Investing 102

[Vegas69]

Originally Posted by GregWeld

Oh hell yes it does.

Not surprised... ha They are talking averages. Some are more driven by money than others. My point is that amassing a fortune is a weak source of sustainable inspiration for the majority. I know it's the case for me. I simply wouldn't work as hard as I do for net worth.

It's my opinion that excessive responsibility and debt are great sources of unhappiness in this country. When I have X in the bank, or buy this house, or have that car, I'll be happy. Just doesn't work that way for most.

[glassman]

Todd, totally agree. Stay outa debt. I told my kids, when you go to "use" the college funds (bout 68k per kid). I said, either college, property, or a biz. I deem all three equitable. But no trips to Tahiti or fancy cars!!!

I keep telling them, in the best way i know how, start young and stay outa debt!

BTw, they all choose college, stay tuned....

I've decided that i'm buying each of them a ROTH IRA for Christmas this year, $250 each for starters....

[toy71camaro]

Woohoo.. For the first time since mid 2012 (bought a house in 2013), my emergency fund is done, and my ROTH IRA account has enough to make my first purchase.

Now on to figure out whats going on and what sector I need to be in to keep diversified. Then find me a good Dividend Champ.

[SSLance]

Congrats!! I know that is a great feeling to accomplish.

I've been loving the recent runup in the market, but it is making it difficult to find spots to average buy ins.

[GregWeld]

Originally Posted by SSLance

I've been loving the recent runup in the market, but it is making it difficult to find spots to average buy ins.

Not pointing at you Lance --- but I've always wondered why people are afraid of the very thing they want ---- rising prices.


I've bought many a share(s) paying higher and higher prices -- and they've gone up from there. That's why I refer to the long term charts -- I want them to be going higher OVER TIME. If you're always waiting for something to go down -- you'll miss out on the ups.

[SSLance]

I know Greg, but go for a walk in my shoes for a bit.

Been in the market for over 15 years, had good and bad times over the years but left a couple of years ago completely dissatisfied with the whole notion. Once I finally decided on a different path to choose when re-entering the market (thanks largely to this thread and the posters here) it was still pretty unnerving to go all in...all at once. My plan was to average in over time, a fifth a month for 5 months.

If you remember, back in late January, early February, you yourself were warning us to be prepared for a down market at the start or possibly all year in 2014.

Remember, I spent 3 years in cash...the little bit I'm giving up by not being all in from the get-go is NOTHING compared to what I gave up then.

I've learned a ton in just the past few months, have found ways to keep myself educated on the companies I'm watching while keeping an eye out for new opportunities at the same time (seeking alpha is fantastic btw) and and still tip toeing my way in when I get the chance.

I'm still a week or so out from making my next advance in, and if I have to I'll buy in at current market prices...and still enjoy it. A dip would just be gravy for me.

[toy71camaro]

Originally Posted by GregWeld

Not pointing at you Lance --- but I've always wondered why people are afraid of the very thing they want ---- rising prices.


I've bought many a share(s) paying higher and higher prices -- and they've gone up from there. That's why I refer to the long term charts -- I want them to be going higher OVER TIME. If you're always waiting for something to go down -- you'll miss out on the ups.

I hear ya.. I personally think its a psychological battle. The old adage "what goes up must come down".. Translating into something like "i want to buy MCD, but its up 10% this year, its got to come back down. so i'll wait. Otherwise, as soon as i buy it, it will drop that 10% the next few weeks" lol

But, as you mentioned plenty of times in the past. You dont get paid to wait when the cash is sitting on the sidelines. At least if your IN, and it does go down, your getting paid to wait - at a discount none the less.

[GregWeld]

Well ----- there's the age old market timing approach of "SELL IN MAY AND GO AWAY".... So maybe for those waiting -- you could wait for a dip in May.


My belief is that wait - and for those that choose to reinvest the dividend - you miss another dividend - whereas if you're in - and pick up the dividend - and it buys some shares lower you're lucky and have gotten paid AND you buy some shares lower and your next dividend is larger which buys more and on and on and on.


Personally -- I'm not worried about what price I pay NOW because I plan to own the shares for YEARS not weeks... and when and if I get ready to sell them - they should be far higher than the price I paid today.

I currently have several holdings (remember the size of my holdings) that are underwater by 100K and more. I could care less.... they're paying me 20 or 25K per QUARTER.... and that alone will take care of the red numbers. That's what I really invested for in the first place. The other part doesn't really matter because I'm not selling them now. It's even less important if your time horizon is 10 years out...


Having said all that --- I certainly understand the psychology of wanting to buy lower.

[SSLance]

I am keeping an eye on the ex-div dates of my holdings and will make sure not to miss any of those for sure.

[SSLance]

BTW Greg, don't ever let up on what your are posting and preaching...

After thinking about what you said a bit today, I went ahead and made the purchases I was looking at making. No time like the present...

From what I'm seeing, Dividend Champion stocks don't really make big moves, they just kind of trod along...so it really doesn't make much sense waiting for dips to buy as the dips just aren't that big of a deal.