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  • Zack's or IBD or The Street or the Motley Fool

    Hello Everyone,

    My question is the subject line. Which of these products / companies would you use for stock (not mutual funds or bonds) investments ? Are there any others that you would recommend ? I have about $30K to invest in stocks.

  • #2
    None. That is financial porn.

    Comment


    • #3
      Originally posted by Jluke View Post
      None. That is financial porn.
      I agree. I wouldn't use any publication, web site, or TV show to pick stocks to invest in.

      Why do you want to put 30K into individual stocks? What does the rest of your portfolio look like? Is this "play" money that you can afford to throw away and just want to have some fun with or is it money that you will actually be needing in the future?
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

      Comment


      • #4
        How do you both pick stocks then ? My entire 401K and spouse's 401K are both entirely invested in mutual funds. Would like to invest in individual growth stocks for a change for our Roth IRAs

        Comment


        • #5
          I do my own research on the individual companies.

          You have to be cautious with the “experts” because sometimes they are pumping a stock to get others to buy in and prop it up.
          Last edited by Jluke; 07-08-2019, 01:26 AM.

          Comment


          • #6
            If you want to invest in individual stocks, I highly recommend Dick Young's "Intelligence Report." He will lay out for you his current buys and explain why. You will get to know the companies that you are investing in intimately well, because that is the only way they will make a recommendation. IR will tell you when to buy and when to sell. A sell order is rare because Young's entire strategy is to buy stocks with good dividend yields and hold them long term. For $30K, you can buy 10 stocks @ $3K each per his advice, and in 10 years you will probably be a LOT richer and you'll beat the pants off of the vast majority of mutual funds. Your initial cost to invest will probably be $100 to buy all your stocks (an expense ratio of one third of one percent), and each year, you'll probably have 2 trades, so your expense ratio will likely drop to one or two tenths of one percent.

            The only success I ever had in the stock market was when I followed Dick Young.

            Last edited by TexasHusker; 07-06-2019, 08:09 PM.
            How can you have any pudding if you don't eat your meat?

            Comment


            • #7
              Originally posted by TexasHusker View Post
              If you want to invest in individual stocks, I highly recommend Dick Young's "Intelligence Report." He will lay out for you his current buys and explain why. You will get to know the companies that you are investing in intimately well, because that is the only way they will make a recommendation. IR will tell you when to buy and when to sell. A sell order is rare because Young's entire strategy is to buy stocks with good dividend yields and hold them long term. For $30K, you can buy 10 stocks @ $3K each per his advice, and in 10 years you will probably be a LOT richer and you'll beat the pants off of the vast majority of mutual funds.
              Out of curiosity, I looked this up. He stopped doing his report in 2017. It may still be published but he's not the one doing it. I'm trying to find anything that gives performance numbers to see the actual returns of their portfolio.
              Last edited by disneysteve; 07-07-2019, 05:10 AM.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


              • #8
                The paid version of Motley Fool stock picks might be worth checking out.
                james.c.hendrickson@gmail.com
                202.468.6043

                Comment


                • #9
                  Originally posted by disneysteve View Post

                  Out of curiosity, I looked this up. He stopped doing his report in 2017. It may still be published but he's not the one doing it. I'm trying to find anything that gives performance numbers to see the actual returns of their portfolio.
                  Interesting. That shows how long i've been out of stocks. Here is the site mentioning his last newsletter. As a side note, this site looks like it's pretty packed with good info. on its own right! I clicked the links of the economy and dividends and this is good stuff. Active investors should bookmark this page and pour through it.

                  https://www.youngresearch.com/resear...igence-report/

                  Intelligence Report had different recommendations based on your financial goals, so it wasn't a "here's our 10 stocks and go buy them" type of deal. If you wanted income, he had a list of dividend stock recommendations for you as well as the best bond values. At certain times he would recommend treasuries. He recommended a number of mutual funds - primarily Vanguard - for folks who didn't have anything particular in mind but just wanted some decent growth. There were times when Dick would recommend gold and silver coins based on market trends. It was for the proactive investor but with an eye toward the long term.

                  He had a basket of stocks called "retirement compounders" and here is a chart of that. It usually ran well ahead of the S&P in total return.

                  RCs-chart.jpg?resize=768%2C576&ssl=1.jpg

                  We live in a unique time when one can become knowledgeable about a specific investment instrument - metals, raw materials, stocks, bonds, fossil fuels, diamonds, oranges, whatever - and that knowledge can be put to work for profit in exchanges around the world. In terms of profit potential, this is the most opportune time in human history to make a buck on something.
                  Last edited by TexasHusker; 07-07-2019, 11:16 AM.
                  How can you have any pudding if you don't eat your meat?

                  Comment


                  • #10
                    Interesting graph. It looks like they've managed to stay a bit ahead of the Dow and S&P for a while though recently the lines have pretty much converged which is pretty much as would be expected long term. The likelihood of beating the market consistently and long term is extremely slim which is why the better choice for virtually everybody is index mutual funds.
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                    • #11
                      Originally posted by disneysteve View Post
                      Interesting graph. It looks like they've managed to stay a bit ahead of the Dow and S&P for a while though recently the lines have pretty much converged which is pretty much as would be expected long term. The likelihood of beating the market consistently and long term is extremely slim which is why the better choice for virtually everybody is index mutual funds.
                      That's an interesting interpretation of the chart. It's a 16 year chart, and they have beaten the S&P and Dow Jones in most. Many years by a significant margin. That's pretty impressive.
                      Last edited by TexasHusker; 07-07-2019, 01:59 PM.
                      How can you have any pudding if you don't eat your meat?

                      Comment


                      • #12
                        Originally posted by TexasHusker View Post
                        For $30K, you can buy 10 stocks @ $3K each per his advice, and in 10 years you will probably be a LOT richer and you'll beat the pants off of the vast majority of mutual funds.
                        I'm not denying that their portfolio came out on top, but I guess it just doesn't seem all that dramatic to me. And it's certainly far easier to plop your money in a mutual fund and let it ride.

                        30K invested in 2003 would have grown to:
                        $135,600 in an S&P 500 fund
                        $139,800 in a DJIA fund
                        $143,400 in the Retirement Compounder portfolio

                        You would only have made an extra $3,600 over putting it in a fund that tracks the DJIA. Nothing wrong with that at all but was it worth the extra work?

                        How much turnover was there in that 16 year period? What were the total trading costs? What about reinvesting dividends and capital gains? Do the individual stocks do that automatically like the mutual funds do and does the chart account for that? And was there any cost to this newsletter for those 16 years?

                        Hey, if somebody wants to pick stocks, go for it. I own a few myself. I'm not opposed to the concept. I just don't think long term, and I mean 30 or 40 years, not 10 or 15, you are likely to outperform the broad market consistently or by enough of a margin for it to have been worth the effort.
                        Steve

                        * Despite the high cost of living, it remains very popular.
                        * Why should I pay for my daughter's education when she already knows everything?
                        * There are no shortcuts to anywhere worth going.

                        Comment


                        • #13
                          I couldn’t beat the averages, but had I not figured out a way to yield 15-20% annual in some pretty vanilla real estate, I’m sure I would still be trying.
                          How can you have any pudding if you don't eat your meat?

                          Comment


                          • #14
                            Originally posted by TexasHusker View Post
                            I couldn’t beat the averages, but had I not figured out a way to yield 15-20% annual in some pretty vanilla real estate, I’m sure I would still be trying.
                            The whole problem is that so many people keep trying - and failing. Everybody thinks they can beat the market and the reality is that exceedingly few actually do over any considerable period of time. Not only do most not beat the market, they trail the market, sometimes by quite a lot.
                            Steve

                            * Despite the high cost of living, it remains very popular.
                            * Why should I pay for my daughter's education when she already knows everything?
                            * There are no shortcuts to anywhere worth going.

                            Comment


                            • #15
                              Originally posted by disneysteve View Post

                              The whole problem is that so many people keep trying - and failing. Everybody thinks they can beat the market and the reality is that exceedingly few actually do over any considerable period of time. Not only do most not beat the market, they trail the market, sometimes by quite a lot.
                              As you know, I'm not a fan of investing in the stock market, generally speaking. I've found it to be a glorified carnival game.
                              How can you have any pudding if you don't eat your meat?

                              Comment

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