Are you investing in stocks?

  • Thread starter Nikitin
  • Start date

Do you invest your savings?

  • No, I keep them in the bank.

    Votes: 7 28.0%
  • Yes

    Votes: 13 52.0%
  • A bit of both. I'm not a very hardcore investor.

    Votes: 5 20.0%

  • Total voters
    25
  • #1
726
27
If so, post your portfolio.

I'm currently working to increase my university savings (I'm about to finish high-school and start at uni in one year) and I think it'd be a waste to keep the money in the bank. I mean, here you get a 3% bank rent? After taxes it's actually around 2,2%, while inflation is somewhere around 3%.. 1.022/1.03 <1. So basically you're losing money by keeping them in the bank.

If one takes the time to learn about accounting (a few ratios and such, nothing complicated) & the market, and use a "buy high-dividend stocks from large, stable and efficient companies when they're cheap" strategy it's quite hard to lose money. At least I think so, I bought my first stocks 1 month ago and it seems to go fine until now..

Anyway thoughts?

My portfolio is:
Excelon - 5% dividend yield
TEVA Pharmaceuticals - 2,5% dividend yield but it'll get better
Banco Santander - 10% (sustainable, unless the Spanish economy really does go into a recession) dividend yield
Apple - 0% dividend yield, but I think the market beat this stock too far into the dirt. I don't trust an Apple without Steve Jobs, but I think it will rise a decent amount in the short-medium term (after the Euro-fears decline) due to quite high iPhone 4S sales, new concepts, untapped Asian market etc.
Vimpelcom - 8% (sustainable) Dividend yield.
 
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Answers and Replies

  • #2
918
16
Bear Stearns told us to buy and Morgan Stanley told us to sell. First we went with Morgan Stanley and sold short, but the market rose and we lost money. So we had to drop our shorts and go with Bear Stearns.
 
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Likes Borg
  • #3
726
27
I don't understand, you're telling me you just listened to what some analyst told you? Well going into the market clueless is like gambling basically.

I don't trust analysts or investment banks. What I do is when I have identified a decent, cheap stock through recommendations from websites like seekingalpha.com or fool.com, I start checking the company's numbers (using nasdaq.com). If it looks good, then I'll start seeing what people are saying about it and what analysts think about it. Also I only buy stocks from large companies.

As for derivatives.. I duno it's kind of scary. I don't do trading (attempting to suck money out of the market by buying and selling stocks at a high frequency), trading is for professionals.
 
  • #4
184
1
Trading is for supercomputers placed meters next to Exchange computers.
 
  • #5
64
0
I invest, but since it's in brazilian stocks it may not be that interesting to you guys.
If you know what you're doing, it's the best thing to do with your money. Especially since maintaining a business down here is near impossible, with terrible worker laws and taxes.
 
  • #6
726
27
I was thinking about buying either gazprom or petrobras as an energy stock. You own petrobras I assume, since it's a big brazillian company?
 
  • #7
Evo
Mentor
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I don't think that people should be sharing personal investment information.
 
  • #8
67
166
Bear Stearns told us to buy and Morgan Stanley told us to sell. First we went with Morgan Stanley and sold short, but the market rose and we lost money. So we had to drop our shorts and go with Bear Stearns.
:rofl:
 
  • #9
64
0
I was thinking about buying either gazprom or petrobras as an energy stock. You own petrobras I assume, since it's a big brazillian company?
Yes, Petrobras, Vale, Banco do Brasil, all brazilian blue chips. I sold tons of Vale when it was almost 50 reals a share, and I bought a lot back when it went to 39 I think(it went even lower, but I missed it)...now I'm hoping for it to go back up. It's at 42 right now...
I kept petrobras, because it has been mostly stable, it goes up one day, and down the other...not much happening since I bought it.
About Petrobras, I don't know how they are faring in the USA, since it's a different stock, but since the crisis in europe most brazilian big companies have been on the decline, but they recovered a little starting in the last week.
I think petrobras is a pretty solid company especially after they found tons of oil in the brazilian coastline, and since the government could in theory help them with any big financial problem it will hardly ever go into serious debt.
It doesn't pay much dividends, it is giving about 1% per share each 3 months.
 
  • #10
Borg
Science Advisor
Gold Member
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Bear Stearns told us to buy and Morgan Stanley told us to sell. First we went with Morgan Stanley and sold short, but the market rose and we lost money. So we had to drop our shorts and go with Bear Stearns.
:rofl: Another excellent one Jimmy!
 
  • #11
Pengwuino
Gold Member
4,989
16
I invest my money in sandwiches.
 
  • #12
283
0
Last edited by a moderator:
  • #13
Vanadium 50
Staff Emeritus
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It is true that stocks have a good long-term track record. But year to year, it's not so great. In the last 110 years, in 42 of them the DJIA traded lower than the previous year. Most investment advisors will start by asking "when will you need the money"? I think that's a very good question: I have money I will need in 1 year, in 5 years and in 20 years in different places. For good reason.
 
  • #14
OmCheeto
Gold Member
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I don't think that people should be sharing personal investment information.
Drats! Every time I share my personal investment information, my share prices go down, and I buy more!
 
  • #15
jtbell
Mentor
15,735
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here you get a 3% bank rent?
Where is "here?" :tongue2:

In the US the highest rate for a one-year bank certificate of deposit is 1.15% according to bankrate.com. Even for a five-year CD the highest rate is 1.9%.

I don't invest in individual stocks because I don't have the time or inclination to keep up with the research to do it effectively. Instead I use mostly mutual funds. Right now my savings are distributed approximately like this:

8% bank accounts (including CDs)
55% stock mutual funds (jumping up and down a lot)
27% retirement annuity (currently growing about 4% annually, above my contributions)
10% bond mutual funds (currently giving about 3% annual dividends)

I'm only a few years away from retirement so I'm more conservative than someone in his 20s would be.
 
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  • #16
201
53
I don't think that people should be sharing personal investment information.
People usually share the portfolio and percentage allocation. In fact most of the stock blogs require the authors to declare their position on the stock they mention.

No one shares the actual $ amount they put in.
 
  • #17
726
27
Well, the bloody Greeks have done it again. I think their prime minister was pressured into accepting the referendum on the European rescue pack.. Funny that two weeks ago he was flying around Europe begging for money. Greece really is a mess, with politicians fighting for dominance, even if it will force Greece into a default.

It is true that stocks have a good long-term track record. But year to year, it's not so great. In the last 110 years, in 42 of them the DJIA traded lower than the previous year. Most investment advisors will start by asking "when will you need the money"? I think that's a very good question: I have money I will need in 1 year, in 5 years and in 20 years in different places. For good reason.
Well, it depends. If you wait until after a panic, you could get stocks cheap and thus earn a profit fast. Right now the market is fear stricken so buying stocks could be smart.

It's actually kind of funny how irrational the market can be, with traders and investors trying to predict other traders' and investors' behaviour and reactions. Not to mention the overreactions.

Where is "here?" :tongue2:
Europe :)
 
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  • #18
918
16
It's actually kind of funny how irrational the market can be, with traders and investors trying to predict other traders' and investors' behaviour and reactions.
So don't try to guess where the market is going, try to guess where other people guess the market is going. Before you invest real money, you should try making a few mental investments. That way, if the stock goes down, you don't lose any money. You just lose your mind.
 
  • #19
Vanadium 50
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Well, it depends. If you wait until after a panic, you could get stocks cheap and thus earn a profit fast. Right now the market is fear stricken so buying stocks could be smart.
You could. Or you could end up investing in more panic.

As they say, "Buy a stock, and when it goes up, sell it. If it doesn't go up, don't buy it."

And as I said before, the first question should be "when do I need the money?" If the answer is "next year", volatile investments are unwise.
 
  • #20
AlephZero
Science Advisor
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It's actually kind of funny how irrational the market
Most of the the "fun" is watching economists and commentators explain everything rationally, the day after it happened.

On the other hand, if markets WERE completely rational, it would be a lot harder to make money.
 
  • #21
726
27
The markets have a habit of overreacting, so an initial shock shakes the market, and then the market goes up again. A trader think that other traders are going to sell, and thus the trader sell. Or the trader just panics and sells because other traders panic and sell.

Of course, the really big crashes usually happen over several days with constant panic - though this definitely isn't what's happening today. Further falls in the market can only be brought about if it gets obvious that the Greeks will default.
 
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  • #22
DoggerDan
The markets have a habit of overreacting...
That they do.

I'm not your usual investor. I do analyze companies, following Berkshire Hathaway's lead in always investing in solid, under-valued companies, then holding on for the long term. Well, except for that last bit. I use a few additional filters, including proclivity in the market news. In the end, I trade on the basis of what what I think others are going to do, as that seems to drive the swings to a much greater extent than fundamentals. I'll often buy and sell the same stock over and over, but I do that with a core dozen stocks. As Dad said, "buy low, sell high."

I know some don't consider that acceptable," but it's how most investment management firms make their money.
 
  • #23
726
27
Buying when there's blood in the street and selling when there's a massive relief sounds smart, but I don't really have the experience or the capital to take such a risky approach. Besides, it is pretty immoral to try and suck money out of the market instead of investing into ones favourite companies.

Which one of the investment firms are the most successful, and you know where I kind find information about what kind of stocks these firms are buying, selling and holding? As for Berkshire hathaway.. Well I wouldn't count that Warren Buffet is their ace, as that guy is like 80+ years old.
 
  • #24
Vanadium 50
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It sounds like your mind is made up. You think that you can take money you need next year and that it is smart to stick it in an investment that his highly volatile but might produce a few percent more return.

This is not smart. This is stupid.
 
  • #25
201
53
There are two kinds of investors:

Those who don’t know where the market is headed, and those who don’t know that they don’t know where the market is headed.
 

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