A little thank you to Warren Buffet

[Rain Man]

On December 21st I was looking for a stock to buy with some extra cash, and I liked Heinz, the ketchup company. It's pretty stable and pays a nice dividend, and I've really liked dividend stocks the past few years. So I bought $5,000 worth. It's gone up a couple of percent over the last couple of months, and I've been good with that since that's a very good annualized return so far.

Today it was announced the Berkshire Hathaway is buying Heinz. The stock is up 20% today. Blammo. I sold out my initial $5,000 worth, left the profit in, and I now have $1,200 of free Heinz ketchup stock for two months of investment.

God, I love America.

[ottawa_chiefs_fan]

Originally Posted by ReynardMuldrake

I just bought 500 and 100 shares of Arch Coal and Cliffs Natural Resources a couple weeks ago. I've already lost $1500. FML.

Are you sure you are on the right forum? You just admitted to making a mistake.

[Chief_For_Life58]

Originally Posted by Rain Man

On December 21st I was looking for a stock to buy with some extra cash, and I liked Heinz, the ketchup company. It's pretty stable and pays a nice dividend, and I've really liked dividend stocks the past few years. So I bought $5,000 worth. It's gone up a couple of percent over the last couple of months, and I've been good with that since that's a very good annualized return so far.

Today it was announced the Berkshire Hathaway is buying Heinz. The stock is up 20% today. Blammo. I sold out my initial $5,000 worth, left the profit in, and I now have $1,200 of free Heinz ketchup stock for two months of investment.

God, I love America.

[Demonpenz]

Originally Posted by Demonpenz

I would stay away from Geno's stock. That shit is going to go down like a East Buch freshman.

nailed it 2013 DP!

[Halfcan]

Originally Posted by Rain Man

I'm going to explain, and you'll likely laugh at me.

In 1991 and 1992, I bought Dell stock twice when it was a very young company. I was living in Austin at the time, and it wasn't a lot of money, but I was a poor grad student. Both times, I doubled my money, sold out, and thought I was a genius. However, if I hadn't sold, that $4,000 in stock would've been worth $250,000 by the end of the 90s. I was standing in the middle of a gold mine, and I walked out. It. Kills. Me.

So now I have a strategy, and I stick to it religiously. I buy stock in lumps of $4,000 or $5,000. When I get to the point where I've made 20%, I sell out my original share and leave the profit in. That way, if the stock goes down I haven't lost any of my principal, and if the stock goes all Dell I'll still get the upside, albeit in a smaller dose. But I won't completely miss the boat.

I've been using this system for about 6 or 7 years now. The result is that I'm slowly building my own mutual fund of dividend-paying stocks with growth potential that I've hand-picked. It disseminates my risk but also gives me enough concentration that I have the potential to beat the market significantly.

Great advice!

[Rain Man]

Originally Posted by Chief_For_Life58

Warren is good to me. The Heinz thing happened two years ago, and Warren just bought my stock in Precision Castparts a few months ago, giving them a 20% boost. I like Warren.

[Hog's Gone Fishin]

Originally Posted by Rain Man

Warren is good to me. The Heinz thing happened two years ago, and Warren just bought my stock in Precision Castparts a few months ago, giving them a 20% boost. I like Warren.

I'm impressed. You are buying stocks before Warren Buffet jumps in. So does this mean Warren is following you ? Please let me know your next stock purchase promptly.

What about steel stocks . I carried a load of scrap steel off the other day and virtually had to give it away so I got to looking and steel stocks are way way down. they're at bottom. I thought about throwing 5000 at one. Maybe US steel (x) ticker symbol.

Can you check with Warren and see what he thinks ?