How many of you invest?

[herofan]

I want to add that I'm not trying to say anyone here is wrong in their suggestions and comments, and I appreciate all that have been given. I was basically looking for comments to help the average Joe like me, and I thought, "what better place to get comments of the average person than a farming site." But after reading some of the things you guys do, how much knowledge you have, and how much $ you invest, I believe you are all in a different league than I; that's probably why we seem on a different page.

 

[1982vett]

herofan.....don't remember if I gave the link already, but here is a place to hang out. Contributor/member cross section is vast, full of knowledge, theory, and experience.

https://www.bogleheads.org/forum/index.php

Spent some time on it this afternoon while staying out of the heat. An old thread from October 2008 which was revisited in 2010 resurfaced again today as the markets peaking again.

 

[herofan]

herofan.....don't remember if I gave the link already, but here is a place to hang out. Contributor/member cross section is vast, full of knowledge, theory, and experience.

https://www.bogleheads.org/forum/index.php

Spent some time on it this afternoon while staying out of the heat. An old thread from October 2008 which was revisited in 2010 resurfaced again today as the markets peaking again.

Thanks. I'll check it out.

 

[herofan]

Something else that I may not have made clear about investing in straight stocks is that I wouldn't sink a large sum in one stock. For example, if I had $100,000 to spare,(which I don't) I wouldn't put all that in one stock regardless of how good it seemed; I'd probably put it in 15 or so companies.

 

[Brute 23]

Something else that I may not have made clear about investing in straight stocks is that I wouldn't sink a large sum in one stock. For example, if I had $100,000 to spare,(which I don't) I wouldn't put all that in one stock regardless of how good it seemed; I'd probably put it in 15 or so companies.

That's called a mutual fund. :lol2: Just messin with you

 

[1982vett]

Something else that I may not have made clear about investing in straight stocks is that I wouldn't sink a large sum in one stock. For example, if I had $100,000 to spare,(which I don't) I wouldn't put all that in one stock regardless of how good it seemed; I'd probably put it in 15 or so companies.

No....Not one stock.... unless you have a $2,500,000.00 stock portfolio.... I think most advisers should tell you not to have more than 4% invested in any one stock and then you need to diversify across sectors (getting into mutual fund territory). If you have stock options from your employer i think they advise no more than 10%.

If a hundred thousand dollars showed up in my mailbox, it would go into 3-4 mutual funds.

 

[herofan]

Something else that I may not have made clear about investing in straight stocks is that I wouldn't sink a large sum in one stock. For example, if I had $100,000 to spare,(which I don't) I wouldn't put all that in one stock regardless of how good it seemed; I'd probably put it in 15 or so companies.

That's called a mutual fund. :lol2: Just messin with you

True, but isn't a "mutual fund" technically different than just investing in individual stocks, even though one may invest in several?

 

[Brute 23]

Something else that I may not have made clear about investing in straight stocks is that I wouldn't sink a large sum in one stock. For example, if I had $100,000 to spare,(which I don't) I wouldn't put all that in one stock regardless of how good it seemed; I'd probably put it in 15 or so companies.

That's called a mutual fund. :lol2: Just messin with you

True, but isn't a "mutual fund" technically different than just investing in individual stocks, even though one may invest in several?

Nope. Group of individual stocks is a mutual fund. Bigger group of single stocks is an index mutual fund. It's that easy.

Buying a group of stocks yourself is just saying you think you can pick single stocks better than the professional management companies.

 

[hurleyjd]

You can also lose in the mutual funds as well as individual stocks when the market tanks. I bought into a limited libility partnership with BBEP. Paid pretty good dividends for a while. Lost $70140 on this venture. Still have the shares they are selling for a little over .07 cents.

 

[herofan]

That's called a mutual fund. :lol2: Just messin with you

True, but isn't a "mutual fund" technically different than just investing in individual stocks, even though one may invest in several?

Nope. Group of individual stocks is a mutual fund. Bigger group of single stocks is an index mutual fund. It's that easy.

Buying a group of stocks yourself is just saying you think you can pick single stocks better than the professional management companies.

Ok. the way I understood from friends and my advisor is that even though a mutual fund is a group of various stocks, there is a technical difference in a mutual fund and just buying individually yourself. So, I guess I've got a mutual fund.

Maybe that's why everyone faints when I mention buying individual stocks; they think I'm just going to buy into one company, but I would never sink a huge pot of money into just one thing.

 

[TexasBred]

Something else that I may not have made clear about investing in straight stocks is that I wouldn't sink a large sum in one stock. For example, if I had $100,000 to spare,(which I don't) I wouldn't put all that in one stock regardless of how good it seemed; I'd probably put it in 15 or so companies.

That's called a mutual fund. :lol2: Just messin with you

True, but isn't a "mutual fund" technically different than just investing in individual stocks, even though one may invest in several?

Think of it like a baseball team. 9 players but all have different batting averages. Figure the composite batting average of the nine and you have the equivalent of the yield of the mutual fund with 9 stocks in it all performing differently. That would be assuming that the fund had the exact amount of money invested in each of the 9 stocks in the fund which is seldom the case but at least gives you a bit of an idea.

 

[backhoeboogie]

You can blend your money into several mutual funds as well. I like value equities. But the conservative side of me puts some in balanced funds who contain both stocks and bonds. Then I have quite a bit in interest securities which doesn't make much but stays put.

 

[millstreaminn]

If a hundred thousand dollars showed up in my mailbox, it would go into 3-4 mutual funds.

If 100K showed up in my mailbox, I would buy Facebook, Amazon and Boeing.

 

[Brute 23]

Generally when some one says they buy single stocks most people think day trading type stuff, buying start ups, etc. That's where the lure of big gains comes from.

If your buying single stocks and holding them long term your not really gaining any thing but risk. If they move upward or down ward its because their whole sector, or the whole market moved up or down. You can buy Energy Funds or Communication Funds and you will see those big AT&Ts, Home Depot, Exxon, etc in large percentages in them.

 

[herofan]

Generally when some one says they buy single stocks most people think day trading type stuff, buying start ups, etc. That's where the lure of big gains comes from.

If your buying single stocks and holding them long term your not really gaining any thing but risk. If they move upward or down ward its because their whole sector, or the whole market moved up or down. You can buy Energy Funds or Communication Funds and you will see those big AT&Ts, Home Depot, Exxon, etc in large percentages in them.

So, assuming every man is out for himself, what gain would my advisor at Hilliard & Lyons get in suggesting I buy single stocks as opposed to mutual funds?

 

[TexasBred]

Generally when some one says they buy single stocks most people think day trading type stuff, buying start ups, etc. That's where the lure of big gains comes from.

If your buying single stocks and holding them long term your not really gaining any thing but risk. If they move upward or down ward its because their whole sector, or the whole market moved up or down. You can buy Energy Funds or Communication Funds and you will see those big AT&Ts, Home Depot, Exxon, etc in large percentages in them.

So, assuming every man is out for himself, what gain would my advisor at Hilliard & Lyons get in suggesting I buy single stocks as opposed to mutual funds?

More trades more often.

 

[Brute 23]

Generally when some one says they buy single stocks most people think day trading type stuff, buying start ups, etc. That's where the lure of big gains comes from.

If your buying single stocks and holding them long term your not really gaining any thing but risk. If they move upward or down ward its because their whole sector, or the whole market moved up or down. You can buy Energy Funds or Communication Funds and you will see those big AT&Ts, Home Depot, Exxon, etc in large percentages in them.

So, assuming every man is out for himself, what gain would my advisor at Hilliard & Lyons get in suggesting I buy single stocks as opposed to mutual funds?

More trades more often.

Generally they get a bigger percentage.

 

[herofan]

Ok, that makes sense. Thanks for all the comments. Like I said, I'm not trying to prove anyone wrong, I just like to see all sides of an issue.

 

[Brute 23]

My main point to people is to educate you self on this stuff so you can make decisions. Don't be afraid to tell these people no your not comfortable with that investemnt or you would like to hold off until you can get a beeter grasp of what they are wanting to do. Follow your gut. It's your money. They are advisors.

 

[SJB]

If your buying single stocks and holding them long term your not really gaining any thing but risk. If they move upward or down ward its because their whole sector, or the whole market moved up or down.

I'm not trying to be rude, but that is not true.