Stocks

moo321

Well-Known Member
#4
zengrifter said:
How much precious metals or mining stocks either of you guys got? zg
None. I almost never buy companies that aren't paying strong dividends, and gold stocks aren't paying high dividends. Dividends let you play with the house's money.
 

shadroch

Well-Known Member
#5
I've got a ton of Mexican junk silver,and about 150 American Eagles. A few Gold Double Eagles.I own stock in Odessey Marine Expeditions,a company that specialzes in finding sunken treasures. Other than that,I have some stock in companies that make mining equipment,but no mining companies themselves. I believe in the Levi Straus theoram.
 

shadroch

Well-Known Member
#7
Levi Strauss went to California during the gold rush. Instead of digging for gold,he decided to focus on supplying the miners with the goods they needed.Not everyone got rich digging for gold,but everyone digging for gold
needed supplies.
 

moo321

Well-Known Member
#10
callipygian said:
I trade stocks, but mostly biotechnology and pharmaceutical startups.
Yikes. I love small cap companies, but I don't like to go into the penny stock range. Although, if you do your homework, I guess you could make some big money. And, of course, I hate investing in companies that don't pay a dividend.
 

ChefJJ

Well-Known Member
#11
moo321 said:
And, of course, I hate investing in companies that don't pay a dividend.
I'm with ya there...big cap dividend aristocrats is what I like. Now is the time to pick up some of these big boys like PG, GE, PEP and JNJ.

good luck
 

callipygian

Well-Known Member
#12
moo321 said:
Yikes. I love small cap companies, but I don't like to go into the penny stock range. Although, if you do your homework, I guess you could make some big money. And, of course, I hate investing in companies that don't pay a dividend.
Penny stocks are usually penny stocks for a reason. And small biotech/pharmaceutical companies that are penny stocks aren't usually undervalued - because the milestones leading to a marketed drug are few and far between, most stocks make quantized jumps (e.g. hover between $1.50 and $2.00 for 6 years, and then suddenly jump to $7.50 overnight).

The goal isn't to pick the companies that are undervalued by 10% or 20%, it's to try and pick the ones that have the highest probability of getting to market.

The lack of dividends is no problem in my book. The ratio of what I make at my full-time job to how much I have invested is small enough so that dividends don't really factor into the equation.
 

sagefr0g

Well-Known Member
#13
ChefJJ said:
I'm with ya there...big cap dividend aristocrats is what I like. Now is the time to pick up some of these big boys like PG, GE, PEP and JNJ.

good luck
you think now is the time or maybe the market still gonna drop for a while and maybe get them at lower prices? :confused:
 

shadroch

Well-Known Member
#14
Buy at regular intervals. I buy $X every month. When the stock goes up,I get less. When it goes down,I get more.Trying to time the market can be a fools game.
 

sagefr0g

Well-Known Member
#15
couple of more questions about stocks.

it's supposedly good to diversify. so how does one do that? i mean i guess it's a balance against types of commerce one wants to establish stock wise.

also what about this low cap, mid cap & high cap categories. anything strategy wise that one should consider as far as those various categories?
 

ChefJJ

Well-Known Member
#16
I agree with Shadroch for the most part about dollar cost averaging, which is what you do when you buy at regular intervals for generally the same amount. That way, the low points and high points get averaged out, but we are all assuming that the overall value will be trending higher in the long-run. This avoids the trap of trying to time the market.

However, I do buy some bigger blocks when those big cap dividend payers are "undervalued" in my mind. Over the last 5 or so months, I have been diverting more free cash into 3 of my "favorites". Fortunately, earnings of those companies have turned out strong although the overall economy is still in a rut (housing and credit related).

If you are interested in monthly buys into big caps, you can always look for those that allow you to invest directly. You invest directly with the company and their financial company, allowing you to have direct debit transactions with no or little (like $1 per transaction) fees. The big downfall with this is that you can't time the buys, and it takes several days if you do wish to sell some or all of your position. However, this approach should be taken with a long-term build and hold focus, so you aren't looking to make a fire sale. These should be big old stable companies anyways (in my eyes).


FYI:
Large cap > $10 billion
Mid cap $1-$10 billion
Small cap basically < $1 billion

Market cap (-italization) can be determined by multiplying the number of shares by the share value.


good luck
 

callipygian

Well-Known Member
#17
sagefr0g said:
it's supposedly good to diversify. so how does one do that?
The easiest way? Buy into a mutual fund. A mutual fund is a diversified portfolio of many different stocks.

The basic premise is that you spread your money across many different sectors and many different industries. It's unlikely that all of them will tank all at once, so you get an average EV and low variance.
 

shadroch

Well-Known Member
#18
ETFs ( Exchange Traded Funds) are another way to go.As an example,I own PBJ,an ETF that tracks the snack food/fast food/low end franchise eatery market. You buy PBJ,you end up owning shares of Mcdonalds,Nabisco,Pepsi,Coke,Yummy and a bunch of others,as well as some companies that supply them or deliver their goods.
Another I like is QQQ which tracks the top few hundred non-financial stcks of the NASDAQ.
You won't hit a Grand Slam with either,but you have a fair degree of certainty that you won't strike out.
 

Guynoire

Well-Known Member
#19
callipygian said:
The easiest way? Buy into a mutual fund. A mutual fund is a diversified portfolio of many different stocks.
Just remember that on most mutual funds do worse than market average because of the fees they charge and window-dressing practices. If you really want to diversify then buy an index fund. It's pretty much the equivalent of buying every stock and thus guarantees market average.
 

sagefr0g

Well-Known Member
#20
callipygian said:
The easiest way? Buy into a mutual fund. A mutual fund is a diversified portfolio of many different stocks.

The basic premise is that you spread your money across many different sectors and many different industries. It's unlikely that all of them will tank all at once, so you get an average EV and low variance.
so on the stocks is the idea to have about equal value amounts of shares across sectors?
also is it necessary or advisable to hit all the sectors or maybe just certain key sectors that are likely to balance one another?
 
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