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Crouchingtiger77 -> I was wondering about something, financial (8/19/2014 2:46:32 PM)
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Since early 1990 I became interested for persona reasons and also others in the field of investing.
I watched PBS on Friday nite and read other articles on this
Some things I learned, very basic and simple is:
1. Don't treat investment like the casino, investment is for the long haul riding out the ups and yes downs without panicking.
2. Choose investments with a long history and except for say a Microsoft, forget IPO's they are a landmine that can more than not lead to a disaster
3. Choose mutual funds with long history of performance (past performance does not guarantee future resuts however) but, is a safety check.
4. Do not go to a financial adviser as they don't give a shit about you, for the most part.
5. In field of mutual funds look at the costs to invest and internal costs as well, you can loose your shirt in terms of real returns if you don't.
6. One of the best mutual funds which meets the above recommendations is Vanguard, no load or very little, and little internal cost. Great management which does excellent job of matching the market say The Index 500.
7. As to the stock market, yes a risk but in the long term will outperform Bank CD's even when they were paying 7%. This growth of a stock say P & G Proctor and gamble for short
Proctor and Gamble, as a corp is in itself diversified in selling many many different products all most all of course classified as 'house hold'. But from cleaning to body care, dental and so on. It's dividend is going to not get you that 7% but over the long haul as it grows in value then splits, that is where the rubber meets the road and also dividends are increased each year.
I do have example, I have Madison gas and electric, MGEe and when I was buying it was priced around 20 to 23 per share, that is when i bought the first 1000 dollars worth, then a few laters invested another 700.
The value of this stock portfolio is now at $7000. That is over $5000 increase in value from 1997 to present . The price per share had reached up to $56 per share before doing a 3 for 2 split. 115 shares up to 175.
I am not saying that this stock is the best for all persons, There are many others in different sectors to consider. This was perfect for me because first the cost per share was low and paying $1.20 per share or .30 cents per quarter i thought to be a good return along with eventual increase in price per share as well.
But, over the long term, such a stock is excellent and better in real returns than in a bank which at this time a bank is boasting a CD rate of a whopping 2%. Just the.30 cents per share on a hundred shares is better than this.
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