playing in the stock market

[farmbif]

how many folks hold stocks?
ive never ever bought a stock and I feel I could have made a lot of money if I did when encouraged to buy in in the past, like when I met sam Walton in 1988 and he told me I should invest in Walmart stock. and few other times like 1985 when apple came out with the Mac . and sometimes I feel I missed out on google and eBay too
I ve always considered the stock market as gambling, I don't gamble.
but I just heard about a company going public soon that might just be a winner.

[Piedmont]

Most initial public offerings (IPOs) are losers, especially in recent years. Would you have held Apple through all the ups and downs? That is the other side of it. Don't in and out the market. Take money you won't need that you want to invest for the long term and get a low cost index fund. Expenses are a big deal. An index fund doesn't try to beat the market (can't in fact) but will give you almost all of whatever the particular index you bought gives you. Vanguard is a good company, but not the only one where you may purchase low cost index funds. Vanguard was the first and was running away with market share so others had to follow if they wanted to have any business in a few years.

[rancher1913]

I own a bunch of stock in union pacific, its all held by the u.p. agent of record and does not cost me a cent to maintain it, all expenses are covered by u.p.

I believe all companies have an agent of record that you can purchase stock from and they will hold it for you, and do any reinvesting, you do not need to have a broker and you really do not need to pay all the broker fees. I can buy and sell as I see fit and no commissions.

[MT Gianni]

I have a lot of stocks and funds managed by a broker. He prefers I have no more than 3%-4% of what he manages tied up in one stock. I like that idea. Investing in the market is like gambling in the same sense that you gamble your employer will pay you and continue to employ you. He probably will, your stocks will probably return money on your investment but it can be tough if either doesn't. I have funds that have earned over 30% the last two years and averaged over 15% since the 2016 election. If you have money to invest each month get a good financial advisor and ride it out through the bumps and climbs that come. I might pay my advisor $1500 a year which is cheap for what he does for my investments.
I recommend DRIP stocks which stands for Dividend Re-Investment Plan. They send you no dividends but purchase stocks with them. At first you might buy 1/15th of a share or less. As it grows you are buying multiple shares.

[dverna]

I am just barely smart enough to know what I do not know.

I have Fisher manage my investments. They have performed very well.

[ryanmattes]

I get an investment fund through my job that lets me invest pretax in various indexes (and the company matches up to 3% of my income). I talked to the guy about my strategy. I assume I'll be working and investing for another couple decades, so the mix is about 40% high risk/high reward stuff and 60% low risk/low reward stocks, with a plan to adjust that mix over time, as I get closer to my target retirement date. By the time I retire it'll be about 90% safe and 10% risky. If all goes well and I continue to invest as planned, I should have enough to retire on even if social security collapses before then.

Meanwhile, I talked about investing to my kids, and one of them actually took me seriously. He found a company that he attached to his bank account. Anytime he makes a purchase with his debit card, it rounds up to the nearest dollar, which then gets invested into an index fund for his retirement. He can pick the mix of risky vs safe stocks, and it'll stay in that fund and keep building up until he retires. He's currently 18 years old. If he stays in it and keeps it up, he could retire very comfortably.

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[Winger Ed.]

I'd get ahold of some sort of financial consultant with a proven track record.

It's a better idea to invest in the stock market, and 'play' the lottery.
People that 'play' the stock market always lose.

[memtb]

I’ve owned some stocks since 1980, buying into my company stocks and investing into a 401 K. Working with two different companies until 2016 (retired) I bought bought company stocks and mutual funds thru an investment firm the company was involved with!

Upon my retirement, I took my retirement in a lump sum payout, rolled it over into my 401 K staying with the investment firm that I had been with thru the company. Working with my investment counselor/manager we determined a best strategy for my remaining years. We are in several mutual funds, heavily invested in both US and Foreign companies. Also involved with bonds. The mutual funds (lots of stocks) perform well in a Bull market. If/when the market goes Bear, the bonds help absorb the hits to stocks. Our balance does not give great returns in a Bull market, but makes some in a Bear market via the bonds. Our goal was to be conservative in the stocks.....low to medium risk. Meaning, when the market has 20% gains, I may see only 10 to 15%.

In summary....diversify, don’t put your eggs in one basket. A friend once gave me this stock market tip.....”Bulls make money, Bears make money, Pigs get slaughtered”!

Mutual funds are often made up of hundreds of companies, meaning if a few go bust.....it has minimal effect on the overall fund. There are high risk - high reward(yield) funds, and there are low risk - low reward(yeild) funds, and those in between!

Ultimately, you must determine what is best for you! Morning Star is a great source of information about all or most mutual funds available.....giving the history of each of the funds, including the fees to own that fund! I would suggest that you talk to an investment firm....I’m very pleased with Vanguard! Good Luck! memtb

[sigep1764]

I invest in my 401k, 20% of my pretax income with a 3% match. Its attached to a fund with a target retirement date of 2050. Another $100 a month goes to a Roth IRA. One of the best things my folks told me to do was save. Don't go without, be sure to have things to enjoy, but plan for the future.

[David2011]

After I left a job in the early '90s I rolled some of that retirement lump sum into a stock and two mutual funds. The mutual funds did OK but the stock was Microsoft. The Microsoft return was about 1500%. It had some nice growth and some nasty declines but did well in the long haul. I went on to another job that had a 401K available. I invested in the company's 401K until it hurt for over 20 years. Felt like I wasn't making much but when I retired it had turned into a nice nest egg. After I retired I rolled part of the Microsoft stock into other more diversified investments with a broker to protect it from another big drop like the one in the early 2000s. The broker invests in what will make money regardless of the political climate; something I would probably not do myself. The investments are doing very well for me.

[wildwilly]

I was in my thirties ( I'm 74 now) when I finally took my mom's advice and enrolled with a financial planner, with whom she was already a client. I had previously dabbled in the stock market, essentially breaking even. I was single then, earning a good living in law enforcement. I was able to put 21 cents of every dollar I took home into my account. I married when I was forty-six, and still maintaining my investment strategy. Four years ago, Bob (my FP), told me that my wife will never have to be concerned with running out of money when I'm gone.
As a side note, I put some spare cash into Berkshire Hathaway about the time Obama was in office. When Obama cancelled the Keystone pipeline BH stock shot up. Buffet had bought Burlington Northern RR about that time (transported shale oil from Canada). Bob (my FP) thought that I was a genius. I had to 'fess up that my intention for buying BH stock was so that I could attend Warren Buffet's annual stockholders meeting ( I really don't even like the guy). My initial invest really panned out.

[Land Owner]

I inherited a few shares each of three or four oil-company stocks that were purchased in 1939. Other bank and "local business" stock certs were included. The original certificates were held in a safe deposit box until I was required to determine their worth for Probate Court and had most of the certs converted to "electronic stock" through Computershare (a huge PITA effort).

Some stock was defunct, bankrupt, or out of business, but the paper Certs are still bought and sold for their "unique" intrinsic value. Oil-companies and banks have been merged and acquisitioned by the "bigger fish in the pond". Stocks split and some split multiple times. Five shares, became 10, then 20, then 100. In over 80 years of growth (for some) these stock became quite valuable.

Determining the legacy of stock is time consuming and fund depleting. Everybody, and I mean EVERYBODY, has their hand out. Incredulously, I've gotten a few "legit businesses" saying, "Send in the certs. We'll do the research, but you won't get the certs back." WHAT? I don't think so!!! Possession of an original cert is OWNERSHIP.

Historic information is not free. I have one 1939 original cert. of five (5) oil-company shares that's been chased through MANY mergers and acquisitions. After five (5) years I have gotten tired of trying. These shares remain uncertain in value - whether "intrinsically unique" (no high dollar value) or split and multiplied to great wealth. The history of the stock is clouded in DERON ENERGYa BIG OIL Company. The cert is interesting just the same.


A word about 401(k). Year after year they "sell" newbies with wide eyes on the concept of "The Time Value of Money". The "What If" scenario - investing a mere 10% of pre-tax income at an annual 6% ROI for 25 years in the company's 401(k)? You would be a million dollars richer of course! But don't be fooled. The 401(k) hasn't performed more than an annual cost of living increase since its inception.

When asked, "Are there any questions?" I always asked if the Plan Managers would turn my $1k pre-tax into $100K by the end of the year
- like Hillary Clinton's Financial Advisors. My Company told me (through channels) to stop asking that question! HA!

[memtb]

I inherited a few shares each of three or four oil-company stocks that were purchased in 1939. Other bank and "local business" stock certs were included. The original certificates were held in a safe deposit box until I was required to determine their worth for Probate Court and had most of the certs converted to "electronic stock" through Computershare (a huge PITA effort).

Some stock was defunct, bankrupt, or out of business, but the paper Certs are still bought and sold for their "unique" intrinsic value. Oil-companies and banks have been merged and acquisitioned by the "bigger fish in the pond". Stocks split and some split multiple times. Five shares, became 10, then 20, then 100. In over 80 years of growth (for some) these stock became quite valuable.

Determining the legacy of stock is time consuming and fund depleting. Everybody, and I mean EVERYBODY, has their hand out. Incredulously, I've gotten a few "legit businesses" saying, "Send in the certs. We'll do the research, but you won't get the certs back." WHAT? I don't think so!!! Possession of an original cert is OWNERSHIP.

Historic information is not free. I have one 1939 original cert. of five (5) oil-company shares that's been chased through MANY mergers and acquisitions. After five (5) years I have gotten tired of trying. These shares remain uncertain in value - whether "intrinsically unique" (no high dollar value) or split and multiplied to great wealth. The history of the stock is clouded in DERON ENERGYa BIG OIL Company. The cert is interesting just the same.


A word about 401(k). Year after year they "sell" newbies with wide eyes on the concept of "The Time Value of Money". The "What If" scenario - investing a mere 10% of pre-tax income at an annual 6% ROI for 25 years in the company's 401(k)? You would be a million dollars richer of course! But don't be fooled. The 401(k) hasn't performed more than an annual cost of living increase since its inception.


When asked, "Are there any questions?" I always asked if the Plan Managers would turn my $1k pre-tax into $100K by the end of the year
- like Hillary Clinton's Financial Advisors. My Company told me (through channels) to stop asking that question! HA!

I guess it all depends upon which company 401K you are vested into. From 1998 to 2016 I probably averaged approximately 8 to 10% gain plus my additions to the K. Some company stocks perform quite well and some company 401K’s allow investing in various mutual funds. memtb

[Wayne Smith]

Something to consider - A Fiduciary is legally required to put your interests above theirs. Not all advisers are, and most are not. Fisher Investments is a fiduciary and it is well worth looking around your area for a fiduciary if there are any local.

[starnbar]

Right now I would not be buying anything with what is going on.

[GhostHawk]

I doubled some money in Mutual Funds which were stock based back in the 90's.

Right now, I'd stay out of it. I feel like the market is blown up like a big balloon and it will pop someday.

I had 2 Uncles and an Aunt who were big into the market. Did well off it. The truly BIG money runs that market up and down to suit itself. And makes money both ways.

Slowly cautiously over a long period they will buy a particular company's stocks. Then they will get together, and all will sell short, driving confidence and price down. When it bottoms they buy back and ride the wave back to the top.

I say before you gamble on the market, clean up your debts, pay off any Mortgages. Then if you still have funds, maybe buy some Land.

The Lord only made dirt once, long term it always goes up. Short term you have a place they can't kick you off of. Ideally a place with room for kitchen gardens. You can be pretty self sufficient if you work at it.

Don't forget to lay in stocks of essentials enough to last you a year.
It can be Beans and Rice and cornmeal mush which you will get heartily tired of. But will keep you and your family alive.

[bedbugbilly]

Our investments are held in a brokerage street account (fully insured) that is managed by our broker - a family owned brokerage firm yjat has been in business for many many years. We do not pay a "monthly fee" like I hear many others. The broker makes his money on the commissions he receives if and when we buy or sell stock. Unlike the racket that many brokers practice, our broker does not "stir the account" - meaning constantly recommending using/selling to generate sales commissions.

When we first met with him, there was no pressure and he had an excellent reputation. We talked a long time so he could get to know us, our goals and our needs. He quickly tuned into the fact that I am a "conservative investor" - i.e. not willing to throw money away on high risk investments promising a high return that could quickly go south. We ended up with a portfolio that is well diversified that offers a good return but which pretty much provides for a maintained income as well as growth. We talk on a regular basis when needed and if a stock has the potential of being on shaky ground - sometimes due to new government regulations, change in tax laws, etc., he will discuss it and give an educated recommendation as to whether we should sell and re-invest or ride it out - the decision is ours. Yes - if we decide to sell and re-invest, he gets a commission, but his advice has always been spot on and he certainly deserves the commission for his services which has, in several instances, saved us from the loss of thousands of dollars had we kept. Over the last fifty years, I can think of a number of companies which were bought out, promising a brighter investment future - only to have the assets of the company "gutted" by the purchasing company leaving the stockholders holding stock that was worthless and the employees of the company without jobs, insurance and their pensions after a lifetime of dedicated service.

If a person is thinking of buying stock for the first time - do your homework. For every person who has the ability to make a wise investment, there are hundreds who "think" they have the wisdom but end up making bad investments. Find a reputable broker and meet and talk with them. All brokers are not created equal and if you are not comfortable with them, find another.

Diversify your investments - NEVER put all of your eggs in one basket. I remember talking with our attorney when I was settling my parents estate. He was a very wise individual. It was at the them when Ford was close to going sizzle end upwards. His brother had worked his entire life for Ford - he made good money - had received shares of Ford stock as employee bonuses and on top of it, when he had spare money, he put all of it into Ford stock. Our attorney had repeatedly talked with his brother about diversifying his investments, but his brother ignored him as dumped all his money in to Ford stock. He would brag to his brother about how he owned more than a million dollars of Ford stock. Well . . . I was having lunch with our attorney on the day that everything took a nosedive and his brother called him to cry on his shoulder about how "it wast fair" - the value of his Ford stock had plummeted and his investment worth over a million dollars was only worth a fraction of what it had been worth. In a matter of hours, he had lost hundreds of thousands of dollars. Would the value go back up? Yes . . . . but over how many years and would it ever fully recover? Possibly . . . but for a man in his seventies, would he ever live long enough to see it? The answer is no . . . he died just a few years later and because of his poor judgement of putting all his eggs in one basket, he had to give up a lot of things as far as his lifestyle went.

MY dad was as good businessman and a good investor as well. He and my grandfather were able to keep their business going and survive th Depression but it took a lot of prudent decisions, creative changes and hard work to do so. But . . . . he talked with me a number of times that he had made some bad investments as well as his good ones, and as a result, had lost money. As he said though, you learn from it not to make the same mistake twice. Probably the best advice he ever gave me was - "If you can't afford to lose it, then don't invest it". It still is pretty sage advice.

[farmbif]

like ghost hawk says I believe there are only several thousand people that control the markets and hold the bulk of the stocks and bonds and control the markets the rest of stock holders are pip squeaks. another reason I never gambled.
and bed bug billy's "fully insured" most insurance isn't worth the paper its written on. ive had my experiences with those scoundrels.
I guess I have trust issues.

[MT Gianni]

Right now I would not be buying anything with what is going on.

That was the advice I got in the 70's when interest rates were 16% to 18%, in the 80's with Reganomics, in the 90's with unrest, oil, Middle East problems and in the 00's with Y2K, and other stuff. Ask when squirrels never set any aside for the future, when they fail to do so, you shouldn't either.

[popper]

Realize only 15% of the 'market' is owned by 'retail' (us) investors. The rest is the banks and institutional operators. They have data mining software to buy and sell. Trade a few thous. shares on 2 cents spread for big income.
Check out the reason for IPOs - they vary. Some are startups, many are spinoffs to get more working capital cheap.
Not exactly gambling but can be risky.