Investing 102

[bdahlg68]

MVO correlates to oil just like those two stocks and the Dow. Obviously lots of other factors affect share price, not just oil price. MVO has done pretty well considering. Connection to a certain commodity or region or ... is something really to be considered before investing in a stock. Just make sure you consider more than one outside influence on stock price!

[Woody]

Originally Posted by bdahlg68

MVO correlates to oil just like those two stocks and the Dow. Obviously lots of other factors affect share price, not just oil price. MVO has done pretty well considering. Connection to a certain commodity or region or ... is something really to be considered before investing in a stock. Just make sure you consider more than one outside influence on stock price!

Agreed. In fact these stocks seem to have more risk than just being tied to the price of oil.

I would just hate to see someone think they are getting a safe dividend payer and put a significant portion of your portfolio into those stocks. I think they could be a small percentage of one's portfolio to help boost your overall returns, though.

Also, I am by no means an expert, so I am just throwing my two cents in for what it may be worth.

[Bucketlist2012]

Originally Posted by Woody

Agreed. In fact these stocks seem to have more risk than just being tied to the price of oil.

I would just hate to see someone think they are getting a safe dividend payer and put a significant portion of your portfolio into those stocks. I think they could be a small percentage of one's portfolio to help boost your overall returns, though.

Also, I am by no means an expert, so I am just throwing my two cents in for what it may be worth.

Good call. In reality, it is a small portion of my portfolio. i will have to be more clear when i mention things..

Just like I won't talk about other investments I am doing...not really the nuts and bolts of Investing 102..

[GregWeld]

Originally Posted by solarguy09

And you have to be into it during the rough moments...A.k.a. My KMP , which i own a lot of, is getting hammered today..

No sweat, because of the dividends, and the fact that I have opposing assets that zig when KMP zags, and they pay dividends too..

So greg, after today, should fellow listeners be buying as you said before the 31 st ????

I have I think plenty, so I may not add, but to the viewers, it may be the TIME...

Finally a question from me about investing...I have been cheer leading too much..

So, Buy KMP after the dip, and before the 31st ?????

I'm not going to "champion" individual stocks.... I only use them as examples and the thinking process I (BIG BOLD I) apply to MY (BIG BOLD MY) investing style.

KMP is an "energy" play -- i.e., pipes and transferring "energy"... and I think a well diversified portfolio should have "some" energy. Whether you choose KMP - COP - EEP - XOM - CVX all depends on your account and what you need. I personally own KMP - EEP - COP - CHKR. They give my account the diversity and the DIVIDENDS that I want. My accounts are a "bit" different than "investing 102".... they're most likely a "bit" larger -- so when I'm trying to diversify I need more than one name in a sector. I bought the COP after doing some digging around for an answer to another post back a few pages. As ALWAYS it's down since I bought it... that my friends is a "given" in investing and that's when you need to have some patience (and some fortitude).

[Bucketlist2012]

Originally Posted by GregWeld

I'm not going to "champion" individual stocks.... I only use them as examples and the thinking process I (BIG BOLD I) apply to MY (BIG BOLD MY) investing style.

KMP is an "energy" play -- i.e., pipes and transferring "energy"... and I think a well diversified portfolio should have "some" energy. Whether you choose KMP - COP - EEP - XOM - CVX all depends on your account and what you need. I personally own KMP - EEP - COP - CHKR. They give my account the diversity and the DIVIDENDS that I want. My accounts are a "bit" different than "investing 102".... they're most like a "bit" larger -- so when I'm trying to diversify I need more than one name in a sector. I bought the COP after doing some digging around for an answer to another post back a few pages. As ALWAYS it's down since I bought it... that my friends is a "given" in investing and that's when you need to have some patient (and some fortitude).

Greg, welcome back.

Yes, when i buy into something that i think is down, it sure can go down more, before it goes up past your buy point..

I just do the research, and then wait it out.. almost always there is a loss before the real gain happens, because i am not timing the bottom, no one can..

today was my first ride in my modified Muscle car, I had so much fun, i could explode...

[GregWeld]

Originally Posted by solarguy09

Yes, ask Greg about Oil Royalty Trusts.. BPT, and PBT, have been some of my holdings.. Most of mine are dividend paying assets..BPT is an 8 % dividend with a 50% plus rise in 3 and 5 year chart. The total return was 107% to 167%.
3, and 5 year PBT is a 6 % dividend, with a 30 % and 45% rise in 3 and 5 year charts.

Man ---- You guys are some serious INVESTORS!!


Okay --- Oil Royalty Trusts -- of which there are many -- and really "land leases" -- where the trust owns the mineral rights -- and they generate cash and spin that off to the "investors" in the trust. They are GIANT CASH COWS when oil prices are high!!

Now here's the tricky part. Nobody really knows how much oil is there - and how long it will be flowing - and at what rate - and at what cost to lift - and what the market price will be.

BPT is an OLDER trust - pumping some 20 years.... So ask yourself -- do they have 100 years of oil left? Do they run dry next week? RISKY -- you bet. Remember what you get with RISK?? Higher "rewards" thus the high dividend - because all the stars are aligned! I own a similar trust -- Chesapeake Granite Wash Trust (CHKR)....

Like all of these things we discuss --- Each person needs to do their research --- and understand all of what they're getting into. Asking here for input is okay --- and should be done -- but remember! They're just OPINIONS... and what is appropriate for me to invest in - may not be suitable for someone with 10,000 or (name an amount). These things all depend on age - $$ - use... and blah blah blah.

[GregWeld]

Originally Posted by solarguy09

Greg, welcome back.

Yes, when i buy into something that i think is down, it sure can go down more, before it goes up past your buy point..

I just do the research, and then wait it out.. almost always there is a loss before the real gain happens, because i am not timing the bottom, no one can..

today was my first ride in my modified Muscle car, I had so much fun, i could explode...

Flew home this afternoon -- figured I'd work on a re-cap during the flight -- I use GOGO INFLIGHT wifi connection... Get to 10,000 feet and go to log on -- and no gogo ---- seems Alaska Air has 4 planes with no GOGO --- and, of course, I'm on one!

[Bucketlist2012]

Originally Posted by GregWeld

Man ---- You guys are some serious INVESTORS!!


Okay --- Oil Royalty Trusts -- of which there are many -- and really "land leases" -- where the trust owns the mineral rights -- and they generate cash and spin that off to the "investors" in the trust. They are GIANT CASH COWS when oil prices are high!!

Now here's the tricky part. Nobody really knows how much oil is there - and how long it will be flowing - and at what rate - and at what cost to lift - and what the market price will be.

BPT is an OLDER trust - pumping some 20 years.... So ask yourself -- do they have 100 years of oil left? Do they run dry next week? RISKY -- you bet. Remember what you get with RISK?? Higher "rewards" thus the high dividend - because all the stars are aligned! I own a similar trust -- Chesapeake Granite Wash Trust (CHKR)....

Like all of these things we discuss --- Each person needs to do their research --- and understand all of what they're getting into. Asking here for input is okay --- and should be done -- but remember! They're just OPINIONS... and what is appropriate for me to invest in - may not be suitable for someone with 10,000 or (name an amount). These things all depend on age - $$ - use... and blah blah blah.

Greg,Thanks.

Oh ya, I am as serious as can be when it comes to Investing. That is what I live on.

And I just have a passion for it...Did I mention that I made my new KDW's as sticky as can be today ?

One quick thing.. I am starting a shift from being the lender, bonds/fixed income, and going to being the owner,stocks, not by much, but I see a shift and do I want to be the lender, that they promise to pay me back, aka europe, ect.., or do iIwant to own more, and be an owner/dividends ??? I think the owner... I feel that the promise to pay me back is getting thin all over the world...

People think fixed income and bonds are safe...hmmmm.....maybe they are not..

And again, I am riskier in PM's, and Oil, so although I share with you, I don't recommend it to the masses. I do it with my money.

But thanks for the kudo's...I will be trying to research and step up my Game with my posts..

Took me a long time to start chiming in..

Last thing..I don't really look at my total balance..it may go up and down due to some of my plays..

I am concerned with income stream, and the dividends..A certain asset i own may go down in balance, but it pays 6 to 14%. depending on the asset, but the point i guess, is that the dividend gets paid, and the income stream is there..

Also I am spread out , and some of these plays are very small in the mix..

I do believe that we are going to be spending in 2012..NO president ever gets re elected in a complete meltdown, and and we will be falsely propped up with government spending, because re election at all costs..and the dollar will continue to suffer..But that is only my opinion...

And my 2012 strategy...kinda the same as 2011, but with the bonds to stock shift of maybe 15 to 20 percent of the total blend...

[GregWeld]

Originally Posted by solarguy09

Last thing..I don't really look at my total balance..it may go up and down due to some of my plays..

I am concerned with income stream, and the dividends..A certain asset i own may go down in balance, but it pays 6 to 14%. depending on the asset, but the point i guess, is that the dividend gets paid, and the income stream is there..

Also I am spread out , and some of these plays are very small in the mix..

See --- that's where you and I are exactly the same kind of investor I look at the investment -- it goes up - it goes down... but what I look at is the dividend stream. If you invest $200,000 and it's paying you 5% per year in dividends - it's spinning off $10,000 a year in income... do I care if it's "down" $5,000 or even $20,000 temporarily? NOPE.... Own it over a 3 or 5 year period -- it's going to be UP and it will be kicking out that cash!

What I'm trying to get others to think about is that cash that you and I live on NOW -- is the same cash that will BUILD UP and buy more shares and snowball for everyone else. Either way - it's a win win.

[Bucketlist2012]

Originally Posted by GregWeld

See --- that's where you and I are exactly the same kind of investor I look at the investment -- it goes up - it goes down... but what I look at is the dividend stream. If you invest $200,000 and it's paying you 5% per year in dividends - it's spinning off $10,000 a year in income... do I care if it's "down" $5,000 or even $20,000 temporarily? NOPE.... Own it over a 3 or 5 year period -- it's going to be UP and it will be kicking out that cash!

What I'm trying to get others to think about is that cash that you and I live on NOW -- is the same cash that will BUILD UP and buy more shares and snowball for everyone else. Either way - it's a win win.

True.. Especially for those not needing the money for years...Why watch the balance ?? If you did the research, and bought the right stuff, over time...bingo...

So your point of research, buying, holding, not buying into the volatility, and the media noise.. Are all good to recap

Because if you and I are not worried about the fluctuations, others should not.. their money is going to work for a long time before they take an income stream..

Those 400 and 500 point swings in 2011 , would swing the balance so much that I cannot mention the amounts..

But in the end, my mix held strong, and I lived off the dividends.

I truly believe 2012 will be as volatile, and I reserve comment for 2013 until later..

But When the time is right, a recap for all the listeners please...

I love to hear opinion of those with money at work... I will never know enough..