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mole
Joined: 06 Feb 2003
Location: Act III
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 Posted: Sun Jan 04, 2009 11:12 pm Post subject: |
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Jati:
I appreciate your concise and thorough reply.
I've kind of left my arse out in the breeze by preaching.
I only became interested in all this about a year ago, and began researching in earnest.
In trying to get a balanced perspective, I admittedly stumbled upon the legion of doom & gloom and tinfoil hattery. (Hi, Thunndarr!)
Good news is dry and boring to read, I guess.
If the market is down 34% in a year, doesn't that make downside risk the other 66%?
When was the last year that was down 34%?
Assuming 7% is a good long-term investment goal, a 30% down year will take 7 years of steady 7% growth to recover.
Especially in derivatives, isn't it all just passing around irredeemable IOUs?
Since the crash, how many times have you heard someone calling "the bottom?"
My beef isn't the markets. Question was about stock picks.
Look into junior mining operations. |
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Jati
Joined: 13 Dec 2008
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| Posted: Mon Jan 05, 2009 12:45 am Post subject: |
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| mole wrote: |
Jati:
I appreciate your concise and thorough reply.
I've kind of left my arse out in the breeze by preaching.
My beef isn't the markets. Question was about stock picks.
Look into junior mining operations. |
Again, it seems that you are taking the normal perspective on stock markets, i.e., we need to buy low and then sell high. So, if the market never recovers to the Oct 2007 levels, then the people who bought near the top will lose money.
I don't look at it that way. For me, I am concerned about retirement income, you know, passive income from my investments. The best thing for me would have been if I had started a business when young, or else took over a family business. Then, when I retired, I could continue to draw a salary from that business (receive a share of the profits) because I am the owner. But that didn't happen so the next best idea for me is....
....to buy into the ownership of a bunch of companies, and hold those shares FOREVER. (My hope is to give the shares to my children so that they can have a jump-start on building wealth without leaving it late in life like I did.)
So, there is no point in me worrying about the price of the shares since I never plan on selling. Only if a company were to go bankrupt would I be harmed by this strategy. (Or they cut their dividend and never pay one again. Then I would sell, probably at a loss.) Thus, I try to buy only companies that have enduring franchises, strong brands, and pay dividends.
The talking heads are now saying that BUY-and-HOLD is a dead strategy. Good. I want the sheeple (as you call them) to believe that and continue their frantic buy, sell, buy, sell pattern. Hopefully the prices of my companies will remain low so that my re-invested dividends will buy more shares than if the price were high.
Here is a stock pick for you: Enbridge, Inc. (ENB on the NYSE), a Canadian company. They own gas and oil pipelines in Canada, and are majority share-holders in some US-based trusts (EEP, EEQ, EEM, I think are the symbols).
If Obama is true to his campaign promise to wean the US off oil from enemy states (e.g., Venezuela, Russia, Iran), then the tar sands of Alberta and Saskatchewan will be the safest oil source for the USA. The tar sands are reputed to have the second largest oil reserves after Saudi Arabia. When the price of oil rises -and it will- then the oil sands will become economically viable and Enbridge will send that oil down its pipe year after year, like a toll-road operator.
To get a pipeline up and running takes a massive capital expenditure BEFORE any income is received; thus, Enbridge has what Warren Buffett likes to call a wide moat around it. And they pay a 4.7% dividend yield, right now. Unfortunately, the price will probably go up and that dividend yield will drop as others catch wind of this idea in the years to come.
I would be wary of any mining operations that do not pay a dividend. If you want a case study, google the company that was called Bre-X. |
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itaewonguy
Joined: 25 Mar 2003
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| Posted: Thu Apr 30, 2009 4:11 am Post subject: |
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| crazy_arcade wrote: |
Remember that stock that I mentioned earlier?
Teck Cominco B on the TSX
Well, you should take a look at the price when I recommended it and it's price now. |
just like to give another thanks to Crazy_Arcade for sharing this stock tip
I bought in at 4.50 and just sold out at 9.50
I made 100% in just a few months.. BEAUTIFUL!!!! |
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Capo
Joined: 09 Sep 2007
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| Posted: Fri May 01, 2009 2:17 am Post subject: |
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West China Cement has been doing well, there is strong demand for it after last years earthquake.
I invested a month ago and its already up 47%  |
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