Investing 102

[WSSix]

I was actually going to post a nice update involving KMP and why it's a great example of what drew me to dividend investing but Greg beat me to it. For me, I'm hitting 25% returns after 2 years of owning KMP. So much of it is from when the dividend payments were being reinvested while the value was down. Everything that Greg and others have mentioned is happening for me. KMP is simply the name that's in the news right now but it's not the only stock that's working like that for me. OXY and SO definitely fall into that category, too. I've thought about selling and taking my gains with KMP, but I'm not so sure I'm going to now. I was seriously considering grabbing up some KMI before this news broke. Now, it's just going to happen for me anyway is my thinking. Any one have a different opinion they care to share and why? After all, this is about learning.


Thanks

[GregWeld]

Glad to see you got something out of the thread you started!!!

LOL

Originally Posted by WSSix

I was actually going to post a nice update involving KMP and why it's a great example of what drew me to dividend investing but Greg beat me to it. For me, I'm hitting 25% returns after 2 years of owning KMP. So much of it is from when the dividend payments were being reinvested while the value was down. Everything that Greg and others have mentioned is happening for me. KMP is simply the name that's in the news right now but it's not the only stock that's working like that for me. OXY and SO definitely fall into that category, too. I've thought about selling and taking my gains with KMP, but I'm not so sure I'm going to now. I was seriously considering grabbing up some KMI before this news broke. Now, it's just going to happen for me anyway is my thinking. Any one have a different opinion they care to share and why? After all, this is about learning.


Thanks

[WSSix]

lol. Yes, I certainly have. I'm really glad others have too. This is a great thread.

[GregWeld]

Here's another Investing 102 moment.... Home Depot (HD) is a boring old stock that pays a dividend... That's trading UP $3.00+ a share in premarket trading. Why? Because they knocked the earnings ball out of the park.

My point for Investing 102 --- you don't need to gamble on the latest greatest IPO's all the time in order to have some real nice positives in your accounts. Here we are with TWO names that we've used for examples in this thread on a regular basis -- Kinder Morgan (KMP) and now Home Depot (HD) that have nice jumps in value just THIS MONTH!!

I'm not saying that you should own stocks that we've discussed! Not at all! What I'm saying is that these are "boring" names... these are just examples of names you can buy and sleep well at night... and here they are hitting home runs for you.

[96z28ss]

just got another 8.3% dividend raise with MO. This crap is so boring.

[GregWeld]

Originally Posted by 96z28ss

just got another 8.3% dividend raise with MO. This crap is so boring.

Oh Yeah.... I'm pretty sure everyone on this board got AT LEAST an 8.3% pay raise this year right?? Sure they did!


HAHAHAHAHAHAHAHAHA


I'm glad you guys are having "some" success with all this stuff. It's so difficult isn't it? LOL

[chetly]

I finally jumped on the Apple bandwagon and bought 10 shares. I already owned 15 shares of Tesla and have another 8k in my 401k. Not to shabby for a 35 year old that just started building his stuff 2 years ago.

Actually, I got a 10.9% raise this year, so yes, some people did a nice raise...

[GregWeld]

Originally Posted by chetly

I finally jumped on the Apple bandwagon and bought 10 shares. I already owned 15 shares of Tesla and have another 8k in my 401k. Not to shabby for a 35 year old that just started building his stuff 2 years ago.

Actually, I got a 10.9% raise this year, so yes, some people did a nice raise...

Good names to own for a 35 year old. But don't forget to also invest in some good old fashioned solid dividend payers.

And WOW -- That's a nice raise!! Raises have been few and far between for most folks the last 5 years. SO good for you.

[GregWeld]

I often comment to others - when discussing stocks - that I consider myself to be Mister Joe Average guy. I wear stained blue jeans and t shirts with welding holes in them... While we enjoy a meal at some of the worlds finest places - I USED TO stop at McDonalds (MCD) once in awhile.

I sold my MCD holdings when I realized that "I" no longer stopped there - and that in fact - I began to AVOID them even if I was hungry. The food quality wasn't what it was - food was served slowly - served cold - and many times I couldn't understand one word the employee was saying. They also were dirty.

For Investing 102 basics... I often mention "fundamental changes"... and to own companies that you use personally. If you're an AT&T customer... you buy (T)... if you use Verizon (VZ) then buy that one instead. That way -- you can use yourself as a gauge for how things are going. If T pisses you off every time you interact with them -- and you switch services when your contract is up.... SELL! You're a good judge of what's going on with a company in general and if you don't like them - chances are - others feel the same way.

I sold MCD because I personally no longer liked the way they were doing business. I went from liking them to thinking they sucked. If I'm average Joe - then so be it - I figure others must see the same thing I do! I don't want to own things I'm not proud of! Period.

So here's a FUNDAMENTAL CHANGE in a business --- and thus my post today....




In 2013, McDonald’s reported a decline in U.S. same-store restaurant (those open at least 13 months) sales and a big drop off in customer traffic, breaking a 10-year streak of gains in a market that generates 30% of sales. And so far in 2014, things have only gotten worse, with McDonald’s diners staying away in droves.



Pay attention to these kinds of warnings. Yes - new management etc might turn a big ship around - but in the meantime - you as an investor might have lost out on the GROWTH of some other company that is kicking your butt... Don't stick your head in the sand and be a complacent investor! Retrain your "employees".... punch out and find a similar but better growth and income story. Be heads up -- it's important to how you're going to spend your retirement.

[GregWeld]

Just for fun --- here's what I'm talking about when I say --- being heads up and pro-active with your investments WILL affect your retirement....



Go pull up a ONE YEAR chart of McDonalds (MCD) and overlay (compare) it with Jack in the box (JACK).

Now add in Chipotle Mexican Grill (CMG).


MCD is DOWN 1% for the 1 year period while JACK is UP 43% while CMG is up 66%..... If you have 10 grand invested in them that's 9900 in MCD vs 14,000 for Jack and 16,600 for CMG. Which would you choose? Did ya used to go to one and now always to the other? Pay attention to that - why would you own MCD yet always choose to eat at CMG where there's a line out the door. Or you notice that CMG USED to have a line out the door and now you're the only dude in there... HELLLLOOOOOOO. Pay attention!

I'm not saying to sell one or buy the other.... I'm saying to pay attention to ALL of your investments and keep up with basic news and your basic feelings. Always been a Windows user... and switched to Apple... but you still own Microsoft? Maybe you should listen to yourself and switch your investment too. Ditto if you were always a Ford guy and now love Chevrolet etc. or vice versa.