Investing 102

[GregWeld]

First the easy one:

VM Ware


I am currently a large holder of EMC stock --- which owns 85% of VM Ware -- and having just sold a company to EMC that specialized in digital clustered storage (big sales into the cloud) = that company (Isilon Systems) is now owned by EMC...

VM WARE allows users to use their "computers" as Virtual Machines -- so in real quicky terms --- their software allows a large company to operate on several different OS (operating systems) and have the "clients" (user machines) operate as virtual machines. With all the different OS out there now -- iOS - Unix - Windows (whatever version) etc and then you're really running the company on something by IBM or whatever.... so basically VM Ware allows this all to take place and all the "clients" can receive changes from IT etc. So in large workplace situations it's a wonderful "fix" for a complicated problem. Hope that makes sense.

An individual can run Win (X) on their Apple (iOS) using VM Ware product... so it allows iOS to be the basic machine OS -- and allow you to run Win (X) in "virtual" mode. Pretty cool stuff and lots of people are using this product because lots of people are running Macs in a Windows world...

So you can OWN EMC stock and actually own 85% of VM Ware -- or you can just own VM Ware...

When VM Ware does well -- EMC gets a kick in it's stock because of it. EMC of course is a VERY large company compared to VM Ware.


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Kinder Morgan is a little more complicated -- KMP -- Kinder Morgan Partners is a "MASTER LIMITED PARTNERSHIP" and as such has to pass most of their income on to it's partners -- when you own this stock you are a "partner". Thus a nice dividend payer (provided of course that the income stream is good!

KMP -- OWNS substantially the other two stocks - KMI and KMR....and they're all set up in a very complicated inter-related way to run and or spin off "income" from their businesses. It's so complicated that it isn't really worth trying to understand --- because in the real world that we function in --- we just want to own good companies that pay good dividends. That would be KMP --- the main Master LLP....

When you do the research -- you'll find that just owning KMP is the way to play. The growth is outstanding - the dividend is stellar -- and the other two entities -- not so much. KMR pays no dividend and actually operates more like a secondary offering to raise cash for KMP... DUDE -- your head will spin trying to figure it all out.

[GregWeld]

Now -- let's talk about you listening to CRAMER......

He will make your head spin like Beetlejuice! I listen to him all the time -- he's brilliant... his wife is more brilliant.. BUT == THEIR BACKGROUND IS TRADING....

He can't seem to get far from that trader mentality. If you listen to him and follow his advice you'll lose money. I used to -- and bought all his news letters and all his "inner workings" crap -- on which - HE made money selling to dumbasses like me.

I LOVE to listen to him --- and he makes money -- but you'll be all over the board trying to invest with him and his reasoning and strategies. FUGIDABUDIT!

INVESTING 102 is all about stopping all that nonsense and noise --- and just doing what is RIGHT --- which is buy best of breed -- you don't need ANYONE to tell you what those are - you already know the names of the 20 or so companies you'll need to invest in..... AND all you need to do is pick a name --- compare other companies in that sector -- and you'll come up with "Best of breed" ---- Best of breed stocks get you the LONG TERM proven growth -- get you the dividend, and give you stability which gives you a good nights sleep thru thick and thin. That way you don't freak out and sell LOW --- and then buy back HIGH...

[billscamaros]

Originally Posted by GregWeld

I was using "earnings season" more as a "okay NEWBS -- pay attention this week and next and see how this can affect the market in general"....

Where would I see this type of news? Schwab or Fidelity's websites, CNNMoney, .... ??

Thanks for all the insight you guys provide to this thread!!

[GregWeld]

Originally Posted by billscamaros

Where would I see this type of news? Schwab or Fidelity's websites, CNNMoney, .... ??

Thanks for all the insight you guys provide to this thread!!

Well Bill -- Good question!

I get a lot of that kind of info because I get up early -- and watch CNBC... and they are always squawking (that's a CNBC pun) about stuff like that.

Schwab etc -- I don't think so. They don't really do the "news thing" like that. Wall Street Journal would mention it... Maybe CNNMoney --- I don't read that site - but then you'd have to catch a story about it... so not sure you could depend on the old "heads up" kind of thing that you'd get from shows like CNBC or Bloomberg.

[ErikLS2]

Greg, I agree on Cramer. Like I said I never watch him but I do think he knows what he's talking about. It's just nothing for the regular investor to pay attention to.

[GregWeld]

Originally Posted by ErikLS2

Greg, I agree on Cramer. Like I said I never watch him but I do think he knows what he's talking about. It's just nothing for the regular investor to pay attention to.

LOL --- Remember when I write -- I'm writing for EVERYONE that reads... so that wasn't aimed AT you.... it's more a general "here's my take on Cramer".

I think the guy is brilliant... but not an "investing 102" kinda guy. He's very sophisticated -- has more info at the tip of his tongue than about 90 guys do... but he's "too broad" and he's too out in front and makes too many calls buy sell and hold...

What I use him for is good general "fast" knowledge and he seems to have a very good overall take on many "situations". If I was just starting out in investing -- I wouldn't have a clue what he's talking about most of the time.

I think that after doing this for awhile -- what I've come down to believe is that you don't need to know every little detail about 10 gazillion stocks... That is the "noise" I refer to.

I wouldn't know how to start my day without him - but the guy I really miss is Mark Haines!

[Sieg]

http://www.bloomberg.com/news/2012-0...ash-hoard.html

The Apple movement is getting very interesting and educational.

[GregWeld]

Originally Posted by Sieg

http://www.bloomberg.com/news/2012-0...ash-hoard.html

The Apple movement is getting very interesting and educational.

Okay so here's the NOISE take on this... people will be talking for weeks about how much cash on hand - and what they should do with it etc... but that is NOISE. What you should focus on as an investor - regardless of what company - is all the simple stuff we've been discussing. My take on Apple -- GREAT COMPANY - beyond stellar growth.... no dividend but the growth makes up for that in spades... as long as we can go to the mall and see LINES of people buying stuff... how can you go wrong with a company like that? How many other companies have people lined up to spend $200 to $2000 a pop?

But I wouldn't "speculate" buying a company hoping they suddenly pay a dividend.... cause the minute you do that - they do something 180* out from that. So I'd just buy based on all the things I KNOW now... and whatever happens happens.

Does that make sense?

[Sieg]

It definitely makes sense.

The early analyst noise this morning about the stock target prices of $500 to $540 and one even speculating $599 left me unable to comprehend due to lack of knowledge. Then the early volume had a major spike that lead to 34.2 million shares for the day and the stock closes up $26 dollars for the day.

The popularity of their products can't be denied but I wonder how long their products can hold premium retail prices. In one way it appears they could be building one really big bubble.

The lack of dividend and the share price are tough to swallow for a little guy like me. I also don't perceive the company as overly generous in respect to their customer or share holder. I guess 5 shares and pray for a split may be better than the what if senerio.

[Bucketlist2012]

Originally Posted by GregWeld

LOL --- Remember when I write -- I'm writing for EVERYONE that reads... so that wasn't aimed AT you.... it's more a general "here's my take on Cramer".

I think the guy is brilliant... but not an "investing 102" kinda guy. He's very sophisticated -- has more info at the tip of his tongue than about 90 guys do... but he's "too broad" and he's too out in front and makes too many calls buy sell and hold...

What I use him for is good general "fast" knowledge and he seems to have a very good overall take on many "situations". If I was just starting out in investing -- I wouldn't have a clue what he's talking about most of the time.

I think that after doing this for awhile -- what I've come down to believe is that you don't need to know every little detail about 10 gazillion stocks... That is the "noise" I refer to.

I wouldn't know how to start my day without him - but the guy I really miss is Mark Haines!

Greg, Mark was the guy on CNBC that just died ??? That guy I liked. I like Kudlow too.. There is a lot of noise about the ups and downs, but I need to watch something in the early AM with Coffee. I don't buy on the info, but it is good to get different perspectives on investments.

Cramer is moving at a fast pace, but I watch him sometimes to see where he is headed.. but don't blink, cause you will miss 5 things that he just said...hyper guy Cramer is...