Shut up Court.
Shut up Court.
I didn't really have anything else to say, but now I feel obligated to continue posting. See what you made me do?
I put my moniez on an inflated tech stock and haven't been happier. Nor do I suggest anyone else do it. My grandpa taught me the stock market yet would never give stock tips. Boy you are on ur owns.
J~$$$ I <3 you. I'm just sayin that it's good to hedge investments in one sector of the market by investing in other sectors of the market as well. That way if one portion of your investment tanks, hopefully the others will not. Common sense.
This is why I would hump the shit out of Kevin Kelleher. 2004 article.
Also I guess if you didn't want to diversify with other sectors of the market, you could sell short too. But that takes more time/effort.
2 oz blended whiskey
Juice of 1/2 lemon
1/2 tsp powdered sugar
1/2 slice lemon
Shake blended whiskey, juice of lemon, and powdered sugar with ice and strain into a whiskey sour glass. Decorate with the half-slice of lemon, top with the cherry, and serve.
The problem with the Google strategy is that Googles don't come along every day. and also, shit happens. Enron looked like a damned good investment 10 years ago.
I agree 100% Thats why I look at a thousands different things I even want to know what they are serving up at the company cafeteria before I invest.
so you think you can beat the market by doing that?
I never said I could beat the market or offer up shit. Im happy with what im doing and feel like im doing great at it.
You need to take your geritol you are getting all fussy.
I'm not getting fussy at all. I was enjoying the conversation.
Maybe I need to take my geritol.
Let me go with this I like google still but Im surprised it has made it this far. Google has strong support within the www community, you can see the things they are doing and try to anticipate their next move. A lot of the stockholders are bitching because of the purchasing of you tube for 1.65 Billion in Stock. There has been 0 revenue from youtube thus far. Why did the do this? why did they move some of their offices in to the heart of downtown NY's media district? Google understand they will own internet advertising in 10 years. Most thought it was because they were going for internet broadcasting and because of many lawsuits the creation of software that just went in to implementation this week to block copy written material from youtube. Its based on users generating content but I can still find most southpark videos if I wanted too. Would I personally invest in google right now? No way $630 can suck it Ill wait for it to split.
Anyways im heading off target. The problem with Enron Is that along with most companies of early 2000 had unscrupulous business practices. Its really hard for me to invest in a company that pays CEO's and their cronies millions of dollars and tons of stock options. *(I will come back to this portion)*
You speak of Buffett, he is amazing in my mind but he is getting up there. A lot of people will follow any word he has to say about a stock. The sad part is though is that the technology is starting to surpass his knowledge. He can look at the bottom line and see amazing things that most can but, I dont think he understands intrinsic value of certain products. therefore I cannot watch buffet because if he invests in it I already missed my chance to buy it at the FMV price.
Buffett has amazing rules to follow though
The following are some questions to determine what business to buy, based on the book Buffettology by Mary Buffett:
* Is the company in an industry with good economics, i.e., not an industry competing on price. Does the company have a consumer monopoly or brand name that commands loyalty? Can any company with an abundance of resources compete successfully with the company?
* Are the Owner Earnings on an upward trend with good and consistent margins?
* Is the debt-to-equity ratio low or is the earnings-to-debt ratio high, i.e. can the company repay debt even in years when earnings are lower than average?
* Does the company have high and consistent Returns on Invested Capital?
* Does the company retain earnings for growth?
* The business should not have high maintenance cost of operations, high capital expenditure or investment cash outflow. This is not the same as investing to expand capacity.
* Does the company reinvest earnings in good business opportunities? Does management have a good track record of profiting from these investments?
* Is the company free to adjust prices for inflation?
Buffett also concentrates when to buy. He does not want to invest in businesses with indiscernible value. He will wait for market corrections or downturns to buy solid businesses at reasonable prices, since stock market downturns present buying opportunities.
He is known for being conservative when speculation is rampant in the market and being aggressive when others are fearing for their capital. This contrarian strategy is what led Buffett's company through the Internet boom and bust without significant damage, although critics have also noted that it may have led Berkshire to miss out on potential opportunities during the same period.
He also asks at what price is the business a bargain, and his answer typically is when it provides a higher rate of compounded return relative to other available investment opportunities.
Buffett has coined the term "economic moat," preferring to acquire companies that possess sustainable competitive advantages over their competitors.
Warren Buffett's letters to shareholders are a valuable source in understanding his investment style and outlook.
I dont know I have more and will come back to this. My mind is firing way to rapidly right now.
These are the original wired 40 most have been dropped or replaced. It has been exciting to follow....
This is also why I <3 me some Costco. Suburban Californians fuckin eat this place up. They would live there if they could. Plus the CEO is invovled with every step. I know someone saw the ABC report on him.
Plus....Kirkland Signature is Costco's store brand, otherwise known in the retail industry as an "own-brand". It is found exclusively at Costco stores and is trademarked by the company. The name derives from the fact that Costco's corporate headquarters were located in the city of Kirkland, Washington, between 1987 and 1996.
Costco introduced Kirkland Signature as its house brand in 1995. The idea was to identify categories in which a private label product could provide brand name quality at discounted prices.
To counteract the consumer confidence problem common in store branding, Kirkland Signature sometimes relies on co-branding. According to Costco, while consumers may be wary of same-store-branding, they are less likely to be wary of brands that they are familiar with and trust.
Have you ever had their ice cream? Its fuckin haagen daz at half the price. Kirikland vodka.....its grey goose at one quater the price.
Once the Jim Sinegal is out im out of costco.
"What Sinegal has proven is that a company doesn't have to be ruthless. Being humane and ethical can also make you money.
Last edited by J~$$$; 10-17-2007 at 03:19 PM.
Ok all those questions, and ways of thinking about investing are definitely valuable. And yeah, the efficient market hypothesis is an idealized model and of course not all individual investors are going to have perfect information before making their decisions. But the problem is that the big shots -- the guys wielding the most money/power and making the most influence on the overall market equilibrium -- are going to be exactly the guys who DO have the (near) perfect information. It's gonna be damn hard to beat them if you're just one guy, especially one guy who doesn't follow the market full-time as a living. Sure statistically there are going to be some people who follow some "investing program" by some cable TV money guru and succeed in making money, but there are also going to be a whole lot of people who follow these sorts of programs and/or advice and don't make money. The regular guys who make over general market levels of return by investing are just getting lucky.
I still believe that index funds are the best way to go. You get a solid, diversified investment with less managerial and associated costs than a mutual fund or similar. Index funds are the best way to maximize return and minimize risk for the average investor.
I agree with Courtney and also would add in an endorsement of dollar cost averaging, buy and hold, and taking the long term view. I'm not as smart or as informed or as hard-working as wall street investment bankers, and this approach lets me make money on their coattails.
Justin you may be right about Buffet not grapsing tech stocks, but the fact is there is so much speculation on those stocks that I think he'd avoid them even if he did understand them. Too much 'binge and purge'.
Last edited by TomAz; 10-17-2007 at 03:21 PM.
I have worked in the city for 18 years in various financial and commodity markets so I have a little knowledge.
Don't trust financial advisers, dont invest in any Equities at the moment (unless you have a grasp on the fundamentals). This applies especially if your money is being spread by some 10 year old all over the shop in funds\fund of funds etc. Thats all.
Yes. Dollar cost averaging is good.
It's also good to be smart enough to realize that you're actually not that smart.
Just ask to be paid in euros.
Thats why its good to be young and investing in high risk. Its not for everyone but I enjoy it. Some day I'll move on to bonds then ill know im in the sunset of life.
see I'm still <20% bonds. and you people say I'm old.
haha awesome. I'm in the sunset of my life. woohoo!
But bonds suck.
cashing in those coupons is like winning the scratch off lottery to the over 75 crowd.
I draw the line at knitting.
I have a 401k. I'm probably investing it wrong.
hahahahahaha <3 grandma courtney.