Investing in the stock market - Discussion

[Lancaster]

On 10/2/2020 at 11:30 AM, nuckin_futz said:

 

 

On 10/2/2020 at 12:44 PM, skolozsy2 said:

Looks like a solid investment. Might buy in on the dip.

 

6 hours ago, CBH1926 said:

Clorox is one of the best stocks, it’s just has been overpriced for a while.

All jokes aside, Clorox is one of those "blue chip" companies.  The one where you invest in when you're young and then just watch it grow over time.  If you invested $10,000 because you were afraid of Y2K, you will now have at least $100,000, not including the dividend that paid out.  It's not sexy like Apple or Tesla... but it's a very easily understandable company.  They make cleaning supplies and other household consumables.  Whether the economy is skyrocketing or if it's in the crapper... people still need to buy cleaning agent to mop the floor and to buy saranwrap to seal their food.  

 

I can't remember if it's Warren Buffet, but he used to say that he rarely, if ever, invested in technology stocks (at least before he became buddies with Bill Gates, etc).  He said he didn't understand computers or the new tech stuff, but he does understand Coca-cola, insurance, hamburgers, etc.  Thus one of the reason he got so rich.  Invest in "everyday" companies that's undervalued.  

[nuckin_futz]

2 hours ago, Lancaster said:

 

 

All jokes aside, Clorox is one of those "blue chip" companies.  The one where you invest in when you're young and then just watch it grow over time.  If you invested $10,000 because you were afraid of Y2K, you will now have at least $100,000, not including the dividend that paid out.  It's not sexy like Apple or Tesla... but it's a very easily understandable company.  They make cleaning supplies and other household consumables.  Whether the economy is skyrocketing or if it's in the crapper... people still need to buy cleaning agent to mop the floor and to buy saranwrap to seal their food.  

 

I can't remember if it's Warren Buffet, but he used to say that he rarely, if ever, invested in technology stocks (at least before he became buddies with Bill Gates, etc).  He said he didn't understand computers or the new tech stuff, but he does understand Coca-cola, insurance, hamburgers, etc.  Thus one of the reason he got so rich.  Invest in "everyday" companies that's undervalued.  

If you invested in $10,000 in CLX at the start of January 2000 (Y2K). Your investment as of today's close would be worth $42,510. A gain of 425%. That's without the dividend.

 

Buffet has said the biggest mistake he ever made (apart from Solomon Brothers) was not investing in tech decades ago. Today he is the 2nd largest shareholder in AAPL at a 5.7% stake. Only Vanguard has a larger stake.

 

AAPL accounts for 44% of Buffet's Berkshire Hathaway Investment Company. If he had an aversion to tech. It's safe to say he's gotten over it.

[Lancaster]

1 hour ago, nuckin_futz said:

If you invested in $10,000 in CLX at the start of January 2000 (Y2K). Your investment as of today's close would be worth $42,510. A gain of 425%. That's without the dividend.

 

Buffet has said the biggest mistake he ever made (apart from Solomon Brothers) was not investing in tech decades ago. Today he is the 2nd largest shareholder in AAPL at a 5.7% stake. Only Vanguard has a larger stake.

 

AAPL accounts for 44% of Buffet's Berkshire Hathaway Investment Company. If he had an aversion to tech. It's safe to say he's gotten over it.

You sir are correct.  I just briefly glanced at the chart and it was approximately $20-30ish around those few years, but peaked at $50 around the calendar change.  So the "current market" figure will depend on whether you bought on the dip or during the peak.  

10000 to 40000 in 20 years... that's about 7% annual return.  Still decent considering the world has gone through the dot-com bust, the Great Recession, the liquidity crisis, the rise/collapse of the oil prices, etc.  

 

I think the quote was around the late 90's or early 2000's or something, so obviously much as changed since.  But he still got massively wealthy without investing in companies that got lots of hype.  Of course, he also said he wish he invested in bonds or something from the very start instead too.... something about how he would have earned 4x the money or something.  

In any case, I'm just stressing that sometimes a more conservative and cautious route to investing (choose companies you believe in or currently use) can still be very fruitful in the long run.  

[kingofsurrey]

6 minutes ago, Lancaster said:

You sir are correct.  I just briefly glanced at the chart and it was approximately $20-30ish around those few years, but peaked at $50 around the calendar change.  So the "current market" figure will depend on whether you bought on the dip or during the peak.  

10000 to 40000 in 20 years... that's about 7% annual return.  Still decent considering the world has gone through the dot-com bust, the Great Recession, the liquidity crisis, the rise/collapse of the oil prices, etc.  

 

I think the quote was around the late 90's or early 2000's or something, so obviously much as changed since.  But he still got massively wealthy without investing in companies that got lots of hype.  Of course, he also said he wish he invested in bonds or something from the very start instead too.... something about how he would have earned 4x the money or something.  

In any case, I'm just stressing that sometimes a more conservative and cautious route to investing (choose companies you believe in or currently use) can still be very fruitful in the long run.  

Royal Bank  Life Science and Tech fund

 

YTD	1 mo	3 mo	6 mo	1 yr	3 yr	5 yr	10 yr	Incept.
Fund	25.9	5.9	12.5	28.3	37.9	22.6	17.0	19.3

[Putgolzin]

I chimed in a bunch at the very start of this thread cause I thought I knew a lot about investing.

Five years later I still know just as much (or little) - "buy and hold mutual funds and very boringly watch your money very slowly grow over a very long time". It continues to work very boringly and with pitiful gains.

 

I'd like to learn how to invest in the stockmarket with some other money - but where do you guys start? Just throw it at Apple and Tesla and start figuring things out after that?

Or would a guy be smart to pay for the Motley Fool or something like that? (I assume most would say there is better info for free, but I don't mind paying a nominal fee if it's a trustworthy source).

I literally know less than nothing - I would struggle to explain what a short is.

[I.Am.Ironman]

32 minutes ago, nzan said:

I chimed in a bunch at the very start of this thread cause I thought I knew a lot about investing.

Five years later I still know just as much (or little) - "buy and hold mutual funds and very boringly watch your money very slowly grow over a very long time". It continues to work very boringly and with pitiful gains.

 

I'd like to learn how to invest in the stockmarket with some other money - but where do you guys start? Just throw it at Apple and Tesla and start figuring things out after that?

Or would a guy be smart to pay for the Motley Fool or something like that? (I assume most would say there is better info for free, but I don't mind paying a nominal fee if it's a trustworthy source).

I literally know less than nothing - I would struggle to explain what a short is.

Isn't seeking alpha free? They have some good articles.

 

ETFs are probably the best way to start for your style. You can buy an ETF on a specific sector (green energy, oil/gas, solar, weapons, gambling, mining, travel etc) so they are good '1 stop shops'. Just be mindul of MERs/Management fees. They charge a fee expressed as a percentage. To really take the thinking out of it you can just buy total market ETFs, most banks offer their version, I use vanguards. Vanguard has 5 different total market options with a mix of fixed income/equities (VEQT, VGRO, VBAL, there are 2 more) depending on your investment goals. I'm in my 20s so I use VGRO (ie. Capital Growth) but there are balanced options (ie. VBAL) and fixed income options as well.

[Tortorella's Rant]

What the hell. The dow just took a 500pt plummet in about 20 minutes. Did someone finally give Dotard the JFK treatment (I haven't been watching social media or the news all morning). 

[Whorvat]

I was wondering the same thing, then saw this;

 

[Tortorella's Rant]

2 minutes ago, Whorvat said:

I was wondering the same thing, then saw this;

 

That &^@#ing idiot. He can't even tout the market anymore (although it always does better under Dems). He's caused almost a 1000pt drop between today and Friday because of his shenanigans. 

[skolozsy2]

27 minutes ago, Tortorella's Rant said:

What the hell. The dow just took a 500pt plummet in about 20 minutes. Did someone finally give Dotard the JFK treatment (I haven't been watching social media or the news all morning). 

Was wondering the same thing.  My good day went to hell in the span of 7 minutes.

[skolozsy2]

27 minutes ago, Whorvat said:

I was wondering the same thing, then saw this;

 

God I can't wait to finally be done with this putz.

[I.Am.Ironman]

Well at least Palantir held on... I bought some yesterday

[NucksPatsFan]

F*!# you Trump. 

 

Though I firmly believe there will be a magical "We reached a deal" announcement towards end of October that Trump will no doubt try to spin into positive momentum for his campaign, and everything I'm holding right now is through-election holds anyways, still don't like looking at a red for the day number lol.

[skolozsy2]

9 hours ago, NucksPatsFan said:

F*!# you Trump. 

 

Though I firmly believe there will be a magical "We reached a deal" announcement towards end of October that Trump will no doubt try to spin into positive momentum for his campaign, and everything I'm holding right now is through-election holds anyways, still don't like looking at a red for the day number lol.

I especially don't like red days when I was looking at green the whole day.

[Boudrias]

23 hours ago, I.Am.Ironman said:

Isn't seeking alpha free? They have some good articles.

 

ETFs are probably the best way to start for your style. You can buy an ETF on a specific sector (green energy, oil/gas, solar, weapons, gambling, mining, travel etc) so they are good '1 stop shops'. Just be mindul of MERs/Management fees. They charge a fee expressed as a percentage. To really take the thinking out of it you can just buy total market ETFs, most banks offer their version, I use vanguards. Vanguard has 5 different total market options with a mix of fixed income/equities (VEQT, VGRO, VBAL, there are 2 more) depending on your investment goals. I'm in my 20s so I use VGRO (ie. Capital Growth) but there are balanced options (ie. VBAL) and fixed income options as well.

My problem with ETF's is trying to value them. Data is scarce. If younger I can see investing by sector as the longer the term the better. All that said I put my wife in VBAL and it is doing quite well. It is positive for the year contrary to many of my fundamental value stocks. It has a 60/40 equity/income split. 

[I.Am.Ironman]

45 minutes ago, Boudrias said:

My problem with ETF's is trying to value them. Data is scarce. If younger I can see investing by sector as the longer the term the better. All that said I put my wife in VBAL and it is doing quite well. It is positive for the year contrary to many of my fundamental value stocks. It has a 60/40 equity/income split. 

Yeah I think Vanguard has 5 options with varying splits between equity/fixed income. VEQT is 100:0 Equity/Income, VGRO is 80:20, VBAL is 60:40, I forget the other two though. Should we get a march level drop I'll be loading up on VEQT I think. Although Trumpty Dumpty seemed to reverse course on his stimulus package stance last night so markets are looking up again today.

[NucksPatsFan]

Thanks for NNDM @AriGold2.0 and Cathi 

[skolozsy2]

On 10/5/2020 at 12:36 PM, CBH1926 said:

Next Era energy, can’t wait for the split to buy more!

Good call on this one.  Wish I bought more.  When is the split?

[CBH1926]

6 minutes ago, skolozsy2 said:

Good call on this one.  Wish I bought more.  When is the split?

10/26

I bought it when it was $178 and sold it when it skyrocketed, huge mistake.

Best utility stock bar none, AWK and WM, both are overpriced for the last few years, once you get in at decent entry point keep forever. Few other ones that I have owned SRE and ATO.

[AriGold2.0]

IVZ looks beautiful for a run till mid next week. Bought 400 shares just now.