Quetion About Buying Stocks For First Time | Page 2 | TigerDroppings.com

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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Quetion About Buying Stocks For First Time


ya, you know why GE went down? I'll tell you why they went down....their real estate division.....all stocks dropped in 2008/9 but GE went down bc they went out of their damn realm and were highly leveraged in some toxic stuff, I dont see Mcdonald's getting into financial services anytime soon so I sleep well at night and assume no matter how bad the economy gets people can afford to blow a couple bucks.....I dont see soft drinks,burgers, or cigarette companies ever highly leveraging anything for that matter

Know the difference between Phillip Morris,Coke,Mcdonalds and GE is.....In less than 10 words tell me what in the frick GE does exactly????

1.Coke....global softdrink producer
2.mcdonalds....global burger chain
3.Phillip Morris....global cigarette producer

4.GE.....this is off google btw....General Electric company(GE) is into:

1.power generation
2.home appliances
3.financial services
4.lighting
5.aviation(turbo jet engines)
6.Power distribution
7.Health care(machines used in hospitals)
8.Equipments for oil & gas exploration
9.Railways(locomotive engines)
10.security systems(for home,school,airports,etc.)
11.waste water treatment equipments.

Don't know much about GE but didn't they start out as a light bulb company? Financial services and railways today?? What in the hell, that would be like coca cola getting into investment banking and single family home rentals



This post was edited on 3/22 at 3:12 pm


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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1634 posts

re: Quetion About Buying Stocks For First Time


Good info you have brought to this thread





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matthew25
Ole Miss Fan
Member since Jun 2012
3489 posts

re: Quetion About Buying Stocks For First Time


BigGuy - I would not be holding more than 10% in any single stock.





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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Quetion About Buying Stocks For First Time


Matthew, you're a nice guy, I respect your opinion, but I've seen lots of your posts asking for advice on mutual funds. Im a dividend growth investor, its a different type of investor, I dont panic when markets drop as my only goal is boosting dividend income. My risk tolerance is slightly higher than yours bc I own a couple convenience stores so even if my portfolio hit 0 in some SHTF scenario i'd still have income and the ability to rebuild

The reality is my 2 biggest holdings Philip Morris and MO make up probably 70% of my portfolio and not only do they combine to make up the best performing stock of the last 50 years, the fact that the US would have to double income tax to make up lost cigarette tax revenue is reason alone to buy altria, not to mention my intuition they will be producing marijuana before the decade is over....did I mention it pays a 5.2% dividend?

Philip Morris pays a 3.8% yield and is growing even faster with the rising smoking rates all over the world, and since they spun off they face no american legal issues and are actually the best play i can think of to capitalize on a falling US dollar bc they take all income in foreign currencies

Im in the gas station business, and I can tell you cigarettes aren't going anywhere my man, we sell more every month than the month before....trust me the US is bankrupt as could be, cigs are literally helping keep us afloat, google the master settlement

I have confidence in both to make up up 3/4 of my holdings

I dont own 30 businesses in real life, I own 4....so I don't have a need to own 30+ stocks....I own 6 total....diversification is silly to me, buy what you know, buy what you trust, buy what you see first hand....I did all 3 of those things my 6 holdings are

PM,MO,KMI,KO,WMT,MCD

and I use everyone of those businesses everyday, wouldn't invest in anything else. I shop for my stores @ sams(wmt),I sell cigs (mo,pm),one of my stores has a mcdonalds,I sell plenty of coke products, and Kinder morgan moves tons of stuff underground that I sell



This post was edited on 3/23 at 1:06 am


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matthew25
Ole Miss Fan
Member since Jun 2012
3489 posts

re: Quetion About Buying Stocks For First Time


My sister was a marketing director for Worldcomm in Clinton MS. She lost >$500k overnight in company stock about 11 years ago. She refused to diversify.


I had 4000 shares of Wal-Mart, bought in the 20's/2 splits. Last year, Wally world hit 62, then it was revealed that the company had been bribing the Mexican government to allow stores. Lost $4 overnight, and I feared worse. Sold 3000 shares. (WMT now over 74!)

That's why I am getting out of stocks and into MF"s/ETF's, although I still have more than 20 stocks. (Hey, XLP had 10% of Phillip Morris)


At my age, just not that many years to make up a 30% loss.

As long as you appreciate the risk, good luck to you.






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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Quetion About Buying Stocks For First Time


As for walmart wow man you sold!?!? Just checked dividend history...walmart div is at 47 cents a share today up from 9 cents a share in 2003....a 500% raise in dividends?!?!?! I know i didnt get a 500% raise over that timeframe.Their 10 year dividend growth is 20%+ youre getting a 20% raise annually to hold, did you get a 20% raise at work? you panic and sell over share price which is irrelevant to dividend growth investors for the most part bc the income is what we seek in companies we know wont go bankrupt Matthew worldcom didn't pay a rising dividend my man, dividends are a sign of free cash flow...

like I said worldcomm and Enron were different. Enron, the price ran up abt 80%...the dividend abt 9% that was your warning flag bc solid div growth companies raise dividends tied to earnings and you can't fake a payout. Seriously Philip Morris payout is 65% of earnings in dividends...earnings doubled last few years so did dividend...earnings will be up 10% or so every year moving forward for the next 5 years so the dividend will rise accordingly....worldcom wasn't a dividend growth stock with a long history of payouts you're comparing apples to oranges

Worldcomm can go out of business and the world won't blink....if the world's largest cigarette producer which owns 7 of the top 15 global brands like philip morris went bankupt it would take an act of god. Cigarettes are a life staple for many people, and globally smoking rates are rising.....the barrier of entry is near impossible for new competitors.....worlcom was a telecom company, how many of those existed??? Again sorry about your sister but apples and oranges truly bc I doubt worldcom even paid a dividend

Meanwhile FYI just checked XLP dividend it seems ok, some yoy growth, but don't see any consistency ie there was no MARCH 2010 dividend paid...so that's scary to an income investor bc all the companies it holds pay a dividend so investors should have gotten one.....i use dividata.com btw



This post was edited on 3/24 at 8:50 am


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