Investing 102

[Bucketlist2012]

Originally Posted by GregWeld

Exactly James!

That's why I keep pounding the table - just buy good stuff - stuff you know and understand - the dividend really helps... and just keep life simple. No need to get all confused and caught up in what the talking heads are hyping this week on TV... 'cause "next week" for a time horizon isn't really important...

My old partner had a saying he used all the time... Figures lie - and liars figure.

All these numbers are "interesting" perhaps - but they don't tell you what you REALLY need to know to buy a stock, i.e., IS THIS SOMETHING YOU WANT TO OWN AND WHY.

My Wife and I were just talking about why we own what we own. She is amazed that we can both build the wealth and draw monthly income, at the same time.

We Buy what we use, and what is busy.. Mc Donalds, Energy Transmission, Medical, ect...

Her family spends money that they don't have and then Envy those that do.
I have stopped helping because they won't listen..

Going to Europe twice, BMW, and lost the house, and no retirement...WTF.

And they keep asking for advise ???

My Wife asked how we are making money in this economy. I explained about the Yield's and being owner's and getting paid, ect...

After what has been a long term test, she gets it now.. i told her to just wait...

I am just getting started.

[flagmissd]

Let me start off by thanking everyone that has posted on this thread. I don't know how many times I have looked at starting an online account only to not do it because I was afraid of I would mess it up. I have saw this thread on here before but did not bother to check it out till yesterday.

(What do car guys know about investing?)

Could I ask your thoughts on:

Anheuser-Busch InBev NV (ADR)
61.14 +0.26 (0.43%)
Range 61.00 - 61.72
52 week 49.05 - 64.53
Open 61.62
Vol / Avg. 1.06M/1.03M
Mkt cap 97.47B
P/E 20.22
Div/yield 1.18/1.93
EPS 3.02
Shares 1.59B
Beta -
Inst. own 4%

The dividend is at 1.18 which seems high compared to all other company's that are mentioned on this thread. They also seem to have been steady in growth except for at the end of 2008. I think that spike and dip was cause by there sale to Inbev.

Any feedback would be great just to make sure I am reading the charts right and have not missed anything.

Thank you
Nathan

[GregWeld]

Originally Posted by flagmissd

Let me start off by thanking everyone that has posted on this thread. I don't know how many times I have looked at starting an online account only to not do it because I was afraid of I would mess it up. I have saw this thread on here before but did not bother to check it out till yesterday.

(What do car guys know about investing?)

Could I ask your thoughts on:

Anheuser-Busch InBev NV (ADR)
61.14 +0.26 (0.43%)
Range 61.00 - 61.72
52 week 49.05 - 64.53
Open 61.62
Vol / Avg. 1.06M/1.03M
Mkt cap 97.47B
P/E 20.22
Div/yield 1.18/1.93
EPS 3.02
Shares 1.59B
Beta -
Inst. own 4%

The dividend is at 1.18 which seems high compared to all other company's that are mentioned on this thread. They also seem to have been steady in growth except for at the end of 2008. I think that spike and dip was cause by there sale to Inbev.

Any feedback would be great just to make sure I am reading the charts right and have not missed anything.

Thank you
Nathan

Nathan -- Glad you're checking in!

The dividend on this stock is 1.93% which is L O W compared to the companies we've been discussing (most of which are 3% or above).... So unless the TOTAL RETURN is better than say (just to pick one or two) - Coke - or Pepsi - or one of the other beverage companies why settle for a 1.93% dividend? Unfortunately they only have a one year "history" for total return - and it's under 6% which is "okay" but is HALF of what Coke (KO) is... and over time - half is a big difference... so I wouldn't buy given other better comparisons out there. Just my opinion on the WAY I think... no other "opinion" than that. A simple comparison where the charts and dividend point to better (perhaps) opportunities.

[Sieg]

Originally Posted by flagmissd

(What do car guys know about investing?)

Like drug addicts, they too have to fund their addiction, this is a legal way to do it.

[GregWeld]

Originally Posted by solarguy09

Going to Europe twice, BMW, and lost the house, and no retirement...WTF.

The great American way..... SPENDING their way to wealth!

[Bucketlist2012]

Originally Posted by GregWeld

The great American way..... SPENDING their way to wealth!

Yes, but we know it did not work out well for them..

[GregWeld]

Originally Posted by solarguy09

Yes, but we know it did not work out well for them..

That doesn't have a happy ending for anyone!

Can you imagine waking up one day -- and it comes QUICKLY as us older guys know -- and being forced to retire at 65ish / or getting laid off at that age -- and you OWE everybody for everything and you have ZERO savings etc. OMG! I can't imagine the feeling in the pit of your stomach that could come from that.

You'd look back at your life and think of all the Louis V... purses... and the lease payments for cars you never owned... and the 25 years you still owe on the last refi of your house (that should be paid for by now!)..... Would all of that "lifestyle" put a smile on your face... or would you think "man, if only I "woulda when I "coulda" when I "shoulda"....

[CRCRFT78]

Whats your thoughts on Reynolds American, Inc. (RAI)?

Range 40.93 - 41.63
52 week 31.54 - 42.18
Open 40.93
Vol / Avg. 2.28M/2.31M
Mkt cap 23.99B
P/E 18.08
Div/yield 0.56/5.44
EPS 2.28
Shares 582.91M
Beta 0.62
Inst. own 46%

I was comparing this with Altria Group & Philip Morris and ended up going with Altria Group just based on the amount of shares I could purchase at the time with the amount of money I had. I do like all three but felt like the quantity of shares along with the dividend/percentage was a better choice.

[flagmissd]

Originally Posted by GregWeld

Nathan -- Glad you're checking in!

The dividend on this stock is 1.93% which is L O W compared to the companies we've been discussing (most of which are 3% or above).... So unless the TOTAL RETURN is better than say (just to pick one or two) - Coke - or Pepsi - or one of the other beverage companies why settle for a 1.93% dividend? Unfortunately they only have a one year "history" for total return - and it's under 6% which is "okay" but is HALF of what Coke (KO) is... and over time - half is a big difference... so I wouldn't buy given other better comparisons out there. Just my opinion on the WAY I think... no other "opinion" than that. A simple comparison where the charts and dividend point to better (perhaps) opportunities.

Thanks for setting me straight Greg. I can now see what to look for more clearly.

[GregWeld]

Well -- the simple answer is -- any of the "terbacky" stocks work really really well... I own PM and MO in a big way. Love 'em. Hate the product don't use it - but ya gotta put your money to work - and these work real hard.

Phillip Morse (PM) has no 5 year "total return" numbers because this is a spilt off of Altria (MO)... but BOTH have fantastic T/R numbers and great dividends... these stocks - and you can include Reynolds American (RAI) and Lorillard (LO) are all just big fat cash cows.... and while the USA has all manor of anti smoking legislation - other countries DON'T....

What will derail these "hate 'em" stocks is a worldwide ban on smoking/terbacky products... but that will be well telegraphed - so I'm not worried about waking up one morning and having my hat handed to me.

The number of shares won't really affect the TRUE NUMBERS that you have to worry about because true numbers that count are PERCENTAGES -- you can have one share at $100 and have a 50% T/R and therefore have $150 or you can have 10 shares at $10 and have the same T/R and you'd still have $150.... The dividends are paid PER SHARE -- but they're still (for our purposes) a % number. And 5% is 5% if you follow what I'm saying. The TOTAL RETURN (T/R) is what you're after in the long run -- growth AND dividend... and when you do these comparisons in % terms -- there's a huge difference between one company that has 5 year T/R of 113% vs 65%! So if at all possible -- I tend to blend these "trade offs" -- if all things are rather equal. For me -- I can own several stocks in a sector... so even then I'll tend to take middle of the road to high end with consideration for the blended dividend % (since I live off mine rather than re-invest it).

This is a great question by the way - because this is one sector that has several really good choices in it... so it's kinda hard to say this one, over that one. They're all pretty dang good! It's like that old Coke vs Pepsi argument. Same sector - similar dividend - similar T/R (when looking at T/R - I don't think about one being 50% and one is 63% -- what I don't want here is one at 12% and one at 63% - then I'm taking the 63%!)... so these almost become throwing a dart at the board. As long as you hit the board - you're pretty good.

Same can be said with Verizon vs AT&T - same sector - similar dividend % - so I own both!