG thank you for continuing sharing your experience with us. IT IS MUCH APPRECIATED!!!!

My brother is a CFO of a large law firm here in the Bay area and is helping coach me. My whole family is in "managing numbers" to some degree. My dad has been telling me to get started early. Well, When your 27 (1993), have three kids, wifey staying home with them, net 515 a week, own your own "townhome", NO debt other than the town home, theres not a whole lot left over to "invest" when survival is the name of the game. We bought our company when i was 30, it was bankrupt and def a "fixer upper". So I started investing 1100 a month at 32 (now 46) and while we have something, its not impresive. So I am getting a little more aggresive NOW.

Once again, thank you, Mike

[Bucketlist2012]

I like Greg's point of owning only so many assets...I own 17. I don't ever see me owning more than 20.. It is not the quantity , but the quality.

As Far as Gold, and Greg's point about the election and who is the Leader.

I use the Nation's politics in some of what I do..I always keep 5% in Precious Metals as an Insurance. Since 2008, I rose that to 15% plus...I am using the cues from the Federal Reserve and the Administration as my guide. Is it a long term play ? No, but is has gone up 125%..

So although it is not long term, it is part of what I am doing...If things change in the Administration in November, I will dial back to 5%. If nothing changes and the Congress and House and Leadership stay the same, I see more stimulus, which will devalue the dollar..

I always have other plays other than steady eddy's...

[Bucketlist2012]

Also with Precious Metals, I am not one to keep large amounts in physical metal in my safe for armageddon..

Sure i have some, but most is in ETF's around the globe.Australia, Canada, and the U.S.

If I see a shift in the Market with the Federal Reserve, I can sell it without loading it up and running to the store, haha.. I can put in the order to sell it, if the Market for commodities goes sideways on me...