Investing 102

[toy71camaro]

well, i am not buying anything yet... actually trying to research what I've already bought, for comparison on whether or not i want to sell it or not to get something else.

I dont own any KMP, and not sure that i will, but i wanted to just use that as an example.

I am trying to "document" what has been previously mentioned for the last 5 and 10 years for each stock:
1. Div %
2. Growth %
3. Total Return
4. Dividends gone up or down?
5. Sector
6. Expense (if any (ie. ETFs)

Then, compare those to the sectors of what i want to be in, and see what i need to diversify.

Like mentioned previously, I want to spread things "even", and keep around 5% of total investment amount in any "one" stock. and want to end up with a half dozen/dozen "solid" sector "Best of the breed" stocks that i am comfortable with.

if that makes sense... unless someone has a suggestion on how i should approach it? (newbie here!!!)

[pw2006]

Originally Posted by toy71camaro

On a side note, I found a "Total Return Price" chart on ycharts.com (under their "interactive charts tab then check the "% option)

Says for KMP the returns is 75.90% for the past 5 years. That obviously doesnt quite match up with what MorningStar reports. So i feel i am not reviewing it correctly.

Here is what schwab has for total 1/3/5 year returns on KMP.
33%/136%/151%

Schwabs definition is:
The Total Return is the rate of return representing the price appreciation of a stock with cash dividends reinvested on the pay date for the most recent 1, 3 and 5 fiscal years.

I searched the web and most of the results were how to manually calculate returns with dividends, but none were as simple as Schwab.

[toy71camaro]

Originally Posted by pw2006

Here is what schwab has for total 1/3/5 year returns on KMP.
33%/136%/151%

Schwabs definition is:
The Total Return is the rate of return representing the price appreciation of a stock with cash dividends reinvested on the pay date for the most recent 1, 3 and 5 fiscal years.

I searched the web and most of the results were how to manually calculate returns with dividends, but none were as simple as Schwab.

Awesome. That gives me a baseline to compare against...

I think i may have found an alternative chart, from stockcharts.com their "Perf chart" shows KMP at ~135% over the last 1100 days (3 yrs), and that matches pretty darn close to Schwab

[GregWeld]

Originally Posted by toy71camaro

On a side note, I found a "Total Return Price" chart on ycharts.com (under their "interactive charts tab then check the "% option)

Says for KMP the returns is 75.90% for the past 5 years. That obviously doesnt quite match up with what MorningStar reports. So i feel i am not reviewing it correctly.

First --- Total Return for Kinder Morgan Partners (KMP) for the last 5 years is
151.3%

3 years = 136.4%

1 year = 33%


Second --- Morningstar is a good website but a bit "overwhelming" and especially for newbs. One of the major reasons I love Schwab -- simplicity.
I'm a simple guy - I like simple - I just want to find the info I need without a bunch of gobbledegook!


Third --- Here's a link to an easier to use site for information. YOU will have to put in the trading symbol and hit enter.... and then there's a ton of information down the left hand side... and if you scroll down near the bottom you'll find TOTAL RETURN data. This link will give you KMP data since that's what I entered.


http://www.dividendinvestor.com/?chk...=kmp&submit=GO



Obviously returns are calculated from some "date" for data --- so no two sites will come up with the exact same number unless they use the exact same dates. Not sure what dates this site uses but it doesn't match Schwabs... regardless --- all this kind of info is just used for COMPARISONS really so it's fine.


So this is all kinda fun isn't it?? It's like bench racing - or hunting for horse power - or picking cams or gear ratios. Except it's way way more important!

[toy71camaro]

fun.. and addicting.. haha..

I ended up just finishing signing up for a scwhab account. haha

you can sign up for a free checking, which includes a free brokerage account. With no minimums (for those other people out there wondering).

[GregWeld]

Originally Posted by toy71camaro

well, i am not buying anything yet... actually trying to research what I've already bought, for comparison on whether or not i want to sell it or not to get something else.

I dont own any KMP, and not sure that i will, but i wanted to just use that as an example.

I am trying to "document" what has been previously mentioned for the last 5 and 10 years for each stock:
1. Div %
2. Growth %
3. Total Return
4. Dividends gone up or down?
5. Sector
6. Expense (if any (ie. ETFs)

Then, compare those to the sectors of what i want to be in, and see what i need to diversify.

Like mentioned previously, I want to spread things "even", and keep around 5% of total investment amount in any "one" stock. and want to end up with a half dozen/dozen "solid" sector "Best of the breed" stocks that i am comfortable with.

if that makes sense... unless someone has a suggestion on how i should approach it? (newbie here!!!)

Nothing wrong with this approach. Just make sure that you totally understand the business of the companies you're buying. It really helps when the market is DOWN... and that is when MOST PEOPLE LOOSE THEIR BUTTS -- because they SELL... They sell because they really have no idea what they own or why --- and most have never heard of a dividend or understand it's importance.

[Bucketlist2012]

One Guy found the importance in the thread I started and came over here for knowledge.


As well as he was everywhere online trying to learn..Excellent..

But one guy...You would think more would see the importance of what is being talked about.

[MoparCar]

I for one find great importance in this thread. I've watched it from the beginning and learn from it everyday since I am a total investing newbie.

Also, many/most of the online brokerage firms (Schwab, TDAmeritrade, OptionsXpress which is now part of the Schwab group, etc.) have educational sections that have webinairs, videos and other free educational items to help explain the basics of financials, charts, etc. Of course you can get way too overwhelmed in the "trader" items but if you stick to the basics it really does help educate on the whys of financials to help analyze the stocks, dividends and all the terms thrown around. I agree with Greg's comments awhile back---that the overall financial "experts" want to have all this confusion, smoke and mirrors so we feel the need to only use their mutual funds, counseling, etc. In reality some of these videos, etc. really break things down to the basics which have really helped me start to understand the whys and hows of all the reports and charts for researching the companies I want to get to know.

Another thing is some of these brokerages also have free Virtual Trading if you are a little scared to invest yet, want to look at the what if's or lack the initial funds. You can check your virtual investments in real time to see where they are with the market and can at least see the returns that can be had. Then when you are ready to pull the trigger you know what you'll be basically getting into.

Thanks for all the education and please keep it coming!
Wes

[GregWeld]

Originally Posted by MoparCar

I for one find great importance in this thread. I've watched it from the beginning and learn from it everyday since I am a total investing newbie.

Also, many/most of the online brokerage firms (Schwab, TDAmeritrade, OptionsXpress which is now part of the Schwab group, etc.) have educational sections that have webinairs, videos and other free educational items to help explain the basics of financials, charts, etc. Of course you can get way too overwhelmed in the "trader" items but if you stick to the basics it really does help educate on the whys of financials to help analyze the stocks, dividends and all the terms thrown around. I agree with Greg's comments awhile back---that the overall financial "experts" want to have all this confusion, smoke and mirrors so we feel the need to only use their mutual funds, counseling, etc. In reality some of these videos, etc. really break things down to the basics which have really helped me start to understand the whys and hows of all the reports and charts for researching the companies I want to get to know.

Another thing is some of these brokerages also have free Virtual Trading if you are a little scared to invest yet, want to look at the what if's or lack the initial funds. You can check your virtual investments in real time to see where they are with the market and can at least see the returns that can be had. Then when you are ready to pull the trigger you know what you'll be basically getting into.

Thanks for all the education and please keep it coming!
Wes

Wes --- Thank goodness someone is reading and posting too! I get tired of just reading my own stuff -- or Mikes...

I'm personally really satisfied that people are checking their financial health -- and are at least willing to look into some of this stuff. It really isn't very hard or complicated (unless you choose to make it that way) and is fun in it's own way.

[Bucketlist2012]

Originally Posted by GregWeld

Wes --- Thank goodness someone is reading and posting too! I get tired of just reading my own stuff -- or Mikes...

I'm personally really satisfied that people are checking their financial health -- and are at least willing to look into some of this stuff. It really isn't very hard or complicated (unless you choose to make it that way) and is fun in it's own way.

LMAO...I am sure Greg is tired of my posts

But I am stubborn, and patient... I will still be here..

I am glad some are really digging in and putting in the time to learn..

Others will think you are strange, and why bother...they are the one's to not listen to...They have given up, or got burned doing the wrong things with no studying, and they will never invest..Or never invest again..

I still hear talk of the mattress and leaving it in the bank...Inflation will crush them..If it has not already..

I watched this thread for weeks before chiming in with my long winded babble... but the new , smart, hungry additions to the thread add life blood..