Investing 102

[GregWeld]

Bob...... Your Sturm Ruger stock reports earnings after the bell today... will be very interesting to see their sales numbers! My guess is they've sold every thing they had made at full price!

[96z28ss]

Originally Posted by GregWeld

Bob...... Your Strum Ruger stock reports earnings after the bell today... will be very interesting to see their sales numbers! My guess is they've sold every thing they had made at full price!

Well It had a pretty big sell off, but I held on to it. I don't think it will be a question of "are they going to beat the estimates" rather than " how much did they beat them by" Its up over 3% today I'm guessing they excpect things to be good.
I also bought OLN cause of the ammo. DHS buying ammo at an alarming rate, and consumers seeing a serious ammo shortage right now, this stock should do good also.

[Bucketlist2012]

Originally Posted by GregWeld

Albert,


#1 -- I hope your Dad is doing fine!



#2 -- The "market" is always a hoot when things are going well.... Nothing better than "money for nothing" <stolen from the old Dire Straits song>

Same Song...."And your Chicks for Free"....Boy we all know they are not free..

Oh I am in Contract on three rental properties......I decided to Diversify even more ....I will know more this next week...Not expensive homes at all, Actually cheap ones, but Positive Cash flow if I get them....

[96z28ss]

Originally Posted by GregWeld

Bob...... Your Strum Ruger stock reports earnings after the bell today... will be very interesting to see their sales numbers! My guess is they've sold every thing they had made at full price!

yep they had a 53% jump!!

[GregWeld]

So.... with all the traveling lately --- and the "bringing home" the rig... I've been distracted to say the least. The beauty of income investing is that you can be distracted and the cash keeps flowing IN. The $18K from Annaly (NLY) I picked up on the 29th and the $9K from AT&T (T) posted yesterday - just about paid for the fuel burned last week.


With the distraction --- I'd completely forgotten about Bitcoin.... apparently the IRS HASN'T!


While the accounts are "digital" like a Swiss bank... in an audit... you'd have to disclose the transactions. You'd also likely be asked about the unexplained deposits in your checking account. Audits - if they smell fishy - can be especially nasty. Remember too... that trying to hide "income" is the crime. Filing false income taxes is not something that should be taken lightly. I'm not saying anyone is doing this - I'm saying it might be tempting given that Bitcoin is not going to 1099 you like your Schwab account is going to... so it might be "tempting" to just forget about this little extra dough.


http://www.forbes.com/sites/robertwo...ut-of-bitcoin/




This reminds me of a guy that used to work for me. He owned lots of rental property - and had his hand in a restaurant/night club... etc. So he gets an audit - and he proudly takes all his receipts down etc showing that while he made great money - he also expensed nearly every dime. Weeks went by and he finally hears from Uncle Sam... he owed $18K!! Of course he immediately proclaimed that was impossible..... but -- said the IRS officer -- his check book showed NO checks written for cash -- or to a grocery store -- or to the dry cleaners etc.... so asks the agent "what did you live on"?? Thus Robert wrote them a check right then and there rather than risk an even more onerous audit!! He's still laughing about this little "exchange". He also learned a good lesson. Mind you --- this was around 1974 or so -- and 18K was a chunk of change!

[GregWeld]

Originally Posted by Bucketlist2012

Same Song...."And your Chicks for Free"....Boy we all know they are not free..

Oh I am in Contract on three rental properties......I decided to Diversify even more ....I will know more this next week...Not expensive homes at all, Actually cheap ones, but Positive Cash flow if I get them....

Smart Mike! We all know that housing went UP too much and came DOWN too much. While you might have missed the very bottom - they are still relatively "cheap". Interest rates are cheap and won't stay that way forever. The key is positive cash flow!

I personally like to invest in LLC's that are professionally managed and own class A apartments. They typically pay a 7+% rate (taxable - but offset with depreciation). And in fact I'm now looking at a mixed use building with 48 units and a 30,000 square foot retail rental (long term leased)...


Rentals like houses and apartments are LONG TERM guys --- they tie up your cash -- and have relatively large buy and sell commissions --- so aren't something you can just flip out of. However, they have nice long term capital appreciation - come with some nice taxable incentives - and can spin off great cash flow that generally increases over time. Be prepared for a 7 plus year holding period.

[GregWeld]

Here's an excellent article that is the kind of stuff I read -- even though I know the rules of engagement etc -- stuff like this is a good reminder and can help keep you on track!



http://seekingalpha.com/article/1392...g_income&ifp=0

[68ZClone]

Thanks for jumping back on, Greg. I don't post much, but really appreciate and enjoy reading your posts. Thanks for taking the time with us here.

I was happy to see Costco raise their dividend ($0.275 to $0.31 = 12.7% raise) even though the yield is only 1% annually. However, from this thread, I know why I own it - for growth and yield combination. I bought at $101 and its trading north of $108 now. Purchased it completely with the dividends from my other holdings!

[Bucketlist2012]

Originally Posted by GregWeld

Smart Mike! We all know that housing went UP too much and came DOWN too much. While you might have missed the very bottom - they are still relatively "cheap". Interest rates are cheap and won't stay that way forever. The key is positive cash flow!

I personally like to invest in LLC's that are professionally managed and own class A apartments. They typically pay a 7+% rate (taxable - but offset with depreciation). And in fact I'm now looking at a mixed use building with 48 units and a 30,000 square foot retail rental (long term leased)...


Rentals like houses and apartments are LONG TERM guys --- they tie up your cash -- and have relatively large buy and sell commissions --- so aren't something you can just flip out of. However, they have nice long term capital appreciation - come with some nice taxable incentives - and can spin off great cash flow that generally increases over time. Be prepared for a 7 plus year holding period.

Thanks Greg.

Yes I am prepared to hold Long Term and these places are really Cheap...

But at those prices and the price I can rent them for, it is a no brainer...They are "cozy" a.k.a. small homes...

I am a small Fish so I need to stay with small rentals...But positive cash flow is the name of the game..

[GregWeld]

Originally Posted by 68ZClone

Thanks for jumping back on, Greg. I don't post much, but really appreciate and enjoy reading your posts. Thanks for taking the time with us here.

I was happy to see Costco raise their dividend ($0.275 to $0.31 = 12.7% raise) even though the yield is only 1% annually. However, from this thread, I know why I own it - for growth and yield combination. I bought at $101 and its trading north of $108 now. Purchased it completely with the dividends from my other holdings!

#1 -- Thanks for posting! I often wonder if I'm just talking to myself!



#2 -- Using your dividends from other stocks to diversify into another name is BRILLIANT and exactly how this can be done!