New to investing

Discussion in 'Investing' started by TL95, Dec 4, 2020.

  1. TomB16

    TomB16 Well-Known Member

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    Fair question.

    If you buy a stock with the intention of making money from variations in the stock price, that is trading.

    If you buy a company with the intention of sharing the profit generated by that company, that is investing.
     
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  2. TomB16

    TomB16 Well-Known Member

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    Further, because I consider the profit generated by a company I own to be mine, I have very specific thoughts on corporate investment.

    If a company like Tesla uses their profit to expand capacity and their margins are over 20%, I like that. I'd rather they invest in a likely 20% return than give me a dividend. If I need money, I'll just sell some of the stock.

    If a REIT buys another REIT that is making under 5% profit, I don't like that. I wouldn't invest my money in a REIT with under 5% total return. At that point, I need to consider if the REIT I own is in a position to improve the profit of the asset under purchase. If so, perhaps it's OK. Often, however, companies just want to get big for the sake of being big. I see it frequently. In these cases, I look to exit this position.
     
    #22 TomB16, Dec 11, 2020
    Last edited: Dec 11, 2020
  3. JTuber

    JTuber Member

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    That's weird. I never think about investing is sharing in a company's profit. I always think investing is to profit in a company's stock price variation, solely in the up direction. A company's profit does indeed affect price but sometimes in the absence of profit, price goes up anyway because revenue goes up fast and the future is bright. I am not a big fan of dividends at the moment.
     
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  4. TomB16

    TomB16 Well-Known Member

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    Indeed. I'm an outlier.

    I see traders as gamblers surfing an ocean of fluctuating stock prices.

    When I respond to a thread like this:

    My goal was to share the perspective of an investor. Specifically, I mean "investor" by my definition.

    Sure, few to no people will embrace my point of view but I am happy to give people the opportunity to see this point of view, in case they become interested one day.
     
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  5. TL95

    TL95 New Member

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    Hi all. Just wanted to give you guys an update on how I am doing so far with stocks. Plug Powers is doing great. I reverent not buying more when I did the first time, but there’s room for purchase now still. So far this year I feel pretty good. Any thoughts? Advice? Thank you.
     

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  6. TL95

    TL95 New Member

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    *regret
     
  7. Ridestock

    Ridestock Member

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    Hey TL95,

    I am wondering why you picked Plug Powers.
     
    #27 Ridestock, Dec 22, 2020
    Last edited: Dec 22, 2020
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  8. TL95

    TL95 New Member

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    Hi.
    Because I was looking at the history of the stock on google and it looked interesting. I also think that with more electrical cars coming out, Plug Power may be really essential.
     
  9. Ridestock

    Ridestock Member

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    Hey TL95,

    Because you based your choice on trend and outlook, you plan to buy and hold?
     
  10. TL95

    TL95 New Member

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    I plan to hold. I look for long term stocks. I don’t really understand trading yet so I rather buy nd hold for the future
     
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  11. TL95

    TL95 New Member

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    Hi, happy new year!

    How do you guys feel about Cryptocurrency?
     

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