Investing 102

[96z28ss]

Anyone here invested in KMP. Have you received your payout and swap to KMI already?
I haven't received it yet, but I know someone who has already.
I even had more shares than they did. I wonder how they determine who gets switched over first.

[GregWeld]

Originally Posted by 96z28ss

Anyone here invested in KMP. Have you received your payout and swap to KMI already?
I haven't received it yet, but I know someone who has already.
I even had more shares than they did. I wonder how they determine who gets switched over first.

Smart traders took their profits (in my case a quarter million bucks) in KMP right after they made the announcement.... and bought the KMI shares.

It's just book keeping and think of the MILLIONS of shares to be handled and payments made. They'll get to you.

[WSSix]

So, I'm sort of in the middle of a dilemma and am unsure what to do. Since I used to work for Halliburton and they had a fantastic ESPP set up, I took full advantage of it and now have a very lopsided portfolio. I'm not at all worried about that honestly. I took advantage of an opportunity that was only available to me because I was an employee at the time and it has paid off greatly.

Until this current and unforeseen drop in oil prices, my attitude was to simply let the shares sit there and make money. I no longer get the discount as an employee, and I'm very lopsided so I don't need to invest any more in that position were my thoughts. I'm now questioning those thoughts because the stock has dropped so much in value. My dilemma is do I take advantage of what is, I believe, a great buying opportunity and continue to make my portfolio lopsided, or do I just stay patient, let my shares ride, and continue to work towards a more balanced portfolio? My cost basis is such that I'm still sitting pretty with great returns right now even with the price down so much.

Thoughts? Opinions?

[GregWeld]

DIVERSIFY. ALWAYS.


Nothing wrong with keeping and holding what you have - but try to broaden your positions until you have 10 or 15 or 20 great names.

Originally Posted by WSSix

So, I'm sort of in the middle of a dilemma and am unsure what to do. Since I used to work for Halliburton and they had a fantastic ESPP set up, I took full advantage of it and now have a very lopsided portfolio. I'm not at all worried about that honestly. I took advantage of an opportunity that was only available to me because I was an employee at the time and it has paid off greatly.

Until this current and unforeseen drop in oil prices, my attitude was to simply let the shares sit there and make money. I no longer get the discount as an employee, and I'm very lopsided so I don't need to invest any more in that position were my thoughts. I'm now questioning those thoughts because the stock has dropped so much in value. My dilemma is do I take advantage of what is, I believe, a great buying opportunity and continue to make my portfolio lopsided, or do I just stay patient, let my shares ride, and continue to work towards a more balanced portfolio? My cost basis is such that I'm still sitting pretty with great returns right now even with the price down so much.

Thoughts? Opinions?

[68SS2]

I have read every post in this thread over the past couple years and it has been very helpful to me, so thanks to all the contributors and specifically Greg. We have talked a lot about mindset and how to view your investments and the market with some discussions about the how.

I would like some opinions about which online brokerage firms people are using and why. I have been doing most of my investing within Vanguard and some real estate, but I would like to have access to more information and specifically be able to closely track my investments and returns (I'm an engineer and love data). I don't buy or sell very often, as this is investing and not trading...so the difference between $7 and $9 trades is secondary to how well their website works for me, but some thoughts on what drove you to a firm would be helpful.

Thanks
Doug

[toy71camaro]

I use Sharebuilder (soon to be Capital One Investing).

Reason why? I got a free $100 signing up because I'm a Costco member. And they do a "auto investment" feature, where you can buy a stock on Tuesdays for $2 (as long as the auto investment was setup by monday). They also have i think $6.95 normal trade rates. And every once in a while, have coupon/special codes to get a free trade.

But I've been happy with them.

[GregWeld]

Originally Posted by 68SS2

I have read every post in this thread over the past couple years and it has been very helpful to me, so thanks to all the contributors and specifically Greg. We have talked a lot about mindset and how to view your investments and the market with some discussions about the how.

I would like some opinions about which online brokerage firms people are using and why. I have been doing most of my investing within Vanguard and some real estate, but I would like to have access to more information and specifically be able to closely track my investments and returns (I'm an engineer and love data). I don't buy or sell very often, as this is investing and not trading...so the difference between $7 and $9 trades is secondary to how well their website works for me, but some thoughts on what drove you to a firm would be helpful.

Thanks
Doug

Doug -- Personally I like SCHWAB best for overall research and being able to find the info I want. I have several brokerage accounts and I always end up doing research on Schwab. I have a brokerage account at Wells Fargo - and find it one of the worst... but they do other things for me that only large banks can do...

Make certain that you are SIPC insured -- which covers CASH on deposit up to $250K - and the securities held in the brokerage.

[Woody]

Originally Posted by WSSix

So, I'm sort of in the middle of a dilemma and am unsure what to do. Since I used to work for Halliburton and they had a fantastic ESPP set up, I took full advantage of it and now have a very lopsided portfolio. I'm not at all worried about that honestly. I took advantage of an opportunity that was only available to me because I was an employee at the time and it has paid off greatly.

Until this current and unforeseen drop in oil prices, my attitude was to simply let the shares sit there and make money. I no longer get the discount as an employee, and I'm very lopsided so I don't need to invest any more in that position were my thoughts. I'm now questioning those thoughts because the stock has dropped so much in value. My dilemma is do I take advantage of what is, I believe, a great buying opportunity and continue to make my portfolio lopsided, or do I just stay patient, let my shares ride, and continue to work towards a more balanced portfolio? My cost basis is such that I'm still sitting pretty with great returns right now even with the price down so much.

Thoughts? Opinions?

If it was me I would definitely diversify for the exact reason you are discussing. An unforeseen event has significantly impacted your major holding. I had a friend that worked at WorldCom several years ago. He used to brag to me how much money he was accumulating in his retirement account. I don't know if you were following the market when WorldCom went bankrupt, but his entire account evaporated because he had all of his money in one stock. The same thing happened to people at Enron.

[Woody]

Originally Posted by 68SS2

I have read every post in this thread over the past couple years and it has been very helpful to me, so thanks to all the contributors and specifically Greg. We have talked a lot about mindset and how to view your investments and the market with some discussions about the how.

I would like some opinions about which online brokerage firms people are using and why. I have been doing most of my investing within Vanguard and some real estate, but I would like to have access to more information and specifically be able to closely track my investments and returns (I'm an engineer and love data). I don't buy or sell very often, as this is investing and not trading...so the difference between $7 and $9 trades is secondary to how well their website works for me, but some thoughts on what drove you to a firm would be helpful.

Thanks
Doug

I second the vote for Schwab. I have accounts at Schwab, TD Ameritrade, Etrade and Interactive Brokers. I generally prefer Schwab for research and the general lay-out of the website. However, I like the Think or Swim Trading Platform at TD Ameritrade the best for the charting and monitoring my positions. Interactive Brokers is more of a trader's brokerage. It has a good platform and very low commissions at $1 or $.005 per share, but there are additional fees if you don't trade much.

Edit: I forgot to mention that Schwab, TD Ameritrade and Etrade have dividend reinvestment programs. Scottrade has a modified reinvestment program, but it is not the same. If you would like to automatically reinvest your dividends, do some research into the brokerage you select.

[WSSix]

Originally Posted by Woody

If it was me I would definitely diversify for the exact reason you are discussing. An unforeseen event has significantly impacted your major holding. I had a friend that worked at WorldCom several years ago. He used to brag to me how much money he was accumulating in his retirement account. I don't know if you were following the market when WorldCom went bankrupt, but his entire account evaporated because he had all of his money in one stock. The same thing happened to people at Enron.

Thanks Woody and Greg. I'm diversified in how many different companies I'm invested in but dollar wise I'm very heavy in HAL in that account.