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Stock Advice Thread

BlueThruAndThru said:
"Experts" have been calling for a correction every day during this long bull market.

To try and time the market is pretty much impossible unless you're a genius or clairvoyant.

You may want to up your cash % in order to buy low in the future, but my opinion is that you're doing the right thing by steadily investing and knowing your risk tolerance.

I don't know your age but as we get older your money should be rebalanced going to more bonds or bond funds as they won't fluctuate as easily as stocks.
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Great, thx. I didn't go to school for business.....and my parents were terrible, terrible with what little money they had. I've done some research (read books, magazine subscriptions, etc), but without a ton of education in the past I feel like I'm flying a bit blind at times.

All I know is that so far, I'm very happy with my investing experiences.......very.....hehe....
 
BlueRaider22 said:
Great, thx. I didn't go to school for business.....and my parents were terrible, terrible with what little money they had. I've done some research (read books, magazine subscriptions, etc), but without a ton of education in the past I feel like I'm flying a bit blind at times.

All I know is that so far, I'm very happy with my investing experiences.......very.....hehe....
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I only took ECON 101.

I'm no expert but like you have read up and have the basic concepts down. I subscribe to the Motley Fool Stock Adviser service. I believe it was 3 or 4 hundred for 3 years. Has been a great investment. I also listen to their podcasts which are free and very entertaining.

I have a higher risk tolerance and no wife or kids so I'm well diversified in plain old stocks. I have around 45 so it's like I'm my own mutual fund.

Always trying to beat the S&P500. It can be done.
 
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BlueRaider22 said:
Right, but what's the rate?
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The lowest rate possible with no income. Unless it's a Roth you have to pay something unless someone like Cohen is your lawyer. Or since the rate isn't zero, keep working if you must but the IRA/401k is an instrument that is designed to pay taxes at the end. The end could end up being age 70 1/2 when you must start minimum distributions.
 
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Something I've really wanted to do is the start some funds for my kids.....and later my grandkids.

Imagine that if you threw $5,000 into some mutual funds when your grandkids are born.......assumed 8% avg annual return? They'd have $234,500 by age 50. Imagine your grandkids saying someday. "Thank you grandpa. You paid off our mortgage for a $5,000 investment!"
 
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jameslee32 said:
The lowest rate possible with no income. Unless it's a Roth you have to pay something unless someone like Cohen is your lawyer. Or since the rate isn't zero, keep working if you must but the IRA/401k is an instrument that is designed to pay taxes at the end. The end could end up being age 70 1/2 when you must start minimum distributions.
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Ideally you want to plan to overshoot your retirement goal anyway.....so, it shouldn't matter too much. I was just pointing out that you still have to pay some amount of tax at some point.
 
Willy4UK said:
Not sure i fully understand this compound interest thing. I plan to put about 1.5k a month into those mutual funds i have for next 20-25 years.
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What Austin said...

But dividends in a dividend paying stock or fund are also factors in compounding Or interest in an interest bearing account. Basically the more you got, the more you earn.
 
BlueRaider22 said:
Ideally you want to plan to overshoot your retirement goal anyway.....so, it shouldn't matter too much. I was just pointing out that you still have to pay some amount of tax at some point.
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Exactly and these rates have been going down during my career which are the main reasons not to sweat it.

OTOH fund fees and expenses that eat into that compounding, might be your biggest enemy. You could be watching tens or hundreds of thousands of dollars wash away over 40 years of investing and not realize it. One of the reasons I like saving up to the company match only in a 401k plan.

You can always fund an IRA in addition to the 401k and pick funds with the lowest fees in addition to the cheapest stocks from cash rich companies, all on your own.
 
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BlueRaider22 said:
Something I've really wanted to do is the start some funds for my kids.....and later my grandkids.

Imagine that if you threw $5,000 into some mutual funds when your grandkids are born.......assumed 8% avg annual return? They'd have $234,500 by age 50. Imagine your grandkids saying someday. "Thank you grandpa. You paid off our mortgage for a $5,000 investment!"
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Start an UGMA or UTMA.

Additionally, please see my comments earlier in this thread. My daughter blew all the damn money I stashed away for her in those accounts.
 
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AustinTXCat said:
Start an UGMA or UTMA.

Additionally, please see my comments earlier in this thread. My daughter blew all the damn money I stashed away for her in those accounts.
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There's always that worry. Darn kids.

I figure that I won't allow them to know about the accounts till they get older......maybe quite older.

Something I've also thought of is opening a Roth for Kids. I have had a few patients who have done this for their children. Basically, the kid gets a job.....and stashes as much as they can into the IRA. The parent then gives them supplements their allowance for that Summer.
 
BlueThruAndThru said:
You're more apt to beat it over a long period of buying and holding. I have to disagree with you that it can't be done.

If you bought all 500 of the stocks, you'd match. But with DRIP and the fact you'd become more weighted with your winners, you'd beat it I believe. I could be wrong though.
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If you can consistently beat the market over a long period of time you would be one of the top stock gurus in the world.
 
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I recommend avoiding the headache of trying to consistently beat the S&P 500 because even if you do it won't be by much.

Just buy a S&P 500 mutual fund. Expense ratio is always low because there's basically no management involved. I have 40% of my 401k there, and it's doing just fine. Granted, I'm 20 years from retirement, so I would adjust as I get closer.

40% S&P 500
25% Mid-cap
25% International
10% fixed income

Done. My returns consistently beat the lame target date funds with super-high expense ratios.

I also max out my contributions ($18,500 for 2018) and split evenly between Roth and traditional.

I don't mess around with individual stocks unless it's my personal non-retirement account that I just play around with. I don't have the risk tolerance to rely on individual stocks for anything more than gambling.
 
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BlueRaider22 said:
I would be very interested to hear what the more educated/experienced among us say as well. While I invest decently, I certainly am not very knowledgeable.

If it were me, I'd probably just find some good funds to spread the money into (see below).....but like I said, I'm certainly not an expert.

https://fundresearch.fidelity.com/mutual-funds/summary/316390822?type=sq-NavBar

*When you follow the link, note that up at the top right there is a search box. Input the stock symbol and away you go.
*Also, note the performance. Fidelity tends to list how well the fund has done the last 1, 3, 5, and 10 yrs.
*Further down the page they list the top companies that each fund has holdings of.

The fund that I linked above has done very well. Earning 15.7% over the last 10 yrs and well over 20% in the last 3-5 yrs. Takes minimum of $2500 to invest.

What's nice about the Fidelity Select funds is that you can invest in different sectors. (of course, I would imagine that every entity has their versions...Schwab, T-Rowe, etc.)

FPHAX - is pharmaceuticals
FSRPX - is retail
FDCPX - computers
FBMPX - multimedia
FSCSX - software, IT
FOCPX - port
FSDAX - defense/aerospace

etc.....there are thousands of funds to choose from.

Just recently I bought some of TRBCX which is T Rowe Price's Blue Chip fund. They invest in giants like Amazon, Microsoft, Google, Credit Card's. This fund seems to be really strong the last 10+ yrs.
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Thanks
 
CatOfDaVille said:
I recommend avoiding the headache of trying to consistently beat the S&P 500 because even if you do it won't be by much.

Just buy a S&P 500 mutual fund. Expense ratio is always low because there's basically no management involved. I have 40% of my 401k there, and it's doing just fine. Granted, I'm 20 years from retirement, so I would adjust as I get closer.

40% S&P 500
25% Mid-cap
25% International
10% fixed income

Done. My returns consistently beat the lame target date funds with super-high expense ratios.

I also max out my contributions ($18,500 for 2018) and split evenly between Roth and traditional.

I don't mess around with individual stocks unless it's my personal non-retirement account that I just play around with. I don't have the risk tolerance to rely on individual stocks for anything more than gambling.
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So the max contribution is $18,500 for 2018? I have been maxing out the last few years at $14,500.
 
Chuckinden said:
So the max contribution is $18,500 for 2018? I have been maxing out the last few years at $14,500.
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Yep. They raise it every couple of years, but it's been $18,500 since 2017, I believe. More if you're over a certain age...57 or something.
 
Chuckinden said:
I've been watching this thread because I have some money sitting not doing anything and who else could I trust but those on the Paddock.

I'll be 64 in November, but my wife is only 55. I would like to invest $50K in something that would make some money rather than sitting in savings not doing much at all.

What would you do with that amount?
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Chuck, go with what @Deeeefense may recommend. Hopefully he drops in. I trust his judgement most here.

<- - - - earned a lowly minor in Business Admin while Dee possesses, I believe, an MBA.
 
CatOfDaVille said:
Yep. They raise it every couple of years, but it's been $18,500 since 2017, I believe. More if you're over a certain age...57 or something.
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Well, I'll have to find out why my accountant, that I pay thousands of dollars to, didn't inform of that.
 
Chuckinden said:
Well, I'll have to find out why my accountant, that I pay thousands of dollars to, didn't inform of that.
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Uh yeah, I would. Literally just googled "2018 401k max contribution" and several articles came up on it.

By the way, I was wrong. It's $18,500 for 2018, up from $18,000 last year. Folks 50 and older can make an additional contribution of up to $6000 for a total of $24,500 in 2018.
 
CatOfDaVille said:
Uh yeah, I would. Literally just googled "2018 401k max contribution" and several articles came up on it.

By the way, I was wrong. It's $18,500 for 2018, up from $18,000 last year. Folks 50 and older can make an additional contribution of up to $6000 for a total of $24,500 in 2018.
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Ooops, there is the difference. Mine is a Simple IRA.
 
BlueRaider22 said:
What do y'all think of this?....

https://finance.yahoo.com/news/baidu-alibaba-tencent-investing-hot-114500770.html

Is this an opportunity or is this Fool's Gold.....
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FII

Looks like China is starting their new IPO policy with this one and the gov has fast tracked it.

IPO's usually bounce around at the start so risk is the word. They will have a 43 billion cap and raise 4.2 billion with this offering.

TCHY, BIDU and BABA will own 3.86% each and seems like they will be customers as well but can't sell for 3 years.

AAPL is 20-30% of their revenue with phone frames and cases.
But they also make 5g chips, cloud computing and automotive components? They do a lot which could be good or bad.

(The above is a synopsis of the article with a few of my opinions)

I'm going to watch it and see what happens. Thanks for the heads up.
 
Penny stock. GEGP earlier in this thread. Exploded today. I got 15. 7 million shares. Up 4k in one day. Legit company
 
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BlueThruAndThru said:
Congrats, Willy.

Penny stocks are way too risky for me. I think since they are so minimally capitalized that a small hiccup can finish them.

I try to stay 1 billion and above.
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I currently invest in select "penny stocks", which are issues valued under $5, but all have solid earnings and decent analyst ratings. @Willy4UK mentioned LYG, a 300+ year-old British bank, a couple years ago. Went in at $2.70 and out at $3.65. Also collected 2 dividend payouts. Nice total return over a 2-year period.

Thanks, bro.
 
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BlueRaider22 said:
So is it too late to buy in?
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Penny stocks are never too late to buy in before you're one day late selling.

Man, it appears legit, but it is risky as shit. I don't recommend. I got $2K in this thing. Owner appears legit. But who knows. It's not a long term hold for sure.
 
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AustinTXCat said:
I currently invest in select "penny stocks", which are issues valued under $5, but all have solid earnings and decent analyst ratings. @Willy4UK mentioned LYG, a 300+ year-old British bank, a couple years ago. Went in at $2.70 and out at $3.65. Also collected 2 dividend payouts. Nice total return over a 2-year period.

Thanks, bro.
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Crazy how a bank played that low
 
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BlueRaider22 said:
What do y'all think of this?....

https://finance.yahoo.com/news/baidu-alibaba-tencent-investing-hot-114500770.html

Is this an opportunity or is this Fool's Gold.....
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I've read another article on Yahoo that mentioned the TCEHY stock. The company who produced 'Fortnite' that all the young people are playing.Gave them a real surge especially during March and April. Investors.com say Domestic video game companies Activision, EA, and Take 2 are definitely feeling the pressure from the game's popularity.
 
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MGGPX (Morgan Stanley Institutional Fund, Inc. Global Opportunity Portfolio Class A) has been on a hot streak since the middle of last year. 25.52 USD. 5 stars, #1 in World Large Stock.

https://money.usnews.com/funds/mutu...ock/morgan-stanley-inst-global-opp-port/mggpx

Devj6wmVAAALXfj.jpg
 
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