I just got back home and found the bottom blew out today on seven of the ten
stocks I own, DARN. I know they will recover, but heck, it ticks me off.
Anyone here dabble in stocks/bonds?
Turtle was supposedly good in stocks but the bully Paul kicked his butt and
now there's no one to play with...... THANKS FOR NOTHING PAUL!
On the serious side, the newsgroups are jokes on this topic, so I thought
some here who are precision type thinkers (seriously, some of the BEST
tradesmen in the world have been on this newsgroup over the years, and there
are some GREAT people sharing daily on here now as well!! So, maybe these
who are the best of the best in the HVAC tech world is also or could become
the best in the market and share their insights concerning investing and web
links. It would be interesting to see Marc go against others on this group,
such as Paul, Mike, Fish and others!!! Man, that would be interesting to
see how everyone thinks concerning the market. Marc, if your reading this,
are you as good in stocks as you are in HVAC-R?
My sites I enjoy are:
Ive dabbled in them for a long time however, Im much more comfortable
with mutual funds. They've done me quite well over the years.
The only single stock I still own is P&G and it also has done very
well for very long.
Hey Rich, A computer dood I know is telling me about a local So
Cal Bank stock that a few months ago was in the penny stocks, & now
its up to $3-$4, and this guy is saying if he gets the contract he's
expecting, his game plan is to run the stock up to $24 or so by yr's
end. One aspect of his biz deals with CC processing for the various
banks. I'll get the name of the stock & let you know......
YES, nothing like inside info :-)
For a beginner I haven't been doing too bad. I was up 43% but I got tripped
up in the learning stage last Feb 26, and wasn't watching them. They'll come
back but you can't recover the loss, its gone, have to look to the future.
Diversify, Diversify, Diversify...
and don't forget to take profits...
I have done OK by not putting it all in one basket so to speak. Only bad
beat I had was WorldCom/MCI, road it all
the way into the ground. Moved some money into blue-chips, 1st of this year, up
6.68% (IBM, GE and AT&T). I must say
that even these blue chips have been on a roller coaster in this current market.
Remember advice is cheap, look at the
facts to make your decisions. Most of the time your guess is as good as anybody
elses, as I recall throwing darts will
beat the advice of most experts anyway.
I keep hearing about 'take profits', what exactly does one mean by that? I
thought that was the intent of buying stocks? Are you suggesting to get out
of a stock when it goes up a certain percentage, even though it may have
another 30% ?
Yes at times I think you should.
If I buy a stock and it's good... up 20% and may still keep going up. I
will sell off the 20% it went up and keep
the original capitol investment in place, let it continue to grow? Sometimes I
may sell 50% and hold the rest and even
sometimes take it all out(depends on the stock). It is a way to protect against
drops but it also has a way of limiting
some potential profits too. The profits taken can then be considered capital
gain to be saved or used in future
If you buy a stock and it goes up 50% and then down 25%, you really only
see a stock that went up 25% the other 25%
was lost. If you had taken 50% in profit, you are happier with the 25% drop...
400 + (50% x 400) = 600 - (25% x 600) = 450
400 + (50% x 400) = 600 - (25% x 400) = 500
Do you want to "dabble" in the market, or do you want to invest with
some long-term goal in mind?
When I dabbled, I did silly things like buying more and more Lucent
(LU) as its price shot up to over $80. Then it shot down, and I rode
it all the way to $2 before I finally sold.
For my "investments" for the most part, I use low-cost index mutual
funds that offer broad market exposure. You would not do wrong by
putting your money in Vanguard's Total Stock Market Index and Total
Bond Market Index and letting it ride. The allocation between these
two would have more effect on long-term performance that any other
I've done very well in REITs but some of the bloom is off that rose,
although I still have positions in SPG and MAC. I used to also have
GGP, which is nearly a twin to SPG. I sold it and some of my SPG to
limit my investment in this area to no more that 5% of my total
portfolio. In hindsight, keeping GGP and selling SPG would have be a
slightly better move, but with dividend reinvestment, I'm still up
over 500%, with a per share cost basis of -$24/share!
BTW, this personal 5% rule of mine would have me (or you) owning no
fewer than 20 stocks if I was investing only in individual issues.
IMHO, there is way too much emphasis put on "beating the market". If
your goal is to have $XX when you need it and you can achieve that
goal by realizing 90% of the market's return with lower risk, isn't
that enough? Who cares whether you "beat" the next guy?
You must decide: are you engaged in a competitive sport or are you
investing for your future?
Too bad, I only had 2 shares of LU when it crashed, and when it got down to
$0.58/share, I bought $500 more. :-)
Dividends are re-invested.
I have also been holding a bunch of AT&T, Comcast, Wyeth(started out as
American Home Products), BP Oil, Exxon, and several others.
I am waiting for interest rates to go up again to buy into Ginnie Mae again.
Its not about "beating" anything, its about long term investment, and when I
get closer to retirement, putting it into a managed no-load fund to get the
income, and not having to worry with it.
Recently read the "keys to superior returns" is "fees and asset
allocation", which I believe means diversify and
stay away from loaded funds or high cost trades. Definitely watch out for loads
and hidden fees. for the smaller
investors it can be very detrimental to the long term growth and profits.
One thing I haven't done yet and want to look into further is stock
purchases directly from the company itself.
Most companies will sell direct once you own 1 share.... a lot of the other
have a small buy in to get the initial shares....some as low as $250. Check
into AAII, the fee is small, but they periodically send out a magazine that
in different issues list all of the companies that you can buy direct, and
in other issues list all of the mutual finds, etc. Its well worth the bucks
Why wait? The best time to buy is when you have money.
When I refer to beating the market, this is the mantra of most fund
managers and their advertising. I'm simply suggesting that this
metric be avoided. And of course, on average more than half of the
managed funds do worse than the market, when management fees are
So, I don't believe that you can invest in managed funds and quit
worrying; then you have to start worrying about the manager(s).
You might want to look at equity-indexed annuities for safe investment into
the market(from reading your post you
may already know about it). They seem to be a very good transition from risk as
we get older and need less growth and
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