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Old 04-05-2003, 02:52 AM  
thewebgarage
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Join Date: Sep 2002
Location: cali
Posts: 1,002
I would stay away from sun. But blue chip tech stocks that are beat up are going to be good long term.

My theory long term is big blue chips are going to be great due to efficiency from technology. They rep the biggest benifits.

The key is diversification. if you dont want to buy funds then be sure to buy a few stocks.

Let me give you an example. This year I have bought
GE - kodak - philip morris - RJR = sears

I'm looking for high paying dividend stocks thinking that it will be tax free. so far this year my return is 5%

no terrible but I would be a lot higher. Guess what my mistake was. GREED. I bought 2 tabaco stocks cause of the high dividends. so when one got hit the other stock also went down.

If your looking for dividends be careful for stocks that pay too much cause it is a sign something is wrong. I learned my leasson with philip moris.

I always look at Ford. But cause of the tires I havent done it yet. Their dividend is a little high. I think that might reflect future law suits for those bad tires. What you wouldnt want to do is buy ford and gm.

When your in doubt buy the market leader. And try to buy on dips. PHilip moris is really cheap this week. But the reason is because there is a risk it could end up going bankrupt.

Anyway bottom line is. Just buy mutual funds. Unless your an expert its not worth the time. If I spent the time I do watching stocks on peddling porn I'm sure I would be richer. And thats me with a finance degree. At least I have some advantage cause of my education.

Invest for the long term. I honestly believe that if you get in over the next 24 moths dollar cost averaging. Into a few diversified mutual funds. And hold 10 years. Your going to make a lot of money.

I believe realestate is a bubble. It might not pop but its not going to go higher. Or at least when interest rates go up. prices will come back down to current levels.

Your best investment will always be to buy your home simply because your not paying someone else every month and you get that big tax break.

Financially your priorities should be

1) no credit card debt

2) max out your retirement account. (especially a roth ) unless your a rich web guy like the rest of us. then getyour self a Keogh plan = if you own a business you can put up to 45,000 year in tax free.

3) buy your home

4) save at least 10% of your salary every month. put that into mutual funds dollar cost averaging.

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remember cash is king. And spending money on your business should always give you the highest return. If you do it effectively.

the ideal situation would be balance of all the above.
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