THE OFFICIAL INVESTORS THREAD vol. Securities, Real Estate, Franchises

[wawaweewa]

Originally Posted by capricdragon

I'm not a fan of Rich Dad Poor Dad. Just my own personal conclusion.

I prefer to buy ETFs such as GLD to get into the gold frenzy .... and also bought GG (Goldcorp) a while back. I don't own any physical gold bullion.

I'm on a long term holding pattern for Johnson & Johnson (JNJ), Apple (AAPL), Google (GOOG) and Chevron (CVX).

I ONLY buy gas from Chevron. I'm on Google 24/7. I have 3 kids under the age of 4 so I am a FREQUENT shopper of JNJ products ~ baby products.
I try to follow Warren Buffet's ideal that you should really own shares of companies that you 'know' (and use)

There will ALWAYS be customers of baby products!!

If you drink Pepsi and eat at Taco Bell ~ Buy PEP shares. I think Pepsi owns KFC as well, but I might be mistaken.
If you use Head and Shoulders shampoo, buy shares of Proctor & Gamble (PG)

I agree with the Buffett ideal but it's a bit more in depth in terms of philosophy. As a consumer you can see one company's edge in a given sector. Some companies prove great for the consumer but aren't sustainable businesses in the end. For example, I love Wendy's but I don't think they have an edge in their sector versus MCD or YUM. I really like Sony products and believe that they're great value for the money (in terms of quality/$) versus their competitors but buying into their equity would be suicide. They're poorly run, overextended, and are suffering from the lack of appreciation for quality among today's consumers. 
On the other hand, I love Walgreens and it was very clear from a consumer point of view that they had a clear edge against the likes of Duane Reade, Rite Aid, or CVS (although CVS generates most of their revenue on the pharma side). I can always find something to buy at Walgreen's because of their sales/ clearance but I rarely step foot in the other 2 to buy anything because their prices are horrible. As a result I bought some in WAG a few years ago; it's a longer term play unless circumstances change. 

 

[lazyj10]

I am bullish on high dividend stocks in the long run. I think with as much cash as U.S. corporations are hoarding you'll see some upticks in dividends and the amounts. Also, I'm willing to bet you'll see more share buybacks as well.

I've never read Rich Dad Poor Dad nor do I have any interest in it.

As for the comment about "A Random Walk Down..", it's been beneficial to me in my career too so I had a twofold reason to read it.

 

[capricdragon]

Originally Posted by LazyJ10

Yum Brands (YUM) owns KFC, Taco Bell, A&W, Pizza Hut, etc.

good correction.  Thanks.  I had a hunch I was mistaken, but didn't research it further before posting.

 

[lazyj10]

No worries. The only reason I knew off the top of my head was I owned them back in like 2005.

 

[capricdragon]

Originally Posted by cguy610

Originally Posted by capricdragon

I'm not a fan of Rich Dad Poor Dad. Just my own personal conclusion.

I prefer to buy ETFs such as GLD to get into the gold frenzy .... and also bought GG (Goldcorp) a while back. I don't own any physical gold bullion.

I'm on a long term holding pattern for Johnson & Johnson (JNJ), Apple (AAPL), Google (GOOG) and Chevron (CVX).

I ONLY buy gas from Chevron. I'm on Google 24/7. I have 3 kids under the age of 4 so I am a FREQUENT shopper of JNJ products ~ baby products.
I try to follow Warren Buffet's ideal that you should really own shares of companies that you 'know' (and use)

There will ALWAYS be customers of baby products!!

If you drink Pepsi and eat at Taco Bell ~ Buy PEP shares. I think Pepsi owns KFC as well, but I might be mistaken.
If you use Head and Shoulders shampoo, buy shares of Proctor & Gamble (PG)

Thanks for the idea.  JNJ has a great DRIP plan.  3.7% dividend. 

That will be my next DRIP plan. 

I love DRIPs!  I used to own a DRIP in Walmart.  The $25 (or $50?) minimum was great for me when I was younger and not in a career.  Thanks to my dad that introduced them to me.

 

[capricdragon]

Originally Posted by Donny Walker Blaq

Originally Posted by capricdragon

I'm not a fan of Rich Dad Poor Dad. Just my own personal conclusion.

I prefer to buy ETFs such as GLD to get into the gold frenzy .... and also bought GG (Goldcorp) a while back. I don't own any physical gold bullion.

I'm on a long term holding pattern for Johnson & Johnson (JNJ), Apple (AAPL), Google (GOOG) and Chevron (CVX).

I ONLY buy gas from Chevron. I'm on Google 24/7. I have 3 kids under the age of 4 so I am a FREQUENT shopper of JNJ products ~ baby products.
I try to follow Warren Buffet's ideal that you should really own shares of companies that you 'know' (and use)

There will ALWAYS be customers of baby products!!

If you drink Pepsi and eat at Taco Bell ~ Buy PEP shares. I think Pepsi owns KFC as well, but I might be mistaken.
If you use Head and Shoulders shampoo, buy shares of Proctor & Gamble (PG)

After reading your post an idea popped up!

I wonder  how are those generic brands doing in this economy. For instance I dont use head and shoulders. I use equate(walmart version). It works just as good put it's cheaper.


Thanks capdragon, I got a new sector to research now. It's just a hunch but a gem of a company may be lurking in the dark 

  

@Donny:  check the back/bottom of your shampoo bottle.  The corporation should be in fine print.
If you stick to the same toothpaste religiously (ie. Colgate) try that...  companies like JNJ, Colgate and P&G aren't going anywhere in this crazy market.  ----> IMO

I'm (only) 34 years old and have recognized multiple cycles in the economy.  There will always be dips and peaks in the stock market, real estate, etc.  So just ride whatever roller coaster.

What is the old saying ~ You should always buy into panic (huge drop) and sell during hysteria...?  Is that correct?

 

[donny walker blaq]

Rich dad, poor dad is geared towards real investments. It doesn't help a portfolio invester at all.

Personally i'm always bullish. back in 09 when the market was in the dump I picked up finish line for 4.30 bucks and rode it to 15. I cleared $4,650 of that.

.  That was my very first trade ever and it set the tone for the type of returns i'm interested in. I want the 1000% roi ( i'll get it one day)

These stocks are gonna buy me 10 burger kings one day... word to Rick Ross

prolly not bk but one of these food franchises. I like how yum brands run there business

Fannie mae was the whale that got away tho. I remember everybody was saying the stock was gonna get pummled when the market opened and I ignored the signs. I didn't short the stock and it dipped from $20 to $1 and some change. I just laughed and had that awkward feeling in my bones bc I knew a couple of my boys got that easy  money
  

@ cap thanks for the direction bro. Im a man on a mission

 nothing makes me happier than prospect of undervalued companies.

 

[lazyj10]

The problem with shorting something that everyone knows is going down is being able to actually borrow the shares. Lots of the brokerages we use would NOT allocate that trade to us unless we had a heavy bank roll with them or were a part of a Private Wealth division.

The other is when they put a squeeze on, you can find a short blown up and have a huge loss.

 

[donny walker blaq]

Lazy you ae speaking the truth but this was in like 08-09 before everything changed plus i had the money to do it but I choked.

It was a slam dunk. Im gonna see if I can find some old info on this one a post it in the thread

 

[wawaweewa]

Originally Posted by Donny Walker Blaq

Rich dad, poor dad is geared towards real investments. It doesn't help a portfolio invester at all.

Personally i'm always bullish. back in 09 when the market was in the dump I picked up finish line for 4.30 bucks and rode it to 15. I cleared $4,650 of that.

.  That was my very first trade ever and it set the tone for the type of returns i'm interested in. I want the 1000% roi ( i'll get it one day)

These stocks are gonna buy me 10 burger kings one day... word to Rick Ross

prolly not bk but one of these food franchises. I like how yum brands run there business

Fannie mae was the whale that got away tho. I remember everybody was saying the stock was gonna get pummled when the market opened and I ignored the signs. I didn't short the stock and it dipped from $20 to $1 and some change. I just laughed and had that awkward feeling in my bones bc I knew a couple of my boys got that easy  money
  

@ cap thanks for the direction bro. Im a man on a mission

 nothing makes me happier than prospect of undervalued companies.

This isn't necessarily directed at you, but if I gave my dog 100k to invest at the start of '09, chances are he'd be a winner today. During the tech bubble, many made millions and then blew up their accounts as a result of the crash. 
Again , this isn't necessarily directed at you, so don't take it personal. The market of the last few years has been kind to novices on the whole.  I have a friend who invested in silver in the teens solely based on listening to Alex Jones. Is that good or bad? I don't know. What I do know is that it isn't a viable long term strategy. In the short term, variance plays a huge role among traders/investors. I can attest to it. It's very akin to poker. 

btw, pay your taxes. The first year I forgot to file the 1040 (first time filing taxes; ignorant) and they hit me up about a year later for around 15k + fees.

 

 

[lazyj10]

My public service advertisement as a CPA.

Yes, PAY your taxes, on trades. Set up with your broker how they're going to treat the selling of your positions as well (i.e - FiFo, LiFo, etc) since that will determine taxable gains/losses.

Your losses can offset some gains. Keeping good records is going to be the key, especially going forward because the brokers are now reporting to the IRS via 1099s.

If there's anything anyone takes away from this thread, it should be, pay your taxes. The IRS will go over little guys on this because it's being centralized and easy to determine on their end whereas it used to not be.

 

[donny walker blaq]

Originally Posted by wawaweewa

Originally Posted by Donny Walker Blaq

Rich dad, poor dad is geared towards real investments. It doesn't help a portfolio invester at all.

Personally i'm always bullish. back in 09 when the market was in the dump I picked up finish line for 4.30 bucks and rode it to 15. I cleared $4,650 of that.

.  That was my very first trade ever and it set the tone for the type of returns i'm interested in. I want the 1000% roi ( i'll get it one day)

These stocks are gonna buy me 10 burger kings one day... word to Rick Ross

prolly not bk but one of these food franchises. I like how yum brands run there business

Fannie mae was the whale that got away tho. I remember everybody was saying the stock was gonna get pummled when the market opened and I ignored the signs. I didn't short the stock and it dipped from $20 to $1 and some change. I just laughed and had that awkward feeling in my bones bc I knew a couple of my boys got that easy  money
  

@ cap thanks for the direction bro. Im a man on a mission

 nothing makes me happier than prospect of undervalued companies.

I don't mean to rain on your parade ...again

and this isn't necessarily directed at you, but if I gave my dog 100k to invest at the start of '09, chances are he'd be a winner today. During the tech bubble, many made millions and then blew up their accounts as a result of the crash. 
Again , this isn't necessarily directed at you, so don't take it personal. The market of the last few years has been kind to all on the whole.  I have a friend who invested in silver in the teens solely based on listening to Alex Jones. Is that good or bad? I don't know. What I do know is that it isn't a viable long term strategy. In the short term, variance plays a huge role among traders/investors. I can attest to it. 

btw, pay your taxes. The first year I forgot to file the 1040 (first time filing taxes; ignorant) and they hit me up about a year later for around 15k + fees.

 

I don't feel like your stepping on my toes. Alot of people lost money in 08-09 I was there, as i am today. I really dont think those time are anything to laugh at because a lot of peope where lost.

I can call that play or my bank atlantic play, radio one play, my money gram play, etc.  The point is I have never loss money.

What plays can you call? I really do this waw. Investing is how I have fun waw. 

I've made a lot of money with little exposure.

How many people do you talk to about investing that mentions exposure waw?

I don't get why you always try to discredit me. You've been doing that since I first hit this forum. I got respect 4 you bc I think you really get it sometimes

despite what you think waw,

I put a lot of thorough research into my investments. I really don't think a dog can do what I do because he isn't flexible like me(nomo)

and If you was really on point. You would be trying to funnel that funny/portfolio money into some real investments like real estate and franchises/retail

At the end of the day it's all about cash and thats what i will be sitting on. I view the stock market as a casino bro. I only take the money serious

-Donny the cash out king

  

 

[capricdragon]

Originally Posted by LazyJ10

The problem with shorting something that everyone knows is going down is being able to actually borrow the shares. Lots of the brokerages we use would NOT allocate that trade to us unless we had a heavy bank roll with them or were a part of a Private Wealth division.

The other is when they put a squeeze on, you can find a short blown up and have a huge loss.

I never understood the whole 'shorting' strategy. That's the options method - calls & puts right?Never really was exposed to the method plus heard can be deathly stressful

 

[lazyj10]

Options are safer than outright shorting.

Out right shorting of equities involves you "borrowing" the stock from a broker's inventory (who may borrow it from someone else and pay them a fee) and selling it without owning it.

It's all good as the price of the equity goes down but if there's a uptick in the price you're loss exposure is unlimited.

Puts allow you to speculate on downward price movement without borrowing stock to do if. Options are just equity derivatives that you pay a premium for depending on the month, strike price and underlying price. This is assuming no one is exercising the option.

 

[donny walker blaq]

Originally Posted by capricdragon

Originally Posted by LazyJ10

The problem with shorting something that everyone knows is going down is being able to actually borrow the shares. Lots of the brokerages we use would NOT allocate that trade to us unless we had a heavy bank roll with them or were a part of a Private Wealth division.

The other is when they put a squeeze on, you can find a short blown up and have a huge loss.

I never understood the whole 'shorting' strategy. That's the options method - calls & puts right? Never really was exposed to the method plus heard can be deathly stressful

 I don't deal in options. I only trade stocks

Puts are for options and shorts are for stocks

They are both bets that the price of a share will decrease. So if you thought the price of nike share was gonna drop 15 bucks. then you would short nike(place a bet that the stock was gonna drop)

with shorts you make money when the stock price drops and lose money when the stock price rises.

  

 

[donny walker blaq]

This link explains the mechanics of shorts and puts.

http://www.investopedia.com/ask/answers/05/shortvsput.asp


* if you still have questions just post and we will try to provide examples

 

[lazyj10]

A key difference between outright shorting and puts is your loss limit.

With an option you're only going to be out the premium you pay. With shorting a stock loss is UNLIMITED

 

[eddo1005]

Dont frequent to the general forum a lot, but I am subscribing to this thread.

 

[igot]

Great thread glad im added to this just need to keep up on it, this is something i want to learn.

 

[finnns2003]

So... should I stop bumping my "bloodbath" thread?

 

[wawaweewa]

Originally Posted by Donny Walker Blaq

Originally Posted by wawaweewa

Originally Posted by Donny Walker Blaq

Rich dad, poor dad is geared towards real investments. It doesn't help a portfolio invester at all.

Personally i'm always bullish. back in 09 when the market was in the dump I picked up finish line for 4.30 bucks and rode it to 15. I cleared $4,650 of that.

.  That was my very first trade ever and it set the tone for the type of returns i'm interested in. I want the 1000% roi ( i'll get it one day)

These stocks are gonna buy me 10 burger kings one day... word to Rick Ross

prolly not bk but one of these food franchises. I like how yum brands run there business

Fannie mae was the whale that got away tho. I remember everybody was saying the stock was gonna get pummled when the market opened and I ignored the signs. I didn't short the stock and it dipped from $20 to $1 and some change. I just laughed and had that awkward feeling in my bones bc I knew a couple of my boys got that easy  money
  

@ cap thanks for the direction bro. Im a man on a mission

 nothing makes me happier than prospect of undervalued companies.

I don't mean to rain on your parade ...again

and this isn't necessarily directed at you, but if I gave my dog 100k to invest at the start of '09, chances are he'd be a winner today. During the tech bubble, many made millions and then blew up their accounts as a result of the crash. 
Again , this isn't necessarily directed at you, so don't take it personal. The market of the last few years has been kind to all on the whole.  I have a friend who invested in silver in the teens solely based on listening to Alex Jones. Is that good or bad? I don't know. What I do know is that it isn't a viable long term strategy. In the short term, variance plays a huge role among traders/investors. I can attest to it. 

btw, pay your taxes. The first year I forgot to file the 1040 (first time filing taxes; ignorant) and they hit me up about a year later for around 15k + fees.

 

I don't feel like your stepping on my toes. Alot of people lost money in 08-09 I was there, as i am today. I really dont think those time are anything to laugh at because a lot of peope where lost.

I can call that play or my bank atlantic play, radio one play, my money gram play, etc.  The point is I have never loss money.

What plays can you call? I really do this waw. Investing is how I have fun waw. 

I've made a lot of money with little exposure.

How many people do you talk to about investing that mentions exposure waw?

I don't get why you always try to discredit me. You've been doing that since I first hit this forum. I got respect 4 you bc I think you really get it sometimes

despite what you think waw,

I put a lot of thorough research into my investments. I really don't think a dog can do what I do because he isn't flexible like me(nomo)

and If you was really on point. You would be trying to funnel that funny/portfolio money into some real investments like real estate and franchises/retail

At the end of the day it's all about cash and thats what i will be sitting on. I view the stock market as a casino bro. I only take the money serious

-Donny the cash out king

  

I'm not trying to discredit you seem to be a little overly excited, as I was a few years ago. So I know how it feels. A few good trades makes one feel like master of the world.  The truth is none of us have enough experience yet and it's a constant learning game.

I've had some big winners and also some big losers and it was mostly because of inexperience and arrogance. At the time, it seems like what one is doing is genius, but looking back on it, a lot had to do with variance. For example, back in '08 I bought some high teen calls for 5 and 10 cents a piece for AN when it was trading in the mid to high single digits. It was a purely technical play. I was listening to Bloomberg radio and I heard someone playing up AN. I looked a the chart and looked great. Long story short, when I sold the calls, they were in the high 2's , low 3's.
A few years on , I realize it was just sheer dumb luck. Things just lined up and my ability had maybe 5% to do with it. If that. I've had other big gains and other big losers since then and it is what it is. CTIC is another example but I bought the equity in that one. With this one, it was prob 99.9% luck.

I may be a few years older but we're still all young and inexperienced. The few things that I've learned thus far is that the approach is far more important than the execution part and to always give variance it's credit. Oh, and risk management above all else. 

 

[dathbgboy]

Appreciate this thread. As far as Real Estate, can u elaborate? I'm about to take real estate courses for my paralegal program. To my understanding, after I finish the course I can practice real estate.

Also, would u suggest investments in portions of stock like AIG allows with their online brokerage accounts?Edit: Also, I feel what dude was sayin as far as investments. I always felt that u should use the products that u purchase stock in and vice versa, its like ur makin it back. I want to invest but have debt that I can't seem to get rid of (two credit cards) I guess the "side hustle" will pay off in the end

 

[jaysrcrak]

Iraqi dinars. Dont know when but they WILL revalue.

 

[retro23j]

Oh yes!

 

[maldonado]

niiiice.

great thread.

I'm all in.