I just went and looked at my UPS stock, and I was wondering if it split and I hadn't heard?

42 bucks a share? Jeez!

Apparently Wall Street doesn't have high hopes for Tuesday?

Big announcement Monday though, according to my UPS driver.

 

Only a 700M profit.

 

So now is the perfect time to buy all you can afford. With the dividend alone the yield is better than 4%; pretty safe investment with a pretty much guaranteed return.

 

At ~$50 a share FDX isn't doing much better right now... Looks like a universal split?

 

Kramer (Mad Money) did announce a few nights ago that UPS was a BUY despite being downgraded.

 

Kramer also said to stay in with bearns & stearns a week before they went totally bankrupt.

 

I just got done taking a class on investment strategies, in which, the guy leading the thing said to never have more than 5% of your total investments in your company stock. He said, only buy it, if you can get it at a discount, then sell it as soon as you can. A very interesting point of view.

JJ

 

JJ,

What is his rationale behind having no more than 5% in your own company stock? Does he not want more than 5% in any one thing? What's the difference between more than 5% in your own company vice any other?

Inquiring minds want to know...

Biff

 

can you say Enron. I am guessing his advise is based on not having all your eggs in one basket. As for the buying it at a discount and selling it a.s.a.p. that is probably also based on Enron, or he is just an OLD SCHOOL guy. Either way good advise..... IMHO

 

Yeah, it's exactly that. Putting all your eggs in one basket is just not healthy, financially speaking. Pre-1991, FedEx allowed all employees to buy its stock at 15% below the highest price of the current quarter. They you could turn that stock over the very next day. Guys were making, at a minimum, 15% on their money. You could almost never beat that, year over year. However, one day the company revoked that plan, saying that too many guys were selling the stock immediately, and that wasn't what FedEx had wanted. A number of guys, myself included, suggested that they put a moratorium on the sale of the stock, for a period of time, which the company didn't buy into. That was the last time I ever thought of buying FedEx stock.

Another thing that this advisor talked about was owning only index funds, as opposed to individual stocks, as he felt that over the long term, index funds would outperform individual stocks. He was suggested that you look toward Vanguard, Fidelity, and one or two other family of funds that have very low fees, and steer clear of stock brokers because their fees are much higher, thereby lowering your gains. Sounds simple, and that's exactly what this guy was preaching.... simplicity in investing. He also raved about retirement income funds, like Vanguard's Target Retirement fund, because those funds had very low fees, and they were rebalancing their holdings all the time to give you the best mix of securities, based on your stated retirement date. So that the further you were from retirement, the more the fund held in stocks, while as you got closer to your retirement date, the fund would be positioned with less in stocks and more into bonds and cash.

JJ