Investing 102

[XLexusTech]

Originally Posted by transam

Thats why i never tell people what i invest in, only the few that know and trust me, it always goes the same way, friend/relative begs for "tips" and it goes south and they think you were just doing a pump and dump. But when it goes right they just spend their time imagining how much you made and forget they just made money for nothing.

OK the Mayans were right... my BPT is being outperformed by my FB ... dividends excluded :-)
the world is defiantly coming to an end

[GregWeld]

Originally Posted by XLexusTech

OK the Mayans were right... my BPT is being outperformed by my FB ... dividends excluded :-)
the world is defiantly coming to an end

That's funny!


Faceybook looks to be making a run on the upside. It's still not for me - but I've lost hypothetical millions NOT investing in stuff like that.... So now you really have nothing to loose so you might as well hang in there.

Personally -- I like the almost $14,000 a month I get in dividend from JNK...


I also totally agree with the fellow you quoted that said he doesn't give anyone tips or tells anyone what he's invested in. The reasons he states are spot on! This is why I constantly say that I'm using EXAMPLES... and that people just need to learn HOW to do their own choosing! There's nothing worse than making a recommendation -- which turns out to be inappropriate for that person - and they sell the first time it goes down - because they really have no idea why the hell they bought it in the first place.

This thread is all about HOW not WHAT.... big difference in my opinion! And I hope it's helped many folks just get started.

[Rybar]

Originally Posted by XLexusTech

OK the Mayans were right... my BPT is being outperformed by my FB ... dividends excluded :-)
the world is defiantly coming to an end

Hahaha awesome, I'm in the exact same boat as you.

[toy71camaro]

Well, tryin to pin down the future of the fam. Put in offer on a place back in our hometown (about 15 miles away from where we are currently, and we drive there 2x a day for school/daycare for the kids).

Every house has sold in that town in 2-3 days. but this one had some weaknesses that kept it from selling (close to train). I grew up near there, so I wasnt worried. Offered him 95% of what he was asking. Its been on the market 3+ weeks (very rare for this area).. He declined the offer, stating "its only been on the market a couple weeks, so we cant accept your offer right now". Then he turns around and re-lists it for 10k more the next day. LOL.

Well, we tried. Really bummed tho. Had a nice big lot to put a shop on later too.

[GregWeld]

Houses here are selling same day -- and before noon... and for full price or higher and with back up offers.

I would say that IF YOU CAN -- and you want the house -- you should just buy it. Remember that it's still "historically" low I would assume - price wise from where it was -- AND more importantly the super low interest rates.

[WSSix]

Given the trouble HSBC is in, I think it's safe to say not only do you need to be careful with who you're invested in but also what company you're using to make those investments or hold the accounts. Wish I could say I knew it was coming or that they were even in trouble but the reason I left them was because I could get a better rate on my savings elsewhere.

[GregWeld]

So I know this thread is quiet.... frankly there's not been much to add to the learning experience.... and there hasn't been many (any) questions lately.

I will say that I put some major cash to work today. I've given a few employees a few weeks vacation - but today was "get your azz back to work day". Mostly just added to existing positions. I'm still chasing "yield"... and even more so if we're going to see higher taxes!

I think there's still a big chance that the bozos in Washington DC don't get it together --- but I think there may be a bigger chance of missing a few days of nice moves if you're sitting out. Of course this is nothing but a giant guessing game!

HOW ARE YOU GUYS DOING??

[spacepirate]

Okay Greg,

Maybe your words of wisdom can guide me. I was saving to buy a home in Los Angeles around 400k. My goal was 20% and I'm half way there. However, it seems to have turned into a sellers market and I want to put my money to work for me instead of just keeping it in savings while I meet my goal. What would you suggest I do with my funds while I wait for the next few years?

[GregWeld]

Originally Posted by spacepirate

Okay Greg,

Maybe your words of wisdom can guide me. I was saving to buy a home in Los Angeles around 400k. My goal was 20% and I'm half way there. However, it seems to have turned into a sellers market and I want to put my money to work for me instead of just keeping it in savings while I meet my goal. What would you suggest I do with my funds while I wait for the next few years?

Few years?? 2? 5?


So this is really an open ended question without a lot of specifics... and I'm not an investment advisor. But I would give you some things to ask yourself and to think about.

If you have some money -- and you think housing is going UP -- why not buy a house you can afford NOW and ride the wave while you continue to save?
A rising tide floats all boats... and you could be gaining equity in a smaller house or whatever while you build up savings at the same time.

The problem with "what to do" in the meantime is that you need to be liquid if you're continuing to shop for a house. I will guarantee that if you put your money into the stock market -- in order to make a return -- that the day after you found a house to buy - the market would take a dump. Thus the age old investment advice that says "never invest money you think you might need". This can be compounded by the fact that right now the "market" is waiting on pins and needles regarding the so called fiscal cliff etc.

Now --- having said that... making .25% interest on your money won't get you very far towards that down payment... And I like to use a couple high return "stocks" (they're ETF's) one is Junk bonds (JNK) and one is corporate bonds (HYG). They're "fairly stable" price wise and I park pretty large sums of dough in them just because they are stable and they pay a great monthly dividend as a percentage. Since they move in basically lock step - I don't see one being better or worse than the other. You could also look at the sin stocks -- tobacco - as a place to park some dough. Just be forewarned that without a clear direction for tax treatment etc -- anything is a gamble and a guess.

[GregWeld]

Nova -- Clear some space in your PM box.