Investing 102

[glassman]

Thats my number 1 b$tch with Tech stocks. While you can make bank, you just cant see which ones are a "valued" product to their clients.

The only way i see social media companies turning a profit is with ads, maybe there is another form of revenue we cant see.. But if there is, does it pencil out with the investors, i dont know....

[GregWeld]

I'm on the road enjoying the hell out of myself. And posting from a iPad sucks. But I found an article on what are Warren Buffets favorite 10 stocks. The reason for the post? See any "gambling" in any of these names? This is the 1st or 2nd richest guy in America! He got there by investing not gambling.


http://www.usatoday.com/story/money/...tocks/3614505/

[Rod P]

IBM looks like a gamble at -5% ytd

[Vince@Meanstreets]

Originally Posted by Rod P

IBM looks like a gamble at -5% ytd

-5% with 68.1 Million shares I'm willing to bet he didn't see a change in dividend payout. On top if it's an automatic reinvestment with stock buys he is getting bargin stock. Next year it might be back up 12% YTD

[GregWeld]

Originally Posted by Rod P

IBM looks like a gamble at -5% ytd

Originally Posted by Vince@MSperfab

-5% with 68.1 Million shares I'm willing to bet he didn't see a change in dividend payout. On top if it's an automatic reinvestment with stock buys he is getting bargin stock. Next year it might be back up 12% YTD

Always refer to the long term charts... Lower on the left? Higher on the right?

In 2009 iBM was $80.00 - yesterday it was $183.00 - down 5% "this period" or up $100 in 4 years?


If you have 10 names in your portfolio a couple will be "under performers" and one or two might be responsible for all of your account gain. The account gain in total is what you're shooting for.

Like an autocross.... If you run 10 times... You might hit cones once in awhile but if you win overall... That's what counts.

[GregWeld]

Just to be sure. I don't love IBM. The low 2% is the main reason and the volatility in this name (like a yoyo!) is what keeps me out of it, but overall
It's been a moneymaker for those willing to stick with it.

[GregWeld]

I bought 500 shares of Twitter (TWTR) today....



So here's why I post this info. Just because someone else does doesn't mean you should. I can afford to take a very small position in a name like this. Think about the relative size of what 500 shares of a name is for me - when a typical position is 10,000 or 20,000 or 50,000 shares. If you're just building up your retirement account build a nice big base FIRST, then once you have $100K plus earning some dividends... Now you could "afford" to take on a risk like this. And you keep that risk really small in relation to your overall financial health!

Tiptoe first! I expect this name to be cut in half at some point and if it gets hit like that I'll buy another 500 and then that's it. Not another single share. If it doubles I'll take out my investment and let the house money ride. Period. It's gambling. But for me it's like gambling one dollar and then walking away. Don't get caught up in trying to make the big score.

[Rod P]

was 500 the IPO limit or are you just tip-toeing ....I don't know anything about this investment stuff but I try anything once , there was that one time I had mescal in Mexico....thank god i didn't end up in jail, that wasn't a good idea

[gearheads78]

Well almost three weeks ago I found this thread and am up to page 300. I have learned sooo much. I'll be back in a day or two and join you guys in the present. It was really interesting reading through the thread about "future" events that have already happened.

[GregWeld]

Originally Posted by Rod P

was 500 the IPO limit or are you just tip-toeing ....I don't know anything about this investment stuff but I try anything once , there was that one time I had mescal in Mexico....thank god i didn't end up in jail, that wasn't a good idea

The 500 was just the random amount I chose to buy.




Mescal in Mexico! Now that's a gamble!