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Don't argue with an insomniac.
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Where are you planning on investing? I'm looking for ideas. How about a thread looking at quality investments?

I know there are self-employed, self-sufficient, and self-pensioning folks on TS. Personally I have some quality investments and others that haven't done so well. But I'm on the point of wanting to invest cash -- on the order at present of ~ $50,000 to put away hoping for reasonable return.

I don't really know where to sink my savings. I liquidated a bunch of stuff in June 2008, and sunk most of that into a renovation (which the crash in the markets resulted in costing me only 1/2 of the actual outlay, because if I hadn't needed the money I would have held onto a lot of stock that nose-dived). It was easy investing from 2002-2008, when everything was looking up, but the past year has not been so rosy.

Clearly this won't be a thread for investment direction, but it might twig one on where to look, sectors, or overlooked industries, or clearly undervalued companies that are worth a second look.

Any thoughts?
 

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Personally I don't look for investing advice from other people unless they're qualified in
that field. I used to work with a guy who drove us all nuts with his investment advice.
Some guys jumped on board with him. He lost a bunch of money, and this was before everyone was losing a bunch of money. The guys who jumped on board lost as well. I always figured if he was that great in investing he wouldn't be working where we were working. He actually took money out of his wife's IRA account without her knowing it somehow and lost that too.

I have a pension through my work and a voluntary deferred compensation plan that I contribute to. We can do our own allocation changes through their website and there is a representative available who comes to our work every so often or whenever we need him. I have a ways to go before I retire, so I've always been in ultra-agressive mutual funds. I lost quite a bit but at this point I've gained most of it back with a lot more shares. The company I deal with offers plans according to when you're planning on retiring. So if I plan on retiring in 2030, there's a plan named that or at least close to it. It reallocates automatically as time goes on and becomes less aggressive. Of course you should always watch what it's doing and if you don't like what's happening pull out or change courses.

If you're the type to invest and watch the ticker all day and start contemplating suicide every time it drops .00001%, take the money and go on a nice vacation. Best of luck either way. One more thing, the guy who I was talking about in the beginning went through a financial planner who is now living it up in the Caribbean. If you do go with someone professional for advice, make sure it's a reputable company with good references and insurance.

John
 

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Where are you planning on investing? I'm looking for ideas. How about a thread looking at quality investments?

I know there are self-employed, self-sufficient, and self-pensioning folks on TS. Personally I have some quality investments and others that haven't done so well. But I'm on the point of wanting to invest cash -- on the order at present of ~ $50,000 to put away hoping for reasonable return.

I don't really know where to sink my savings. I liquidated a bunch of stuff in June 2008, and sunk most of that into a renovation (which the crash in the markets resulted in costing me only 1/2 of the actual outlay, because if I hadn't needed the money I would have held onto a lot of stock that nose-dived). It was easy investing from 2002-2008, when everything was looking up, but the past year has not been so rosy.

Clearly this won't be a thread for investment direction, but it might twig one on where to look, sectors, or overlooked industries, or clearly undervalued companies that are worth a second look.

Any thoughts?
I would be extremely cautious about investing without benefit of an investment analyst. One of my IRAs is through Fidelity's Professional Advisory Services and although the past year has been unremarkable I'm within about 20% of making a full recovery.

Oddly enough their cut off for this program is a minimum of 50K. Mine has done well up until earlier this year when everyone was feeling the pinch. I don't know if they do business in Canada but they might be worth consultation. Nothing ventured, nothing gained. I have biannual reviews with an adviser over the phone to address any concerns I might have over the portfolio makeup. Conversely they make suggestions on how to maintain a self sustaining portfolio. I've yet to take any distributions and won't until I reach the magic age for mandatory distribution. I just have not needed it yet.

I few weeks ago I had a representative of a well known oil exploration company contact me with a prospectus for a proposed well down in Texas. These types of investment solicitations always make me nervous so I declined. Investment cash must be in short supply these days.

Sorry, I don't have any gilt-edged suggestions however I would keep a tight grip on my cash and not commit to any investment without advice from reputable sources. As volatile as the market is now I would be hesitant to make these kind of decisions without due diligence and the aid of an adviser. Money is just too hard to come by and keep these days. Good luck and be careful.
 

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$50K is a very serious investment and needs the advice of an investment professional. I have several investment professionals advising me on my investments. Currently, I am moving around some funds to put in a high interest e-savings account that earns interest daily at the bank I am about to move the funds into.

Win $50K or lose $50K. Its your decision but this must be a decision undertaken with advice of a compentent investment advisor.

Personally, I wouldn't throw $50K into this "club" for it turning into a Madoff Ponzi scheme.

Sanosuke!
 

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I few weeks ago I had a representative of a well know oil exploration company contact me with a prospectus for a proposed well down in Texas. These types of investment solicitations always make me nervous so I declined. Investment cash must be in short supply these days.

I'm always leery of anyone contacting me looking to get me to invest in something. The question in the back of my mind is always why aren't they financing the entire project themselves if it is such a guaranteed money maker.
 

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I'm always leery of anyone contacting me looking to get me to invest in something. The question in the back of my mind is always why aren't they financing the entire project themselves if it is such a guaranteed money maker.
I can understand a start up type company looking for investors to finance their projects
or idea in order to get off the ground. Those who get in early stand to make a lot of
money...or lose it all. Unfortunately nowadays you don't know who's scamming you and
who isn't. I agree that it probably isn't a good idea to get into this type of "deal",
unless you really know the company and its people very well. Even then it's a very risky
proposal.

As the saying goes, if it's too good to be true then it probably is.

John
 

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Don't argue with an insomniac.
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Discussion Starter #9
Clearly this won't be a thread for investment direction, but it might twig one on where to look, sectors, or overlooked industries, or clearly undervalued companies that are worth a second look.

Any thoughts?
I appreciate all your thoughts. I'm not looking for advice like "Buy Microsoft when it hits 22 and sell it at 35", but just ideas where the market may be overlooking value or potential for growth.

So many people have paid good money to investment advisers to lose money for them. I figure I can do that on my own. With a buy and hold strategy, careful examination of my planned investments, reasonable diversification, I did very well from about 1999 to 2008. In 2008, I sold about half of my non-locked in investments because I wanted to pay cash for my home renovation (we can't deduct mortgage interest in Canada). I had already invested much of my earnings in my own mortgage prior to that so I had my house paid off free and clear. So investing the amount that I previously had allocated to my mortgage netted me about 50% gains over 5 years.

I sold a whole bunch of stuff, bank stocks, resource companies, oil, gas, heavy manufacturing, insurance, a very diversified portfolio worth about $250,000 and used the proceeds to fund the renovation. Ironically, the value of my investments, within 6 months of my selling them, would have been about 1/2 of their value when I did sell them. I realize it was pretty much pure luck that I sold when I did.

Presently I have a variety of stocks, well diversified by sector and region, I invest enough that I can buy lots of 100, 200, 500, or 1,000 shares for 9.95 and the stocks I own are doing as well as any equity based mutual funds, and better if you discount the MERs.

For bonds I don't have a problem with mutual funds, usually they have very low MERs and the longer you hold them the lower the commission fees become, but equity based mutuals seem a bad bet.

Long story to say I want to invest in worthwhile companies which will make me money. Blue chips have always given me the best, most consistent rate of return. So that brings me to the issue at hand, I'm not looking for advice on a Truck Forum, but rather ideas from a variety of sources, which I can then further investigate.

One example: GE. Current value is 13.20. S&P rates it as a "Hold" while Morningstar rates as "Buy", the P/E R is 10 which seems pretty good. But with a 52 week low of 5.72 and a 52 week high of 29.28, which way is it actually headed? Anyway, that's the kind of specific stuff I'm looking at, and of course I also appreciate the general advice.

Kind of like the line "A lawyer who represents himself has a fool for a client and a lawyer" or equally applicable "A doctor who attempts to treat himself would be better off with a different doctor or patient".
 

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I look at "trends & bubbles" and have been very fortunate in the market. I used to live on CNBC, WSJ, Bloomberg, and etc.

Did some daytrading in late 1990s and early 2000s (wanted to try it) and actually made some money at it. I was not greedy.

Later went from stocks & etc. into a more liquid state in Oct. 2007 ... a couple of months before market sank.

Still very liquid as I still see some problems ahead. Just doing some "mini-short-term-investing" now.

When Obama announced that he will not let any more banks go under ... I only bought 1,000 shares of Bank of America at $2.96 and later sold at $10.12. I never try to time the bottom or the top on a short termer.

I have been fairly decent with money ... retired in my 40s and never looked back.

SOS

PS ... When you hit your late 50s or early 60s ... it is no time to gamble with your retirement. Now, you can do a small "investment-gamble" if you wish and do not care if you lose it.
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$50k will be plenty to start up a nude webcam site. low overhead, no employees to worry about, you get a portion of what people pay, and its not a business that will go away anytime soon. c'mon, become an internet pimp!
 

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The one rule I always follow is never invest a penny unless you are absolutely sure you won't need it for at least five years. A lot of the overselling in the market occurred because people fell on hard times and were forced to sell at the worst possible time just to keep the bills paid. I always keep at least enough to cover 12 months worth of expenses liquid. Then a layer of CD's as a buffer, then stocks.
 

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You're way ahead of the curve TundraBay. I hope my comments did not appear elementary or preachy. That was not my intent. I tend to generalize when it comes to discussing other people's money and never offer advice on what to buy or sell, it's just not my style.

I've made some good investments over the years but what's good for me may not be applicable to others. Everyone's long term goals are unique. Judging from your past successes you obviously have an innate ability to separate the wheat from the chaff.
 

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Don't argue with an insomniac.
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Discussion Starter #14
Thanks for the positive comments, Greenie, and in no way did I take your comments badly. You are very right, and it is easy to think I'm a genius if I can make money in the market when we're in an upward market cycle. While I've been successful, I've also been lucky, and many of my best investments so far were in companies that looked undervalued. I bought Bud a number of months before In-Bev made their bid and that made some money, and Dofasco Steel before ArcelorMittal bought them out. So a combination of luck and good timing, and a bit of work researching what looks to have better intrinsic value than the market is seeing. That being said, I'm not interested in day trading. I'm much happier buying to hold, long term investments are my best bet I think. However if you buy to hold and 2 months later the stock has gone up by 80%, it's probably a good time to sell. It often drops back, and you can easily buy again at the lower rate if you think the basic value is still there.
Anyway thanks for adding your observations Greenie, Song, SOS, Wake, Kerryman, Sano, but not Mr. Creosote :D
(P.S. I'll be starting up a thread for you soon enough, BS&E)
 

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Tundrabay...the concepts of "energy" and "scarcity" will dominate the social, economic and political landscape for years to come and many of the best investment opportunities of the future are still in the early, if not embryonic technical and business stages
focus on:
  • The looming import of Peak Oil (everything from fossil fuels trapped deep within the Earth to renewable energy sources at the surface and above)
  • The "above-ground" factors that are making energy supplies and the recovery of those supplies more and more problematic and costly with each passing day.
  • supplies of many important elements (Ti,Au,Ag,Co) and basic commodities (food) are just plain drying up. Whether it is fresh water, phosphorus for fertilizer, or exotic elements used in high-end semiconductors, there are some things that are hard to get even if you have money in the bank.
I know you didn't want specific stock necessarily but this has good dividend payments and has the upside of the oil prices too.....Whiting USA oil trust (WHX) paying 21% annualized dividend....

another area that is now growing by leaps and bounds due to the only good thing our :mad:"GREAT HOPE" Prez :mad: has spurred is the area of stem cell research....the leader in this area is BioTime (BTIM) with pioneer Dr. Mike West with strong IP protection....

but do your own due diligence on these two reco's....but really think about the looming energy crisis and rare earth metals used in everdya life....BTW you know China is buying all this up like crazy and reducing its exports....they will be the major consumers of ALL of these resources as they try and industrialize their vast country.....there is gonna be high demand here and abroad for natural resources and that's the place to be in the next five years. IMHO
 
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