Where to invest?

[Meister]

As the worst recession in decades is taking shape I am thinking about when to go back into the market and what to invest in?
Rather than trying to pick stocks I want to think about industries.

What are your suggestions and reasoning?

In dire times here are mine:

- cheap comforts, Snack Foods, McDonalds
- Discount chains
- Internet companies, people will spend more time at home and surf more
- Maintenance and repair, people will repair a washing machine rather than buying a new one
- Cooking, less eating out more cooking at home
- retraining

 

[lateforthegate]

Buy proven racehorses...........you'll clear 20 percent a year on your money minimum long term.........

 

[Meister]

Buy proven racehorses...........you'll clear 20 percent a year on your money minimum long term.........

For example?

Buffett went into GE a month ago and the stock tanked after that.

 

[lateforthegate]

Yeah I know........horses will continue to run......gamblers will sell their mother to make a bet........purses will go down a hair but not much.......

 

[fuji]

For example?

Buffett went into GE a month ago and the stock tanked after that.

GE sounds good then.

 

[JohnLarue]

For example?

Buffett went into GE a month ago and the stock tanked after that.

Buffett is smart enough to know he may not have picked the bottom
He is also smart enough to know this is not a horse race, rather an endurance race.
He also know trying to pick the bottom is impossible

Do you think he is losing sleep over his GE investment?

Not a wink!

1. He would have made the buy decision based upon criteria that has pr oven him well oner many years (ie value). He knows that this company will survive and 2, 5, 10 years down the way will be sending him (or his estate) truckloads of money.
2. He would not have committed a large % of his capital so that if he did not pick the bottom, he can live with it.
3. He is probably considering upping his stake.
4. There are so many really good companies selling at fire sale prices , he probably has the problem of which investments to select & will take his time

I would not bet against this man

 

[bing]

Buffett is smart enough to know he may not have picked the bottom
He is also smart enough to know this is not a horse race, rather an endurance race.
He also know trying to pick the bottom is impossible

Do you think he is losing sleep over his GE investment?

Not a wink!

1. He would have made the buy decision based upon criteria that has pr oven him well oner many years (ie value). He knows that this company will survive and 2, 5, 10 years down the way will be sending him (or his estate) truckloads of money.
2. He would not have committed a large % of his capital so that if he did not pick the bottom, he can live with it.
3. He is probably considering upping his stake.
4. There are so many really good companies selling at fire sale prices , he probably has the problem of which investments to select & will take his time

I would not bet against this man

GE needed cash and he stepped in.


For his $3b investment, he got a special deal. Preferred shares that pay 10% and the option to buy $3b of common shares at $22.25 at any time over 5 years.

 

[FOOTSNIFFER]

Oil stocks today are a very good bet. I've read numerous well researched papers that have concluded that the world's going to be on a carbon based energy standard for the foreseeable future....significant changes to the energy infrastructure takes too much time. Buy only the best companies at these oil prices....no exploration plays, nothing speculative. Solid companies with solid earnings and great balance sheets...

 

[aznguy99]

this is a great opportunity to rebuild your portfolio

just start picking up some of the blue chip stocks, don't just buy as you can reccreate a good diversified portfolio for a discount

Though GE went down, I'm sure Warren B is not just buying GE and leave it there, he is continuously re-evaluating the company and building a position in it

just be patient with your inv

 

[FOOTSNIFFER]

this is a great opportunity to rebuild your portfolio

just start picking up some of the blue chip stocks, don't just buy as you can reccreate a good diversified portfolio for a discount

Though GE went down, I'm sure Warren B is not just buying GE and leave it there, he is continuously re-evaluating the company and building a position in it

just be patient with your inv

way to go, smart move. Now is the time to be investing. Actually, if you can't invest in this type of market, I would seriously question you're decision to even be in the stock market. I got caught up in the euphoria a few years ago myself and stayed longer than I should have, but I knew that the end was near and got out around the Bear Stearns failure. Now, there are companies that are selling for less than their net current assets, with no debt, and of course slowing growth. This could end up being a japan-type scenario but I'm betting it's not going to be....that's the risk I'm prepared to take at this point.

 

[N Able Me]

OK so you have come to TERB for investment advice. Notw let me think a moment.... what is the wisdom of soliciting investment advice from SP's and their clients? The best advice I have for you is to look for advice elsewhere.

 

[JohnLarue]

OK so you have come to TERB for investment advice. Notw let me think a moment.... what is the wisdom of soliciting investment advice from SP's and their clients? The best advice I have for you is to look for advice elsewhere.

A better piece of advice is to not fully discount advice just because its from this source (terb). Perhaps it is better to take in what is offered & then seek additional sources of information & recommendations from knowledgeable individuals whom you trust.

There are certainly individuals on TERB who offer investment ideas I believe is questionable (eg by Nortel now because it is sooo cheap- Its sooo cheap for a reason- its probably going under).

There is also some very intelligent and knowledgeable posters here, who's advice is worth considering. As far as I know these people are not attempting to profit from their advice. So in some cases it is a more sincere recommendation than the mutual fund salesman who has a commission quota to meet.
Take it for what its worth- a suggestion from a public board of guys who have an interest in SPs. (Good investors like sex just like everyone else)

At the end of the day, an investor is responsible for his / her money and its best to listen, learn, listen to someone else and then agree or disagree with a specific piece of investment advice.

 

[Serpent]

I've been thinking -- a RE investment in either China or India. In a Tier 2 city over there. Something small -- like $20k. For a 15 year term.

 

[joseppi]

Royal Bank has an e-savings account that has an interest rate of almost 4%
If we were smart we would have bought American $$ when the Canadian $ shot up above the USA $$ and sold them when the Canadian $$ hit it's low.I think Real estate is the best way to go. Buy the worst house on the best street, fix it up then sell it at the right time.

 

[joseppi]

Stay away from Edward / Jones. I had an investment portfolio with them and they were charging more money than i was making. Their the only ones that make money.

 

[Big Sleazy]

Your best investment these day's, in my opinion, is to learn to speak Chinese.

BS

 

[squash500]

Stay away from Edward / Jones. I had an investment portfolio with them and they were charging more money than i was making. Their the only ones that make money.

Edward Jones IMHO is outrageous . They will charge you something like $300 commission to buy 300 shares of the royal bank for example. That's just to buy the stock. They will charge you the same $300 to sell.


As an alternative you could buy the same 300 shares for $9.99 in a discount brokerage. You're right Joseppi, EJ are the only ones who make money.

Disclosure----I don't use Edward Jones and never will---lol.

 

[nottyboi]

For example?

Buffett went into GE a month ago and the stock tanked after that.

True, but Buffett did not buy the common shares, he bought the preferreds, and even still, he got a high (10% divvy) then the "other" preffered shareholders and got a bunch of warrants as a sweetener. Heck if I could get that deal right now I'd put half my money into it. If the common stocked tanked, maybe it was partially because Buffet took GE to the cleaners.

 

[aznguy99]

True, but Buffett did not buy the common shares, he bought the preferreds, and even still, he got a high (10% divvy) then the "other" preffered shareholders and got a bunch of warrants as a sweetener. Heck if I could get that deal right now I'd put half my money into it. If the common stocked tanked, maybe it was partially because Buffet took GE to the cleaners.

That is right and u can even get paid before buffet if u get the GE AAA bond which is at a 50% discount...

anyhow, tons of very attractive pref shares, doubling up in 5 yrs pay paying dividend of over 10%....only risk is if company goes down, so cherry pick, you can find some real jems there

 

[Mencken]

Comments on seeking advice on this board versus "professionals"...
Every professional I have ever talked to (and there are some exceptions to what I am going to say) have their hand in your pocket...and have you by the nuts once they have your money. They, or the companies they represent, will make money from your investments, and chances are you will not. They do this in a lot of different ways (excessive brokerage fees, up front or deferred sales charges, management expense ratio fees, administration fees, etc. etc.) and they provide advice that will steer you to, or keep you in, one of their products. They tend to recommend those funds from which they get the best income themselves. Whether or not they even realize this.

The only alternative is to learn enough yourself that you can make better decisions, or to find an advisor that is good, and that charges you only...only...only...on an up front fee for service basis. I could not tell you how to find one of these, or who would be good...but there are probably some out there. In my case I have opted for the DIY route - I'm trying to learn all I can and invest for the long term on my own....and at a small fraction of the cost of dealing with the sharks out there.

So...I think you are actually more likely to get unbiased advice here, or in the barbershop, etc. than from most of the so called professionals. But of course you have to sort through it and try to decide what makes sense for you. There are also some good books out there...can't think of the name now but some bestsellers on investing in dividend paying companies, etc. Also right now there are lots of opportunities in preferred shares, bonds, etc. No end of bargains. But, not without risk. But you are getting paid a lot to take risk right now...historically a very very high risk premium on equities, bonds, etc. And you get shit returns for low risk gov'ts, etc. So you have to decide.