Investing 102

[68Cuda]

Originally Posted by GregWeld

Stocks like Exxon Mobile (XOM) are now paying 3.69%... and there's many out there paying 10% just due to the share price decline.

For example BP = 7.88%, assuming they do not cut the dividend! That is the risk, eh. Their stock took a beat down after the Gulf oil spill, but they have done good since then.

Read this outlook regarding their dividend.

http://bidnessetcnews.tumblr.com/pos...idend-imminent

The question is, how much of this is factored into the current price?

[toy71camaro]

Thanks always for the help and insight from our group here. I ready nearly daily, even if I don't comment.

Watching this market, wondering where I put a little bit of sidelined cash to work.

[AMSOILGUY]

Originally Posted by toy71camaro

Thanks always for the help and insight from our group here. I ready nearly daily, even if I don't comment.

Watching this market, wondering where I put a little bit of sidelined cash to work.

Its hard to recommend specific stocks to individuals because everybodies finances and stomach are different. There have been great stocks talked about in the thread and even more not talked about. I picked up some AIZ yesterday based on several things.
They missed what analysists thought they would do and had their biggesst drop in 5 years 12%. It pays a dividend. It has a good chart other then this year which is from what i can tell is across the board. I had a cell phone claim and they were easy to deal with. They have all the major cell phone companies insurance. Fortune 500 company. Plus I've been a customer for years with the hopes of never using it. They have good debt levels and billions in assests and many services which people feel and are told they should have but hope they never use. Then after all that it still could be a bust lol. From what ive taken in following along is pick something you understand and pays a dividend and hang on. Good luck deciding!

[toy71camaro]

Oh yes. We don't really do stock recommendations in this thread. I've been a part of it for a few years now.

I was more generally speaking. sorry for the confusion!

[GregWeld]

It is just too hard to recommend stocks or frankly - any investment. Everyone is so different. And none of us gets it right all the time - or even half the time. I've said before, many times, the worst thing a guy can do is to buy an investment he doesn't really understand. He just buys it because someone else said to. First time it goes to **** - he's a seller and a loser... A guy has to really believe in the company - so that when the market goes like it is now - he has the fortitude to hold or buy more... or UNDERSTAND WHY he's selling. Sometimes we just invest in stuff that was a bad bet.

These markets where EVERYTHING is going south -- these are the markets that if you have the patience - and the guts - you can make money. They're just not as instantly rewarding as buying in an up market and having the shares go green and stay there.

I got a check today - $24+K which is the 6 month "dividend" payment on an apartment investment I'd made 3 or so years ago - when apartments weren't a very hot investment. Today the value of my investment has doubled... and I get a check in the mail. I deposit it, and say "thanks"! LOL Now, I wished I'd have put twice the amount in!

That's a head space that takes "time" in the market to get to.

[GregWeld]

Best statement I've heard on TV (CNBC) EVER....



Dogs chase cars.... and people chase stocks.


In other words - the behavior of only buying stocks when they're rising.

[SSLance]

So... Hope everyone has been enjoying the past few days.

[GregWeld]

Originally Posted by SSLance

So... Hope everyone has been enjoying the past few days.

I have 4 names that have been absolutely hammered..... APU - KMI - ETP - BXMT. Combined these 4 were in the red $1.4M a few days ago. Yesterday they were "only" down $900,000. Think about that "swing" in just 4 short days. HUGE.

They also (regardless of them being in a big deep hole) provide $160,000 in annual income. If I don't sell them - then I don't have a "loss". And in a different environment - they can, and most likely will - continue to recover OVER TIME. And in the meantime - they continue to provide income.

Times like we're in now - are why I continue to invest in DIVIDEND paying stocks.

[GregWeld]

In the recent market environment, Buffett has aggressively been adding to stakes in key sectors of the economy. Energy is one of those. One of Buffett’s more famous proverbs is to “be greedy when others are fearful.” He did just that at the depths of the financial crisis, buying bank stocks. And recently he’s been taking advantage of the beaten down energy sector to load up on premium stocks at distressed valuations. Another great observation from Buffett, that should give everyone perspective when stocks are in periods of decline and people are hand wringing about a variety of risks, he says: “In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”



The key is -- WHICH stock. Warren does his research... he's not just buying anything and everything.

[GregWeld]

Don’t be short on cash when you need it most: "We will never become dependent on the kindness of strangers… We will always arrange our affairs so that any requirements for cash we may conceivably have will be dwarfed by our own liquidity." (2010)




Don’t wager against the U.S. and its economic potential: “Who has ever benefited during the past 238 years by betting against America? If you compare our country’s present condition to that existing in 1776, you have to rub your eyes in wonder… We will regularly grumble about our government. But, most assuredly, America’s best days lie ahead.” (2015)