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Anybody play the stock market?

hickslawns

Dignitary Member
Supporting Member
37,500
212
NW Ohio
Just curious. With the instability of the economy right now, I am skeptical to say the least about our future. We have been diligent to make our monthly contributions to our retirement which I feel is necessary. I believe there are two ways to look at investing into a retirement account. 1)Either you are positive and believe your retirement account will grow and there WILL be some stability in the market before you are ready to cash in. Or 2)You think we are doomed to fail and therefore you should not contribute a single dime to a retirement account but rather it is more important to pay off any and all debt in order to better your financial position in the short term.

Lately, I have been dabbling with some individual stocks in addition to our monthly retirement contributions. At one point I was up around 40%, but currently about $100 over my investments. Keep in mind, this is with three stocks purchased in March, April, and early June. I say this because I want to show you the volatility of such investments and the risk involved. I am not trying to talk anyone into anything. Just typing out loud here.

Here are my thoughts on the individual stocks right now. I believe people can make it in bull markets, or bear markets. I am not expecting to buy a stock for $5/share and see it hit $50/share. This is not realistic. However, there are a lot of stocks which have dropped off considerably in recent months/years. Take Ford for example. At one time it was around $1. Seriously, $1. Can anyone believe it would have gotten much lower? I should have bought in when it was at this low. Currently Ford Motor Company (which actually has three stock symbols so this is a bit confusing) is at $4.91. The 52week low was $3 and the high was around $10. See where I am going here. Even at roughly $5/share, there is room to throw some money in there and ride it out. You could put a buy in at $4.80-4.90 and probably own 200 shares tomorrow for under $1000. Sit on it for a month or a year or 25years and chances are likely you are not going to lose money on it. Wait around 12-18months and you could probably double your money at some point if you wanted to sell at $10. 100% return on your investment (minus the short term capital gains taxes). My IRA is not doing that right now. Another example would be the natural gas companies. I believe there is a trend in natural gas that is growing quickly. Right now would be the time to buy in on many of these companies.

Just curious if I am the only one thinking this way? I keep hearing "Buy Gold" or "Buy Silver". Why? They have always said "Buy low and sell high". The commodities such as gold/silver/copper/tin/etc are all high right now. Last thing I want to do is buy them right now and watch them drop. I am curious to see if I am alone in my thinking on this one. Am I the only one taking financial risks in my investments right now? I don't care to know particulars like "My account is up to $80k" or "I just spent $5k in Company xyz". I am just curious as to what the investment trends are in our age brackets. Maybe I am the only one dumb enough to be risking money right now. lol

I know what many of you guys are going to say already "Just buy guns and ammo. That is all you need when the crap hits the fan." hahahahah
 

finelyshedded

Dignitary Member
Supporting Member
28,745
199
SW Ohio
Not me Phil! Especially with the volitility we face today. Americans panic easily TOO! There will be a correction sooner before later. IMO but what do I know, I'm not a big risk taker anyway, but you do bring up some great points.
 

"J"

Bass Whisperer
Supporting Member
48,365
249
North Carolina
I'm 4 years from retiring and am in the extremely conservative mode..... not making much but not losing either..... I played around a little but not much luck.... best I did was break even lol.... now some of the guys I've talked too do extremely well but others not so much.....
 

aholdren

Senior Member
Supporting Member
5,061
132
South East Ohio
I have an IRA, and I set a certain amount aside to invest in individual stocks, by no means am I an expert and hopefully Im at the end of a 3 month beating.... I try and stay with big proven companies and most that pay a dividend. I always try and remind myself that by staying in and riding the waves that I hopefully will be better off someday. Im with you on the Gold and commodities thing, I do like oil and that is probably cause when I first started I bought Chevron in my 401k. My major holdings will probably always be in mutual funds.
 

Ohiosam

*Supporting Member*
10,890
166
Mahoning Co.
I have most of my Ira in mutual funds that can invest in any country. Spreads out the risk.

I have an etrade account that I play around with. In that I've got some stocks of companies that have had some problems but IMO have the potential to recover.
 

DJK Frank 16

Senior Member
Supporting Member
9,359
121
Hardin County
I put in 10% of my check in my 401K every month and my company matches 6%. So 16% goes into my 401K every pay check. Last year I didn't make much of anything, but didn't lose much either. All low risk low gain, because I feel that getting such an early start (20 years old) if I keep contributing that much, even at a 5 or 6% gain, I will still do well. My goal is once all my outstanding debt besides my house and student loan is paid off, I will open up an IRA or something secondary to further contribute.

On a side note... I know a lot of guys that make ridiculous money when Ford stock was down to 2 bucks a share. I'm talking several hundreds of thousands!
 

Riverdude

The Happy Hunting Grounds Beyond
Supporting Member
10,255
115
Ashtabula, Ohio
I know a friend of a friend and all he does is buy gold and so I am told is doing very well. For me I am thinking of buying a bunch of Mason jars and find me a good fence row to burry them by.
 

rgecko23

*Supporting Member*
7,466
0
Massillon, Ohio
I put in 10% of my check in my 401K every month and my company matches 6%. So 16% goes into my 401K every pay check. Last year I didn't make much of anything, but didn't lose much either. All low risk low gain, because I feel that getting such an early start (20 years old) if I keep contributing that much, even at a 5 or 6% gain, I will still do well. My goal is once all my outstanding debt besides my house and student loan is paid off, I will open up an IRA or something secondary to further contribute.

On a side note... I know a lot of guys that make ridiculous money when Ford stock was down to 2 bucks a share. I'm talking several hundreds of thousands!

right now is a good time for you to be a little agressive because you have time to recover if something does happen (unfortunately we arent retiring anytime soon LOL)

but you putting 10% into your 401 is more than alot of older guy s I know are doing so good for you!
 

Jackalope

Dignitary Member
Staff member
36,306
235
One word. Diversify. Especially in foreign countries. We have not seen a market correction yet. But we will.
 

Hoytmania

Dignitary Member
Supporting Member
11,513
142
Gods Country
I put in 10% of my check in my 401K every month and my company matches 6%. So 16% goes into my 401K every pay check. Last year I didn't make much of anything, but didn't lose much either. All low risk low gain, because I feel that getting such an early start (20 years old) if I keep contributing that much, even at a 5 or 6% gain, I will still do well. My goal is once all my outstanding debt besides my house and student loan is paid off, I will open up an IRA or something secondary to further contribute.

On a side note... I know a lot of guys that make ridiculous money when Ford stock was down to 2 bucks a share. I'm talking several hundreds of thousands!


I am glad to hear that you are starting out so young. I think that is a huge key. Check out this chart. It blew my mind the first time I saw it. It shows the power of compound interest.




Both save $2,000 per year at 12%. Ben starts at age 19 and stops at age 26. Arthur starts at age 27 and stops at age 65. AND ARTHUR NEVER CATCHES UP TO BEN!


Age Ben Invests Arthur Invests
19- $2,000 $2,240 - $0 $0
20- $2,000 $4,749 - $0 $0
21- $2,000 $7,558 - $0 $0
22- $2,000 $10,706 - $0 $0
23- $2,000 $14,230 - $0 $0
24 -$2,000 $18,178 - $0 $0
25 -$2,000 $22,599 - $0 $0
26 -$2,000 $27,551 - $0 $0
27 -$0 $30,857 - $2,000 $2,240
28 -$0 $34,560 - $2,000 $4,749
29 -$0 $38,708 - $2,000 $7,558
30 -$0 $43,352 - $2,000 $10,706
31 -$0 $48,554 - $2,000 $14,230
32 -$0 $54,381 - $2,000 $18,178
33 -$0 $60,907 - $2,000 $22,599
34 -$0 $68,216 - $2,000 $27,551
35 -$0 $76,802 - $2,000 $33,097
36 -$0 $85,570 - $2,000 $39,309
37 -$0 $95,383 - $2,000 $46,266
38 -$0 $107,339 - $2,000 $54,058
39 -$0 $120,220 - $2,000 $62,785
40 -$0 $134,646 - $2,000 $72,559
41 -$0 $150,804 - $2,000 $83,506
42 -$0 $168,900 - $2,000 $95,767
43 -$0 $189,168 - $2,000 $109,499
44 -$0 $211,869 - $2,000 $124,879
45 -$0 $237,293 - $2,000 $142,104
46 -$0 $265,768 - $2,000 $161,396
47 -$0 $297,660 - $2,000 $183,004
48 -$0 $333,379 - $2,000 $207,204
49 -$0 $373,385 - $2,000 $234,308
50 -$0 $418,191 - $2,000 $264,665
51 -$0 $468,374 - $2,000 $298,665
52 -$0 $524,579 - $2,000 $336,745
53 -$0 $587,528 - $2,000 $379,394
54 -$0 $658,032 - $2,000 $427,161
55 -$0 $736,995 - $2,000 $480,660
56 -$0 $825,435 - $2,000 $540,579
57 -$0 $924,487 - $2,000 $607,688
58 -$0 $1,035,425 - $2,000 $682,851
59 -$0 $1,159,676 - $2,000 $767,033
60 -$0 $1,298,837 - $2,000 $861,317
61 -$0 $1,454,698 - $2,000 $966,915
62 -$0 $1,629,261 - $2,000 $1,085,185
63 -$0 $1,824,773 - $2,000 $1,217,647
64 -$0 $2,043,746 - $2,000 $1,366,005
65 -$0 $2,288,996 - $2,000 $1,532,166
. . . And he never caught up!
 
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Buckmaster

Senior Member
13,915
157
Portage
I play the market. All aggressive on my end because I can't take it with me. There are two things certain in life, death and taxes.

My current individual stocks are Ford, Huntington Banks, and Xoma (a biotech company). I made money on this combination when buying low about 2 years ago. I bought Ford and Huntington Bank when it was around $ 2.00 per share. I bought 1000+ shares. Ford sits at $ 13.89 today and Huntington at $ 6.54. Both stocks are capable of seeing $ 20.00+ over the long run. Xoma is so-so but hasn't hit the big discovery drug yet. If it does I will do very well.

I did lose 100% on my General Motors stock when they folded. I had a few hundred shares of common stock that fell to bankrupcy.

I consider my stocks as my "play" money. The balance of my holdings are in whole life insurance policies, an IRA, and a couple 529 plans for my kids. All are aggressive but the monies are placed in mutual funds which are a little safer than stocks.

I have a rich uncle, really I do. If there was one life lesson I observed from him, "It takes money, to make money".

I have to start somewhere......Best of luck on your investments and always remember "that future earnings are not indicitative of past results."
 

hickslawns

Dignitary Member
Supporting Member
37,500
212
NW Ohio
right now is a good time for you to be a little agressive because you have time to recover if something does happen (unfortunately we arent retiring anytime soon LOL)

but you putting 10% into your 401 is more than alot of older guy s I know are doing so good for you!

Bingo! That is the kicker. Couple that with the info Hoyt offered and it is easy to see how critical it is to invest at a young age. Unfortunately, this is the most difficult time to come up with extra money for most people. You also have time to level out the highs and lows over the long haul. There are certainly going to be years where breaking even is good. There will also be some good money making years as well. The key here is the long haul. Right now, we are buying many company's stocks "On sale" essentially. Eventually, they will rebound.

I consider my stocks as my "play" money. The balance of my holdings are in whole life insurance policies, an IRA, and a couple 529 plans for my kids. All are aggressive but the monies are placed in mutual funds which are a little safer than stocks.

This sounds very similar to what we are doing Buckmaster. The nice thing about mutual funds is the fact there are money managers that make a living doing this which are buying large slices of multiple business sectors. They are spreading out our risk over many companies and we do not have to do as much research into investing into company A B or C. I hate to say "play money" because it is real, hard earned money. However, the money I have used for individual stocks is not a large amount of dollars and it is money I am investing with the risk to lose all of it. I realize this is not "safe investing".

I need to also make a correction. The Ford stock I listed at $4.91 was not something which can be bought. It was some sort of a holding or spinoff which was given out to share holders, but not for purchase. Like I said, it is confusing. There are also multiple Ford stocks which are in different markets such as the German market or Mexico. Lots of information to know before you take the risks. Buckmaster is correct, Ford Motor Company here in the states is hovering around $13-14. Over the long haul, still probably not a bad buy for a well established company. Probably still a solid $20-30 stock over the next several years if not higher.
 

"J"

Bass Whisperer
Supporting Member
48,365
249
North Carolina
For the last 20 years I've contributed 20% of may pay into my 401K, 15% for the 7 years before that ... Uncle has matched 5%. I was all stocks until last year when I pulled it and went conservative..... I'll still contribute but will only see 5-6% until I retire and move it to bigger and better things..... I try not to rely on anybody but myself..... If pension becomes non existant I can make due on my savings..... Everything else is just icing on the cake....
 

hickslawns

Dignitary Member
Supporting Member
37,500
212
NW Ohio
Well played "J". Good move to be self sufficient.

Not necessarily related to the thread title about individual stocks, but I will put it out there because it is worth saying. ANYONE with an employer which matches a percent is a fool not to contribute. Let's say you have to contribute 10% in order for your employer to match whatever they match. Even if they only match 2%, that is an automatic 20% return on the 10% you just invested. Over the long haul most financial advisers will tell you to expect roughly 10% average over your life time of investing. So essentially, if you are getting 2% from your employer for every 10% you have invested, this is twice what you can expect from your total investment over the years on average.

Drake- What you are getting is unheard of in today's economy. That is awesome. You also have time on your side, so good for you. I hear all your other employer offers is BS hunting stories and bad jokes.rotflmao
 

aholdren

Senior Member
Supporting Member
5,061
132
South East Ohio
Well played "J". Good move to be self sufficient.

Not necessarily related to the thread title about individual stocks, but I will put it out there because it is worth saying. ANYONE with an employer which matches a percent is a fool not to contribute. Let's say you have to contribute 10% in order for your employer to match whatever they match. Even if they only match 2%, that is an automatic 20% return on the 10% you just invested. Over the long haul most financial advisers will tell you to expect roughly 10% average over your life time of investing. So essentially, if you are getting 2% from your employer for every 10% you have invested, this is twice what you can expect from your total investment over the years on average.

Drake- What you are getting is unheard of in today's economy. That is awesome. You also have time on your side, so good for you. I hear all your other employer offers is BS hunting stories and bad jokes.rotflmao

Agreed, but you wouldn't believe how many people have the opportunity too take advantage of this and neglect to. I've been working at the same place now for 23yrs and it still amazes me the amount of people that don't contribute and miss out on the free money match.
 

hickslawns

Dignitary Member
Supporting Member
37,500
212
NW Ohio
When my wife started working at the hospital I thought for sure they would match something. What a joke! They don't match squat.
 

Mike

Dignitary Member
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14,389
166
Wood Co.
I've been putting in for 15 years. We've had good times and bad times. I have very aggressive allocations and I've had returns as high as 25% for a quarter. On the flip side, I've had a negative %s as well.
 

"J"

Bass Whisperer
Supporting Member
48,365
249
North Carolina
I've been putting in for 15 years. We've had good times and bad times. I have very aggressive allocations and I've had returns as high as 25% for a quarter. On the flip side, I've had a negative %s as well.
Mike during the late eighties and into the late nineties it was common too have double digit returns monthly for most of the year..... would get a hiccup every once in a while but that was expected.......