Investing 102

[GregWeld]

Originally Posted by hifi875

been pondering my next move. got my statement on one of my investments the other day and wow it made me 10% in one month. i was like, this is awesome, then i remembered it lost about 5% the previous month. oh well. glad i don't need it now. want to buy some more stock, just trying to figure out what.

Investing is like that -- it's not a straight line up -- it's a two steps up - one step back - one step up three steps back but that's why I always ask you guys to go back - when in doubt - and look at the charts (3 and 5 years) and see what that tells you....

The average is about 11% a YEAR.... so to go up 10% in a month means you're going to get clubbed somewhere along the line. Trust me - it's REAL REAL hard to beat those "averages". There are pros on Wall Street that get paid millions per year to try to do that and most don't!

[GregWeld]

Originally Posted by solarguy09

Well I was reading about the MLP's and their advantages in seeking alpha today.

Things I already own, but good to get more info on the advantages ..

Wife and I were talking balance today... How much to spend vs. Save..

I have set the numbers way out on our portfolio, and we are looking to make sure to not leave too much on the table..

I would love to just blow some more cash, but not yet..

Investing for the future, and enjoying today... We crunch the numbers every January, and then a major review every 5 years..

But Time has compounded things quite well. People think they may have missed opportunities already...

Not so, Time and the income stream is on your side..

Money made while you work, sleep, or race Greg...

Well -- this is all real easy in a bull market.... I look at the charts showing the big dipper in '08/'09 and that's a valid reminder of what CAN and DOES happen... I know lots of guys that were down 40% because they had too much invested and didn't keep any out of harms way... then they had to sell in a down market ---- and then couldn't buy in that down market either...

To take a quote from a great movie --- "big mistake! HUGE!"

[Bucketlist2012]

Originally Posted by GregWeld

Investing is like that -- it's not a straight line up -- it's a two steps up - one step back - one step up three steps back but that's why I always ask you guys to go back - when in doubt - and look at the charts (3 and 5 years) and see what that tells you....

The average is about 11% a YEAR.... so to go up 10% in a month means you're going to get clubbed somewhere along the line. Trust me - it's REAL REAL hard to beat those "averages". There are pros on Wall Street that get paid millions per year to try to do that and most don't!

Last year was a true test of staying the course...400 and 500 point swings..

several days of drops... but in the end, where are we ? Up and dividends got paid..

I think it again is TIME and the gains over time because you picked the better or best...

i certainly don't pick the asset with the worst 3 or 5 year average...And by picking the one with the better average, even when you take big hits, you still come out on top..In fact, buy more when things have a correction.

7 to 10% is a lot ,once you have enough working for you.

[GregWeld]

Totally agree with you .... and that dividend being paid is what carries you over the lows... that cash just keeps going ka-ching!

EEEEEEEEEHHHHHHHAAAAAAA

[Bucketlist2012]

Originally Posted by GregWeld

Totally agree with you .... and that dividend being paid is what carries you over the lows... that cash just keeps going ka-ching!

EEEEEEEEEHHHHHHHAAAAAAA

Yes Sir...And You are right on not being too invested in one area..

I try to be ready to weather the downs and also keep enough liquid assets, not cash, to buy at those depressed times. I believe that as in 2008, I am not in a panic position to need to sell..Money management in personal life really helps..

I could have made a lot more money in the last few years, but I wanted to just keep the income stream going rather than swing for the fence..

Hindsight says it was the best move, and not buying dirt in the mid 2000's , turns out to be genius..

[Flash68]

I've used this thread to get my IRA back on track with a diversified allocation -- some income, a good chunk of growth and some speculative stocks (a couple biotechs).

And I've enjoyed getting back into this and spending quality time each day researching and reading. I forgot how much I enjoy it. These damn car forums pull me away from these essentials too much sometimes.

Originally Posted by GregWeld

To take a quote from a great movie --- "big mistake! HUGE!"

Pretty Woman?

[GregWeld]

^^^^^^^^ Winner!!


I'm still in Texass boys! 4 days here for one day of running in the rain... but off to Phoenix this afternoon...

[Bucketlist2012]

Morning gents...

Hope all is well.

The path of things to come are playing into my Hands...

I don't like the direction things are going, and many people hurting will hurt more due to the rising costs, but Large paydays have been , and will continue to come..

And to Greg's point of not being greedy in one sector, you gotta have stay blended and not heavy in one area.

I have one fund that has risen 25% in the last few months...For me a lot of money making a lot of money, but I cannot increase my stake in that asset just for the gains...

I have a mix I am sticking to, and those higher yielding assets are just that.

Kinda like Flash and the BIO stocks, but not BIO.. But If we get greedy and shift too much over, BAD things can happen..

So while i want to be in hyperrichness.my word...I must continue a somewaht safe and prosperous path..Because i still see large swings and volatility coming, but 2011 gave us a view, and feel of what that is like..

[carbuff]

Safe travels. Eat a breakfast taco before you leave.

[ErikLS2]

Originally Posted by GregWeld

The average is about 11% a YEAR.... so to go up 10% in a month means you're going to get clubbed somewhere along the line. Trust me - it's REAL REAL hard to beat those "averages". There are pros on Wall Street that get paid millions per year to try to do that and most don't!

This is a very imporant point Greg and one I don't think has been brought up in here yet. I'm wondering if you regularly compare your portfolio to some sort of benchmark, be it the Dow, S&P, or other various indexes? I always think it's good to know if all the research one puts into buying individual stocks pays off over just buying an index ETF for a corresponding industry.