Investing?

[SalesGod]

Well i know most of us are investing in our business ideas but, what about our future? Have any of you invested in stocks and if you don't mind to please explain what stock you like at this current time.

[rogercbryan]

I sold almost all of my stocks early last year and put my money into Real Estate.... So far I haven't been burnt to bad....

[RLorenzen]

One of my biggest mover stocks right now is DRYS. This is a very volatile stock though so it isn't for the faint hearted. We gain $10/share in one trading day but could lose $15 the next. I bought it at $85, rode it to $116, rode it back down to $88 and this morning it was near $98 again. Keep in mind I haven't had this stock more than a month...just to show you how much it moves in a short period of time.

[JLeezer]

I just picked up some Berkshire Hathaway a week ago today at $4050.00 per share. It closed today at $4401.00 per share. I'm still torn over whether to sell or hold it. I would be happy with the 8%+ ROI in a week, but I have a great deal of confidence in Warren Buffett. Note, there are two classes of Berkshire stock, Class A (BRK.A) trading at $132,300, and Class B (BRK.B) trading at $4401. It takes a bit of cash to invest in either class, but I think it is worth it.

[RLorenzen]

IMO, BRK is a great long term hold.

I think I saw something that said Warren is down year to date, but he doesn't pay attention to that anyway. He's in it for the long term and history has shown that he knows what he's doing.

[JLeezer]

Yeah, you don't get to be the richest person in the world without a little intelligence. I still can't figure out why more people don't invest in berkshire. My parents are reluctant due to the share price; they're just now getting past the fact that it doesn't matter if you buy 100 shares at $40 each or 1 share at $4000, if the stock goes up 10% it is the exact same return. I can admit, it is a little difficult to watch a stock drop $150 in a day, but again, looking at the percentages makes it no different from the 100 shares dropping $1.50 in a day.

[RLorenzen]

Yeah, you don't get to be the richest person in the world without a little intelligence. I still can't figure out why more people don't invest in berkshire. My parents are reluctant due to the share price; they're just now getting past the fact that it doesn't matter if you buy 100 shares at $40 each or 1 share at $4000, if the stock goes up 10% it is the exact same return. I can admit, it is a little difficult to watch a stock drop $150 in a day, but again, looking at the percentages makes it no different from the 100 shares dropping $1.50 in a day.

Yeah, it's a combination of the share price and fear of the stock market in general I think.

[SalesGod]

The thing about berkshire will be its ability to move on after Mr. Buffett is gone.

[JLeezer]

The thing about berkshire will be its ability to move on after Mr. Buffett is gone.

Here's my take on that:

When he does pass on or become incapable of running Berkshire Hathaway, the stock will undoubtedly drop, probably to the tune of 10-20% the day of his death (or week or so if it is something other than death which makes him unable to run it). However, due to the solid financials of all of the companies in which Berkshire owns, there is no way for the stock price to remain low. You better believe the following days after it drops, I, among many others, will be scooping up the stock at the depressed price because it will be one of the best, most undervalued stocks available. The management teams at all of their subsidiary companies are stars; if they weren't, Buffett wouldn't have kept them around. Just because Buffett is removed from the equation won't change their performance.

My suggestion: buy Berkshire now.

My 2nd suggestion: buy more Berkshire immediately following Buffett's death or other occurrence which renders him unable to head the company

And, of course, I hope he does not go anytime soon.

[JLeezer]

Oh, and sorry if I sounded a bit blunt with that. But I understand he's going to die someday, just as I will, you will, and all of our parents will (or have). Before I went in for surgery on my sinuses and broken septum, I had a long talk with my wife about all of our finances and that if anything were to happen I had compiled a list of every asset and expense we have so that she could easily handle it or at least pass the information along to my father to handle temporarily. It was kind of sad explaining it to her, but I knew there was a chance something bad could happen to me. So it isn't that I'm insensitive about the subject, I'm just realistic. Sorry again if I sounded a bit cold hearted and just out to make a buck on the situation.

[RLorenzen]

I have thought about this a few times. When this event occurs I do think the stock will take a hit just from panic and investors declaring their own state of emergency. As long as Warren has chosen the right successor who shares his same values about buying and holding companies the company will be fine. He has top notch people in there.

Also as Jon said, when this happens, Berkshire will be incredibly undervalued and I too will be scooping up shares.

[stlsmoore]

I'm going to be investing by this time next year...I'm currently paying off my bad debts (car loan) and then I'm going to build me a 3-6 month savings account before I delve into anything. I'm also reading as many invesment books as possible and continuing my part-time business just so I can learn as much as I can about business in general before I invest.

[JLeezer]

Excellent plan stlsmoore. My wife and I are in the process of building up our savings, but I'm plowing them into a variety of stocks and mutual funds. We're both in our mid-20s and comfortable with the possibility of losing some of the money short term if we need it in a pinch, but I'm also keeping a month's worth in a high yield savings account with E*Trade. I just have a tough time keeping much more than that in savings.

[SalesGod]

Yes i think the biggest think i have learned in investing is to look at what Warren Buffett does and not to pay attention to guys like Jim Cramer. No disrespect to him but, i watch his mad money show and i could not help but think if he ever puts his own money where his mouth is. He was rambling on about wind power when no one really knows what the alternative energy will be. I did find it interesting however but, i think that the best advice for learning about investing is to take a class in statistical analysis, that way you can understand a lot of the terminology.

[RLorenzen]

Yes i think the biggest think i have learned in investing is to look at what Warren Buffett does and not to pay attention to guys like Jim Cramer. No disrespect to him but, i watch his mad money show and i could not help but think if he ever puts his own money where his mouth is. He was rambling on about wind power when no one really knows what the alternative energy will be. I did find it interesting however but, i think that the best advice for learning about investing is to take a class in statistical analysis, that way you can understand a lot of the terminology.

If you paid attention you would see he can't put his money where his mouth is. He is not allowed to trade stocks for himself because his show influences them. He does manage a charitable trust which does very well. They recently gave away $400K to charity. He also once ran one of the most profitable hedge funds during that time.

I believe one of his wind power plays was Trinity. That stock has gone no where but up since he recommended it.