Stocks, Bonds, Mutual Funds, and Money Markets

[jeffreyjrose]

I'm relatively new to the investment world, only owning any real "investment" over the past seven years. I bought Pepsi back when it was $70 ($35 a share after it split) and it's up over $55 today. It also pays a dividend of around $1 per year.

My recent investments have been Procter and Gamble, Yum, and Toyota. I also have a small amount invested in a money market.

What do the rest of you CAGs (who invest money in items outside of videogames) invest your money in?

I tend to stick to blue chip companies, just because they have a solid history.

[Graystone]

I have never had investments. I am thinking about some bonds though.

[jaykrue]

What do the rest of you CAGs (who invest money in items outside of videogames) invest your money in?

Real estate and creating businesses.

[The Gifuto]

A bulk of my investments are in various mutual funds (through Vanguard). I've sold most of my individual stocks (I just don't have the time to keep an eye on them). Although I still do have a decent amount invested in Provident Energy Trust (PVX), which yields about 13.75%, paying a monthly dividend. I also have the 'ol stand-by of US Savings Bonds, bought when Uncle Sam was giving me a paycheck.

[Msia]

You need to diversify your bonds $$$$a

[Mr.Answer]

Several balanced mutual funds, some agressive, many 'middle of the road',

and then I have my sealed astro boy and black and bruised.

[help1]

You need to diversify your bonds *_834*

Please remove the last word in your post, thank you.

[mookiemeister]

I've only invested in bonds and CDs so far. I'm still not sure how to pick the right stock.

[Cracka]

Please remove the last word in your post, thank you.

you should write a letter to dave chapelle and tell him to please remove it from all of his dvds and tell him to refrain from using it.

[tdphillips]

Mutual funds, money market (really need to have a few mos' living expenses in cash before investing major money in the stock market), 401k.

[bobo2k4]

I've just played with stocks and currency.
When the Euro was skyrocketing I was getting screwed in the ass.
None of my stocks have been long term. I usually let them go after a month or so and of course thats when they start going up again.

[evilmregg]

You need to diversify your bonds $$$$a

Cash rules everything around me. :D

[jaykrue]

I've only invested in bonds and CDs so far. I'm still not sure how to pick the right stock.

Read 'The Warren Buffett Way' by Robert G. Hagstrom. It'll give you invaluable insight into the methodology of one of the world's greatest stock investors.

[Kayden]

Read 'The Warren Buffett Way' by Robert G. Hagstrom. It'll give you invaluable insight into the methodology of one of the world's greatest stock investors.\

Can I just give you my money and pay you do make me more?

[evilmregg]

\

Can I just give you my money and pay you do make me more?

You can give me money to give you some grammar lessons. :lol:

[Kayden]

You can give me money to give you some grammar lessons. :lol:

I bitch slap you and tell you to shut your dirty whore mouth for free.

http://img283.echo.cx/img283/2729/bp46oa.jpg

[evilmregg]

I bitch slap you and tell you to shut your dirty whore mouth for free.

You sweet-talker.

[Kayden]

You sweet-talker.

I do get all the bitches... 8-)

:lol:

[evilmregg]

I do get all the bitches... 8-)

:lol:

I know. I've seen the evidence.

[jaykrue]

\

Can I just give you my money and pay you do make me more?

You'd hafta pay me quite a bit as I make a 'decent' chunk o' change. ;):D

[Kayden]

You'd hafta pay me quite a bit as I make a 'decent' chunk o' change. ;):D

I'm making change... in the literal sense.

I'm so broke, I can't afford to pay attention.

I pass homeless people on the street and they give ME money.

[jaykrue]

I'm making change... in the literal sense.

I'm so broke, I can't afford to pay attention.

I pass homeless people on the street and they give ME money.

How's your credit rating? Do you have any high-end collateral?

[Kayden]

How's your credit rating? Do you have any high-end collateral?

I have no idea what my credit rating is, but I pay my credit cards as soon as I get the bill, and I only use them when I have the money available to pay them off.

As for collateral... I have two cars... A 76 Cadillac and a 93 Lumina... so no, nothing high end. :lol:.... or is that :cry:?

[TheBlueWizard]

I don't know much about it, but here's my take (from the broker that handles my money and the 401k stuff at work).

First, you really want to put as much of your pre-tax money in a 401k as you can. Its pre-tax, which really helps with the bottom line, and you don't have to pay taxes on it until you want it at retirement. The sad thing is that you have to pay taxes when you withdraw, later in life. Everyone I know says put in to your 401k as much as you can...until it hurts. Don't let your job put too much into their own stock (see Enron).

I've also heard good things about Roth IRA's. There is a cap as to how much you can put in every year, but I *think* I remember that you don't have to pay taxes on it when you withdraw. I'm not sure since I don't have one, but I would look into it.

If you change jobs, try to make sure that you get the 401k's from the old job either moved to the new one or into a regular IRA. That way you have some control over your money and not left with a former employer.

The broker that I work with, starts his clients out with mutual funds until they reach a certain dollar amount (I think $50k). After that, he recommends that you get into stocks...either on your own, or with a managed account (someone who buys the stocks and handles it for you). The down side of managed is that you pay a percentage each year to the fund manager, but don't have to worry about the stocks.

In summary....401k until it hurts. Then get into some decent mutual funds to start. Save as much as you can....you'll be glad you did later on.

Hope this helps.

TBW

[jaykrue]

I have no idea what my credit rating is, but I pay my credit cards as soon as I get the bill, and I only use them when I have the money available to pay them off.

As for collateral... I have two cars... A 76 Cadillac and a 93 Lumina... so no, nothing high end. :lol:.... or is that :cry:?

Do you overpay your credit card bills (like an extra $50 to $100 on top of the min payment)? Hmmm, the cars wouldn't be good collateral. I only asked those questions so that I can see if the possibility of starting a company for you is high. Do you rent right now?

[Kayden]

Do you overpay your credit card bills (like an extra $50 to $100 on top of the min payment)? Hmmm, the cars wouldn't be good collateral. I only asked those questions so that I can see if the possibility of starting a company for you is high. Do you rent right now?

I'm renting, yes. I'd say I overpay on my creditcards too seeing how they want 10 and I pay them completely. I don't want to pay any more interest than I need to... fucking student loans.

[jaykrue]

I'm renting, yes. I'd say I overpay on my creditcards too seeing how they want 10 and I pay them completely. I don't want to pay any more interest than I need to... fucking student loans.

Do you live at/near a college campus? You might consider following the same thing I did - buy an apartment/condo and rent it out to friends or other students. Use the rent to pay the mortgage/other associated property fees and it's like getting a place for free. If you price the rent right and budget, you will most likely have spare $$$ to pay off any extra bills. Those student loans will disappear mighty quick if you throw enough money at it.

Another question, do you currently owe anything on your credit cards?

[Kayden]

Do you live at/near a college campus? You might consider following the same thing I did - buy an apartment/condo and rent it out to friends or other students. Use the rent to pay the mortgage/other associated property fees and it's like getting a place for free. If you price the rent right and budget, you will most likely have spare $$$ to pay off any extra bills. Those student loans will disappear mighty quick if you throw enough money at it.

Another question, do you currently owe anything on your credit cards?

Nope, all paid off.

I do live near a college, but I don't think theres anything for sale that I could rent out... =\ And that sounds like a lot of fuckin work.

[jeffreyjrose]

I don't know much about it, but here's my take (from the broker that handles my money and the 401k stuff at work).

First, you really want to put as much of your pre-tax money in a 401k as you can. Its pre-tax, which really helps with the bottom line, and you don't have to pay taxes on it until you want it at retirement. The sad thing is that you have to pay taxes when you withdraw, later in life. Everyone I know says put in to your 401k as much as you can...until it hurts. Don't let your job put too much into their own stock (see Enron).

I've also heard good things about Roth IRA's. There is a cap as to how much you can put in every year, but I *think* I remember that you don't have to pay taxes on it when you withdraw. I'm not sure since I don't have one, but I would look into it.

If you change jobs, try to make sure that you get the 401k's from the old job either moved to the new one or into a regular IRA. That way you have some control over your money and not left with a former employer.

The broker that I work with, starts his clients out with mutual funds until they reach a certain dollar amount (I think $50k). After that, he recommends that you get into stocks...either on your own, or with a managed account (someone who buys the stocks and handles it for you). The down side of managed is that you pay a percentage each year to the fund manager, but don't have to worry about the stocks.

In summary....401k until it hurts. Then get into some decent mutual funds to start. Save as much as you can....you'll be glad you did later on.

Hope this helps.

TBW

TBW, your advice is excellent. Yes, as soon as I found out about the Roth IRA (last year), I invested the maximum. Last year it was $3k, this year it's $4k... I contributed the max for both of them. All of the money that you invest in your Roth IRA is yours, meaning NO TAXES!!! when you cash out. That also means that any dividends or capital gains you make while holding the investments are also yours to keep. I recommend that EVERYONE contribute the maximum every year.

As far as the 401k goes, as soon as I'm out of school and holding a real job, I'll be sure to contribute a great deal, at least the maximum to what an employer will match (if I'm so lucky).

-Jeff

[jaykrue]

Nope, all paid off.

I do live near a college, but I don't think theres anything for sale that I could rent out... =\ And that sounds like a lot of fuckin work.

You'd be surprised at finding hidden gems. 'And that sounds like a lot of fuckin work.' is just being a lazy ass. :D It's only a lot of work in the beginning but once everything is all set up, it's quite difficult to fuck it up. You'd have to actually INTEND to fuck it up to do so easily. I like bein' in large and in charge. ;)

[Kayden]

Wont owning the property make me responsible for things like maintence and such? What if they stiff me on the rent?

[jeffreyjrose]

Wont owning the property make me responsible for things like maintence and such? What if they stiff me on the rent?

Some of the richer people I know either own apartment complexes or houses that they rent out. There are two reasons that I don't (and can't) invest this way. First, I'm still to fucking poor because I'm in college, and second, I'm turned off by the possibility of the above occurrences.

[jaykrue]

Wont owning the property make me responsible for things like maintence and such? What if they stiff me on the rent?

Sure, and if they stiff you on rent, you can always sue them. Trust me, karma is a phatty ass biatch. I had one tenant who stiffed me and I submitted it to a collection agency who then put it on his credit record. That blemish was on there for a long time until he called me up 2 yrs later (after he got out of college) complaining about how I ruined his credit rating. Told him that's not my problem and it wouldn't have been yours either if you'd have paid me in the first place and the report will stay. He bitches and moans at me and hangs up the phone. A week after that I get a check in the mail from him for the 3 months that he was overdue. I called the collection agency and told them the situation was settled and to remove it. :lol:

Anyway, maintanence shouldn't be a major issue since you SHOULD have done your homework on the property in question to see if anything was wrong with it. If you're unsure, get an appraiser. They're a couple hundred (or cheaper if you know one as a friend and if you don't - find one and become friends). Or even a friend who does domestic construction/plumbing. The way I set up my rent is that they cover all the expenses I need to keep the place up - maintanence, property taxes, investor association fees, etc. - and so the maintanence fees are already built in. Security deposits were non-refundable to ensure committed tenants and paid for the 1st and last month's rent during the duration of occupancy.

When i first started out, I made an extra $50 a month. Being a savvy college student, I split that $50 into $30/$20 portions and I put the higher amount in a small interest bearing account that I would save for a rainy day (fire, flood, accident) and keep the $20 for anything I personally needed. The company I set up (which was also covered by rent) paid for all of my other needs and I was able to deduct it as a part of doing business - gas, utilities, food, etc. My first office was my bedroom in the apartment I rented out and shared with my friends. The $20 was my own salary and also deducted as a part of doing business.

So I didn't need a place to stay since I owned it through my business. I didn't need to use my car often since it was a fairly short distance to school/bars/clubs and when I did, I already had set up a tab at the local gas station to keep records of the amount of gas so there wouldn't be a question of where money goes (in case the IRS decides to scrutinize me).

Oh yeah, did I mention I bought my car through my company so it's deductible as well? The lunches I had at mickey d's were considered business lunches since I talked to my friends (as tenants) about the goings on concerning the apartment so it was technically a business meeting. I logged the time and kept the lunch receipts as both accounting and legal records of how the money is spent. I have a few credit cards but the business credit cards allow me to buy more things than a normal person my age would be capable of buying. My own personal credit rating is lousy but I don't really bother trying to improve it as my business credit rating is excellent.:D

[jaykrue]

Some of the richer people I know either own apartment complexes or houses that they rent out. There are two reasons that I don't (and can't) invest this way. First, I'm still to fucking poor because I'm in college, and second, I'm turned off by the possibility of the above occurrences.

I was a poor college student as well but I did all of my homework concerning the risk/reward ratio of real estate and saw the many advantages. It's only a risky investment if you don't know what you're doing but it, like anything, is possible to learn... you just have to be motivated to learn. I hated being poor so I did something about it.

[Kayden]

:shock: :bow: :shock: :applause: :shock:

Master.... I am yours....

[DV8]

I jumped into the stock market around december and bought a bunch of stocks that pretty much nosedived. I lost about 1500, but I'm starting again. The good performing stocks that I've bought have been ATVI (activision) and BBI (blockbuster) Although I think I might want to sell of my blockbuster before their earnings report next quarter judging from the rape that's been going on through their trade in deals.

[tdphillips]

I do advise people to invest in mutual funds rather than individual stocks. Individual stocks can be almost like going to Vegas. Mutual funds are not guaranteed, but the fund managers' day job is to research the companies in the fund. 5-star fund picks from Morningstar are good.

[DV8]

I do advise people to invest in mutual funds rather than individual stocks. Individual stocks can be almost like going to Vegas. Mutual funds are not guaranteed, but the fund managers' day job is to research the companies in the fund. 5-star fund picks from Morningstar are good.

Well, mutual funds would be fine if you want to make 10% a year, with individual stocks you could make 100% in a day. For me it's worth the risk.

[jeffreyjrose]

I jumped into the stock market around december and bought a bunch of stocks that pretty much nosedived. I lost about 1500, but I'm starting again. The good performing stocks that I've bought have been ATVI (activision) and BBI (blockbuster) Although I think I might want to sell of my blockbuster before their earnings report next quarter judging from the rape that's been going on through their trade in deals.

I convinced my brother to sell all of his BBI and BBI-B stock last week. Blockbuster's just had too many negatives to justify keeping it. First, it lost it's bid for Hollywood Video to Movie Gallery, then Icahn stirred things up a little too much, and finally, many of the executives started selling shares in bulk (big sign!). I combine that with what I see on a daily basis: a student in the dorms who receives about 3 DVDs a week, but due to a glitch in their system, doesn't have to return them; my local GameRush full of 01-03 sports titles and worthless games, obviously used for the trade-in deals; and the removal of due dates, which means less stock on the shelves to rent. IMHO, they really need to fix some key areas before they will enter my portfolio.

[DV8]

I convinced my brother to sell all of his BBI and BBI-B stock last week. Blockbuster's just had too many negatives to justify keeping it. First, it lost it's bid for Hollywood Video to Movie Gallery, then Icahn stirred things up a little too much, and finally, many of the executives started selling shares in bulk (big sign!). I combine that with what I see on a daily basis: a student in the dorms who receives about 3 DVDs a week, but due to a glitch in their system, doesn't have to return them; my local GameRush full of 01-03 sports titles and worthless games, obviously used for the trade-in deals; and the removal of due dates, which means less stock on the shelves to rent. IMHO, they really need to fix some key areas before they will enter my portfolio.

Ouch, you should of held off the sale on BBI, I think the stock is going to hit 10.50 this week. That'll probably be my stopping point. And then after they release quarter news, and hopefully the stock falls some, I might pick it up again. Another stock I've been keeping tabs on is SIRI, but it just has a little too much fluctuation for me... I have no idea where satellite radio is headed. That howard stern contract could come back to bite them in the ass too.

[jeffreyjrose]

Ouch, you should of held off the sale on BBI, I think the stock is going to hit 10.50 this week. That'll probably be my stopping point. And then after they release quarter news, and hopefully the stock falls some, I might pick it up again. Another stock I've been keeping tabs on is SIRI, but it just has a little too much fluctuation for me... I have no idea where satellite radio is headed. That howard stern contract could come back to bite them in the ass too.

You're telling me that BBI is going to break into a ten-month high this week? Fuck! :lol: But seriously, on the basis of what? I don't see any positive news pushing this stock any higher than where it is already.

One of my friends kept trying to convince me to purchase Sirius, but I believe XM is poised for a much better chance of profitability in the satellite radio market. GM's stake in the company combined with their lower monthly fee makes them the clear winner imho.

[DV8]

You're telling me that BBI is going to break into a ten-month high this week? Fuck! :lol: But seriously, on the basis of what? I don't see any positive news pushing this stock any higher than where it is already.

One of my friends kept trying to convince me to purchase Sirius, but I believe XM is poised for a much better chance of profitability in the satellite radio market. GM's stake in the company combined with their lower monthly fee makes them the clear winner imho.

Gahhh... I think I was looking at the wrong thing :lol: But it did hit 10.29 on friday. we'll see this coming week -wipes the egg off his face- anyways, I personally wouldn't invest in sirius, I'm waiting for a good price to sell off actually.

[jaykrue]

I do advise people to invest in mutual funds rather than individual stocks. Individual stocks can be almost like going to Vegas. Mutual funds are not guaranteed, but the fund managers' day job is to research the companies in the fund. 5-star fund picks from Morningstar are good.

The money you get from m funds are almost nil and can also be negated by the taxes you get (depending on your bracket) so you always end up at best a 'little' ahead or at worst breaking even. In the worse case scenario, why would you want to break even? Then there was no point in investing your money to begin with. Even fund managers can make mistakes. I think the reason a lot of ppl invest in m funds is that they're too lazy/busy to do it themselves. M funds are a stagnant way of investing since the returns are miniscule. IF ppl did their homework (which only takes about an hour of reading the Journal and 'reading between the lines' which can be done when you get home from work), then stocks wouldn't be that risky. Plus, paying attention to the day-to-day trading of stocks is too stressful, I check my portfolio every 3-4 months and I'm usually up 10% overall. If an individual stock is underperforming, I give it an extra week to bring itself up and if it doesn't I replace it with another stock I already had in mind. Stocks should always be in rotation.

[GameDude]

jaykrue,

I have a bit of money in stocks right now, but I'm thinking about real estate. Don't you think the market is too high right now? Buffet even said we were in a bubble - at least in certain parts of the country.

[jaykrue]

jaykrue,

I have a bit of money in stocks right now, but I'm thinking about real estate. Don't you think the market is too high right now? Buffet even said we were in a bubble - at least in certain parts of the country.

The thing about real estate, like any investment, is that there are ups and there are downs. The down is inevitable and you don't even need Buffett to see the obvious. The thing about investing is that 'if everyone is doing it, then no one wins'. What I mean is if everyone is buying, soon there won't be anything to sell and you have a lot of ppl who shouldn't have bought end up scrambling to sell. It's the timeless tale of supply and demand - buy low, sell high - but people in general are stupid. They buy stocks because they got a hot tip from one of their friends who works in the stock exchange instead of considering whether or not that friend (who might just be a runner and thus a peon who doesn't know the ins/outs of the Exchange yet) has any credibility and/or financial knowledge to know why to buy a particular stock. So what happens? Everyone all of a sudden decides to sell and you repeat the process - only in reverse.

The thing that a lot of ppl forget is that when everyone is buying, who makes the most money? The guy selling. THAT is always the position you want to take. I personally love it when the economy's in a bear market because you can get almost anything for pennies on the dollar. I also love it when it's a bull market because all those stocks I got for pennies are now selling at a 100 times their worth. If you look closely how I play, I always play 'against' the current market because it makes more sense. Why would I want to buy anything in a bull market? Everyone is already in a feeding frenzy to buy so it's only logical to sell, sell, sell. Same with the bear market. If everyone's trying to sell, you know they'll fight tooth and nail to get your dollar so that means you have more choices since they're dropping like mad in price.

In the case of real estate, it's a bull market right now and everyone wants to buy so I'll hold off and wait until everyone's bought everything and find out that they can't pay for their property or don't know how to manage property correctly and throw their collective hands up in disgust. At this point, those ppl will be desperate to sell and I'll be able to buy it almost at a margin of the original cost. The bubble is coming. No one knows exactly when but we're at the edge of the cliff and I'm just waiting for everyone to fall so I can help pick them up...for a price.

[GameDude]

do you have aim or anything? I'd like to talk further.

[tdphillips]

The money you get from m funds are almost nil and can also be negated by the taxes you get (depending on your bracket) so you always end up at best a 'little' ahead or at worst breaking even. In the worse case scenario, why would you want to break even? Then there was no point in investing your money to begin with. Even fund managers can make mistakes. I think the reason a lot of ppl invest in m funds is that they're too lazy/busy to do it themselves. M funds are a stagnant way of investing since the returns are miniscule. IF ppl did their homework (which only takes about an hour of reading the Journal and 'reading between the lines' which can be done when you get home from work), then stocks wouldn't be that risky. Plus, paying attention to the day-to-day trading of stocks is too stressful, I check my portfolio every 3-4 months and I'm usually up 10% overall. If an individual stock is underperforming, I give it an extra week to bring itself up and if it doesn't I replace it with another stock I already had in mind. Stocks should always be in rotation.

You also have to pay a commission in stock trading. No commission involved in no load funds. Given I've averaged 11-12% ROR per year in funds over the past 10 years, that ain't bad. IF (no guarantees, eh?) that continues, with the amount I invest, I'll be worth a few million in 25 years. You can pick a dog stock just about as easily as a good stock.

However, I do occasionally throw extra money into individual stocks, but that's money I could afford to lose if it happened.

[jaykrue]

You also have to pay a commission in stock trading. No commission involved in no load funds. Given I've averaged 11-12% ROR per year in funds over the past 10 years, that ain't bad. IF (no guarantees, eh?) that continues, with the amount I invest, I'll be worth a few million in 25 years. You can pick a dog stock just about as easily as a good stock.

However, I do occasionally throw extra money into individual stocks, but that's money I could afford to lose if it happened.

That's true, but the way I've set up my port is the commissions involved are already figured into whether or not to keep/toss it. The 10% is what I make AFTER commissions. ;)

[CappyCobra]

One of my friends kept trying to convince me to purchase Sirius, but I believe XM is poised for a much better chance of profitability in the satellite radio market. GM's stake in the company combined with their lower monthly fee makes them the clear winner imho.
XM Hiked up thier monthly fee to 12.99, basically matching Sirus back in April.

[greydemise]

ive always wanted 2 do this , my friend dus penny stocks and sells short term..he makes a good buck

[CappyCobra]

I jumped into the stock market around december and bought a bunch of stocks that pretty much nosedived. I lost about 1500, but I'm starting again. The good performing stocks that I've bought have been ATVI (activision) and BBI (blockbuster) Although I think I might want to sell of my blockbuster before their earnings report next quarter judging from the rape that's been going on through their trade in deals.
You lost $1500 bucks? Hope you reported that to Uncle Sam. You can write off up to $3000 for losses on stock investments. ;)

[DV8]

You lost $1500 bucks? Hope you reported that to Uncle Sam. You can write off up to $3000 for losses on stock investments. ;)

That's not till next april ;), and I'm hoping it become a positive so I might actually owe them some money.

Does anyone know what capital gains taxes are right now? Is it tiered?

[GameDude]

jaycrue, do you have AIM or anything? I need to talk to someone about real estate and I have no one to talk to that I know. I've been investing in stocks for nearly 10 years, though.

[tdphillips]

That's true, but the way I've set up my port is the commissions involved are already figured into whether or not to keep/toss it. The 10% is what I make AFTER commissions. ;)

Sounds like you've got a good plan and know what you're doing. 10% every 3-4 mos really is awesome. Stick with what works for you my friend, cause that's a good return. :-)

[tdphillips]

ive always wanted 2 do this , my friend dus penny stocks and sells short term..he makes a good buck

You know, that might not be as bad or risky as one might think. Most penny stocks go out of business, selling these short may be a smart move.

Then again if you're shorting a stock, there's really no limit to how much you can lose. :-(

[jaykrue]

Sounds like you've got a good plan and know what you're doing. 10% every 3-4 mos really is awesome. Stick with what works for you my friend, cause that's a good return. :-)

It is a good plan because I don't scrutinize the stock every waking minute unlike one of my friends - the stockbroker. He's still baffled at how I can get returns like those when he's getting ulcers over his own choices. :lol: I told him that's because I research how much a company's present intrinsic value vs. its future value. If I'm confident it will increase 11% (the 1% is to account for miniscule dips that potentially might happen after the time period) or more in a 3 month period, I buy it and don't look at it until it's due. I told him that looking at the stock dip and rise is stressful and I've got other investments that would be more worthwhile in managing.

It's quite similar to Warren Buffett's methodology but I think recently, Buffett has taken to checking out stocks after a year instead of a 3-4 month performance. My friend replied 'Well, Buffett just got lucky. He won't always be right.' To that I told him, 'Duh. He's lost some money but if you compare the ratio of money lost vs. money earned up to this point in time, he's won more than he's lost. The reason he wins more is that he does his research unlike you, who I know to bet on a stock simply because your boss gave you a good tip (which is insider trading, if I'm correct). Besides, tell me, who's doing better right now, you or me?' After that, he looked pissed but there was nothing he could say.

[GameDude]

jaycrue, do you have AIM or anything? I need to talk to someone about real estate and I have no one to talk to that I know. I've been investing in stocks for nearly 10 years, though.
:(

[jaykrue]

jaycrue, do you have AIM or anything? I need to talk to someone about real estate and I have no one to talk to that I know. I've been investing in stocks for nearly 10 years, though.

Sorry I don't give out my AIM. I just make that my STOP - standard operating procedure. Only business associates/good friends get that. If you have a question, just post it. Let me rephrase that - if you have a LEGITIMATE question about real estate or investing in general, just post it and I'll answer it as honestly as I can. Truth be told, I was going to put you on my ignore list for a lot of the inane posts you make but you haven't annoyed me to that point yet but you get close a lot.

[GameDude]

Sorry I don't give out my AIM. I just make that my STOP - standard operating procedure. Only business associates/good friends get that. If you have a question, just post it. Let me rephrase that - if you have a LEGITIMATE question about real estate or investing in general, just post it and I'll answer it as honestly as I can. Truth be told, I was going to put you on my ignore list for a lot of the inane posts you make but you haven't annoyed me to that point yet but you get close a lot.


Okay, thanks. How do you find good renters? What do you do when you find people who just don't care about their credit rating?

As far as stocks are concerned, are you investing in oil at all?

[jaykrue]

Okay, thanks. How do you find good renters? What do you do when you find people who just don't care about their credit rating?

As far as stocks are concerned, are you investing in oil at all?

Question 1: Do a credit check. It's not that difficult. When you're a business, credit checks are part and parcel of the job. That's why I suggest building a business first and learn what it takes to run a business because if you don't have the temperment to run a good business then you won't be able to run a real estate company and all that it entails - dealing with tenant issues, dealing with housing issues, dealing with zoning laws, dealing with maintanence staff, dealing with your own staff issues, etc. It's like being a customer service rep. You get all the shit-flinging but little of the credit.

Question 2: Simple. I look for other people. Why? While the laws vary from state to state, a landlord may be able to deny a potential renter if they're a 'flight risk' meaning if they've shown a history of unreliability when it comes to making payments (often reflected in the credit check), the landlord can say, sorry you don't qualify. For those states which doesn't give the landlord that option, one way to discourage flight risks is to make them pay up front the first and last month's rent (which doesn't include the security deposit - which is also nonrefundable). That way, you only get those who are at the very least committed to renting your place for at least 1 year.

Question 3: Oil isn't a bad investment but it still rates at a 'sell' to me. If you look at how I do things, I do things in the opposite way ppl normally do it. Right now, oil prices are high and the gas prices reflect this. So one would think that now would be a good time to buy, right? Well I think it's wrong. I would wait until prices are depressed heavily before buying oil again. Last time I considered oil was Clinton's first presidential term. Right now, I'm looking at alternative fuels. I think companies that are doing fuel cell tech are good future investments. Also, biotech has a lot of good investments. I won't divulge my own personal stock choices because I don't need the competition. More stockholders means a smaller piece of the pie when the stock really matures. When I pick stocks, I choose companies that I believe will give a truly worthwhile contribution to the world so alternative fuels and biotech are no brainers to me. They benefit the world/people in an important way. Another good industry to look at is pharmaceuticals. I separate it from biotech since it has enough of a difference to be considered a separate industry to me (biotech - genetic engineering, stem cell research, etc. and pharmaceuticals - drugs that enhance/help the body's functions). Biotech and pharmaceuticals are huge if you look at the who it will help mainly - the baby boomers just entering or have entered their retirement years and as such will need medicine to help them live. It will peak around 2010 and then these industries will stagnate until the next wave - the Vietnam generation. When the children of the Vietnam war era become old enough for social security, biotech/pharmaceuticals will once again be hot industries. Repeat the process for the Persian Gulf and the current Iraq vets. As I said before, it's looking at what innovations companies are making and seeing what will have a profound effect on the future which determine what the best stocks are. True be told however, companies that are NOT on the stock exchange are generally better investments... that is, if you can find them. Since they're private businesses, they're not as weighed down by decisions made by committee because the committee is smaller (sometimes just consisting of the company owner and his dog *I kid you not* ) and thus, those companies are willing to take more risks because the company is small and wouldn't be a big loss if it tanked. But if they win, they will win big and attract more investors. Look at Google. Google took a long time before they went public and the guys who were in it could cash out BIG.

[GameDude]

Thanks, I appreciate the insight. Have you invested in any private companies? If so, how did you go about it?

Do you have any good books to read besides The Buffet Way? I'm looking more at real estate books. I've researched quite a bit from the Rich Dad library.

As for alternative fuels, have you read the site,

http://www.lifeaftertheoilcrash.net/ ?

They act like fuel cells won't ever do much good.

I really hope sometime you'll give me your AIM name sometime because I'm really passionate about investing. But I fully understand that I'll have to earn your trust. Thanks again!

[jaykrue]

Thanks, I appreciate the insight. Have you invested in any private companies? If so, how did you go about it?

Do you have any good books to read besides The Buffet Way? I'm looking more at real estate books. I've researched quite a bit from the Rich Dad library.

As for alternative fuels, have you read the site,

http://www.lifeaftertheoilcrash.net/ ?

They act like fuel cells won't ever do much good.

I really hope sometime you'll give me your AIM name sometime because I'm really passionate about investing. But I fully understand that I'll have to earn your trust. Thanks again!

Yes, I've invested in private companies and they're only when you've reached a certain level that they seek YOU out. Private companies, while more profitable than public ones due to their very nature, are also hazardous in that they AREN'T for beginning investors. Once you've built a good solid portfolio of companies that you've invested in, that you've done the research, that you've made a nice 'chunk' of change from, only then will you be good enough to start thinking about investing in private companies. By this time, you should've already made some contacts in 'higher' societies with your wheeling and dealing. It really isn't about what you know at this point but who you know.

As for books, there's a lot of books I could recommend but the Rich Dad series should pretty cover everything you need to know. The rest can be gotten through experience and experience is always better than anything learned from a book. If you MUST have a book recommendation, I'd suggest reading Robert Allen's Multiple Streams of Income and Steven Covey's Seven Habits of Successful People (as well as his other book - The Eighth Habit). They should be self explanatory.

I went to the side and while fairly concise, some of their info is outdated. For example one of their arguments about fuel cells is that while hydrogen is plentiful, platinum is limited, they don't reconsider a few things:

- fuel cell tech is still in its infancy so better more efficient and cost effective methods MAY still be yet developed/discovered.

- they assume that all the fuel cells in the world would be replaced at the same time. As such in that time, an alternative to platinum would be found to catalyze the hydrogen process.

- the low consumption of hydrogen accounted for .171 percent of total resource consumption. What they didn't factor was that might've been due to the prohibitive cost of hydrogen fuel cells. Their worse case scenario is 20k? I've seen better projections than that. If fuel cell tech costs go down then it becomes more attractive to use than conventional gas and thus drive the price down.

- even if the world's current consumption of platinum depleted known natural reserves, there are still various other resources which they have not considered - i.e. junkyards, trash, etc. What I mean is recycling. And platinum extraction is not as cost prohibitive as it was once before.

[GameDude]

jaykrue, I'm just curious, but how old are you? You seem really, really wise and I thought you were about my age; I'm 24. I feel bad for not being as advanced as you about investing, even though I feel that I know more than most people.

As for fuelcells, the main companies I found are Plug Power (PLUG), Ballard (BLDP), and FuelCell Tech (FCEL). Do you like any of these? Thanks again. I also have one share of Berkshire Hathaway...class B :)

[jaykrue]

jaykrue, I'm just curious, but how old are you? You seem really, really wise and I thought you were about my age; I'm 24. I feel bad for not being as advanced as you about investing, even though I feel that I know more than most people.

As for fuelcells, the main companies I found are Plug Power (PLUG), Ballard (BLDP), and FuelCell Tech (FCEL). Do you like any of these? Thanks again. I also have one share of Berkshire Hathaway...class B :)

I'm 28 but I started investing (through my parents) when I was 14. I'm not that much of an old fogey. Old enough to know better but still young enough to party.

As I said before, I don't like giving out my own personal choices. You're just going to have to do the homework on those companies to find out if they're good enough. As for the Berkshires, when you graduate past the 'Baby Berkshires' and are able to buy more than 10 shares of the class A, then we'll REALLY talk.

[jeffreyjrose]

Gahhh... I think I was looking at the wrong thing :lol: But it did hit 10.29 on friday. we'll see this coming week -wipes the egg off his face- anyways, I personally wouldn't invest in sirius, I'm waiting for a good price to sell off actually.

Check out Blockbuster's stock chart for the past six months! Boy am I glad that my brother sold in May!!!

http://finance.yahoo.com/q/bc?s=BBI&t=6m

[jeffreyjrose]

Well, my purchase on June 6th of Toyota has panned out well (http://finance.yahoo.com/q/bc?s=TM&t=1y&l=on&z=m&q=l&c=) (http://finance.yahoo.com/q/bc?s=TM&t=1y)), and I'm ready to make another purchase. I'm looking at either energy stocks (i.e. Exxon, Chevron) or banking stocks (i.e. Citigroup, Wachovia) as my next purchase.

Does anyone have any recent stock success or horror stories?