View Full Version : How would you invest $11,000?
Katrine
12-30-2007, 03:02 PM
Flextronics? Iomega? Wouldn't touch those even with Deogol's money.
Melonie
12-30-2007, 03:12 PM
The way things are going I am beginning to think buying travelers checks in Euros is a good idea!
I used to think so ... but after the ECB chose to print up 1/2 a trillion dollars worth of Euros a couple of weeks ago to 'inject' into the european banking system / stock markets I'm not so sure anymore ...
XxAmber89xX
12-30-2007, 10:09 PM
Flextronics? Iomega? Wouldn't touch those even with Deogol's money.
:) i make money buying stocks others won't touch... it's the only way i can average over 20% per year on my portfolio without getting into more complicated trading.
ie: officemax in 2002 (bought for 3.89, sold for over $12, klm in 2002, etc..)
it's when all the analysts pile back on to reviewing these stocks that i sell!
flextronics is up 35% already since i bought into it. but no where near my target of $28.24... yeah, i know... many will say - yeah, right!! truth is, over 55% of my picks reach there enormous targets... another 30% are takeover targets in which i pocket a pretty penny... less than 10% bite the dust and i've been able to sell them all before they become delisted.. it's my way of 'safe investing'... i'm a bottom feeder with stocks, but not with men!
Melonie
12-30-2007, 11:44 PM
^^^ that's more or less been an approach that has worked for me as well for a certain percentage of my portfolio... bet on some longshots, and cash in on a few being big winners ... but at the same time setting trailing stop loss orders to minimize losses on the losers.
As to another percentage of the portfolio allocated to 'safe' investments, IMHO right now you're better off collecting 5% interest on guaranteed medium term bank CD's than attempting to eek out the same 5% from highly diversified 'mainstream' stocks and funds that aren't moving much in price but do involve a risk of loss due to some 'surprise' development.
XxAmber89xX
12-31-2007, 02:56 AM
yeah, 5% is smart right now, but i had the chance to jump at that HYG corporate bond index ETF at a 5% drop in August... with it's monthly dividends I am on course to average an 8% yield.
the 5% cash (wich in Canada, a few no fee cash accounts already pay that amount) is where i park my money that I wait for opportunities with.
now, i gotta figure out some cash investments... everything seems high (pricey) such as art, collectibles, etc...
Melonie
12-31-2007, 08:54 AM
^^^ cash investments ... physical gold and silver are about the only solid uptrend right now in terms of cash equivalents. Pricing on collectibles / esoterics is too tied up in the future fate of the 'very rich', which could be severely impacted by tax policy / hedge fund losses etc.
Katrine
12-31-2007, 09:37 AM
Re: flextronics. My aversion to it is an Austin tech bubble thing. So many people bought into that stock back in its heyday. It lost so much of its value and was so overhyped, I have an emotional aversion to it. It still may be a good value, but I try to avoid emotional investing, and this company just has too many horror stories for someone that was once in the industry.
XxAmber89xX
01-02-2008, 12:01 PM
yep- that's important to avoid emotional 'mistakes'... it's such an art though, isn't it... invest with your gut, but without emotion!?!...
i guess that's why the challenge is ongoing...
i try to take round II out of stocks only if things really do indeed appear to be set back on the proper track and are true possible turnaround candidates.
my first time with norsat NII i lossed heavily, i lossed with stelco (steel) back a few years too... i was young and pulled the trigger to quick, but thankfully got back into stelco before steel prices began to climb...
Katrine
01-02-2008, 02:40 PM
yep- that's important to avoid emotional 'mistakes'... it's such an art though, isn't it... invest with your gut, but without emotion!?!...
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No, not really. Not at all. There are well-known and provent strategies to use when investing. The most important of those being risk diversification and risk communication. If I told my clients I invested their money with my "gut" they would never give me another penny.
Then again, most people I work with are already doing very well, and just need an avg. annualized return of around 8-9% over time to reach their goals. For the most part. The strategies I use are the same ones used by all the big time guys manageming billions for their clients. I talk to them, we do the same thing.
Between 1985-2005, the average "do it yourself" investor got about a 4% ROR.
XxAmber89xX
01-03-2008, 01:10 PM
i think the difference is- i invest for myself and not for others. if i had the responsibility to oversee others' investments, then i'd definitely alter my way of analysis... i like to keep it an art (backed with statistics, of course!)
just as i couldn't sell you on flextronics or some of (most of) my other picks, i definitely wouldn't be able to sell them to Joe Blow Mr. Skeptic. lol... but, for me, it works.