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Investing Thread
- Thread starter addictivepersona
- Start date
GenericMind
Bluelighter
Awesome! Thanks FP!
Not bad, but using options instead of stocks the RIG investment is up almost 100% in just over two weeks. I fully expect it to return around 1000% by the end of the year. You won't find a mutual fund in the entire World that duplicates that.
Anyone else currently active in any short-to-medium turn trades? My trades right now:
Phoebus said:
Not bad, but using options instead of stocks the RIG investment is up almost 100% in just over two weeks. I fully expect it to return around 1000% by the end of the year. You won't find a mutual fund in the entire World that duplicates that.
Anyone else currently active in any short-to-medium turn trades? My trades right now:
GenericMind
Bluelighter
lol I guess not. WHATEVS.
Today's screaming buys: Hewitt Packard(HPQ) and Cisco(CSCO)
Today's screaming buys: Hewitt Packard(HPQ) and Cisco(CSCO)
I'm looking at changing my superannuation over to a company where I'm able to choose what I invest my super into....
My mate has been studying the mining/resources sector for years. Over 18 months ago he rolled all of his superannuation into his new account with this company. In that time, investing in maybe 8 or so gold/mining companies he has made 74% (or close to) on his superannuation. I didn't believe him at first but he's shown me all the figures and its true. All of his investments have paid off big-time and don't seem to be slowing down.
I've checked my statements from previous years and I'm lucky to make a measly 4-6% per annum. Do you think it is wise to look after your own superannuation, basing where your money goes on the opinions and decisions of a close friend?
This is his hobby (reading and learning more about investments) so he seems to think I have enough time to roll-over my funds and make some decent money to retire on before the bubble bursts. He has no gain from me moving my superannuation to this company, which brings me to my main concern: is it stupid having all of my retirement funds in the one basket (the mining/resource sector)?
I figure the more money I make now on my super, the faster it will grow, even if I choose a lower risk investment down the track.
My mate has been studying the mining/resources sector for years. Over 18 months ago he rolled all of his superannuation into his new account with this company. In that time, investing in maybe 8 or so gold/mining companies he has made 74% (or close to) on his superannuation. I didn't believe him at first but he's shown me all the figures and its true. All of his investments have paid off big-time and don't seem to be slowing down.
I've checked my statements from previous years and I'm lucky to make a measly 4-6% per annum. Do you think it is wise to look after your own superannuation, basing where your money goes on the opinions and decisions of a close friend?
This is his hobby (reading and learning more about investments) so he seems to think I have enough time to roll-over my funds and make some decent money to retire on before the bubble bursts. He has no gain from me moving my superannuation to this company, which brings me to my main concern: is it stupid having all of my retirement funds in the one basket (the mining/resource sector)?
I figure the more money I make now on my super, the faster it will grow, even if I choose a lower risk investment down the track.
GenericMind
Bluelighter
I think it's always a good idea to take more interest and control over your retirement funds. They're important, though, so you want to make sure to do a lot of research before making any decisions.
Your friend's plan definitely sounds like one that would have made someone money over the past 18 months. Gold has been doing great. It may continue to for a long time too. BUT, retirement is a loooonnnggg way away and who knows where gold will be by the time he retires. When it comes to retirement funds you definitely want to diversify and buy different kinds of companies. Owning ONLY mining companies could come back and bite him in the ass big time. I take some pretty big risks when I trade, but I'd never only own one type of company in my retirement fund.
Your friend's plan definitely sounds like one that would have made someone money over the past 18 months. Gold has been doing great. It may continue to for a long time too. BUT, retirement is a loooonnnggg way away and who knows where gold will be by the time he retires. When it comes to retirement funds you definitely want to diversify and buy different kinds of companies. Owning ONLY mining companies could come back and bite him in the ass big time. I take some pretty big risks when I trade, but I'd never only own one type of company in my retirement fund.
Artificial Emotion
Bluelighter
In the last 10 years I think some fine wines have increased by 10,000% in value. Because these wines are a finite resource and will only decrease in numbers as people drink them, they can only increase in value as the years go by. If you know what you're doing they can be an excellent investment.
GenericMind
Bluelighter
NVDA
Now let's compare that to a chart of one of the most popular S&P Index Funds over the same time period:
That's just another example of how picking your own stocks over using index funds is a good idea.
that's not exactly a fair comparison.
firstly, yesterday's close was only $0.44 more than the close on August 5. that's only $1.23 over the 52-week low and, $8.98 less than the 52-week high. AFAM, your other "ridiculously undervalued stock", closed at $0.91 UNDER what it was trading August 5.
at your suggestion, if i would have bought a 100 shares of each at the closing price, i would have lost $47.
second, index funds are recommended as a long-term investment vehicle. often you're not going to see a significant return in just a few weeks time. it's a great option for people who don't have the time or knowledge to trade on a minute-by-minute basis.
additionally, if someone had invested the equivalent of 100 shares with SGG fund (sugar) on the same dates you invested in NVDA and AFAM, at the close price, they would have made $353 dollars more than you.
now, as far as a long-term investment, i could select Vanguard: Information Technology (VGT). 8/20/2009 VGT was $47.11, yesterday it closed at $51.17. 8/20/2009, NVDA was trading at $13.70 and yesterday closed at $9.88... at the equivalent investment of 100 shares, you would have lost $382 and i would have made $406.
obviously there's a lot of "IFs" in this and i think it's awesome GM you've got the time to trade on the market on a minute-by-minute basis, but a lot of people don't and many people can find financial success with mutual or index funds.
i hope you sold NVDA at $10.13 because i’ve seen it dip anywhere from $0.17 to $0.13 since I’ve been typing this.
firstly, yesterday's close was only $0.44 more than the close on August 5. that's only $1.23 over the 52-week low and, $8.98 less than the 52-week high. AFAM, your other "ridiculously undervalued stock", closed at $0.91 UNDER what it was trading August 5.
at your suggestion, if i would have bought a 100 shares of each at the closing price, i would have lost $47.
second, index funds are recommended as a long-term investment vehicle. often you're not going to see a significant return in just a few weeks time. it's a great option for people who don't have the time or knowledge to trade on a minute-by-minute basis.
additionally, if someone had invested the equivalent of 100 shares with SGG fund (sugar) on the same dates you invested in NVDA and AFAM, at the close price, they would have made $353 dollars more than you.
now, as far as a long-term investment, i could select Vanguard: Information Technology (VGT). 8/20/2009 VGT was $47.11, yesterday it closed at $51.17. 8/20/2009, NVDA was trading at $13.70 and yesterday closed at $9.88... at the equivalent investment of 100 shares, you would have lost $382 and i would have made $406.
obviously there's a lot of "IFs" in this and i think it's awesome GM you've got the time to trade on the market on a minute-by-minute basis, but a lot of people don't and many people can find financial success with mutual or index funds.
i hope you sold NVDA at $10.13 because i’ve seen it dip anywhere from $0.17 to $0.13 since I’ve been typing this.
GenericMind
Bluelighter
I don't really see how it's not a fair comparison. I never suggested buying or selling stocks at the closing price of a given day. That's actually counterintuitive to trading stocks this way. Yesterday's close of either stock is irrelevant, as yesterday was yesterday and the stocks have moved on from there.
I know. I'm suggesting ways to get a better return in a shorter amount of time.
I didn't suggest buying NVDA on 8/20/2009.
Yes there are.
I guess my posts are meant to be geared to those that do have the time, then.
ChemicalSmiles
Ex-Bluelighter
Im 26, dont have any credit card debt. I do have a 1600 dollar judgement against me from a past landlord but since I have so few possessions and such a small amount in the bank currently they can't take shit now.
I have no real savings in the bank and am saving 900 dollars for dj equipment right now... but I needed to upgrade my stuff and maybe I can make extra money dj'ing. Maybe this isn't the best idea, but I have a passion for music.. but I sure as hell don't want to be 40 and not have a house. I dont want to live in apartments forever.
I have no real savings in the bank and am saving 900 dollars for dj equipment right now... but I needed to upgrade my stuff and maybe I can make extra money dj'ing. Maybe this isn't the best idea, but I have a passion for music.. but I sure as hell don't want to be 40 and not have a house. I dont want to live in apartments forever.
GenericMind
Bluelighter
You should really consider trying to start saving some money somehow, bro.
If it looks too good to be true then it probably is. I'd suggest drip-feeding regular amounts of perhaps ten percent of your takehome pay if you can in a well-established mutual fund or unit trust. Ideally also in one that produces regular dividend payments which can also be reinvested so your overall return can hopefully compound.
well, because a long-term investment vehicle and a short-term aren't really an apples-to-apples comparison when you limit them to the same time frame. after a few weeks, you can't say, "i'd like to see an index fund to do that", because it's probably not; that's not the investment vehicle's design. the draw of a fund is that your investment grows OVER TIME with little effort and without the risk of trading individual stocks.
the reason i quoted the closing and historical prices was to make more of an accurate comparison between the two investment vehicles. i don't know when a person is buying and selling or whether they're super genius and consistently buying a the lows and selling at the highs and in reality, on average they're probably trading some place in the middle. since it's not extremely common for shares to jump all over the place (and because the companies you suggested were reasonably steady), the close price was the quickest for me to gather.
if you want to go by averaging the daily high and lows, then based on the NVDA and AFAM recommendations from 8/5 - 8/20, i only lose $43 versus the originally stated $47 when i initially incorporated the close price. (NVDA: +68.5, AFAM: -111.50)
with fairness, you didn't exactly say that. it seemed to me you were making a point using unfair data about why individual stocks are superior.
...just as an investment professional would likely never advise investing in an index or mutual fund for a few short weeks.
I guess my posts are meant to be geared to those that do have the time, then.
your posts in here are certainly interesting.
i agree with GM. if today's economic climate has taught anyone anything, it shoud be to employ financial back-up plans. if i were in your situation, i would save and put away 3-months worth of expenses in case of emergencies before i would consider investing in anything, DJ equipment or otherwise.
GenericMind
Bluelighter
Here's a longer term idea that is pretty much guaranteed to make you money unless you think the Economy is going to completely collapse and we're going to be living in caves:
PROSHARES ULTRASHORT 20+ YEAR TREASURY(TBT). It's an ETF that inversely tracks(200% ) Barclays Capital 20+ Year U.S. Treasury Bond index.
Interest rates have been artificially brought down to historic lows to help economic recovery. They simply can't stay this low forever. If the economy recovers, rates will go up. If the economy sucks and we get hit with inflation, rates will go up. When they do, TBT will go up also. Treasuries have been in a 19-year bubble. When it pops, it's going to pop hard.
PROSHARES ULTRASHORT 20+ YEAR TREASURY(TBT). It's an ETF that inversely tracks(200% ) Barclays Capital 20+ Year U.S. Treasury Bond index.
Interest rates have been artificially brought down to historic lows to help economic recovery. They simply can't stay this low forever. If the economy recovers, rates will go up. If the economy sucks and we get hit with inflation, rates will go up. When they do, TBT will go up also. Treasuries have been in a 19-year bubble. When it pops, it's going to pop hard.
addictivepersona
Bluelight Crew
Anyone hear about the new GM stocks they're apparently going to start selling in Sept. or Oct.? Was told that may be an option for me to invest a few thousand...
GenericMind
Bluelighter
The last I heard the stock will be priced between $125-$145 a share. Rather than the proceeds from the sale going to fund the company, they will go toward paying back the U.S. Government some of the $70 Billion they owe them for the bailout.
Regardless of all that, when you look at the automotive industry and you realize just how beneficial it was for GM to go through bankruptcy, trim almost a century of accumulated fat, whether it be unsustainable pension plans, Union wages, or unprofitable business segments, I can't imagine any outcome other than people looking back 30 years from now and seeing the second IPO of GM as one of the best investing opportunities of a lifetime.
Regardless of all THAT, I'm not sure whether I'm going to bother trying to buy near the IPO or if I'll wait for the price to drop before I try to get in.
Regardless of all that, when you look at the automotive industry and you realize just how beneficial it was for GM to go through bankruptcy, trim almost a century of accumulated fat, whether it be unsustainable pension plans, Union wages, or unprofitable business segments, I can't imagine any outcome other than people looking back 30 years from now and seeing the second IPO of GM as one of the best investing opportunities of a lifetime.
Regardless of all THAT, I'm not sure whether I'm going to bother trying to buy near the IPO or if I'll wait for the price to drop before I try to get in.
GenericMind
Bluelighter
I just wanted to reiterate the stocks I mentioned earlier for anyone interested, because the boarder market is down an amazing 800 points in the last 12 days and I still think they're all excellent deals at the moment:
1. Transocean(RIG)
2. Nvidia(NVDA)
3. Almost Family(AFAM)
4. Hewitt Packard(HPQ)
5. Cisco(CSCO)
6. Double inverse short treasury ETF(TBT)
Good luck!
EDIT: Almost forgot TBT
1. Transocean(RIG)
2. Nvidia(NVDA)
3. Almost Family(AFAM)
4. Hewitt Packard(HPQ)
5. Cisco(CSCO)
6. Double inverse short treasury ETF(TBT)
Good luck!
EDIT: Almost forgot TBT
Last edited:
GenericMind
Bluelighter
Man, talk about crazy. Hewitt Packard and Dell started a bidding war over this company last week when the company was trading at 10 Bucks. When Dell upped their bid to $27 last night I thought they had it in the bag. HP came out this morning with a $30 bid! I don't even want to think what kind of profit the call options on this company have seen this week. Thousands of percents most likely. 
GenericMind
Bluelighter
If anyone needed a Contrarian Indicator to think stocks are a great buy right now, here it is:
This week's sentiment reading from the American Association of Individual Investors showed the least amount of Bullish bias among investors since March of '09, which is ridiculous because economic conditions are infinitely better now than they were then. I'm betting we rally from here to at least S&P 1,250 between now and year end.
This week's sentiment reading from the American Association of Individual Investors showed the least amount of Bullish bias among investors since March of '09, which is ridiculous because economic conditions are infinitely better now than they were then. I'm betting we rally from here to at least S&P 1,250 between now and year end.