Comments on: Invest In What You Know: Five Companies That The Simple Dollar Recommends http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/ Simple, applicable personal finance advice for the modern world Sun, 22 Nov 2009 01:08:33 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: J.D. @ Get Rich Slowly http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/comment-page-1/#comment-769 J.D. @ Get Rich Slowly Thu, 07 Dec 2006 22:53:15 +0000 http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/#comment-769 I have to add that I am a huge Apple fanatic. I'm a fanboy. I have lots and lots of Apple equipment. I want them to succeed. But I want to buy into them when they're low, not when they're high. Trent, you've inspired a couple of entries from me here. I'll try to get the first one up tomorrow or this weekend. (I'm very busy right now, so don't know if I can do it.) It'll be five stocks of my own to pit against the Simple Dollar Index. :) The second entry will be the tale of our ill-fated investment club. I have to add that I am a huge Apple fanatic. I’m a fanboy. I have lots and lots of Apple equipment. I want them to succeed. But I want to buy into them when they’re low, not when they’re high.

Trent, you’ve inspired a couple of entries from me here. I’ll try to get the first one up tomorrow or this weekend. (I’m very busy right now, so don’t know if I can do it.) It’ll be five stocks of my own to pit against the Simple Dollar Index. :) The second entry will be the tale of our ill-fated investment club.

]]> By: Lazy Man and Money http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/comment-page-1/#comment-766 Lazy Man and Money Thu, 07 Dec 2006 19:57:58 +0000 http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/#comment-766 I have gotten out of the individual stock market game, but I like what JD is saying. I used to do that as well. The only problem is when you invest in a Lucent or Worldcom thinking that the small dip will correct itself and things will get back. Perhaps that's a reason to avoid the bargain technology stock with the exception of something like Microsoft or Intel - companies that aren't going anywhere for quite some time. I definitely like UPS long-term. I haven't followed their stock, but on a dip, that would be great to stock up on. I have gotten out of the individual stock market game, but I like what JD is saying. I used to do that as well. The only problem is when you invest in a Lucent or Worldcom thinking that the small dip will correct itself and things will get back. Perhaps that’s a reason to avoid the bargain technology stock with the exception of something like Microsoft or Intel – companies that aren’t going anywhere for quite some time.

I definitely like UPS long-term. I haven’t followed their stock, but on a dip, that would be great to stock up on.

]]> By: D http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/comment-page-1/#comment-765 D Thu, 07 Dec 2006 19:19:48 +0000 http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/#comment-765 I own Whirlpool through its acquisition of Maytag. Which of course I owned because I have Maytag Appliances in my home and at the laundry. I think this is a hold as well. The others are not (remember I have no training) for me, for I stick with what I know and how things flow. Apple to me is a one time purchase that may do bad tomorrow. Although, I see your logic when compared to Zune. Hasbro - long standing company. But being removed from the toy scene, I don't feel I would be abreast of any impending situations. Riverbend - very interesting, but I would need to research. Find where they are in my life. Lowe's will most likely never be in my portfolio. We spend large somes of time and money at all the big hardware/construction stores. Lowe's has always had the worse layout and service. To me it is, sorry for this, a womans hardware store, like Ace or TrueValue. I would go there, possibly for bird feeders or light bulbs. But when it comes to windows, doors, heating, plumbing, etc...I am off to Home Depot or Menards. I own Whirlpool through its acquisition of Maytag. Which of course I owned because I have Maytag Appliances in my home and at the laundry. I think this is a hold as well.

The others are not (remember I have no training) for me, for I stick with what I know and how things flow.

Apple to me is a one time purchase that may do bad tomorrow. Although, I see your logic when compared to Zune.

Hasbro – long standing company. But being removed from the toy scene, I don’t feel I would be abreast of any impending situations.

Riverbend – very interesting, but I would need to research. Find where they are in my life.

Lowe’s will most likely never be in my portfolio. We spend large somes of time and money at all the big hardware/construction stores. Lowe’s has always had the worse layout and service. To me it is, sorry for this, a womans hardware store, like Ace or TrueValue. I would go there, possibly for bird feeders or light bulbs. But when it comes to windows, doors, heating, plumbing, etc…I am off to Home Depot or Menards.

]]> By: Trent http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/comment-page-1/#comment-764 Trent Thu, 07 Dec 2006 18:57:26 +0000 http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/#comment-764 Good advice, J.D. My general philosophy is that I only feel comfortable with companies that I'm familiar with "on the ground;" in other words, companies whose business I am familiar with as a customer or as a close associate of customers. Generally, the companies that cater well to their customers seem to do better, and these are five companies that, in my impression, seem to cater well to their customers right now. I will admit that LOW is probably the one I feel the best about right now, given all factors - I think it's really underpriced and I'm pleased with them on the ground, too. Good advice, J.D. My general philosophy is that I only feel comfortable with companies that I’m familiar with “on the ground;” in other words, companies whose business I am familiar with as a customer or as a close associate of customers. Generally, the companies that cater well to their customers seem to do better, and these are five companies that, in my impression, seem to cater well to their customers right now.

I will admit that LOW is probably the one I feel the best about right now, given all factors – I think it’s really underpriced and I’m pleased with them on the ground, too.

]]> By: J.D. @ Get Rich Slowly http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/comment-page-1/#comment-763 J.D. @ Get Rich Slowly Thu, 07 Dec 2006 18:36:45 +0000 http://www.thesimpledollar.com/2006/12/07/invest-in-what-you-know-five-companies-that-the-simple-dollar-recommends/#comment-763 Using my own super-duper top-secret non-scientific stock picking method, I would not buy AAPL right now (80% increase in six months is scary to buy into) or HAS (50% increase in six months). WHR is iffy, too, because it's seen a big increase over the past several months, and because I don't have a feel for them. I don't have a feel for RVBD, either, and it's gone up, too, but based on the fact that you mention they've got up-and-coming technology, I'd have to take a look at them. Of the five you mention, only LOW has any real appeal. I prefer to buy stock in large companies (which most of those you listed are), but after they've experienced some sort of setback. What do I mean by this? I bought GM when it had taken a beating earlier this year. I bought MSFT after it fell mid-year. I bought UPS after it took a dive in the late summer. And right now? Right now I'm salivating over F. Ford's stock is down 20% in the last month, 12.5% in the last week. This is PERFECT. I'd have to do some research, but I suspect this is exactly the type of thing I'd like to put my money into. I should write an entry about how I came to this investing method. Short version: I was in an investment club about five years ago. We were idiots, and bought all sorts of stuff after it had already gone up. We got burned, and bad. I learned then to buy stuff that has dropped... Using my own super-duper top-secret non-scientific stock picking method, I would not buy AAPL right now (80% increase in six months is scary to buy into) or HAS (50% increase in six months). WHR is iffy, too, because it’s seen a big increase over the past several months, and because I don’t have a feel for them. I don’t have a feel for RVBD, either, and it’s gone up, too, but based on the fact that you mention they’ve got up-and-coming technology, I’d have to take a look at them. Of the five you mention, only LOW has any real appeal.

I prefer to buy stock in large companies (which most of those you listed are), but after they’ve experienced some sort of setback. What do I mean by this? I bought GM when it had taken a beating earlier this year. I bought MSFT after it fell mid-year. I bought UPS after it took a dive in the late summer. And right now? Right now I’m salivating over F. Ford’s stock is down 20% in the last month, 12.5% in the last week. This is PERFECT. I’d have to do some research, but I suspect this is exactly the type of thing I’d like to put my money into.

I should write an entry about how I came to this investing method. Short version: I was in an investment club about five years ago. We were idiots, and bought all sorts of stuff after it had already gone up. We got burned, and bad. I learned then to buy stuff that has dropped…

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