Investing 102

[96z28ss]

MCD Mcdonalds is really up today. I wonder if that stock will split soon?

[toy71camaro]

I've been happy with ED. I doubled down on them after the hurricane brought them down some. Im up 15% overall from them. Not bad!

[GregWeld]

Originally Posted by 96z28ss

MCD Mcdonalds is really up today. I wonder if that stock will split soon?

Never buy a stock based on a split or speculation of a split.... It's FUN when they do... but it's been proven that a split is nothing more than just that - a split. Having said that - that covers the Investing 102 portion - Mikey D's hasn't split since 1999... and they have a history of splitting - but not a particular "rhythm" i.e., every time they hit $100.... At $100ish it's a pretty "affordable" stock.. it's not like Google or Apple where you don't get many shares for your $5K. So you can't really make an argument that way.

In other words --- we'd just be guessing. Although wouldn't that be nice!

Originally Posted by toy71camaro

I've been happy with ED. I doubled down on them after the hurricane brought them down some. Im up 15% overall from them. Not bad!

That's a smart man right there! To recognize a temporary dip in the price and seize the opportunity! Brilliant move!

The difference is you saw a valid reason for the stock to dip -- but knew that it's a good company and they would recover from it.

That's a very different scenario than a J C Penny's (JCP) where they're down because they shot themselves in the foot. Now a "dip" in the share price might be an entry point - but you'd just be gambling because there's nothing you can point to that would tell you they'll recover from that injury.

One is smart and educated - one is gambling. Big difference.

[96z28ss]

Originally Posted by GregWeld

Never buy a stock based on a split or speculation of a split.... It's FUN when they do... but it's been proven that a split is nothing more than just that - a split. Having said that - that covers the Investing 102 portion - Mikey D's hasn't split since 1999... and they have a history of splitting - but not a particular "rhythm" i.e., every time they hit $100.... At $100ish it's a pretty "affordable" stock.. it's not like Google or Apple where you don't get many shares for your $5K. So you can't really make an argument that way.

In other words --- we'd just be guessing. Although wouldn't that be nice!


That's a smart man right there! To recognize a temporary dip in the price and seize the opportunity! Brilliant move!

The difference is you saw a valid reason for the stock to dip -- but knew that it's a good company and they would recover from it.

That's a very different scenario than a J C Penny's (JCP) where they're down because they shot themselves in the foot. No a "dip" in the share price might be an entry point - but you'd just be gambling because there's nothing you can point to that would tell you they'll recover from that injury.

One is smart and educated - one is gambling. Big difference.

No, I never bought based on a split. MCD is a good dividend stock.
However it would be nice if they split. This is the longest they have ever gone with out a split.

[toy71camaro]

Originally Posted by 96z28ss

No, I never bought based on a split. MCD is a good dividend stock.
However it would be nice if they split. This is the longest they have ever gone with out a split.

Yeah, it might be nice if they did. But who knows. as long as the company continues to do well and increase the divvy each year, I'm happy. Currently sitting on 3.46% yield on cost for MCD. I dont mind the wait. Its not "Great" but its not bad either, and hopefully it continues on up!

[Tony_SS]

Originally Posted by GregWeld

Well === it didn't take long for the bubble to burst did it....

I'm always happy for anyone that scores - regardless of how they did it... My problem is with folks not having a clue about values of "things"... We all know housing can't double and triple every other year... we all know a 1969 Camaro CLONE (now called a tribute car) has no value at $200K.... yet somehow people get sucked in and sucked up.

Tony - I agree there is some value in the Bitcoin system... but the value has to be in trading the "coins" for goods and services... Not just trading the coins themselves. So I agree with you... it's too bad that there was a pile on affect that made this go crazy and if it falls back to "norm" ($30ish) then it will hurt the legitimacy of the entire system.

It's funny - people LOVE stuff when it's going up -- and when it comes back to "normal" they don't want to have anything to do with it (whatever it is).

I still love the principle of bitcoin. Yes, it has some serious weakness, one being that the main exchange was under constant dos hack attacks and at the same time flooded with new accounts. They were shut down all day yesterday. So its clear they need to shore that exchange, and more people need to use the dozens of other exchanges out there too. But CNBC has just officially added bitcoin to their ticker.. so that is pretty cool I think. We are seeing steady pricing today around $75 after all the weaklings sold out. I will remain in the system.. I see it only getting stronger and growing. And you can exchange for goods and services. There are websites where you can buy precious metals, electronics etc using it.

Originally Posted by sik68

These recent posts on bitcoin have really guided me to learn more about currencies and so here's a summary based on how I understand it.

A currency falls into 2 categories: an instrument of equity, or an instrument of debt.

A currency that is backed by a tangible asset (like gold) is an instrument of equity. At any time, your notes can be traded in for a ratio quantity of the asset. Of course, it can be argued that the value of gold is arbitrary, but there are a lot of valid reasons why it works. Not rocket science, but I'm stating the obvious to draw the distinction with non-backed currencies.

A currency that is not backed by a tangible asset is only an instrument of debt; an IOU traded among people who agree on its value. It is only backed on faith by those using it.

Again, not rocket science...the concepts are basic but thinking about the difference between an asset based monetary system vs a debt based monetary system and you start to see the world through a different lens.

I know this is not directly Investing 102 material, but I think it applies, because it is important for us as investors to recognize the distinctions between not only speculation vs investing, but also the distinction between real assets and IOUs, aka liabilities.

That's great. I think currency is interesting too. It important to remember that our dollar is not back by gold/silver anymore, it's an instrument of debt as is the euro and most other currencies from central banks. I don't want to derail the investing thread here, but it's good information to know. I still like the traditional topics here, but I also like precious metals and other investments for diversity.

[GregWeld]

Originally Posted by toy71camaro

Yeah, it might be nice if they did. But who knows. as long as the company continues to do well and increase the divvy each year, I'm happy. Currently sitting on 3.46% yield on cost for MCD. I dont mind the wait. Its not "Great" but its not bad either, and hopefully it continues on up!

On a percentage basis --- McDonalds (MCD) is a low paying dividend... BUT!! Check the dividend out... because a scant 4 years ago -- they paid a whopping 38 CENTS per share per quarter (2008) and now they're paying 77 cents per share per quarter!

So they LIKE to increase the dividend! Think about it - has YOUR income DOUBLED since 2008??? Does your employer like you that much? :>) MCD likes you so much they've doubled your pay!


Don't ya just love to think about all these little nuances?


By the way -- I point these things out -- not to belittle your statement or to argue etc --- but rather -- because it's good info for INVESTING 102.

[toy71camaro]

Originally Posted by GregWeld

On a percentage basis --- McDonalds (MCD) is a low paying dividend... BUT!! Check the dividend out... because a scant 4 years ago -- they paid a whopping 38 CENTS per share per quarter (2008) and now they're paying 77 cents per share per quarter!

So they LIKE to increase the dividend! Think about it - has YOUR income DOUBLED since 2008??? Does your employer like you that much? :>) MCD likes you so much they've doubled your pay!


Don't ya just love to think about all these little nuances?


By the way -- I point these things out -- not to belittle your statement or to argue etc --- but rather -- because it's good info for INVESTING 102.

No worries! I meant the same thing when i said "its not great..." as in, 3.5 isnt a "great" dividend amount. its simply average, at best. BUT, if they continue to move forward like they have, that 3.5 could be quite a bit higher for me in a few years.

And yeah.. my employer hasn't changed my income in YEARS. lol.

Use me for an example all we want. its all about learning, whether it be good or bad, its better for the entire group.

[GregWeld]

Well..... I hope not many of you are speculating in Gold....


I felt the metals market was a bubble for quite awhile now... too many people that know nothing - have never invested etc - all telling me about "gold". Big red flag to me... I've written about it here before - when the grocery store clerk is telling me about the money they're making doing "X"... I'm running away from "X" with my hair on fire.

I like diversification..... but I like my diversification to PAY ME -- up market or down market. I'm sure there are some gold ETF's or some gold investments out there that maybe pay a dividend (I've never bothered to look for them) but the trade has mostly been about a rising price. I just can't play that game. You can never bail out at the top and people don't sell until they've finally lost their ass. I like making money and keeping it... and getting the cash flow to spend...

[GregWeld]

You don't see many outright SELL recommendations.... and I can't remember when the advice has actually been to SHORT something! Usually the PC version is "neutral"....


GUYS!! Please do not short anything - ever.... that advice takes some explanation but just don't do it!



The market has been increasingly negative on gold, with Goldman Sachs making a high-profile call to short it this week. "You've had lesser open interest. In the last few months, we lost about 20 percent of our open interest and on top of that every other asset manager has moved away from gold into strong stocks. Right now the path for least resistance for gold is lower," said RBC analyst George Gero.