Investing 102

[Tyler E]

After a few years of watching builds, a few weeks of reading this thread, Ive gotta say I'm a little nervous for my first post to be in investing. An area I, up until reading this thread, knew nothing about.

Anyway, is there an online calculator, or formula that would allow me to figure out:

If I invested $10,000 in say Kinder Morgan (KMP) 10 years ago, and reinvested the dividends, where would my money be sitting today, and if this steady eddie were to continue on its path, where would my money be in 10 years, 20 years? Roughly speaking.

Also, I want to thank everyone who has contributed. This thread is an eye opener. Your honesty and openess is very much appreciated.

[GregWeld]

Originally Posted by Tyler E

After a few years of watching builds, a few weeks of reading this thread, Ive gotta say I'm a little nervous for my first post to be in investing. An area I, up until reading this thread, knew nothing about.

Anyway, is there an online calculator, or formula that would allow me to figure out:

If I invested $10,000 in say Kinder Morgan (KMP) 10 years ago, and reinvested the dividends, where would my money be sitting today, and if this steady eddie were to continue on its path, where would my money be in 10 years, 20 years? Roughly speaking.

Also, I want to thank everyone who has contributed. This thread is an eye opener. Your honesty and openess is very much appreciated.

Glad to hear you're getting something out of all this typing!!


I can't find a 10 year TOTAL RETURN figure -- but it was easy to do a 5 year -
so your 10 grand FIVE years ago -- would now be 16 grand. I'm thinking that the 10 grand 10 years ago would be 25,000+ easy.

That's where the TIME comes into play in investing... 10 becomes 20 becomes 40 becomes 80 becomes 160... so if you put the 10 grand away that you got from graduation instead of blowing it and going to Italy for a month by the time you're 60 years old that 10,000 is $160,000 Now at 60 you'd appreciate Italy even more and you could go for a couple months!

Now imagine if you would - that you were clever enough to save $10,000 at 20 years old and then added 5,000 a year every year until you were 40....

[Bucketlist2012]

Originally Posted by Tyler E

After a few years of watching builds, a few weeks of reading this thread, Ive gotta say I'm a little nervous for my first post to be in investing. An area I, up until reading this thread, knew nothing about.

Anyway, is there an online calculator, or formula that would allow me to figure out:

If I invested $10,000 in say Kinder Morgan (KMP) 10 years ago, and reinvested the dividends, where would my money be sitting today, and if this steady eddie were to continue on its path, where would my money be in 10 years, 20 years? Roughly speaking.

Also, I want to thank everyone who has contributed. This thread is an eye opener. Your honesty and openess is very much appreciated.

Tyler, welcome.. you are doing something about your future..most don't..

if you get passionate about it, it will reward you.. guys like Greg don't need to share. it is a giving back sort of thing..

Remember that they want you to think it is voodoo, or brain surgery.. They do not want you to have wealth..they being the bankers, wall street, the US government..

They want you needy..well Tyler, you are on the path to be needy no more..

then you get to the point where it does not matter who is President, or the state of china's economy, or europe, or at some point, even a Job..

Well done on chiming in...We will learn together..

[GregWeld]

Alright Tyler E ---- Just for you I did a little work..... and found via Morningstar a 10 year total return calculator/chart thingy.

I was a bit off on my "guess" of what 10K in KMP 10 year ago would be today -- I guessed 25,000+

So drum roll...........


According to Morningstar -- it would be 62,000 today


Go to this link --- and then just above the "chart" hit the EXPAND tab.

http://performance.morningstar.com/s...&culture=en-us

[Bucketlist2012]

So Greg.

with the decision of the federal reserve to keep interest rates low for a year or more, and therefore continuing the crushing of the dollar by the government buying up treasuries, it seems like my commodity play of 2011, is going to be a win in 2012 due to their policies..

i see the government artificially inflating the economy and the markets, rather than to take the bitter pill now, or years ago.. especially in the election year.

The problem is, to buy now is even riskier than buying three years ago.. but there is money to be made in 2012..

we will take the pill someday ala 2008 type event , if we don't take our medicine now..

But the feds have given me the green light again, and i will take it..

just an observation

[Bucketlist2012]

Originally Posted by GregWeld

Alright Tyler E ---- Just for you I did a little work..... and found via Morningstar a 10 year total return calculator/chart thingy.

I was a bit off on my "guess" of what 10K in KMP 10 year ago would be today -- I guessed 25,000+

So drum roll...........


According to Morningstar -- it would be 62,000 today


Go to this link --- and then just above the "chart" hit the EXPAND tab.

http://performance.morningstar.com/s...&culture=en-us

Sometimes people think that they missed out on an opportunity because it has already gone up..

Some of my investments if you look back 10 years 10k would be 121k...but that did not stop me three years ago from buying them..

I knew that, or I believed they would continue to rise, so rather than wait or say i missed out, i got in, and let it build up...

I did not get the 10 year rise, but the three year is pretty good too..

[Tyler E]

$62,000 !!!!! Well, if that doesn't put a sh!t eating grin on your face.......

Solarguy, the passion has just went up, tenfold.

I would have never guessed that compounding would have increased my initial to that extent in such a short time.

My mutual fund guy told me I should be happy that I didnt lose money this year because of the market. I think his back end is going to meet the front end of my workboot!

I picked up, and am half way through, Peter Lynch's book "One up on Wall Street". Greg, are you friends with Lynch, because it appears you two think the same.

Again, THANK YOU Gregweld for spearheading this discussion.

For the Canucks on here, which discount investment house are you using? Its time to get rolling!

[GregWeld]

Originally Posted by solarguy09

So Greg.

with the decision of the federal reserve to keep interest rates low for a year or more, and therefore continuing the crushing of the dollar by the government buying up treasuries, it seems like my commodity play of 2011, is going to be a win in 2012 due to their policies..

i see the government artificially inflating the economy and the markets, rather than to take the bitter pill now, or years ago.. especially in the election year.

The problem is, to buy now is even riskier than buying three years ago.. but there is money to be made in 2012..

we will take the pill someday ala 2008 type event , if we don't take our medicine now..

But the feds have given me the green light again, and i will take it..

just an observation

I'm only going to comment on this as a general response to how "I" think... as it fits into this thread.

I'm not smart enough to be able to factor in exogenous events - and particularly - what may or may not happen in the future. Who is President of the U.S.A.... what China might do with their Yuan... Whether or not Canada builds a pipeline or sends their oil to China etc.

So that's why I just focus on companies I know - with great 5 or 10 year charts - with great TOTAL RETURNS - and as much dividend as I can get out of a sector using all of these historic factors. What that does for me is allows me to just invest - sit back and let the company management figure out the details and what THEY need to do for the best outcome for their company. IF they continue to do what they've been doing - I should come out okay.

So let's use this recent news about the big pipeline from Canada to somewhere in the US.... and now there's issues about sensitive land that it would have to cross etc. and blah blah blah.

I own two pipeline companies -- Kinder Morgan Partners (KMP) and Enbridge Energy Partners (EEP). I am going to have to ASSume that they are very on top of this whole thing - and most likely were knowledgable about it 10 years ago when it was first talked about... and how it affects their businesses going forward etc. This is THEIR business. I gotta trust that they're all over it.

Me? I have important things to worry about -- like where the next car show is going to be - and which car I'm going to take - and whether or not I got the dates right and made hotel reservations.

My PARTNERS (since - when you buy stocks - you own a piece of the company) will worry about that pipeline thingy. I trust them - that's why I put my money in their company.

What I will pay attention to is whether they continue to be the good managers that I thought they were. If the whole stock market is going down and the stock goes down with it - doesn't make them dumb. When the market turns around - and everything is going back up - their stock will go back up too. My job was to buy more of it when it was "on sale" (think Nordstroms half yearly sale).

[Bucketlist2012]

Originally Posted by Tyler E

$62,000 !!!!! Well, if that doesn't put a sh!t eating grin on your face.......

Solarguy, the passion has just went up, tenfold.

I would have never guessed that compounding would have increased my initial to that extent in such a short time.

My mutual fund guy told me I should be happy that I didnt lose money this year because of the market. I think his back end is going to meet the front end of my workboot!

I picked up, and am half way through, Peter Lynch's book "One up on Wall Street". Greg, are you friends with Lynch, because it appears you two think the same.

Again, THANK YOU Gregweld for spearheading this discussion.

For the Canucks on here, which discount investment house are you using? Its time to get rolling!

Tyler... Compound Interest will blow your Mind.. And add to that , if you have no car Loans, or credit card debt, and my friend, it is to the moon with your money.

I won't cloud your visions with other funds that I have , but triple digit rises in 10 years have been achieved.

Some lost money, and some went up 12 times the initial investment.. So the average is good..

The lost Decade of 2001 to 2011 , did not happen to everyone... Only those asleep at the wheel..

But if you are paying NO interest, except a First mortgage only..A Fixed 15 or 30 year , depending on your point of view, at these historically low rates(4%), And you are investing and compounding over time....

Oh Man...Watch it happen...You won't see it right away, but several years later, and if you review your goals once, and maybe twice a year.

That is the ticket..

And read about Greg's "Bucket Theory".. Short, mid, and long term buckets...

Fundamentals; Diversity, Liquidity, Dollar Cost averaging in, no day trading, or listening to the day to day noise...Media, your Friends, co workers.

Read from those that have done it, and form your own theory..Because no matter what we say, it must be your studies and research that get you to make the decisions with YOUR money...

we can only give opinions..Sure true life stories to help motivate, and guide, but it is a constant passion and study that will get you there.

Mike V.


Good luck to you.. Remember Luck is the meeting of opportunity, and Preparation..

So, it is about studying, actions, and patience.

I saw my attorney the other day, and we talked about a few portfolio's that I am involved in , and He is attorney for.. He asked about the Investments and i told him that We all made money and were living off the Dividends, and we were still up , after all that... He just looked at me and smiled. he said in this economy, you MADE money ?? Oh ya...

The Guy is the Best Attorney around...He love the home loan rate i got, and my Investment Strategy...Makes me feel good..

Get Passionate....Stay that way for Life... Be humble.... you will make it happen

[GregWeld]

Originally Posted by solarguy09

Sometimes people think that they missed out on an opportunity because it has already gone up..

When I'm showing someone how I invest -- I'll bring up this very fact. People say "well it's gone up a lot! So I can't buy it now - it's up too much"....

REALLY? Pull up a 10 year chart of the company (pick one) and say -- okay -- show me on this chart (as it's doubled or tripled over the last 10 years) when you would have bought... or as YOU'RE telling me -- that it was too high to buy... 'cause what that chart is telling me is that it's still going up and over time it will be higher than where it is right now. (We're not talking "hot stocks" here - were talking about our good long term high dividend payers -- NOT Netflix etc).