Investing 102

[captainofiron]

Originally Posted by GregWeld

Don't forget that over time -- you not only get dividends - but you have CAPITAL GROWTH as well.... 2012 the "market" was up 30%.....

Owning big good names like you've selected is what allows you to continue to pound money into them even in a down market. This part is extremely important... the same $500 buys more shares in a down market... they DO recover netting you nice capital gain -- but also they're paying that ever important dividend.

It more "Fun" to own the hot names at any given time... until you're in a down market.. then the hot tend to go cold as a stone and they DO NOT pay dividends and then you sell because you panic out etc.

Investing is mostly MENTAL. You have to be able to buy when everyone else is selling... that's when you make the big bucks. LOL But it's true.

Keep reading - keep posting -- you'd be surprised at how addicting investing is!

yea Im already addicted, haha

I keep playing around with different ideas, and catch myself talking to my wife about, "well what if we invest in this company" or "OH, do you think they are a public company" hahaha

do you think I have too many consumer goods sector items?

thats 3 out of my 10

I was thinking maybe of not buying KO and/OR TGT

and instead picking up UHT or HCP in healthcare or maybe picking up an insurance company, because everyone needs insurance. specifically MCY (I used to have my car insurance with them in college)

[chetly]

I put $50 a week out of my paycheck into a personal hold account at Edwards Jones and when I get to $1000 I make a purchase.

My top 5 right now to purchase next in no particular order, Disney, WalMart, Time Warner, Lockheed Martin and Wells Fargo.

[Flash68]

Originally Posted by chetly

I put $50 a week out of my paycheck into a personal hold account at Edwards Jones and when I get to $1000 I make a purchase.

My top 5 right now to purchase next in no particular order, Disney, WalMart, Time Warner, Lockheed Martin and Wells Fargo.

I believe you're a fairly young dude, and if that's so, then good job. More younger people need to do things like this and get started early/earlier.

[chetly]

36, home owner. So yeah, kinda young. Especially when standing next to Mr Weld...

[DBasher]

He may be old but at least he's not tall....wait maybe that doesn't help things.

Chetly I like the idea of the holding account, like most, I spend what I have. I've just recently opened an account for the OT to be dropped into, we'll see if that helps.

Dan

[chetly]

My mother works for Edward Jones, so shes the real driving force behind me saving. Being I get a raise every 6 months, I send a % of that raise to the savings account. I have it set up through work where they send the $50 every pay day. Doesn't take long to build up some cash and its not pre tax so I don't get a penalty if I need to take money out of the account.

[Payton King]

I have not forgot about you guys, trying to find the time to post up something worthy of discussion.

[GregWeld]

Originally Posted by captainofiron

I was thinking maybe of not buying KO and/OR TGT

and instead picking up UHT or HCP in healthcare or maybe picking up an insurance company, because everyone needs insurance. specifically MCY (I used to have my car insurance with them in college)

I missed your statement here -- and since the thread isn't about recommending what stock to buy or sell (there are 10's of 1000's of websites that do that daily).... what to think about for YOU... is more important in your decision making.

Be careful of too much consumer retail. Be careful of too much of any "sector". Diversification is important LONG TERM.

Buy what you feel comfortable with... because in the long run - if you're not comfortable with a particular name - you'll sell it when it's down... and kick yourself for buying it. So compare the historical TOTAL RETURN. And compare what you can sleep with thru thick and thin. KNOW that regardless of what companies you pick -- the MARKET will take you up and down over time. The key is not to be shaken out in those down markets and to continue to reinvest the dividends

[GregWeld]

Originally Posted by DBasher

He may be old but at least he's not tall....wait maybe that doesn't help things.

Chetly I like the idea of the holding account, like most, I spend what I have. I've just recently opened an account for the OT to be dropped into, we'll see if that helps.

Dan

The key is to BREAK that habit... which takes some effort. You'll never break that habit unless you are in a position to either scale back -- or going forward - stop spending the increases... and start to invest those instead. Once you actually start to invest - and see the gains and income they can create. Then a person actually becomes MORE addicted to the savings/gains than they are of pissing away every paycheck including future paychecks.

We ALL want "stuff". We want it now... and regardless of income level.. there is never enough. PERIOD. I don't care who you are. The Stuff just becomes more expensive or more of.

The key to this entire thread is not to suddenly wake up and be 62 or 65... and realize your career has come to an end - which means the income that came with it... and now you finally have time on your hands -- but have no money. That must be the sickest feeling EVER... You're now old - useless - unemployable at any meaningful job - and frankly - who wants to still HAVE to work when you're 65+. The only cure for this decease that you KNOW is coming - is to start taking the medicine NOW.

We always wan to put this off.... but the facts are quite clear that all of us is living FAR FAR longer than in the past. We are now living 25 and 30 years past retirement. That's a very very long time to live a sucky cash poor retirement. And with inflation factored in - that time gets worse not better.

$50 a week now doesn't seem like much... but if that grows to $100 a week with raises and bonuses - and then it starts to earn a return and gets some capital growth (total return)... it starts to find some traction...


Here's something I ask people all the time. If it takes you $80K per year to live now ---- and social security is going to pay you $1500 a month in retirement (18K per year). How do you plan to live once you hit 65?? It's a scary question that needs to be dealt with.

[captainofiron]

Originally Posted by GregWeld

I missed your statement here -- and since the thread isn't about recommending what stock to buy or sell (there are 10's of 1000's of websites that do that daily).... what to think about for YOU... is more important in your decision making.

Be careful of too much consumer retail. Be careful of too much of any "sector". Diversification is important LONG TERM.

Buy what you feel comfortable with... because in the long run - if you're not comfortable with a particular name - you'll sell it when it's down... and kick yourself for buying it. So compare the historical TOTAL RETURN. And compare what you can sleep with thru thick and thin. KNOW that regardless of what companies you pick -- the MARKET will take you up and down over time. The key is not to be shaken out in those down markets and to continue to reinvest the dividends

So If Im thinking of this and reading it right

I have 10 stocks, I should have all 10 sectors covered, hence why I am a little nervous about having 3 in consumer goods

So I spent a little more time looking around, looking at dividends, and ex-dividend dates

So here are my Hot Picks! haha

Consumer Discretionary I think I am going to jump on Mattel at 4.42 since Christmas is coming up

I like Target and Mcdonalds, but I think Mcdonalds is a little high for me right now, and Im not sure how Target is going to do with their stores in Canada supposedly suffering.

Consumer Staples: MO - Altria Group 4.8% dividend, Im going to wait until 10/10 on their payout to buy so I can see if I can get a little better bargain

Energy: really not sure about this one, but I am going with Shell at 4.79%, I was really tempted by Ensco and offshore drilling company at 6.36%, but Im not sure and think Shell is a safer investment

Financials: UHT Universal Health Realty 5.71% dividend, Im buying this one ASAP because the exdividend date is tomorrow

Health Care: GSK Glaxo Smith Kline: 5.61% dividend

Industrials: GE General Electric 3.40%, I was tempted by Metso 3.44%, they make alot of components for refineries, as well as NASA ground support (when I used them alot) so I am familiar with their stuff and its good quality. But GE is the bigger name with a wider market

Information Technology: Cisco 3.05%
I was tempted by Canon at 3.8% but it looks up overall, but its going down the past couple years, I think Nikon is starting to eat into their market, as well as smart phones having awesome cameras built in nowadays

Materials: BASF 3.73%, I was looking at Dow, but its dividend is 2.77%

Telecommunication Services I am torn here between Vodafone and ATT, I think I am going to just have 2 here

Utilities Con Ed, with 4.43%
I was looking at Dominion Exploration with 5.36% but seems like Con Ed is a "better name"

Finally my "Gamble" Im going to stick 5% in Adidas, they are really down since the beginning of this year, and overall they are up, and I just dont see a global brand like them going away soon