Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
bek people like you and me listen to dave ramsey and dont spend much time at the mall or in club med. we retire early. we are not victims. we are not rip off artists. but we are not much fun and we are not in the in crowd. people like us "dont make any sense". most people perceive themselves laid back, they are not, they are laying down.
Stocks are a house of cards, the only reason they are "worth" something is because others are willing to buy them. They aren't even pieces of paper any more. Real estate has always interested me because it's tangible. Stocks on the other hand can be wiped out to zero.
Stock holders aren't "owners", that is a myth. Perhaps if you own 10% of a company you have a say but this doesn't apply to 99.999999999% of the stock holders out there.
I think you are also underestimating the ability of stock to pay dividends. If those periodic dividends are reinvested to buy more stock in the company, your shares can really build over time. Some experts would say this is the real benefit of owning stock, not so much its increase in value over time.
I can see your point about stock not really being about ownership and you mention in a later post that this ownership is more on paper than a practical ownership....however, this doesn't change the fact that investing in stocks cannot be profitable.
I think you are also underestimating the ability of stock to pay dividends. If those periodic dividends are reinvested to buy more stock in the company, your shares can really build over time. Some experts would say this is the real benefit of owning stock, not so much its increase in value over time.
I can see your point about stock not really being about ownership and you mention in a later post that this ownership is more on paper than a practical ownership....however, this doesn't change the fact that investing in stocks cannot be profitable.
Assuming that your stock has not gone belly up entirely, what percentage of those dividends are taxable?
Down 50% just to make 3.5%-5% dividend. Sounds like a killer deal to me!!! A house of cards my friend, a house of cards.
Stocks are a LONG term investment my friend. You can't look at the short term ups and downs of the stock market. Look at a company like 3M, their stock is down oh, 50% or so over the past couple years but it is still UP $20/share from 20 years ago--yes at ONE TIME it was worth more but if you bought 1000 shares 20 years ago and sold today during some of the worst market conditions ever you would still have made $20,000 on your shares--how is that a bad thing?
Heck, if you had invested $10,000 in 1934 in a blue chip type stock that $10,000 would have been worth $70 MILLION at the end of 2007 (obviously less now but even at 3 million that is a heck of a gain).
Heck, if you had invested $10,000 in 1934 in a blue chip type stock that $10,000 would have been worth $70 MILLION at the end of 2007 (obviously less now but even at 3 million that is a heck of a gain).
Coincidence you should mention 1934....
I know a man that bought a home for $2500 in 1934 and sold it in 2007 for 650k... so that would be 2.6million on 10k and he lived and raised his family there.
A 10,000 dollar Duesenberg would go for at least 5 million today... even after the crash...
Stocks are a LONG term investment my friend. You can't look at the short term ups and downs of the stock market. Look at a company like 3M, their stock is down oh, 50% or so over the past couple years but it is still UP $20/share from 20 years ago--yes at ONE TIME it was worth more but if you bought 1000 shares 20 years ago and sold today during some of the worst market conditions ever you would still have made $20,000 on your shares--how is that a bad thing?
Heck, if you had invested $10,000 in 1934 in a blue chip type stock that $10,000 would have been worth $70 MILLION at the end of 2007 (obviously less now but even at 3 million that is a heck of a gain).
You're missing my point. Has the value of 3M as a company actually fallen 50%? Are they truly worth half as much as they were 1 year ago? I doubt it. Yet their stock says otherwise. Why? Because people get scared and sell. The only reason a stock is worth $X is because someone is willing to pay that much for it. If no one wants it, it's value is $0.
I invest in stocks because that's what my 401k allows me to do. But there isn't any real value in them. They aren't even paper any more. Japan's stock market hit a high of almost 40,000 points 15 (?) years ago. Now it's down to 8000 or so I believe. Long term horizon? I hope so! Not only did stocks do nothing for 15 years they have lost 75% of their value. Their decline started exactly how ours did - cheap money with a run up in real estate and commodity prices.
You're missing my point. Has the value of 3M as a company actually fallen 50%? Are they truly worth half as much as they were 1 year ago? I doubt it. Yet their stock says otherwise. Why? Because people get scared and sell. The only reason a stock is worth $X is because someone is willing to pay that much for it. If no one wants it, it's value is $0.
I invest in stocks because that's what my 401k allows me to do. But there isn't any real value in them. They aren't even paper any more. Japan's stock market hit a high of almost 40,000 points 15 (?) years ago. Now it's down to 8000 or so I believe. Long term horizon? I hope so! Not only did stocks do nothing for 15 years they have lost 75% of their value. Their decline started exactly how ours did - cheap money with a run up in real estate and commodity prices.
I do see your point and yes, if no one was willing to by 3M stock it is worth nothing but that isn't happening. Trades are still happening and if you owned 3M stock and wanted to sell it today you WOULD find a buyer.
I'm close to maximizing my 403b contributions, and I may in fact make the maximum this year, but I've been setting aside money for a sizeable emergency fund. The $2500 (or so) difference in my contributions have made a difference over the past few years in helping me build that fund.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
