Doughknob
Veteran Member
Great! I can't say how many I have, but have been buying since 2009ish. It's been a hoot so far! I think they are going to split again soon, but who knows.......
Investing for beginners
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Fuddy1952
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A couple of things I find interesting. One is the 1961 "Mayberry" episode where Andy must evict Frank from his run-down house for non payment of taxes. Frank has very little belongings except he does have a $100
bond issued by Mayberry in 1861. The mayor says "so give him his $100". The problem is the bond has an interest rate of return of 8.5%. The Mayberry bank calculates cashing in the bond, now worth $349,119.27 which the bank has insufficient funds to cover. This illustrates time is key. Thirteen years later in 1974 the bond exceeds $1,000,000, and now the graph skyrockets.
The other interesting puzzle I remember in an old Farmers Almanac where two guys Bob & Jim each have $1,000 to invest for two years. Bob buys stock making 60% the first year and losing 40% the second while Jim puts his in a bank savings deposit paying 1%. Who made the most money? Logically you'd think Bob, except the first year Bob had $1,600 but then lost $640 so he had a $960 balance.
Meanwhile Jim has $1,020.10 after two years so Jim wins.
Yes, the market is volatile and not for the faint hearted or for short term. Over the long haul though, it wins out.
bond issued by Mayberry in 1861. The mayor says "so give him his $100". The problem is the bond has an interest rate of return of 8.5%. The Mayberry bank calculates cashing in the bond, now worth $349,119.27 which the bank has insufficient funds to cover. This illustrates time is key. Thirteen years later in 1974 the bond exceeds $1,000,000, and now the graph skyrockets.
The other interesting puzzle I remember in an old Farmers Almanac where two guys Bob & Jim each have $1,000 to invest for two years. Bob buys stock making 60% the first year and losing 40% the second while Jim puts his in a bank savings deposit paying 1%. Who made the most money? Logically you'd think Bob, except the first year Bob had $1,600 but then lost $640 so he had a $960 balance.
Meanwhile Jim has $1,020.10 after two years so Jim wins.
Yes, the market is volatile and not for the faint hearted or for short term. Over the long haul though, it wins out.
Oaktree
Super Member
I have a good percentage of my net worth in the stock market. A few dogs, but some real winners too.
I tend to stick with established companies that are in relatively essential sectors, nothing speculative, nothing stratispherically priced. Maybe a little less potential gain, but a lot less volatility too.
Well, I do have some Facebook shares, but even after their recent collapse I'm still ahead. Undecided whether or not to bail on that one...
Yeah, you've got a point there. Good time to sell a used vehicle of pretty much any sort, only trouble is if you need to replace it with something else it's gonna cost you.
Fuddy1952
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Hard to beat mutual funds especially investing for beginners. Let the experts buy/sell and so many choices based on one's risk tolerance and goals.
California
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Are you seeing articles like this, which describe why the stock is down? I would do some intensive research to decide whether I thought Facebook will ever recover its previous high P:E.
Mark Zuckerberg told Meta employees to zero in on video because they're up against an 'unprecedented level of competition' from TikTok, report says
Zuckerberg said Meta would focus on the short-form-video feature Instagram Reels, which closely resembles TikTok, after posting disastrous earnings.
www.businessinsider.com
And here's some raw 'market research' on Reddit.
In summary the younger generation is abandoning Facebook like they did prior similar sites.
One post in that thread, typical:
I've never paid any attention to Facebook as an investor, or subscriber. This is not financial advice!
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CalG
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I'm only going on the adage of "When there is smoke in the air, and gun fire on the streets, BUY!"
It would seem that there is smoke in the air around META.
It would seem that there is smoke in the air around META.
Oaktree
Super Member
There's the big question mark. Is Facebook/Meta going to come back or is this the beginning of the end? 'Most everyone who wants to belong already does, not much room for growth, and as someone else noted they seem to be a one trick pony. Every generation of young people wants their own culture, and when your grandmother is on FB, that kind of makes it uncool by definition.
Add to that the fact that their carte blanche to track users is coming to an end.
I don't really understand what this "metaverse" that Zuckerman is betting on even is, let alone whether it will save the company. Looks like his arrogance has started to backfire on him.
Sometimes stocks go down for a reason.
kenmac
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I know many young people today just live for today. Gotta have that new vehicle, new watch, new tv, etc,etc.
I've had some tell me that they were going to begin investing in their company sponsored 401K when they got this ,or that paid off.
Then, the next thing you know, you see them with another vehicle, and claim when they get that one paid off, they are going to start.
Next thing they know, retirement is here and they didn't invest, or invested very little for their future. Saying, well, we had to live, so we just weren't able to save as we would have liked to.
Sort of reminds me of my parents. They lived for the moment. If you could make the payment go buy it.
For me, this mentally was difficult to over come. But somehow, I did, and I'm very glad I did.
I've had some tell me that they were going to begin investing in their company sponsored 401K when they got this ,or that paid off.
Then, the next thing you know, you see them with another vehicle, and claim when they get that one paid off, they are going to start.
Next thing they know, retirement is here and they didn't invest, or invested very little for their future. Saying, well, we had to live, so we just weren't able to save as we would have liked to.
Sort of reminds me of my parents. They lived for the moment. If you could make the payment go buy it.
For me, this mentally was difficult to over come. But somehow, I did, and I'm very glad I did.
Oaktree
Super Member
Don't know how old you are, but I'm a boomer and I don't recall that many of my generation started thinking about saving for retirement until their late 30s/early 40s. I didn't really, though I've always been thrifty and lived well below my means.
As far as my parents, they grew up in the depression, and scrimping and saving was deeply ingrained in them. It was a bit easier for them because for a lot of their working years company pensions were still quite common, though in many cases they were self-administered so if the company went feet up, there went the pension fund. My parents were lucky enough that the company they worked for got bought out by a large company and both qualified for that company's pension plan. Of course with inflation, the monthly payout is pretty meager now.
