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Should I or Shouldnt I ?

  • 16-12-2010 06:25PM
    #1
    heybaby
    Registered Users, Registered Users 2 Posts: 1,125 ✭✭✭


    So in September I decided to create a pretend portfolio online and I acquired 100 shares from each of 9 separate companies from several different backgrounds, at this point I can report that every single company has increased in value, see below:

    COST Co : up 14%
    GOOGLE : up 9%
    COKE : up 11%
    NIKE : up 15%
    NESTLE : up 8%
    Proctor/g :up 3%
    USB : up 16%
    WFC : up 17 %
    Walmart : up 1%

    It amounts to an overall increase in value of 10% .... question is, should i buy for real? Oh just one bit of information, I chose the 9 companies based on Warren Buffett's own stock investments.


Comments

  • #2
    neris
    Registered Users, Registered Users 2 Posts: 20,104 ✭✭✭✭neris


    just because they rallied between september and now doesnt mean their going to go up. if we could all forecast stocks going up we,d be loaded. you need to research companies your interested in and decide what your strategy for investing is. whats good for warren buffet is good for everyone. also google alone is over $500 right now so thats alot of cash for 100 shares


  • #3
    tommylimerick
    Registered Users, Registered Users 2 Posts: 213 ✭✭tommylimerick


    investing even a small amount of money
    will encourage you to read the paper and
    research more as well
    nothing like having some of your own money
    on the line to help you find your style


  • #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,734 Mod ✭✭✭✭Jim2007


    heybaby wrote: »
    So in September I decided to create a pretend portfolio online and I acquired 100 shares from each of 9 separate companies from several different backgrounds, at this point I can report that every single company has increased in value, see below:

    COST Co : up 14%
    GOOGLE : up 9%
    COKE : up 11%
    NIKE : up 15%
    NESTLE : up 8%
    Proctor/g :up 3%
    USB : up 16%
    WFC : up 17 %
    Walmart : up 1%

    It amounts to an overall increase in value of 10% .... question is, should i buy for real? Oh just one bit of information, I chose the 9 companies based on Warren Buffett's own stock investments.

    In a nutshell, WB's objective is to buy great companies at great prices, so the question is, are these stocks on sale? If not then the answer would be no, pass and wait until a buying opportunity arrives.

    I've got a lot of year end stuff to do, so I don't have much time for this right now, but a quick look at the book values of the banks would suggest they are way to expensive for me....

    Jim.


  • #5
    poodles
    Registered Users, Registered Users 2 Posts: 426 ✭✭poodles


    If you were to buy all those companies you'll spend quite a bit on commission / charges (depending on the broker of course)


  • #6
    whysomoody
    Registered Users, Registered Users 2 Posts: 226 ✭✭whysomoody


    You need to be careful to buy an equal euro/dollar amount for each stock if you calculate your returns using simple averages.

    Otherwise for example if you bough 100 google and 100 Bank of ireland, if google was up 10% and BOI was down 2% your return would be > 4%.
    also you need to take accoutn c1%-0.5% for commissions too for EACH stock buying AND selling.


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  • #7
    freeze4real
    Registered Users, Registered Users 2 Posts: 2,540 ✭✭✭freeze4real


    Buy low sell high.
    If you do whatever Warren buffet does you either will lose all your money or make little or less.
    Ask yourself this question

    Why invest in this company. State atleast 3 reasons.

    Where do you see the money in 3yrs time. Questions like this must be asked.

    You're not Warren buffet. Research is the key.

    Trading in Demo account is way different from a real account.

    I want to see a Warren buffet of our generation.


  • #8
    pirelli
    Registered Users, Registered Users 2 Posts: 2,876 ✭✭✭pirelli


    heybaby wrote: »
    So in September I decided to create a pretend portfolio online and I acquired 100 shares from each of 9 separate companies from several different backgrounds, at this point I can report that every single company has increased in value, see below:

    COST Co : up 14%
    GOOGLE : up 9%
    COKE : up 11%
    NIKE : up 15%
    NESTLE : up 8%
    Proctor/g :up 3%
    USB : up 16%
    WFC : up 17 %
    Walmart : up 1%

    It amounts to an overall increase in value of 10% .... question is, should i buy for real? Oh just one bit of information, I chose the 9 companies based on Warren Buffett's own stock investments.

    I would look at different sector's that are still low and try to get the shares on or after a good overall correction. As some posters have said buy low and sell high meaning try to buy at technical low points and sell at technical high points and buyign back into the same stock. If you can buffer your position with some profit you are much safer.

    For example BBY which has lowered it's expectation for next year has dropped signifigantly in share price.So a buy around $32- $33 dollars might very well see some upside and then sell at around $36 and buy back in at $34 and so forth until it settles down and then you have a good position. BBy might be too sluggish for me right now but it's a good strategy.

    These are three websites you should have. Especially finviz which does all teh chart work for you.

    http://finviz.com/
    http://www.thelion.com/bin/aio_msg.cgi?cmd=search&symbol=uwrl
    http://stocktwits.com/


  • #9
    markjbloggs
    Registered Users, Registered Users 2 Posts: 294 ✭✭markjbloggs


    heybaby wrote: »
    So in September I decided to create a pretend portfolio online and I acquired 100 shares from each of 9 separate companies from several different backgrounds, at this point I can report that every single company has increased in value, see below:

    COST Co : up 14%
    GOOGLE : up 9%
    COKE : up 11%
    NIKE : up 15%
    NESTLE : up 8%
    Proctor/g :up 3%
    USB : up 16%
    WFC : up 17 %
    Walmart : up 1%

    It amounts to an overall increase in value of 10% .... question is, should i buy for real? Oh just one bit of information, I chose the 9 companies based on Warren Buffett's own stock investments.

    You have "bought" these stocks during a strong uptrend....

    If I need to say more then you should not pursue buying for real without answering this question - at what point would you sell these?


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