Investing 101

I just want you to know that I am going to skip the IPO for Facebook.  My forays into the stock market have been something less than successful.  I bought stock in a rock mine/storage area under the bluffs in North Kansas City called great Midwest Corp.  About a year or so after I bought it for $10 a share,  I got a letter from a company doing a buy out and they told me that if I didn't take 7.50 a share for my stock, when they bought the Company it would be worthless.  I also had some stock in a company that made guitars in the 70's and moved into the hand held radar guns.  When they were sued for bunches of money, the stock was virtually worthless.  I bought 10 shares and then rounded out the portfolio with 90 shares for about what I paid for the first 10.  Total loss.  The crowning blow was my GM stock that under the bankruptcy was made valueless.  In all, I managed to lose less than a thousand dollars but that is the kind of risk I don't need.

Do you understand what risk is?  If an investment is paying significantly higher interest or rate of return, it is more risky than putting your money under the mattress.  The higher the return, the bigger the chance you will not get your money back.  The old saying I listen to is if it sounds too good to be true, it probably is.  
I also have a value that states that the return of my money is more important than the return on my money.  

 Back in the days when I was working, I bought rental property with an eye to have it paid off by the time we retired.  That way, the investment would pay a dividend after taxes of 6 to 10 %.  It is a hassle but so far it has been paying fairly well.  One of the properties needs a lot of work this year and I won't  make much for the year but  I can always use the tax write off.

Normally, I get a nice card and flowers or candy for Barb on special occasions.  It is usually sitting on the breakfast table on that day.  Yesterday I didn't and spent most of the day in hot water for not recognizing Mother's Day to her standard.   Note to self. don't do that again.

Today i am going to work on the bridge over the front garden.  I am having trouble making it work the way I want but I hope to make it work anyway.  I need to get cracking.


1 comment:

  1. YOU AND ME, BOTH, MUD!!! I swear, if I bought stock in Microsoft, or Walmart, it would put them both out of business in a week.

    I swear...I have ruined more companies than most folks have started...just by buying stock in them.

    REAL stuff...real estate...land...metals...Daddy always said, "God's not making any more dirt, or minerals. Buy that. Its value may rise and fall, but it's something that is always worth something to somebody."