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abc Inner circle South African in Taiwan 1081 Posts 
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I got great advice from my financial advisor today but would like to ask for more opinions before deciding. What a better place then the Café.
He said "If you had purchased $1,000 of Delta Air Lines stock one year ago, you would have $49 left. With Fannie Mae, you would have $2.50 left of the original $1,000. With AIG, you would have less than $15 left. But, if you had purchased $1,000 worth of beer one year ago, drunk all of the beer, then turned in the cans for the aluminum recycling REFUND you'd have more money than the 3 combined and you would have had a great time. What do you think? Invest in the stock market or drink beer? |
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Scott Cram Inner circle 2678 Posts
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After this week? Stock market! Despite the weak financial institutions you hear about on the news, there are many companies will solid fundamentals, whose stock price will no doubt be depressed by this week's financial news.
I'd say there will be bargains galore available later this week and/or early next week, if you look at solid companies, and hold for the long term. There were many savvy investors who bought solid stocks shortly after the October '29 crash, and held onto them through the '40s and '50s, and enjoyed a nice, comfortable retirement because of that. I've never understood why people get so panicky, and worry about the future when prices go down. At any other market, when the prices go down, you start shopping for things you wanted, but didn't buy before because the price was too high. Guess what? That works in the stock market, too. |
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abc Inner circle South African in Taiwan 1081 Posts
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I want a third opinion. The above is way too true to be good advise.
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rossmacrae Inner circle Arlington, Virginia 2477 Posts
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Scott: I'm with you, that is the best advice I've heard all week.
Let's all say it together: "Investing is for the long term." |
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NicholasD Inner circle 1458 Posts
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Scott and Ross - I'm with you!
Nick |
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Scott Cram Inner circle 2678 Posts
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Thanks for the support! Here's one company spokesman that has me interested in looking at their company:
Unlike other stocks, Procter & Gamble (PG) has only showed a minor loss today (down about 1% at this writing). On one of the news channels, they were just talking to a P&G spokesman, and asks why he thinks his company has remained so strong in today's market. The spokeman replied, "There are 3 major reasons: 1) Any risks we take are carefully evaluated 2) We do all we can to keep our company's financial fundamentals strong 3) We make Pepto-Bismol." |
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balducci Loyal user Canada 227 Posts
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Quote:
On 2008-09-29 12:39, Scott Cram wrote: The Wall Street crash started in 1929 but it went on and on (occasional ups followed by even bigger downs) and only actually hit its low in 1932. And then it took until 1954 for the Dow to reach its pre-1929 level. That's 35 years. "Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even." - Richard Salsman So to any investors out there, be careful. I'll certainly buy some more shares of stock in a few companies, but I will take it slowly. This might be a good time for me to dig out, and reread, my copy of "The Great Crash: 1929" by John Kenneth Galbraith.
Make America Great Again! - Trump in 2020 ... "We're a capitalistic society. I go into business, I don't make it, I go bankrupt. They're not going to bail me out. I've been on welfare and food stamps. Did anyone help me? No." - Craig T. Nelson, actor.
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Cohiba Special user Michigan 749 Posts
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Not to quibble, but that's actually 25 years.
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balducci Loyal user Canada 227 Posts
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Quote:
On 2008-09-29 20:15, Cohiba wrote: Good catch, lol. You seriously pwned me! Today's "Balducci Beat Down" was brought to you by Cohiba. :)
Make America Great Again! - Trump in 2020 ... "We're a capitalistic society. I go into business, I don't make it, I go bankrupt. They're not going to bail me out. I've been on welfare and food stamps. Did anyone help me? No." - Craig T. Nelson, actor.
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daffydoug Eternal Order Look mom! I've got 14077 Posts
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Quote:
On 2008-09-29 12:39, Scott Cram wrote: Makes sense. so why don't the investors on Wall Street do this? Maybe they can't see the forest for the proverbial trees? What do you think?
The difficult must become easy, the easy beautiful and the beautiful magical.
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thorndyke Regular user Canada 147 Posts
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The market is for the very strong of nerve.
Everything I've seen points to one thing - be patient and expect low dividends on long term and you are less likely to get a bath. |
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abc Inner circle South African in Taiwan 1081 Posts
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This was supposed to be a thread about drinking beer. What has happened here is an injustice.
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Scott Cram Inner circle 2678 Posts
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After today's thrill ride, my investments went down a total of 10.6%. It's actually done that before (although the other time it took a total of 7 business days).
Since I'm planning to hold on to those stocks for quite some more time now, I just shrug my shoulders. Although if anyone asks me on the street, I'll act brave, and say I'm trying to muddle through as best I can. Hey, the opportunity for the drama is there!  |
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Sorceress New user 34 Posts
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I always say, "I'm Bearing up!"
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airship Inner circle In my day, I have driven 1594 Posts
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All of my stocks are still sound - eight whole shares of Microsoft!
I only bought one share way back in the day to frame and hang on the wall. It has split three times since then. 
'The central secret of conjuring is a manipulation of interest.' - Henry Hay
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kregg Inner circle 1950 Posts
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EVERY SINGLE THING YOU BUY, from tools to finances, should be good enough to stand the test of time.
If you buy a cheap tool you'll end up paying twice. 
POOF!
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EsnRedshirt Special user Newark, CA 895 Posts
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Exactly, kregg. sdwsgb-
Sorry for that glitch above. I had to change a vacuum tube on my PC. They just don't make 'em like they used to
-Erik
Self-proclaimed Jack-of-all-trades and google expert*.
* = Take any advice from this person with a grain of salt. |
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Tom Bartlett Special user Our southern border could use 763 Posts
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Quote:
On 2008-09-29 20:26, balducci wrote: That just goes to show even the brightest of us make mistakes and miscalculate. 
Our friends don't have to agree with me about everything and some that I hold very dear don't have to agree about anything, except where we are going to meet them for dinner.
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balducci Loyal user Canada 227 Posts
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Quote:
On 2008-09-29 15:32, Scott Cram wrote: One thing people should keep in mind is that many weak financial institutions with large losses have been forced into selling their strong, good, winning assets in order to offset some of the losses and build up a cash reserve. That is still going on. So just because you are buying quality, doesn't mean that it is necessarily immune to the downturn. It might get sold along with everything else, if this 'crisis' continues to run. I used to own some PG back in the 90s, but I sold it a long time ago. This is an useful tool if you want to look at its historical valuation over the last 10 years or so: http://quicktake.morningstar.com/stockne......ymbol=PG Keep in mind, we were in a bull run over that period. I'd be interested in knowing what it's Price / Earnings ratio was back in the early and mid 1990s. I guess I knew back then, but I do not recall it now. Does anyone here have access to that? I assume its PE was lower back then than it is now. I have a suspicion it will fall back to that level in the next few years if the damage on Wall Street leads to compressed PEs in the overall market. Which I think could well be the case.
Make America Great Again! - Trump in 2020 ... "We're a capitalistic society. I go into business, I don't make it, I go bankrupt. They're not going to bail me out. I've been on welfare and food stamps. Did anyone help me? No." - Craig T. Nelson, actor.
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Steven Conner Inner circle 2720 Posts
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Quote:
On 2008-09-29 11:08, abc wrote: You only lose when you sell! If one cannot ride the wave, they don't need to be in the water. There are actually some that are doing well. Invest in leases and you don't even have to worry about the market.
"The New York Papers," Mark Twain once said,"have long known that no large question is ever really settled until I have been consulted; it is the way they feel about it, and they show it by always sending to me when they get uneasy. "
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Posted: Sep 29, 2008 03:08 pm 
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