Investing 102

[CRCRFT78]

Let me see if I've got an understanding of this investing 102:
1. Look into companies I know and use, companies with a history and a good understanding of their business.
2. A nice paying dividend is good, but a higher yield % is better?
3. Positive growth (share price & dividend)
4. Positive total return

Is there something I'm missing? Because I'm open to sharing what I have going on in order to better understand "Investing 102" I will share my most recent moves. Here is what I started with:

Stocks
Apple (AAPL)
Caterpillar (CAT)
Disney (DIS)
Harley (HOG)
Nike (NKE)

Mutual Funds
Fidelity Freedom Fund 2045 (FFFGX)
Spartan Total Market Index Investor Class (FSTMX)
Vanguard Total International Stock Index Fund (VGTSX)

Here is what I now have:

Stocks
Apple (AAPL)
Caterpillar (CAT)
Disney (DIS)
Nike (NKE)
Pepsi (PEP)
Altria Group, Inc. (MO)
Consolidated Edison, Inc. (ED)

Mutual Funds
Spartan Total Market Investor Class (FSTMX)

I sold Harley because I wasn't happy with its performance. It sort of just stayed where it was at and I replaced it with Pepsi, Altria Group & Consolidated Edison. I also dumped the Fidelity Freedom Fund because I just couldn't wrap my head around the idea that I had to pay Fidelity to invest money back with Fidelity. And last, I dumped the Vangaurd Total International Stock Index Fund because of its lackluster performance.

Doing this also gave me the opportunity to put my newly acquired information to the test. I will say I'm happy with the performance so far and know that this is a marathon, not a sprint so I look forward to the future and its possibilities.

[Musclerodz]

Originally Posted by GregWeld

Mike -- how dare you! You know EVERYONE is ENTITLED to a great way of life whether they work - pay taxes - or are part of the great society or not!

My question to all is -- Are you part of the problem or part of the solution....

BTW -- I was pretty sure that NOBODY was ever turned away from getting the very best medical treatment this country has to offer. All anyone ever had to do was to show up at the emergency room -- the price for that is that you must wait your turn.... but you will be seen and you will be treated - and you most likely will never pay a bill if you can't. In this country we will "life flight" two gangbangers that just shot each other - and we will keep them alive FOREVER if that's what it takes - and THEY will never pay a bill... We will pay their care regardless of what it takes or costs.

Does that have a cost to it? Oh hell yeah - we all pay higher costs for OUR medical treatment... the old "there's no free lunch".... But must we force everyone to BUY medical insurance? Do you really think that someone that can't afford it now - is somehow going to pay for it? Do they get it free? If so - isn't it already free now? So what does the Obamacare plan change? Does it control everyones costs? Nope.... does it address the high costs of pills? Nope. Or does it burden the very people it's meant to help? I already can afford healthcare - so it doesn't affect people like me.... It's a very regressive tax on the very folks it's meant to help by giving them medical insurance. The government will hire 1000's of people to administer it -- and build buildings to house them all - and buy computer systems etc... so the costs will now double or triple...

Don't even get me started!




Having said all of that --- There's not a single REPUBLICAN candidate so far that I have ANY interest in at all.... so we're back to McCain and the idiot from Alaska... And nobody could vote for that pair....

HELP!!!!!


RANT OVER.

I have no intresest in getting the best thread on this forum turning political and getting locked down. Just a knee jerk post to spending our way out of a recession. I wil quietly go to the corner now........

[GregWeld]

Originally Posted by CRCRFT78

Let me see if I've got an understanding of this investing 102:
1. Look into companies I know and use, companies with a history and a good understanding of their business.
2. A nice paying dividend is good, but a higher yield % is better?
3. Positive growth (share price & dividend)
4. Positive total return

Is there something I'm missing? Because I'm open to sharing what I have going on in order to better understand "Investing 102" I will share my most recent moves. Here is what I started with:

Stocks
Apple (AAPL)
Caterpillar (CAT)
Disney (DIS)
Harley (HOG)
Nike (NKE)

Mutual Funds
Fidelity Freedom Fund 2045 (FFFGX)
Spartan Total Market Index Investor Class (FSTMX)
Vanguard Total International Stock Index Fund (VGTSX)

Here is what I now have:

Stocks
Apple (AAPL)
Caterpillar (CAT)
Disney (DIS)
Nike (NKE)
Pepsi (PEP)
Altria Group, Inc. (MO)
Consolidated Edison, Inc. (ED)

Mutual Funds
Spartan Total Market Investor Class (FSTMX)

I sold Harley because I wasn't happy with its performance. It sort of just stayed where it was at and I replaced it with Pepsi, Altria Group & Consolidated Edison. I also dumped the Fidelity Freedom Fund because I just couldn't wrap my head around the idea that I had to pay Fidelity to invest money back with Fidelity. And last, I dumped the Vangaurd Total International Stock Index Fund because of its lackluster performance.

Doing this also gave me the opportunity to put my newly acquired information to the test. I will say I'm happy with the performance so far and know that this is a marathon, not a sprint so I look forward to the future and its possibilities.

GIVE THIS MAN 5 GOLD STARS!


The moves were made for the CORRECT reasons... "you weren't happy with them or you couldn't really get your head around it" --- THAT IS ALL you need... When the "market" goes against you - you can look at what you own and be happy with it... because it WILL go against you.... and that's when you need the knowledge and those warm fuzzy feelings.

[GregWeld]

Originally Posted by Musclerodz

I have no intresest in getting the best thread on this forum turning political and getting locked down. Just a knee jerk post to spending our way out of a recession. I wil quietly go to the corner now........

Thank you -- I was having the very same thoughts!! NO politics! This is LAT G - well.... and a little investing.... but that's only so we can all get rich and buy more car stuff!!! RIGHT??

[Bucketlist2012]

Originally Posted by GregWeld

Thank you -- I was having the very same thoughts!! NO politics! This is LAT G - well.... and a little investing.... but that's only so we can all get rich and buy more car stuff!!! RIGHT??

This thread is too important... No politics...Investing 102, and maybe some money management.. No politics or attitudes..

we need this thread

[SWAPMEETCRAZY]

Originally Posted by GregWeld

but that's only so we can all get rich and buy more car stuff!!! RIGHT??

xxxx2222!!! but then I look over at the tube and "MITT" has won New Hampshire....... ........Whoops I'm sorry ...I'm off to the corner too..(p.s I love this thread!!)... ..jim

[GregWeld]

I just deleted my rant....

[Sieg]

Politicians deliver this kind of math:

http://www.usdebtclock.org/

The exact opposite of this thread's primary objective

[GregWeld]

^^^^^^^^^^^ That is one scary clock!!!

Kool though!

[GregWeld]

So here's a good question --- and probably needs addressing....


"What if someone only has $1,000 to invest?"


First -- make CERTAIN this isn't money you're going to need -- and isn't the money you're really saving for vacation... It needs to really be "investing" money.

With $1,000 you can't be worried about being "diversified"... what you really need is relative safety with a solid "return" - so that you feel good about ADDING when you have more to invest. So if it was my kids money -- I'd buy Altria (MO) or similar stock. I'd try to find a great stock where the price is less than $50 a share - so you can actually get some shares -- and I'd want it to be a STEADY EDDY -- and I'd want an above average dividend... so you could see some results. Let's be real --- $1,000 - even at 6% -- you're only going to get about $60 a year in dividends -- but if that's buying 2 more shares per year -- it starts to gain a little steam about 5 years into it.

IF I ONLY HAD $5,000 to invest -- I'd buy TWO steady eddies - per above -- but buy $2,500 each.

IF I ONLY HAD $10,000 to invest -- I'd buy FIVE -- steady eddies per above and make sure they were in 5 different sectors.... and out of the 5 -- I might buy ONE riskier stock -- such as an Annaly Capital Management (NLY) just to TRY to boost the overall account. So I'd look for great companies -- keeping the share price at the $50 or less price -- and I'd want to get that bigger dividend.

The reason I'd stretch for the dividend is to gain a little traction "early on"...

So just a SAMPLE for an EXAMPLE:

65 shares of MO @ $28.91 - div is 5.67% -- Tobacco

65 shares of T @ $29.76 - div is 5.91% -- Teleco

120 shares of NLY @ $16.28 - div is 14% -- risky mortgages

75 shares of NNN @ $26.83 - div is 5.74% -- retail property - shopping ctrs

60 shares of EEP @ $32.93 - div is 6.47% -- pipelines

So the average dividend percentage is 7.558% -- so you can see what the ONE high yielder (NLY @ 14%) can do to an otherwise pretty average dividend. Which is why I tossed it in there. Put this all inside the IRA/401K and you're going to get those dividends and share growth compounding TAX DEFERRED -- so for years you'll have no taxes to pay - which allows your compounding to work at warp speed.