RE: How are you investing your money?

RE: How are you investing your money? (Full Version)

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Steponme73 -> RE: How are you investing your money? (8/31/2008 1:53:16 PM)
I have been in real estate since the late 1990's when things started getting bad in the stock market. I have done and continue to do well in real estate. That is something that I have some control over. I buy low, sell high (novel concept!). I buy and hold, I buy and sell. I buy single family homes, duplexes and 4 plexes. I invest only in Texas and specifically in central Texas where the market is still fairly good. Real Estate makes up about 75% of my portfolio. I also invest in metals gold and silver about 15%. The other 10% is my mad money. I invest in comodities such as wheat, cotton, corn, copper, beef, pork bellies, etc. In the 90's I made lots of money in the stock market and lost a good portion of it. I had no real control as someone else was making the market move. I still like real estate and gold and silver.

popeye1250 -> RE: How are you investing your money? (8/31/2008 2:17:23 PM)
Tychtyp, I don't do "index funds" because I don't know that much about them and also because they seem "fadish" like Spyders, or qqqqq's or whatever. I subscribe to a newsletter and let them do most of the research and then pick from their top picks and then do my own research and that's been working out pretty well.

Paulnz -> RE: How are you investing your money? (8/31/2008 3:46:01 PM)
quote: ORIGINAL: tychtyp Paulnz, if I were actively picking stocks, I'd use a similar strategy. However, it's very, very difficult to beat the market. Benjamin Graham warns that you have to be disciplined and business-like in order to be a true investor and not a speculator; spending a few hours a week researching stocks doesn't cut it. He also emphasizes the importance of accounting knowledge; if you can't deeply and correctly analyze financial statements, you have no business picking stocks. Ben Graham is OK so far as it goes. But he was a cigar butt collector remember and relied on strict analysis. He had to, as often the companies he was investing in were technically defunct and he was trying to extract something out of them. Fisher is much better for the serious long term investor. Fisher is often referred to as the scuttlebutt school of thought. His experience was similar to mine. As a student he learnt what a good business was by driving his lecturer around the factories doing research ( the lecturer didn't own a car and he did ). Just by doing this the lecturer would say ' so-and-so has a brilliant business while the other was a dud.' I learnt the same way from my father who would point out who had a good business and who didn't. And to use a Charlie Mungerism, people invest in their own businesses don't they ? They put everything on the line in just one thing right ? Then why do people get carried away with diversification and technical analysis ? If you find a good business, put everything into it !! And don't sell - ever - unless you're forced to. In the last 6 years I've only sold twice and and that was due to takeovers. My portfolio has a 20.5% compound rate of growth over my investment life. The two companies I sold in the last 6 years - Burns Philp and Rinker Group. My long time hold forever, will only sell if I get thrown out and I hope that day never arrives - The New Zealand Refining Company. Check those three out and you'll see where 20.5% comes from.

tychtyp -> RE: How are you investing your money? (8/31/2008 4:00:46 PM)
Paulnz, impressive. How long have you been investing?

Paulnz -> RE: How are you investing your money? (8/31/2008 4:16:37 PM)
quote: ORIGINAL: tychtyp Paulnz, impressive. How long have you been investing? About 26 years, give or take.

tychtyp -> RE: How are you investing your money? (8/31/2008 4:28:07 PM)
At that rate, if you started with $5,000 and invested a relatively modest $5,000 a year thereafter, you'd be worth $4,356,911.21 right now. Are you retired?

LookieNoNookie -> RE: How are you investing your money? (8/31/2008 9:21:21 PM)
quote: ORIGINAL: Steponme73 I have been in real estate since the late 1990's when things started getting bad in the stock market. I have done and continue to do well in real estate. That is something that I have some control over. I buy low, sell high (novel concept!). I buy and hold, I buy and sell. I buy single family homes, duplexes and 4 plexes. I invest only in Texas and specifically in central Texas where the market is still fairly good. Real Estate makes up about 75% of my portfolio. I also invest in metals gold and silver about 15%. The other 10% is my mad money. I invest in comodities such as wheat, cotton, corn, copper, beef, pork bellies, etc. In the 90's I made lots of money in the stock market and lost a good portion of it. I had no real control as someone else was making the market move. I still like real estate and gold and silver. (Hmmmmmm....I just buy).

Paulnz -> RE: How are you investing your money? (8/31/2008 10:05:22 PM)
quote: ORIGINAL: tychtyp At that rate, if you started with $5,000 and invested a relatively modest $5,000 a year thereafter, you'd be worth $4,356,911.21 right now. Are you retired? If you take $5,000 and invest it at 20.5% with all the interest being reinvested, the principal sum will not come to $4 million. I can see you have a lot to learn about compounding investment. Try starting at the rule of 72. Go here and calculate: http://www.fairwinds.org/wizards/CompoundSavings.asp $5,000 at 20.5% over 26 years with no additional contributions accumulates to $637,000. Oh and I don't work, I invest, and I'm good at it.

LookieNoNookie -> RE: How are you investing your money? (8/31/2008 10:44:15 PM)
quote: ORIGINAL: tychtyp At that rate, if you started with $5,000 and invested a relatively modest $5,000 a year thereafter, you'd be worth $4,356,911.21 right now. Are you retired? Bud!!! You need to chill out! You started this all with a whole bunch of "What are YOU doing?"..... And ended it with a whole bunch of "Well that's not how I FUCKING DO IT!!!!!". Wanna know? Ask. You did. (Now listen!) Give it a try kiddo....ya might learn sumthin.

gobsmack -> RE: How are you investing your money? (9/1/2008 1:53:26 AM)
quote: ORIGINAL: Paulnz quote: ORIGINAL: tychtyp At that rate, if you started with $5,000 and invested a relatively modest $5,000 a year thereafter, you'd be worth $4,356,911.21 right now. Are you retired? If you take $5,000 and invest it at 20.5% with all the interest being reinvested, the principal sum will not come to $4 million. I can see you have a lot to learn about compounding investment. Try starting at the rule of 72. Go here and calculate: http://www.fairwinds.org/wizards/CompoundSavings.asp $5,000 at 20.5% over 26 years with no additional contributions accumulates to $637,000. Actually, he was right. He mentioned contributing an additional $5k every year, which calculates out to $4.3m. Either way, it shows that starting saving early and letting the money compound over a long period of time still results in a decent size return. Not everybody can get a 20.5% rate of return every year, but even with a more possible 8% return and investing $5k into a Roth IRA every year over 26 years, you'll have an account with almost $470k tax free. For liquid capital, instead of laddering CDs, I prefer online saving accounts. The rates are not as high as CDs, but I can withdraw it all anytime with no penalties. Several banks like ING Direct, Emigrant Direct, HSBC Direct give 3% interest with no minimum balances. If you have over $10k, CapitalOne Direct Banking gives 3.5%.

missturbation -> RE: How are you investing your money? (9/1/2008 5:35:24 AM)
All my money is shoes. They are great shoes though [:D]

lusciouslips19 -> RE: How are you investing your money? (9/1/2008 5:38:06 AM)
quote: ORIGINAL: missturbation All my money is shoes. They are great shoes though [:D] Lemme see!

Paulnz -> RE: How are you investing your money? (9/1/2008 6:06:05 AM)
quote: ORIGINAL: gobsmack quote: ORIGINAL: Paulnz quote: ORIGINAL: tychtyp At that rate, if you started with $5,000 and invested a relatively modest $5,000 a year thereafter, you'd be worth $4,356,911.21 right now. Are you retired? If you take $5,000 and invest it at 20.5% with all the interest being reinvested, the principal sum will not come to $4 million. I can see you have a lot to learn about compounding investment. Try starting at the rule of 72. Go here and calculate: http://www.fairwinds.org/wizards/CompoundSavings.asp $5,000 at 20.5% over 26 years with no additional contributions accumulates to $637,000. Actually, he was right. He mentioned contributing an additional $5k every year, which calculates out to $4.3m. He did, but the $5k per year is saving not investing.

MrRodgers -> RE: How are you investing your money? (9/1/2008 6:35:42 AM)
quote: ORIGINAL: popeye1250 Tychtyp, I don't do "index funds" because I don't know that much about them and also because they seem "fadish" like Spyders, or qqqqq's or whatever. I subscribe to a newsletter and let them do most of the research and then pick from their top picks and then do my own research and that's been working out pretty well. I am with you popeye as index funds is when somebody else is having all of the fun and is merely there beauty portfolio. I choose all of my own investments and have picked a whole lot more winners and losers. How ? The 'market,' meaning all of those churners who are worried about tomm. or next week or even next quarter are like lemmings and follow the wind. I choose fundementals where the market in their pique just feels as if well they don't like that stock don't see short term growth now and nevermind those pesky fundementals. Example: After WorldCom and MCI merged it was obvious it was too leveraged on a real market gamble for a questionable future in tlelecom. BUT after all of their problems where it was this ugly duckling with MCI NOT going away and with a flush customer base...up 57% in the 6 months after coming out of bankcruptcy. Example: Nextel had the best push-to-talk system first had (broadcast) spectrum problems with emergency frequencies and had to clear that up. The market in their infinite wisdom had them down to $3. I was all over that like new ex-con at a whorehouse. Bought out by Sprint at $22 and in 18 months. Would love for them to sell it off again but now they've screwed their network by using Sprints. I subscribe and often have 'out of service.' The biggies usally screw things up once they buy up their competition. I like market stupidity and have made serious money just watching these dumbasses. Also, one can NEVER own too much real estate as long as you are not too leveraged. I have my eye on a local shopping center but will bring in some partners and all I want is the poolhall/rest. where i have been going for 16 years to play games with. Look, watch, read listen. Like some of those little things and some that don't need fundementals. SIX Flags was at $3, even though he is a egotistical ass when Snyder did his dog and pony show and took the board, I new it would catch the eye of those horny asses in NY so sold out at $9. It is a matter of moving money to where the geniuses have left a good ship but still has a good captain...market fundemenatals. Read govt. for when they pass tarrifs or allow more advertising in radio back in the day. I missed on Google as I didn't think it was 'worth' $85 (price in IPO) it went to $500 so what do I know...

OneMoreWaste -> RE: How are you investing your money? (9/1/2008 6:35:59 AM)
quote: ORIGINAL: tychtyp If you think you can predict how F will do with greater accuracy than the brilliant investors who devote their working lives to the endeavor, why don't you borrow money to the hilt and invest with it? Hell, I can't even predict what the crack babies who manage my own company will do [:D] If I did I would have shorted the shit out of our own stock two years ago. quote: Index funds actually outperform the vast majority of individual investors and actively managed mutual funds on a risk-adjusted basis. I don't see how you can beat that, for virtually no effort on your part. Ah, but perhaps you've heard the phrase "Past performance does not guarantee future results"? As long as the supply of new dollars being pumped into the market exceeds the number of dollars going out, then indices are a relatively safe bet. But I don't think that's going to happen. History and common sense are against it.

Irishknight -> RE: How are you investing your money? (9/1/2008 8:34:47 PM)
Land and horses. Maybe cattle soon too.

Lynnxz -> RE: How are you investing your money? (9/1/2008 8:40:56 PM)
I'm horrible at investing. I have a bit in a saving account, but that's about it... and there's zero percent chance I have a stockpile in a drawer in my room. :-/ Say someone has a small amount they'd like to invest, and doesn't want to touch the stock market, because she knows **** about it. What else can I do? I was going to ask the bank about their accounts, but I didn't think I'd get an objective answer. What's a good interest rate? O.o

Paulnz -> RE: How are you investing your money? (9/1/2008 8:45:53 PM)
quote: ORIGINAL: Lynnxz I'm horrible at investing. I hate it when people say that. Please don't say that. The last person who said that to me I sat him down and had a good long talk about why he'd said that. Long story short in the last 5 years since we had that talk he's outperformed me by quite a wide margin. Thing is, he had all the skills to do well, he just hadn't identified them, the skills that is.

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