Investing 102

[Sieg]

Here's what you could consider a hybrid 'IPO'............

http://online.wsj.com/news/article_e...OTAzNTEwNjUzWj

[GregWeld]

Where's all our Bitcoin supporters?? Now that's it's lost half it's value....

[captainofiron]

Havent posted in a while,

BUT I finally got my old 401k rolled over, and dumped the terrible mutual fund that Fidelity had my old company in.

I ended up getting 10 different names in equal dollar amounts (roughly equal) in the 10 sectors. I had a chunk left over, so I put it in KO, since I love the stuff. I was going to wait and see how Adidas was going to do, but it just doesnt feel right, then I read that they are starting a plan to buy back shares.

today is day 2, I made some money yesterday, but the little guy was just waiting for me to feel good and hit me today, haha

Thanks GW and company

I would have never done this if I hadnt started reading this

[glassman]

Originally Posted by captainofiron

Havent posted in a while,

BUT I finally got my old 401k rolled over, and dumped the terrible mutual fund that Fidelity had my old company in.

I ended up getting 10 different names in equal dollar amounts (roughly equal) in the 10 sectors. I had a chunk left over, so I put it in KO, since I love the stuff. I was going to wait and see how Adidas was going to do, but it just doesnt feel right, then I read that they are starting a plan to buy back shares.

today is day 2, I made some money yesterday, but the little guy was just waiting for me to feel good and hit me today, haha

Thanks GW and company

I would have never done this if I hadnt started reading this

Yes, this is great stuff. I'm learning a bunch too. Haven't been on in a week or so, something about a road trip, but i love this line "The "MARKET" is about more people wanting to own than wanting to sell. PERIOD."
Never really though about it in that perspective, but we NEED perspective. Keep your eyes open and your ears open and absorb......

[captainofiron]

Related to my Adidas comment earlier.

Management changes at Adidas
Oct 8 2014, 14:01 ET | By: Clark Schultz, SA News Editor [Contact this editor with comments or a news tip]

Adidas (OTCQX:ADDYY) appoints two senior execs to new roles as it continues to revamp its management lineup.
The company has added a chief human resource office and expanded the position of chief information officer.
The big picture: The German apparel seller has lost market share to Nike in key regions this year and has been criticized for moving too slow in adapting to consumer trends.

http://seekingalpha.com/news/2008365...share-buy-back

I was really considering this, but not sure if this is "noise" or an omen

[GregWeld]

Originally Posted by captainofiron

Havent posted in a while,

BUT I finally got my old 401k rolled over, and dumped the terrible mutual fund that Fidelity had my old company in.

I ended up getting 10 different names in equal dollar amounts (roughly equal) in the 10 sectors. I had a chunk left over, so I put it in KO, since I love the stuff. I was going to wait and see how Adidas was going to do, but it just doesnt feel right, then I read that they are starting a plan to buy back shares.

today is day 2, I made some money yesterday, but the little guy was just waiting for me to feel good and hit me today, haha

Thanks GW and company

I would have never done this if I hadnt started reading this

Good to hear you got yourself squared away. And just as predicted - the market tanks about an hour after you're all in. You just have to get used to that. Same as the stock you just sold gets a buyout offer with a 40% premium the day after you cashed in. It just goes that way.


The reason I pound buying stuff you know and understand and want to be an owner of - is for these reasons. It takes the gut wrenching out of the "investment".

Originally Posted by captainofiron

Related to my Adidas comment earlier.

Management changes at Adidas
Oct 8 2014, 14:01 ET | By: Clark Schultz, SA News Editor [Contact this editor with comments or a news tip]

Adidas (OTCQX:ADDYY) appoints two senior execs to new roles as it continues to revamp its management lineup.
The company has added a chief human resource office and expanded the position of chief information officer.
The big picture: The German apparel seller has lost market share to Nike in key regions this year and has been criticized for moving too slow in adapting to consumer trends.

http://seekingalpha.com/news/2008365...share-buy-back

I was really considering this, but not sure if this is "noise" or an omen

Sometimes it's just anyones guess as to what big changes in management will bring. I called for Microsofts (MSFT) chief idiot - Steve Ballmer - to be caned so many times I quit even bothering to mention it. The minute they announced he was "retiring" (a nice word for being asked to go find something else to do) - the stock has made a stellar run upward.

I think the bigger question is what brought about the changes. Can ANYONE see that the people running the show are inept? Is the lineup just hideous? Or are they just taking the fall for not being able to turn a sinking giant around?

So when you compare NIKE vs Adidas.... there just isn't any comparison financially that would make a case for buying Adidas over Nike. The growth of Nike far surpasses Adidas...

A 6 month chart shows ADDDF down 21% vs NKE UP 31%.... that is just a HUGE insurmountable investment difference

Go out 1 year it's Adidas down again 21% to Nike's UP 32%

Go out further to a 5 year chart -- Nike dunks it for 200% upside move versus Adidas being up 44%.... UP 44% over five years is pretty lame.

As a 10 year investment it gets even worse! Nike SCORES 334% to Adidas 57% gain.

Here's my take doing no more homework than that ----- looking at a few charts --- I'd buy NIKE and let the dividends and growth buy my Adidas if that's my shoe of choice.... 'cause as an investment it has sucked. It's kinda like my owning boozer and tobacco stocks when I don't indulge in either... I still don't mind cashing their checks.

[GregWeld]

Okay GoPro guys..... prepare to get ready.


One of the big "negatives" to GoPro (GPRO) was the low barrier to entry (in other words - other companies can make cameras that will compete). And here we haven't even gotten to Christmas yet and HTC has got a new $199 version....

Not saying this is or isn't a good stock to own.... I'm just saying that if you own it... PAY ATTENTION.


http://www.businessweek.com/news/201...-sales-decline

[ErikLS2]

Great article Greg, not that I have a crystal ball but this is why I resisted temptation to get in on GoPro. Plus, Consumer Reports rated a little JVC, that had an LCD and could be dunked under water without being in a case, higher than the GoPro.

I've always liked the saying "If you want to achieve something, find someone who's achieved it and do what they did". Well, we can't really invest like Carl Icahn (probably even you Greg), but I still like this article on him. 27% annually over 52 years is pretty good by any measure.

http://www.forbes.com/sites/greatspe...re-carl-icahn/

[GregWeld]

Originally Posted by ErikLS2

Great article Greg, not that I have a crystal ball but this is why I resisted temptation to get in on GoPro. Plus, Consumer Reports rated a little JVC, that had an LCD and could be dunked under water without being in a case, higher than the GoPro.

I've always liked the saying "If you want to achieve something, find someone who's achieved it and do what they did". Well, we can't really invest like Carl Icahn (probably even you Greg), but I still like this article on him. 27% annually over 52 years is pretty good by any measure.

http://www.forbes.com/sites/greatspe...re-carl-icahn/

The only reason I posted that on GoPro was because I found the SPEED with which competitors are coming into the space is what floored me. GoPro will still be "THE NAME" in the business. I personally have three other "track day" cameras and I call them all GoPro's. LOL


Competition does NOT mean the stock won't do well.... and competition can spur bigger and better marketing... more consumer awareness... more retailers to get their eyes opened and stock/carry the category etc. So competition by itself is not a bad thing.


Carl Ichan is a genius... His latest is the split of PayPal from eBay. A move the company SHOULD HAVE done on it's own. I wish my total net worth was what he makes per day. LOL

[GregWeld]

By the way ---- In case someone is new or maybe someone is MISSING the reason for the discussions of a name such as GoPro....


It's not about GoPro. It's about learning from names like this coming to market via an IPO. Ways to think about any business model. Ways to think about investing in IPO's in general. What happens to them - good or bad over time. It's about me - as well as others here - trying to get people to think about their investing style and tolerance for "risk assets". Get them to think about how they feel about missing an investment - or if they are invested - how they feel when it doesn't go up every day...

This is an effort to infuse the human response into investing - because it can't be discounted. Some can handle the risk well -- and some panic and sell out -- and some can't sleep -- and some guys thrive on it. We just don't know who is what type - so I'm attempting to just give you food for thought so you can find out.