Investing 102

[GregWeld]

Originally Posted by Vegas69

I agree with Greg, some good names, some others I would wipe off the list. You certainly have the discipline to sock away such a substantial amount. Clearly you have a big income, but that doesn't mean you had to save a penny! Good luck on the sale of your car.

I've owned Pfizer for a year. It's been a snoozer. Always hanging around even. CVS has been a solid performer. They are a drug dealer. ha I picked them as I see the baby boomers consuming more and more pills, unfortunately.

Greg, have you covered your philosophy on International stocks? Picking them to the make up of your portfolio.

So many of the companies we own nowadays are already "international". So I don't go looking for a pure international play. 20 years ago you needed to own some foreign company stocks -- but the big best of breed guys are almost all doing business in other countries. Frankly I can't think of many countries where I'd want to own their stocks. Europe is a welfare entity... Spain? Japan hasn't had a good economy for 20 years.... If you want China - buy McDonalds - Coke - Apple... and I don't want to own anything I can't pronounce. Germany is just now slipping into a possible recession...

The other way I think is about stuff like KMI/KMP/KMR.... they own the Pipes...Everyone needs to get their stuff from point A to point B... so I don't try to pick the one guy that's going to win that battle -- when they ALL have use KMP pipes...

Ditto oil --- I'd prefer to own the infrastructure plays (the pipes/storage). Versus the guys that have to drill - risk capital to find more - or have to play the pricing game. THEY ALL have to use the pipes so I invest in pipes. :>)

Again -- this is just something more to think about rather than BUY THIS or DON'T BUY that.... which isn't the way I like to do this thread.

[68Cuda]

Originally Posted by GregWeld

Ditto oil --- I'd prefer to own the infrastructure plays (the pipes/storage). Versus the guys that have to drill - risk capital to find more - or have to play the pricing game. THEY ALL have to use the pipes so I invest in pipes. :>)
.

I once looked into the tanker business as an investment, really good returns, but some risk obviously considering your investment vehicle is literally a vehicle... and you hope that it stays afloat, also in the literal sense. There were some that had crazy returns where you were literally buying shares of ONE ship.

[GregWeld]

Originally Posted by 68Cuda

I once looked into the tanker business as an investment, really good returns, but some risk obviously considering your investment vehicle is literally a vehicle... and you hope that it stays afloat, also in the literal sense. There were some that had crazy returns where you were literally buying shares of ONE ship.

I have tankers ---- KMI owns Oil Tankers (under the KMP umbrella which is being converted to KMI shares).... and I own Dry Goods ships via Navios Marine Partners LP (NMM). They own 33 dry goods ships. I like to mix the high dividend payers in with the steady eddies and frankly my holdings allow me to do this and still sleep at night. However - I keep the percentage invested in the high div payers to a far lower amount. For instance I own just shy of half a million dollars each worth of NMM (25,000 shares) and NLY (40,000 shares).... versus 1.5 to 2MM in my more "normal" names like an AT&T or a MO or BPT etc. Although I recently halved my holdings in BPT it's still a large holding.

I usually refrain from mentioning too many of my holdings because I don't want people to think - well WELD has that so I should too! That would be the completely 100% opposite of what I would like to see from this thread. Don't own what I own and why I own it.... own what YOU want to own and what YOU understand. I mention when I don't own something because I don't understand it. There is NOTHING wrong with admitting you don't understand something therefore you avoid investing in "it". That's as it should be!

[68Cuda]

Originally Posted by GregWeld

I have tankers ---- KMI owns Oil Tankers (under the KMP umbrella which is being converted to KMI shares).... and I own Dry Goods ships via Navios Marine Partners LP (NMM). They own 33 dry goods ships. I like to mix the high dividend payers in with the steady eddies and frankly my holdings allow me to do this and still sleep at night. However - I keep the percentage invested in the high div payers to a far lower amount. For instance I own just shy of half a million dollars each worth of NMM (25,000 shares) and NLY (40,000 shares).... versus 1.5 to 2MM in my more "normal" names like an AT&T or a MO or BPT etc. Although I recently halved my holdings in BPT it's still a large holding.

I usually refrain from mentioning too many of my holdings because I don't want people to think - well WELD has that so I should too! That would be the completely 100% opposite of what I would like to see from this thread. Don't own what I own and why I own it.... own what YOU want to own and what YOU understand. I mention when I don't own something because I don't understand it. There is NOTHING wrong with admitting you don't understand something therefore you avoid investing in "it". That's as it should be!

Well I definitely do not have your resources! Therefore I will stay on the conservative side, thank you very much! I felt the tanker thing had a little much risk for my blood and I did not feel comfortable because I did not fully understand it - so I stayed away. Even though I am a much smaller fish, or relatively speaking, maybe a minnow, I share the same thought process in that I WILL NOT invest in something I do not understand. Thanks for being so open and forthcoming.

[96z28ss]

Originally Posted by Vegas69

I agree with Greg, some good names, some others I would wipe off the list. You certainly have the discipline to sock away such a substantial amount. Clearly you have a big income, but that doesn't mean you had to save a penny! Good luck on the sale of your car.

I've owned Pfizer for a year. It's been a snoozer. Always hanging around even. CVS has been a solid performer. They are a drug dealer. ha I picked them as I see the baby boomers consuming more and more pills, unfortunately.

Greg, have you covered your philosophy on International stocks? Picking them to the make up of your portfolio.

Now that CVS isn't going to sell cigarettes which I heard was 2 billion in sales a year. That might make the company not hits its numbers, sending the value down.

[Vegas69]

I did read that and it very well could play out. Personally, I like the decision.

Thanks for the input Greg.

[GregWeld]

Originally Posted by 68Cuda

Well I definitely do not have your resources! Therefore I will stay on the conservative side, thank you very much! I felt the tanker thing had a little much risk for my blood and I did not feel comfortable because I did not fully understand it - so I stayed away. Even though I am a much smaller fish, or relatively speaking, maybe a minnow, I share the same thought process in that I WILL NOT invest in something I do not understand. Thanks for being so open and forthcoming.

Michael.... the whole thread is about a WAY TO THINK -- not about who has what. I throw in my real life stuff because it's the only way to separate what "I" do to use as an example - versus the way I want people to look at their own accounts. I'm not brilliant and I'm not a brilliant writer. I can use real life stuff - keeping it honest and real - and let people take the information and use it for how it fits for them.

Investing - and writing about it on here (the only place I do) - is to help my friends. The problems with investing in general is that nobody wants to talk about it. You ever remember your Dad sitting you down and saying -- hey Son! I make 5,000 a month and I'm saving 500 a month for my retirement and 350 a month for your college... and here's where it is and how my returns are going.

The reason I mention real numbers in here - is one - for full disclosure - and two - because I want to show real actual relativity.

There are people on this forum that have to save for a set of tires - and there's guys on here with 30 collector cars... and everything in-between. Earnings power and savings and the price of a guys house or his car - is really totally not relevant here - because many of us have been on here for years. We all know each other. Many of us are friends well beyond this forum etc. What you will find out here is that we're all here for each other. Whether that's borrowing a tool or meeting for coffee - or lending ideas - expertise - or just giving each other crap. If I can help my friends with their retirement... then that's what I'm going to do. It's been very rewarding for me personally to see and hear the stories of success.

Nobody is a minnow.... because if you're in here reading and discussing - then you're a somebody in my book. The people that are in this thread give a **** about their future and the future of their family... and they're doing the very best they can. You don't have to own a AA/FC to go and participate in the drag races... If you're there - then you're a drag racer and the people around you will welcome you. Ditto here.

Originally Posted by 96z28ss

Now that CVS isn't going to sell cigarettes which I heard was 2 billion in sales a year. That might make the company not hits its numbers, sending the value down.

For investing 102 -- I'll toss this in. Your point is a good one -- EXCEPT -- this move was well telegraphed. The "market" - which is really controlled by the large institutional players.. would have already "priced this in". I think cigs are a very low margin business and the actual cost of handling them - accounting for all the taxes - keeping them "safe" in the retail space as well as at the warehouse... has costs not associated with normal merchandise. My guess is - if they were killing it (is that a pun?) with cigs - they'd have a far different view. Money - in business - trumps just about everything. And the CFO etc and the BOD (Board of Directors) I'm sure has looked at the effect to the bottom line for months before the decision was made.

Having said all of that.... it remains to be seen if they loose customers to WalMart or some other competitor. A guy might stop for smokes and buy a lighter -- or shampoo - or his cough medicine (LOL). So your statement is very valid in that the real affect is yet to be known. As such - I agree with you - I'd avoid it for at least 2 full quarters. Why stand on the tracks just to see if a train is really going to come or not.... when you can stand to the side and have no worries?

[GregWeld]

Now -- Since I'm on a roll this morning...


Let's not forget what the STOCK MARKET really is. It's a MARKET. PERIOD. At the end of the day -- for a stock to rise - more people must want to own it than want to sell it. End of story.

There are "popular stocks" -- no different than the popular girl in high school... everyone wanted to (use your imagination)... She had no problems finding a date. Stocks are the same way. The ones everyone wants to own are the easy ones.

In the end however -- it's about people and people are fickle.... and we're lemmings... if housing is hot - we all want to be in housing. If gold is hot we all want gold. When these things go "cold" (like when the hot chick shows up with a cold sore)... then "nobody" wants them and the price drops.

Some times - if you're lucky - the fact that you hit on the cold sore chick - and the sore goes away - she loves you for life and you're rewarded. Some times that cold sore is just the beginning of a far "lower" (get it) problem that isn't readily visible. Let's call this -- trying to catch a falling knife. If you're lucky you get the handle... if not - you get sliced and diced. I prefer not to play that game. It's gut wrenching - it's gambling - it works and you're a hero - it doesn't work and you're a zero.

Alibaba is on everyones target.... This is not only THE HOT CHICK - This is the hot chick that puts out! And it seems that people want in and don't want to get out. i.e, people want to hold it. That means the price SHOULD go up. I'm hearing on CNBC that most of the shares offered are going to institutional investors rather than retail customers ala (get it?) FaceBook (FB). People EXPECTED FB to double or triple on the first day and their plans were to get in and get out. A one night stand. The difference that I'm sensing is that people want to marry Alibaba for a far longer term and that can only be good for the shares.

ME? I'll wait and see.... but you young guys... this may be something that goes viral and It wouldn't hurt you to put $500 or $1000 into play. IF you do that -- be prepared for "whatever". Understand your expectations and your reactions if your expectations aren't met.

[GregWeld]

I would also suggest that you look at some real estate companies..... not only do they spin off decent dividends - it adds to your diversity. I personally own NNN - but have also owned O... and I'm not recommending either of them -- I'm just saying I think you need more diversity and some better dividends.


O

NNN

BXP

Originally Posted by chichirone

OUCH! I appreciate the candor and levity!

So here's our thinking...would love your feedback.

Amy and I have the rainy day fund in place. A years worth of cash on hand. We have invested in actively managed mutual funds for over 15 years, accumulating a 7 digit nest egg for longer term retirement. Our current goal is to generate more cash flow for mid-term money for our bridge years age 40-65. Managed growth over 5/10yr horizons with dividends reinvested is something we are very comfortable with. Your comment on it being a personally managed mutual fund resonates with us.

We have been looking at the following dividend stocks. I'd like to get your feedback on my "analysis" based upon share price and dividend yield. I really want to make sure I am looking at these stocks through the right set of lenses. We do not have a high tolerance for risk so the High-flyers don't interest me too much now, but as we build the portfolio, a TSLA or GPRO will become more attractive.

Symbols that interest us are:
KRFT
COP
XOM
F
PFE
MRK
SMG
T
MDT
KO

Our plan is to invest a portion of our monthly revenue, buy shares with the intent to receive dividends over the next 10 years. I am prioritizing the investments based upon yield percent of share price to get started which seems to be a low "risk" option when I evaluate the 10yr charts. I like your strategy of 5% return on the stock performance, reinvesting the dividend, and then building a portfolio that has 20-25 stocks with no more than 5% of the total invested in any one share. Time for you to tear it apart and push our thinking...I look forward to your response.

[sebtarta]

Greg please send me a PM with your Paypal address, amazon wishlist or something so I can send a present to you for all your help here. Be it with beer, ONE racing glove, something! I have been reading here since I posted back then about MNKD. I have learned a lot.