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What do you guys think about holding on to these stocks for a few years?
ODP, TRID, GOOG, BP, PLM, PFE, ETF
Also, should I make extra payments on the mortgage (house purchased last year), or should I try to pay off the wife's car and student loan early (possible in a year or two)?
Last edited by ShelbyCop; 10-18-2010 at 02:45 PM..
I would pay off the car and student loans, along with any credit card debt before putting any money at all into stocks. Making extra mortgage payments is always good, but only after your higher interest debts are all paid off. As for your stock picks, I like BP and PFE as long term holds, especially if BP gets back to paying dividends. I stay away from tech, so I don't follow GOOG, and the others I know nothing about.
I would pay off the car and student loans, along with any credit card debt before putting any money at all into stocks. Making extra mortgage payments is always good, but only after your higher interest debts are all paid off. As for your stock picks, I like BP and PFE as long term holds, especially if BP gets back to paying dividends. I stay away from tech, so I don't follow GOOG, and the others I know nothing about.
Good luck!
Agree with this. Take care of car and credit card debt first as they are the highest interest. I try to pay a little extra on the house note each month, but also invest in stocks. Am long PFE.
You have to understand financial statements, ratios, business strategies before you invest in stocks. Most traders don't make a lot of money. Look at mutual funds.
Look at Loomis Sayles Bond LSBRX, 9.6% annualized over 10 years
Pimco Total Return PTTDX, 7.6% over 10 years
Yacktman YACKX, 12.6% over 10 years
Pimco is far from perfect too, and they are in the somewhat unenviable place of every competitor hoping like heck that they get beat BUT fearing that when that happens ALL the RULES will be so out of whack. That said, I could live with 0.61% as worst loss, that is like the cheese that sticks to the cardboard, but for folks that only want to see the numbers go up, or worse NEED to see those numbers go up to keep paying their bills, even that is not tolerable.
Further, over the last ten years inflation has been a non-issue. That WILL NOT LAST FOREVER!!! If you are asleep as interest rates climb and bond prices decline you could get left with nothing but a greasy stain...
Quote:
Originally Posted by jhtrico1850
You have to understand financial statements, ratios, business strategies before you invest in stocks. Most traders don't make a lot of money. Look at mutual funds.
Look at Loomis Sayles Bond LSBRX, 9.6% annualized over 10 years
Pimco Total Return PTTDX, 7.6% over 10 years
Yacktman YACKX, 12.6% over 10 years
If you have a long term investing horizon, you would have more than made back your money since the crash of 2008 with those funds. YACKX lost less than the market as a whole, gained more than the market as a whole. Same with Loomis.
If you started investing with them earlier in 2000, by the time you got to 2008 and had $1700, and crashed 25% down to 1275 and then bounced up 40% the next year, you'd be at 1785.
It's really not about asset class, it's about management. Bond funds don't simply buy bonds, they can go short, leverage, invest in preferred stock, invest globally.
Pimco, Loomis, Yacktman have great management that they have over doubled in a decade while the DOW is flat. The next decade, yields MAY rise, but like Yacktman did with Yacktman, the bond guys can still make money.
http://www.thestreet.com/_yahoo/stor...elds-fall.html
"The total bond market has only lost money in two years since 1976," he says. "Think of all the periods where we had year-over-year rising interest rates, and yet we've only had two years with negative returns."
What are you talking about with guys that can't afford more than a 0.6% loss? And guys that NEED to have their money go up? Or paying bills? This is about compound interest, you really don't manage money well if you are dependent on always having to be up and never being able to be down.
You can never lose money with CDs, granted you'll fall behind inflation.
What do you guys think about holding on to these stocks for a few years?
ODP, TRID, GOOG, BP, PLM, PFE, ETF
Also, should I make extra payments on the mortgage (house purchased last year), or should I try to pay off the wife's car and student loan early (possible in a year or two)?
so, you own those stocks already?
Google was around $690 a share in late 2007. It's $609 today, with the low during this period being about $275. So much for holding Google from Dec. 2007 to now.
It may depend on how many shares you have of Google. My father has 20 shares and a $100 move was only $2000 and nothing to lose sleep over.
If you have far more, you should take the price you paid, and if you get lucky enough for it to double, then sell half. The shares you have left then have a cost basis of zero.
Way back when, an analyst had a target on Google of $2000. He has not been seen on CNBC since then, hiding under rocks I guess.
The issue with Google is not that it is not a good company. There are plenty of good companies but they are lousy stocks, such as Microsoft.
The issue that will eventually happen with Google is that their growth rate slows and the growth-momentum investors get out.
Google has 318 million shares but only 244 million are in the float. Institutions (the big boys) own 79% of those shares.
Google "insiders" (the ones that should be betting on their own company) only own 0.55%.
Like I said, as an investor myself, the number of shares is imporant if you care to reveal that.
Moving to BP, in late 2006, it was over $65. Today, it is $40.80. Ho hum, another "do not hold" stock. It's low since then was $30 and that occurred this year during the oil spill. BP would be a sloooow mover. Analyst expect it to head toward the old highs at some point.
It seems to be a stable stock for your portfolio. Again the number of shares you have determines alot. If you have 100 shares or multiples of 100 you can sell covered call options for "income".
I've commented on the stocks that I have "heard" of on your list.
ok, I just looked at Office Depot. Well, it is $4.77 and it has not been there since around 1993. All time high near $45. So, the most you can lose there is $4.77. Again, how many shares do you have?
ex: 400?
No need to lose sleep over you maximum loss of maybe $1900.
I do not invest in restaurant stocks, clothing retailers, and Office Depot is in that group. Too many go bankrupt. On Office Depot, maybe hold it forever for the fun of it, or sell now. Again, the number of shares makes a huge impact on your plans.
TRID: under $3.00 stock, and again, it will go to zero, or be taken over, or make it on their own. All time high was near $35.
We are going lower and lower, PLM is under $1.65. It a penny stock essentially and an easy bankrupt case, or take over, or the moon. The moon for that stock was only $4.00 back in 2008 and they have been in business since 2002 according to the chart. It's been 8 years and the stock has gone from 35 cents to $4.00 and back to $1.65 in EIGHT years....broken record, on buy and hold.
PFE....now we are talking a REAL company. This has to be a recovery story or a takeover. Now it is paint drying on the wall. $28 down to today's $18 since late 2006. This one is safe to hold.
Aberdeen Emerging Markets Telecommunications Fund, Inc. (ETF):
I'm not a fund person.....
BP and Pfizer will be your slow movers, Google very volatile in both directions. If you are looking for safety, sell all of them and put it all in Pfizer and BP.
So, you are able to own these stocks and still able to make extra payments on the car and loan and house? GREAT.
I'd need to know how many shares of these stocks you have to be able to better say, hold for a couple years, or sell and put the money into other stocks.
Covered calls are a very conservative tool. People pay "you" each month for the right to buy your stock from you at a higher" price than it is now. You can do this "monthly" and it requires 100 shares or multiple's of 100.
What do you guys think about holding on to these stocks for a few years?
ODP, TRID, GOOG, BP, PLM, PFE, ETF
Also, should I make extra payments on the mortgage (house purchased last year), or should I try to pay off the wife's car and student loan early (possible in a year or two)?
Think of it this way, make a fortune in investing and paying those debts off like trinkets.
Do your own DD and pick winners. My portfolio has been largely green even in this bear market Don't pick banks yet and you will be fine.
I like TRID up there, but won't put money on the rest. GOOG is built on hype. Suddenly 40 bucks will drop or increase.
Collect little profits here and there and move on. Longs are getting generally burnt in the present conditions.
Think of it this way, make a fortune in investing and paying those debts off like trinkets.
Do your own DD and pick winners. My portfolio has been largely green even in this bear market Don't pick banks yet and you will be fine.
I like TRID up there, but won't put money on the rest. GOOG is built on hype. Suddenly 40 bucks will drop or increase.
Collect little profits here and there and move on. Longs are getting generally burnt in the present conditions.
aah, up and down of Google. It was painful to see Google go up $60 the afternoon of earnings, but I made $12 a share that day, so take $12 a share and give up $48. Owned the stock and sold the Oct. $540 call for about $11.90. I did have downside protection.
As far as "picking winners" the pros only get it right about 55%-60% of the time. Small losers and big winners let them get rich.
Use stop loss orders, puts, and "mental stops". If you are afraid to sell a stock you bought at $50 when it falls to $44 and clearly you judged it wrong, then you need to have a disciplined sell strategy.
Banks? I have Citibank in the form of leap options and at $4.00 a share it is basically a call option any way.
On winners you can have a trailing stop and move it up as the stock moves up. A trailing "stop loss order" in the case of a winner, is so you do not lose all your profits. Let your winners run. Stocks that hit a all time high usually hit more of them.
Charts and 50 day and 200 day moving averages can help.
Google was around $690 a share in late 2007. It's $609 today, with the low during this period being about $275. So much for holding Google from Dec. 2007 to now.
It may depend on how many shares you have of Google. My father has 20 shares and a $100 move was only $2000 and nothing to lose sleep over.
If you have far more, you should take the price you paid, and if you get lucky enough for it to double, then sell half. The shares you have left then have a cost basis of zero.
Way back when, an analyst had a target on Google of $2000. He has not been seen on CNBC since then, hiding under rocks I guess.
The issue with Google is not that it is not a good company. There are plenty of good companies but they are lousy stocks, such as Microsoft.
The issue that will eventually happen with Google is that their growth rate slows and the growth-momentum investors get out.
Google has 318 million shares but only 244 million are in the float. Institutions (the big boys) own 79% of those shares.
Google "insiders" (the ones that should be betting on their own company) only own 0.55%.
Like I said, as an investor myself, the number of shares is imporant if you care to reveal that.
Moving to BP, in late 2006, it was over $65. Today, it is $40.80. Ho hum, another "do not hold" stock. It's low since then was $30 and that occurred this year during the oil spill. BP would be a sloooow mover. Analyst expect it to head toward the old highs at some point.
It seems to be a stable stock for your portfolio. Again the number of shares you have determines alot. If you have 100 shares or multiples of 100 you can sell covered call options for "income".
I've commented on the stocks that I have "heard" of on your list.
ok, I just looked at Office Depot. Well, it is $4.77 and it has not been there since around 1993. All time high near $45. So, the most you can lose there is $4.77. Again, how many shares do you have?
ex: 400?
No need to lose sleep over you maximum loss of maybe $1900.
I do not invest in restaurant stocks, clothing retailers, and Office Depot is in that group. Too many go bankrupt. On Office Depot, maybe hold it forever for the fun of it, or sell now. Again, the number of shares makes a huge impact on your plans.
TRID: under $3.00 stock, and again, it will go to zero, or be taken over, or make it on their own. All time high was near $35.
We are going lower and lower, PLM is under $1.65. It a penny stock essentially and an easy bankrupt case, or take over, or the moon. The moon for that stock was only $4.00 back in 2008 and they have been in business since 2002 according to the chart. It's been 8 years and the stock has gone from 35 cents to $4.00 and back to $1.65 in EIGHT years....broken record, on buy and hold.
PFE....now we are talking a REAL company. This has to be a recovery story or a takeover. Now it is paint drying on the wall. $28 down to today's $18 since late 2006. This one is safe to hold.
Aberdeen Emerging Markets Telecommunications Fund, Inc. (ETF):
I'm not a fund person.....
BP and Pfizer will be your slow movers, Google very volatile in both directions. If you are looking for safety, sell all of them and put it all in Pfizer and BP.
So, you are able to own these stocks and still able to make extra payments on the car and loan and house? GREAT.
I'd need to know how many shares of these stocks you have to be able to better say, hold for a couple years, or sell and put the money into other stocks.
Covered calls are a very conservative tool. People pay "you" each month for the right to buy your stock from you at a higher" price than it is now. You can do this "monthly" and it requires 100 shares or multiple's of 100.
Yep, totally agree. "HOLD" does not clearly work anymore. Holding across the years is very bad IMHO This is very evident in the last 3 years.
These days going long is safe for 4 to 5 months. I would probably pull money out right before earnings as it gets built on hype. So far from what I have seen, post earnings the equity is getting punished for one reason or the other, despite very good EPS.
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If your savings was like an eight slice pizza...
Don't pick banks yet and you will be fine.
This is very evident in the last 3 years.
