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Why don’t we all just invest long-term in the stock market?

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samsncharge99

samsncharge99

Joined
Sep 30, 2022
Messages
11,666
slow action compared to fast action

also slow action in the market means you need more bankroll. If you said you will get 100% profit over 5 years, but you are only investing $5000, that's 5 years to earn 5,000

gambling you can earn 5K in a couple weeks with a 5k bankroll

or crash and burn it 10x over in 5 years
 
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aikman.tr

aikman.tr

Joined
May 31, 2022
Messages
1,200
Buy stock with good dividends.

Realty Income, stock symbol O

I s a great one with monthly dividends of .257/share at a current price of $54.20/share
5000 shares cost $271,000 will produce a passive monthly income of $1,285.
 

baz

baz

Joined
May 18, 2023
Messages
3,927
It’s a sure thing
Tell that to my buddy "Tater" guy lost a ton, started a grow op to recoup the Ls and ended up getting 5 years in the feds. Now he wasn't the brightest bulb in the box but if you do not know what you are doing? Way better off betting IMO.
 

KVB

KVB

Joined
Apr 11, 2023
Messages
12,698
It’s a sure thing with great returns as your money keeps growing and compounding

Same thing happens in sports, until you you grow big enough to outgrow the market liquidity.

If you are making +EV plays, over enough plays, which is still possible today, then your returns will beat even congress' market returns.
 

KVB

KVB

Joined
Apr 11, 2023
Messages
12,698
Use your money to create flows of cash, streams of income.

When you can shift your thinking from cash being king to cashflow being king you will go a long way towards future financial health.
 

KVB

KVB

Joined
Apr 11, 2023
Messages
12,698
slow action compared to fast action

also slow action in the market means you need more bankroll. If you said you will get 100% profit over 5 years, but you are only investing $5000, that's 5 years to earn 5,000

gambling you can earn 5K in a couple weeks with a 5k bankroll

or crash and burn it 10x over in 5 years

There are multiple ways to invest in equities.

Like option trading.
 

sleepy_mario

sleepy_mario

Joined
Oct 8, 2022
Messages
377
If you build and sell a business and have 5-6 mln usd as of 2024, you should do just that.

I know a person who has 80% of his net worth in Fortune 500 stocks. It's the best hedge against uncertainty and inflation, and will always be - according to him anyway.
 

djefferis

djefferis

Joined
Jan 8, 2024
Messages
2,105
Buy stock with good dividends.

Realty Income, stock symbol O

I s a great one with monthly dividends of .257/share at a current price of $54.20/share
5000 shares cost $271,000 will produce a passive monthly income of $1,285.

Dividends are just part of the picture.

“Good dividends” are ones the company can support - while growing the business and maintaining or expanding shareholder equity.

Lots of high dividend payers out there paying 8-10%+ - but they are doing so while killing the shareholder equity/share price.

Take a stock like BPT - years ago my old man loved this royalty trust - it paid big dividends as oil prices soared and we were pumping more and more out of Alaska. But like all oil/gas fields - its production dropped and as a result so did the dividends and share price.

Real estate / REITs are tricky - you have some like Iron Mountain IRM - sporting a 3% dividend while share prices spike of late. Then you have things like Vornado - paying almost 5% - but if you bought even at this years 52 week high (which is well below the all time highs) - it would still take you the next half decade to get back to even assuming the stock price remains constant with the present dividend.

It sounds so tempting - just putting all your money in a select few stocks/sectors and living on the dividends. Plenty of people did it for years on things like T or XOM - but you need to stick to a mix of companies who have solid management and can keep the cash flow larger than their dividend. Remember - there are people out there who are big holders of their own stock and pay that dividend just to cash out their equity - while not yielding control of their companies.
 

djefferis

djefferis

Joined
Jan 8, 2024
Messages
2,105
What’s everyone’s best stock pick ?

XLE
Sbux
Ceix
SMG

all currently in my relatively small portfolio

XLE I own and sell covered calls on weekly just out of the money for cash flow (roughly 80% of my portfolio)

Sbux bought on the dip at 70 - actually bought several Aug 75 calls - sold yesterday and bought sbux stock with the profit.

CEIX another energy play on the relatively small coal industry - held for a while.

SMG was another value play - bought a while back in the mid 50s as they struggled. It’s popped back up and pays a dividend.

I like dividends - but don’t judge a stock solely on its dividend. If I can have appreciation in price AND paid to own it - that’s the ideal situation. Better yet if there’s significant upside appreciation while a company deals with temporary issues.
 
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