Investing 102

[sik68]

I see, thanks guys. Things are pretty simple for me right now...in most cases, just 1 purchase per stock; but I can see where actual cost basis gets a bit more cumbersome to track over the long haul.

Well I better create a spreadsheet; just another excuse to practice my Excel-fu.

Thanks for the 'Portfolio Performance' tip Greg; the summary table helps.

[GregWeld]

I just assumed this was known by everyone..... But here it is for Investing 102


So get out there and bang away my friends!!!



http://www.nbcnews.com/business/earn...ays-6C10945740

[GregWeld]

I get a shocking amount of PM's asking about investing. Most of which I can't really answer - because they're asking "what should I buy". As you all know - I don't recommend what to buy - and this thread is not about what to buy or what to sell.... it's about YOU GUYS learning some basics so that you're comfortable making these decisions on your own.

But the tickle for this post was the usual --- "with the market down.. shouldn't I wait to add more to my 401K?"

I think most are shocked when I respond -- HELL NO! ADD MORE!

Is this a "contrarian" view? No. It's a long term view with history on my side... and the knowledge that the market will go higher and if you buy "now" (whenever that is) 10 years from now it will be higher.

So the last month or so has been real poopie.... and this always gets people wanting to coast or back off the market. The exact wrong thing to do! Think of a period like this as suddenly seeing that '69 Camaro you always wanted that the guy was asking 100K for -- is now 70K.... do you wait for the guy to drop to 65? Chances are - someone smarter than you snaps it up and you miss out. The stock market is that way. The prices drop -- drop some more -- and you wait for ever better prices..... only to miss the day or two where the market snaps back and runs 5% -- then everyone feels good and piles in. Don't be "that guy". Save your dough -- and plow ahead... let your IRA/401 keep investing. And if you're saving on your own - set a date or amount - and every first of the month -- or every $500 -- INVEST IT. High or low. You'll buy more shares when it's low - and fewer when it's high... so your AVERAGE cost will smooth out over time.

Wealthy people get even more wealthy because they step in front of that moving train -- they'll buy buildings or businesses - or make investments - at bargain prices. When things turn around - they make even more money. Be like the wealthy and you'll be glad you did.

[WSSix]

So I got tired of my savings account only earning 0.8% and have moved some money from there to another brokerage account. This account is outside of my Roth IRA so I'll have to pay capital gains taxes on it but I am paying taxes on my savings too. I won't be invested in any MLP's though with this account. I didn't move enough money from savings over to hurt me should I lose it all. I'm also simply going to be following the long term path I've started.

With that said, I was looking at this link http://dripinvesting.org/tools/tools.asp in order to check out different companies that pay dividends. What I haven't noticed before but did after going through the list is apparently some companies charge a fee in order to be in a DRiP. Can someone explain this to me? Is it something I should be concerned about? An example would be Verizon, VZ. According to that list, there's a fee. How are they able to charge me a fee to invest in their company and why?

EDIT: Further investigating on my part shows that a number of the companies I am already invested in a charging a fee. I'm guessing this fee isn't that big of a deal then. I just want to make sure I get the dividend I should and don't end up getting smacked with fees.


Thanks

[glassman]

Hey Greg, which underwear stock should i buy?

Seriously though, since i've opened up my Schwab acct, everything has just gone RED and so have my eyes. Its kinda funny, like the little man (with the top hat? is it the monopoly guy?) comes in just to mess with us....

But, where in the thread, or can u explain/elaborate on "priced for perfection"?

thanx, Mike

[WSSix]

Originally Posted by GregWeld

A "numbers miss" ---

Having said that -- the miss is a miss of ESTIMATES... which has always driven me crazy. Some guys sit around and GUESS what kind of sales and profit a company is going to do.. and if the company DOESN'T (or does) make those numbers people get all crazy and sell etc.

For a company like this -- a big drop in the share price is probably a "gift" and will allow a nice entry point to a stock that should continue to do very well. They signaled nothing wrong.. sales are good... profit is good...the products are fabulous.

But this is a glimpse into the market when stocks are priced to perfection... if everything isn't PERFECT - they get a huge haircuts in a hurry.

If I had a million in cash today - I'd be a buyer. But since I just bought into another apartment complex... I'll just sit on my hands and watch.

Here's one of the replies regarding priced to perfection, Mike.

[glassman]

Makes "perfect" sense, i remember reading that awile back. And if i had the chance, id buy or build an apartment complex right now, primarily cause i know real estate more than companies...

thanx

[96z28ss]

woohoo!

Altria Group, Inc. (MO) declares $0.48/share quarterly dividend, 9.1% increase from prior dividend of $0.44.
Forward yield 5.66%
Payable Oct. 10; for shareholders of record Sept. 16; ex-div Sept. 12

[GregWeld]

Originally Posted by 96z28ss

woohoo!

Altria Group, Inc. (MO) declares $0.48/share quarterly dividend, 9.1% increase from prior dividend of $0.44.
Forward yield 5.66%
Payable Oct. 10; for shareholders of record Sept. 16; ex-div Sept. 12

Ya got to love getting a raise don't ya!


EEEEEEEHHHHHHHAAAAAAAAAAA




I own 20,000 shares -- so that's --- 20,000 X's .04 = $800 per quarter increase X's 4 quarters ='s $3,200 per year * 12 ='s $266 per month for doing absolutely NOTHING....


Tell me what's wrong with that dividend ownership???

[WSSix]

I'm ok with those numbers