I decided to buy 2000 shares of GE at 14.85. I figure with the dividend yield it should be a good stock if plan on holding 10 years and reinvesting the dividends. I was looking at PG also but the PE seems so high compared to the market in general.
Could work. That is, unless this is that 'one in a hundred years ' thing. Come to think of it, then, it won't matter anyway.
Funny. We forget what can happen. I found a letter once, it was for an estate and it was dated around 1939. ATT was yielding like, 9%. US Treasuries were in the 1 and one half percent range. think folks were nervous? anything can happen. If you don't think so, guess what this is........................ â39.36% â32.87% â16.79% â23.11% ????? It's this.............................. Recent investment returns Year-to-Date as of 11/14/2008 Year-to-Date as of 10/31/2008 Previous Month 10/31/2008 3-Month Total as of 10/31/2008 500 Index Fund Inv â39.36% â32.87% â16.79% â23.11% Vanguard's sp500 index fund. I think for five years, the return is negative, too, after Friday 's drubbing. Anything can happen. Anything.
remember how many people put everything they had and some in BS at 30 or so. Its a gamble unless you know something. Thats what I'm learning about a bear market, that people are constantly thinking that things can't possibly get any lower... but they always do
GE is headed for single digits. There isn't any reason to buy this company, I know many are starting to invest in these high yieding dividend stocks but that is going to change very quick when many many companies start to cut their dividends. You will see dividend cuts from 50%-100% on most of these stocks that continue to drop in value.
GE isn't going to a single digit. Warren Buffett and Cramer like GE and I'm a buyer too. You should buy some too. As Buffett said "it will be around for a hundred years". Get some GS too.
In some respects GE looks worse that Lehman. The broker was leveraged 28:1 while GE is leveraged 62:1 ... ouch. To put that in perspective, if you have an account with IB and hold a mini-Dow futures contract overnight, that futures contract only leverages you 6.2:1! You get 10x the leverage with GE!!! Leverage cuts both ways, and can sink even the best of companies. Lehman went bankrupt first because it was heavily exposed to mortgages. But GE does a lot of consumer and business finance as well. If it takes a few hits, it only takes 1 rating downgrade to throw her into bankruptcy. Sure, GE will 'survive' ... but in what form is harder to say. Go ahead and buy GE, but don't pretend your not the dumb money. (I mean that as a figure of speech - not to call names or start a fight.)