I love how everyone is getting scared the Greece's economy has gone belly up. It has dropped the overall value of stock, but remember it is only temporary. You can actually make quite a bit if you were to find a stock with a moderate amount of volitility and ride it out of the scandal. The market will recover no problem. All things being said and done: you should probably target the small cap stocks for the biggest returns; the growth/blue chips for the steadiest returns.
Buffett said it best, "Be greedy when others are fearful and fearful when others are greedy". There is a ton of money that can be made during the next few days; might as well start shoveling.
Showing posts with label Bluechips. Show all posts
Showing posts with label Bluechips. Show all posts
Sunday, May 9, 2010
Friday, April 16, 2010
DRIPS and You
You know how I mentioned more on the DRIPs later? Well that "later" is today. DRIPs can be a very economic way of investing in stocks. This is for the average guy that does not have Buffett like earnings. While it will not get you much, it will at least get your feet wet. Almost all DRIPs pay cash dividends which is very important to consider and just about all of them are either blue chip stock (well established) or growth stocks (a rising star!).
The concept of a DRIP is to privately make money with no middle man or commission fees. I happen to like DRIPs because they will reinvest the dividends hence the acronym Dividend Re-Investment Plan. Just think of your portfolio being like a bucket and the dripping is the water being caught into the bucket. The more dripping, the heavier the bucket, the more bottom line.
There are advantages and disadvantages to DRIP investing. The advantages are that you can contribute a small portion of money for stock (you usually have to buy at least one share) and you can contribute however you like without getting hit up for commission. There is usually a cap on how much you can buy at once, but it can promote cost averaging: a technique of buying stock over a duration of time in order to absorb some of the expense of purchasing it.
The disadvantages of DRIPs is that your are limited on how many stocks you can buy and also dividends will be taxed. Another thing about DRIPs is that overall there is no real gain or volitility on stocks even though they might be cost effective. Perhaps it is a blessing or a curse, but you are limited in choice as well because some companies are unfortunately getting rid of their DRIP investment plan.
Two known companies that have DRIPs happen to be Wal-Mart and Proctor and Gamble. Wal-Mart's employee DRIP is okay and Proctor and Gamble's has some small start up fees. I heard that our competition, Costco has a DRIP as well, but I do not know if they charge for contributing or not. Normally the charges will be less than the commission for the stock broker, but some campanies will hit you up for additional fees per transaction so be careful.
At any rate, having a DRIP has done nothing, but helped my portfolio. If you do not cash out your stock, you should be able to rack in a few shares from just letting your money work for you every quarter. And word has it, the dividend contributions sometimes rivals a CDs cashflow!
The concept of a DRIP is to privately make money with no middle man or commission fees. I happen to like DRIPs because they will reinvest the dividends hence the acronym Dividend Re-Investment Plan. Just think of your portfolio being like a bucket and the dripping is the water being caught into the bucket. The more dripping, the heavier the bucket, the more bottom line.
There are advantages and disadvantages to DRIP investing. The advantages are that you can contribute a small portion of money for stock (you usually have to buy at least one share) and you can contribute however you like without getting hit up for commission. There is usually a cap on how much you can buy at once, but it can promote cost averaging: a technique of buying stock over a duration of time in order to absorb some of the expense of purchasing it.
The disadvantages of DRIPs is that your are limited on how many stocks you can buy and also dividends will be taxed. Another thing about DRIPs is that overall there is no real gain or volitility on stocks even though they might be cost effective. Perhaps it is a blessing or a curse, but you are limited in choice as well because some companies are unfortunately getting rid of their DRIP investment plan.
Two known companies that have DRIPs happen to be Wal-Mart and Proctor and Gamble. Wal-Mart's employee DRIP is okay and Proctor and Gamble's has some small start up fees. I heard that our competition, Costco has a DRIP as well, but I do not know if they charge for contributing or not. Normally the charges will be less than the commission for the stock broker, but some campanies will hit you up for additional fees per transaction so be careful.
At any rate, having a DRIP has done nothing, but helped my portfolio. If you do not cash out your stock, you should be able to rack in a few shares from just letting your money work for you every quarter. And word has it, the dividend contributions sometimes rivals a CDs cashflow!
Wednesday, January 21, 2009
Put WMT on the List to Buy
WMT is finally going down! Now why would I be excited about this? Am I not trading in WMT? Yes, but alas, I want to be able to buy more! And boy I think my wait is almost over. I have been anticipating WMT to fall below $50. The market for awhile was actually reaping small returns for the people who "got in early". But now is a excellent time to buy if you want to get started on the momentum.
You see, during the holidays, retail tends to out perform other industries. And stock analysts have been correct in presuming that the market will not be as strong as last year. However, they did not think that Wal-Mart will just peak at $57. They were hoping retail would stabilize the economy. This, in fact was an impossibility and it goes back to the fact that most retail chains with the exception of Wal-Mart are primarily in the United States. This does not mean that the fight is over. It just means that the market is adjusting itself to the recession. It will be like this for a few years so might as well start buying while the buying is good!
At this point in time Wal-Mart is at $49.17! This is primarily due to the fact that a lot of people sold at $57, but now is the chance to buy WMT! I would start buying some now. When it drops lower, I will start buying 2 shares per paycheck and with the company covering 15% I will be able to obtain more and more fractional shares. There is a reason investing super genius Warren Buffett, is also in WMT. That is primarily his blue chip stock. He honestly is into stocks with a continual demand.
You see, during the holidays, retail tends to out perform other industries. And stock analysts have been correct in presuming that the market will not be as strong as last year. However, they did not think that Wal-Mart will just peak at $57. They were hoping retail would stabilize the economy. This, in fact was an impossibility and it goes back to the fact that most retail chains with the exception of Wal-Mart are primarily in the United States. This does not mean that the fight is over. It just means that the market is adjusting itself to the recession. It will be like this for a few years so might as well start buying while the buying is good!
At this point in time Wal-Mart is at $49.17! This is primarily due to the fact that a lot of people sold at $57, but now is the chance to buy WMT! I would start buying some now. When it drops lower, I will start buying 2 shares per paycheck and with the company covering 15% I will be able to obtain more and more fractional shares. There is a reason investing super genius Warren Buffett, is also in WMT. That is primarily his blue chip stock. He honestly is into stocks with a continual demand.
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