Investors Thread

#1
Vol8188

Vol8188

revolUTion in the air!
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#1
I thought it would be cool if we had a thread to discuss investing (bonds and stocks mainly). And bounce ideals and strategies of each other.

A few prompts to get the convo going:

1. What do you look for in an investment?

2. What company do you trade through?

3. What are some of your current holdings or things you're considering?
 
#2
#2
I'll go first.

1. I take a long term approach that I mainly developed from The Intelligent Investor. If you've not read it, you should.

I look for the following:

P/E<15
Dividend>0
>5 years of dividend history
And at least 3 years of continuous profits.

The two I put the most weight on are P/E and dividends. Most study's I've seen show that over the history of the stock market, if you adjust for inflation, the majority of all gains made by investors were in the form of dividends.
 
#4
#4
2. I use optionshouse because it's the cheapest on the market. 3.95 a trade.

3. I currently only own shares of BAC and IVV. I recently sold off the majority of my holdings (TEVA, VALE, CSX, FAF, and INTC) because the wife and I decided to purchase some land to build on.
 
#5
#5
Vol8188 said:
I'll go first.

1. I take a long term approach that I mainly developed from The Intelligent Investor. If you've not read it, you should.

I look for the following:

P/E<15
Dividend>0
>5 years of dividend history
And at least 3 years of continuous profits.

The two I put the most weight on are P/E and dividends. Most study's I've seen show that over the history of the stock market, if you adjust for inflation, the majority of all gains made by investors were in the form of dividends.
Click to expand...

If you focus solely on dividends you are overlooking capital appreciation.

Warren buffet doesn't care about dividends.
 
#6
#6
bamacheats said:
S&P

I'm simple like that.
Click to expand...

So you do an index fund that follows the s&p500? That's all I've been doing lately. I've not had the time to research the market like I did when I was in the Air Force. It's simple, cheap, and effective.

I use IVV because it has the lowest fees of any index fund I could find.
 
#7
#7
Vols520 said:
If you focus solely on dividends you are overlooking capital appreciation.

Warren buffet doesn't care about dividends.
Click to expand...

Buffet does care about dividends, or atleast his mentor did. He wrote a lot about he importance of dividends. And I'm not solely looking for dividends, but I don't buy a stock that doesn't pay some form of a dividend.
 
#8
#8
Through my 401k I basically just do the S&P. I have a little play money that I dabble with for day trading as well. I'm looking to get into more real estate as time goes on, just need to build up the cash.
 
#9
#9
Vol8188 said:
Buffet does care about dividends, or atleast his mentor did. He wrote a lot about he importance of dividends. And I'm not solely looking for dividends, but I don't buy a stock that doesn't pay some form of a dividend.
Click to expand...

There are some good stats I'll share w you tomorrow while I am flying don't have em handy.

I focus more on total return personally.

Right now I am only long apple, PPO and air lease.

Have a few mutual funds too.
 
#11
#11
Vols520 said:
There are some good stats I'll share w you tomorrow while I am flying don't have em handy.

I focus more on total return personally.

Right now I am only long apple, PPO and air lease.

Have a few mutual funds too.
Click to expand...

I look forward to it.
 
#12
#12
govols09 said:
Through my 401k I basically just do the S&P. I have a little play money that I dabble with for day trading as well. I'm looking to get into more real estate as time goes on, just need to build up the cash.
Click to expand...

Are you looking for rentals or flips?
 
#13
#13
Vanguard total stock market index fund. Love Vanguard's almost nonexistent expense ratios and the simplicity of the index fund. Eventually I would like to become more hands on, but I don't have that kind of time right now.
 
#14
#14
I have all my investment in real estate. I wouldn't recommend it. Better to be diversified.
 
#15
#15
SamRebel35 said:
Vanguard total stock market index fund. Love Vanguard's almost nonexistent expense ratios and the simplicity of the index fund. Eventually I would like to become more hands on, but I don't have that kind of time right now.
Click to expand...

IVV has lower fees.
 
#16
#16
Vol8188 said:
I thought it would be cool if we had a thread to discuss investing (bonds and stocks mainly). And bounce ideals and strategies of each other.

A few prompts to get the convo going:

1. What do you look for in an investment?

2. What company do you trade through?

3. What are some of your current holdings or things you're considering?
Click to expand...

1. Mostly invest through mutual funds, mix of value, growth, US and International stock funds. Look at track record, how long mgmt has been there, and Morningstar ratings.

2. Fidelity

3. I like following tech stocks. Hold Apple, Cisco, and Corning now. Probably will sell a portion of Apple and Corning before end of the year.
 
#17
#17
Vols520 said:
If you focus solely on dividends you are overlooking capital appreciation.

Warren buffet doesn't care about dividends.
Click to expand...

Vol8188 said:
Buffet does care about dividends, or atleast his mentor did. He wrote a lot about he importance of dividends. And I'm not solely looking for dividends, but I don't buy a stock that doesn't pay some form of a dividend.
Click to expand...

I'm interested in both of your pov's about dividends.
 
#19
#19
OldandStillaVol said:
1. Mostly invest through mutual funds, mix of value, growth, US and International stock funds. Look at track record, how long mgmt has been there, and Morningstar ratings.

2. Fidelity

3. I like following tech stocks. Hold Apple, Cisco, and Corning now. Probably will sell a portion of Apple and Corning before end of the year.
Click to expand...

I avoid technology like it's the plague. Intel is the only tech stock I've ever owned.
 
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#20
#20
I have a Choice Trade account, but I don't like it because it won't let me day trade. What I'm really looking for is something that will let me play around with penny stocks without charging a huge price per trade. Mostly just to get more experience and learn more about it.

Thoughts?

As far as my investment strategy? Kinda just make it up as I go. I'm only 23 though, so I'm very, very, new to this.
 
#21
#21
AggieInTN said:
I have a Choice Trade account, but I don't like it because it won't let me day trade. What I'm really looking for is something that will let me play around with penny stocks without charging a huge price per trade. Mostly just to get more experience and learn more about it.

Thoughts?

As far as my investment strategy? Kinda just make it up as I go. I'm only 23 though, so I'm very, very, new to this.
Click to expand...

Read the intelligent investor. It's the best book I've ever read. I first got a copy when I was 22 and in Afghanistan.
 
  • Like
Reactions: 1 person
#23
#23
Vol8188 said:
I avoid technology like it's the plague. Intel is the only tech stock I've ever owned.
Click to expand...

Tech is highly volatile. Sometimes good companies get beat up and one can buy at reasonable P/E. I've made mistakes holding things too long (Jabil, Nokia) so I don't wait long to sell now.

I avoid biotech because its too hard to predict which small companies will eventually make it.
 
#24
#24
Danl said:
I'm interested in both of your pov's about dividends.
Click to expand...

I'll include some direct quotes from the intelligent investor later, if I have time.

DIVIDENDS &#8211; THE KEY TO RETURNS, EVEN FOR GROWTH STOCKS | PRAGMATIC CAPITALISM

80% of the real returns (adjusted for inflation) over the history of the stock market are from dividends.

Only 20% are from the actual growth of the company. Mostly the increase in price of the stock market is related to inflation. When you adjust for inflation, you find out the only people making money are those receiving dividends.

This doesn't mean you should invest in companies with the largest dividends. Instead try to find large companies, that are going through unpopular times and pay some form of a dividend.

The stock I've done best from was Bank of America. It's dividend is only .01 per share. Not even 1% of their price. But they are a massive bank. The US government has even proclaimed them to big to fail, so I knew my was safe (priority number 1). And their p/e was less than 10 at the time (making it a major bargain).
 
#25
#25
OldandStillaVol said:
Tech is highly volatile. Sometimes good companies get beat up and one can buy at reasonable P/E. I've made mistakes holding things too long (Jabil, Nokia) so I don't wait long to sell now.

I avoid biotech because its too hard to predict which small companies will eventually make it.
Click to expand...

Yeah, it's too unstable and far to overpriced for me. Last time I checked Google was selling at nearly 200x their current earnings. And people were still buying it.

That's like buying a taco stand that made 1,000 dollars last year at 200,000.
 
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