Investing 102

[toy71camaro]

I hate walmart too.. i do get some stuff there when i have too though.

LOVE Costco tho. If i had to pick one of the two to invest with, costco would be my personal choice.

[sik68]

I know it's best to think of each invested dollar as an 'employee', out to work for you and make a solid return. Going along with the metaphor, do you ever get the urge to get some "spare" employees together for a skunkworks operation (aka, speculation)?

The fledgling 3D printing industry is fascinating; the big players like 3D Systems (DDD) and Stratasys (SSYS) could take off in a big way. I know on this forum the guys are drooling for a 3D printing machine in their garage (ahem, make some floorspace GW). But it's not just about hobbyists; on a more macro-demand level, I see EVERY medium to large company that manufacturers products wanting one.

One thing is for sure is that it will be bigger than it already is....

Have I been drinking the Koolaid (KRFT), or is there good sense in hopping on uncharted territory (that I believe in) with a 1% investment?

[GregWeld]

Originally Posted by sik68

I know it's best to think of each invested dollar as an 'employee', out to work for you and make a solid return. Going along with the metaphor, do you ever get the urge to get some "spare" employees together for a skunkworks operation (aka, speculation)?

The fledgling 3D printing industry is fascinating; the big players like 3D Systems (DDD) and Stratasys (SSYS) could take off in a big way. I know on this forum the guys are drooling for a 3D printing machine in their garage (ahem, make some floorspace GW). But it's not just about hobbyists; on a more macro-demand level, I see EVERY medium to large company that manufacturers products wanting one.

One thing is for sure is that it will be bigger than it already is....

Have I been drinking the Koolaid, or is there good sense in hopping on uncharted territory (that I believe in) with a 1% investment?

The 20MM I made in 2010 -- was made on a 385K purely speculative "investment".


I also LOST 500K in another purely speculative investment made around the same time frame (about 6 years prior to 2010 -- both were made at around the same time).


So it's worth repeating ---- NEVER "invest" with money you can't truly afford to loose... because you will loose it. The idea you're investing in might be a solid as they can get --- but the "investor group" runs out of interest about 6 months early and pulls the plug.... or people quit.... or people die... or get divorced... or the list goes on as long as you have lead to keep writing!

BUT --- OBVIOUSLY people CAN and DO make money on these kinds of investments so I'm not a guy that would ever tell you "NO". I'm a guy that's going to tell you to make sure you have all your other ducks in a row before you GAMBLE -- because that's what this kind of investing is. Perfectly acceptable if you're a big boy and can take the hit if it comes to that.


Great question by the way!!

[GregWeld]

I will add to my above comment ---

Because re-reading your question -- I think you're asking about an investment in corporations that already exist and that maybe haven't shown the growth yet?? Such as the 3D printer business.

SO if it's publicly traded already -- that's different -- then sure -- if you think it's a growth industry and want to speculate with even as much as 5% -- do it.
Keep 80 or 90% of your money in "the right stuff"... That's why the 5% rule -- anyone can afford to have 5% go to zero - or not perform and they should be fine.

If you're talking about a "start up" -- like I was referring to above post... then that's a really different kind of deal because those are loose 9 out of 10 or maybe more like loose 18 out of 20 investments. Really... better left to "big money" guys... but like I said -- can't kill ya either if that's what you think is worth the gamble. Just keep it "affordable".

[sik68]

Tanks for the perspective GW!

[GregWeld]

Originally Posted by sik68

Tanks for the perspective GW!

Welcome! Just like to toss a caveat in here while I can.

Please remember that what I'm trying to RESPOND to is a WAY TO THINK... not THE WAY to do. I'm just trying to give you some food for thought. What you all do - what you all invest in - etc is entirely up to you.

In investing - there are no absolutes. You just do the very best you can at that time with the information available to you at that time.

If you have cash 'parked' -- you can't just forget about it. If you invest in something - you need to review each and every investment to make sure that investment is doing what you thought it should do. (employees sometime s don't work out - they need retraining! Don't let them go on permanent vacation! )

[GregWeld]

We have discussed Kinder Morgan Partners (KMP) a lot on this thread.... again -- caveat - it's not right for everyone and isn't a RECOMMENDATION -- it's been a very good EXAMPLE.


I love when the companies I invest in give me a raise!!! And when you choose good investments -- THIS is the kind of report you want to read!


Pipeline master limited partnership Kinder Morgan (KMP) reported strong fourth quarter results Wednesday afternoon. Revenue surged 31% year-over-year to $2.5 billion, exceeding consensus estimates. Operating earnings per share grew 74% year-over-year to $0.61, also ahead of expectations. Distributable cash flow per share increased 6% year-over-year, to $1.35, more than covering the firm's payout during the fourth quarter. This led the company to raise its fourth quarter distribution to $1.29 per share (payable February 14, 2013), three cents higher than the previous payout. The firm's full-year distributable cash flow of $5.07 per share was significantly higher than in 2011, but more importantly, it easily covered distribution payments of $4.98 per share.

[WSSix]

Sweet! I get back from a week of blowing stuff up to find out I also got a raise on one of my stocks. That's news I can come home to

[Bucketlist2012]

Last week was a good week...You need to be Invested to capitalize on times like that...That is why you cannot try to time things..

Oh and i just got back from Celebrating the Inauguration in D.C.

Just Kidding....I just wanted to jerk some chains....

[GregWeld]

Originally Posted by Bucketlist2012

Last week was a good week...You need to be Invested to capitalize on times like that...That is why you cannot try to time things..

Oh and i just got back from Celebrating the Inauguration in D.C.

Just Kidding....I just wanted to jerk some chains....

Exactly!


Did you take plenty of ammo to DC??