What do you do in off season?

[JohnH]

Bart:
I'm the last person to ask about an individual stock because I only own stock in two companies. All the rest of the Equity side of what I have is in the Vanguard Total Stock Market Index ( I really do practice what I preach), because I'm just not smart enough to pick individual stocks.

Following Bob Brinker's & Warren Buffet's advice, one way to make choices would be to invest in the company you work for or companies you do business with. Since I often shop at Wal-Mart I am implicitly saying that I have confidence in their management, so I'd be inclined to give them a thumbs up as a "Buy and Hold" candidate based on that single criterion. But that's about the extent of my analysis.

I'm assuming that you might have access to a reliable rumor mill given your physical location, so that might also be a good reason to hang onto it as well. And after I made this post, I decided to see if the Oracle of Omaha has any opinion on Wal-Mart and ran across this article:
http://blogs.wsj.com/marketbeat/2010...g/tab/article/
So I'd conclude that if you're holding onto WalMart, then based on the info in the third paragraph from the bottom, you're in excellent company.

[Black Bart]

Let's agree on that and agree to disagree on anything else we view differently...

Sic 'im, John ,

As a fellow sound-bitten idiot, is it a good idea to keep my Wal-Mart stock or do you think I should I now be moving money into bond funds ?


__________________
Is it not lawful for me to do what I will with mine own? -- Matthew.XX.15

[veritas]

First thing

I do. For those with Vest I'm sure it is the same since most of us are tax professionals.

[Bees Knees]

I hope everyone offering investments to their clients get their client’s written consent to offer investment products prior to offering the products. Reg. Sec. 301.7216-3 most definitely applies to your situation.

[sea-tax]

This has been an interesting little thread.

My opinion is that offering your tax clients a trusted resource for helping them with there investments is a win win situation for all involved. I have never lost a tax client because of my financial planning relationship with them. I offer them the highest level of service, basic investment strategies, low cost and full disclosure as to my fees and compensation. With this recipe you really can't go wrong.

Keep in mind of all the clients that I have transferred from other Broker Dealers, never once has performance, fees, costs, diversification etc. been the main reason for the clients want to change to me. The number one reason is always service. Whether you offer tax, investments, plumbing or whatever, if you offer the best level of service clients will find you and you will be successful and they will be happy.

[JohnH]

Absolutely! Walter Williams and Thomas Sowell helped me tremendously in sheddding much of the Keynesian theory I had abosorbed and replacing it with something that can actually be defended.

[veritas]

I suppose your right.

I wish I had taken economics.

I very much enjoy reading Walter Williams.

http://econfaculty.gmu.edu/wew/

[JohnH]

You know, even people with whom we disagree can have good ideas. I majored in Economics when Keynesianism was the order of the day (some misguided people still think it is). I've discarded much of what was shoved into my mind full of mush in the late 60's and early 70's, but it isn't good to throw the baby out with the bath water. Some of his ideas were sound and some of his quotes are timeless.

I also wonder if JMK would still stick to some of his theories today, having the benefit of better information and more time to have seen them play out for better or worse. After all, he's reported to have responded to a criticism of having changed his mind on monetary policy during the Depression, "When the facts change, I change my mind. What do you do, sir?" Seems like a reasonable position to me.

[veritas]

Appropriate statement

We're all buddies on this forum. Nothing wrong with having differing opinions or different approaches to finances (or anything else for that matter). After all, John Maynard Keynes put it all in perspective when he said "In the long run we're all dead."

From a man whose ideas would kill our economy.

[Roberts]

I agree, it's just a discussion.

It just gets my goat when someone says something like "Turbo Tax does just as good of a job as any CPA or EA." That's true for SOME people but still a horribly dangerous statement for many people.

The same is true in the investment field. Everyone can understand the concept of higher risk equaling higher return but they rarely equate higher risk with lower return. The reality is that they go hand in hand equally.

When I was taking CFP classes, I had an instructor that argued with me that when you move into a higher tax bracket, it impacts ALL of your income, not just the next dollar earned. If a CFP believes that to be a fact, what else is he dangerously not understanding?

edit: don't get me started on people who claim you should now be moving money into BOND FUNDS.

[JohnH]

Sound bites don't equal a full education on the subject.

Let's agree on that and agree to disagree on anything else we view differently. Won't go so far as to say I've changed my mind on anything, but I appreciate your holding my feet to the fire and I've learned a thing or two from this discussion.

[JohnH]

We're all buddies on this forum. Nothing wrong with having differing opinions or different approaches to finances (or anything else for that matter). After all, John Maynard Keynes put it all in perspective when he said "In the long run we're all dead."

[RitaB]

I installed

I can't install plumbing, but I can use a plunger and I know what a vent stack is, as well as where all the cleanouts are in my laterals. I took the time to learn these things not because I aspire to be an expert plumber, but to help insure that I don't get taken to the cleaners when I have to call the Roto Rooter guy.

I installed a bathroom faucet once. I put the handles on wrong, and had to push them the opposite way. I didn't fix it. My back was killing me when I finished. I almost cried when I realized my mistake. I decided whatever I saved on the plumber was not worth it.

But, I do love Vanguard Total Stock Market. I feel very comfortable doing THAT myself.

I am sure Roberts does a great job, however, so I hope you are both still my buddies.

[Roberts]

I have this discussion with my insurance agent frequently, and for the past 25 years I've told him that when Consumer Reports changes their mind about term insurance, I'll consider changing mine. Needless to say, I don't get any referrals from him, nor would I expect any.

First of all, whole life insurance is NEVER to be considered an investment. So when people compare the two it's idiocy from the very beginning because they are separate beasts. It's like people claiming they would get a better return on their own than being in Social Security. It's not the same beast.

Secondly, there are benefits to whole life that you need to put a dollar value on. For example, what happens if you get sick? With whole life you could qualify for MORE insurance whereas with term, you may be barred from renewing your policy when you most need it. What if you file bankruptcy? What if you have a special needs children? Whole life is a FAR superior plan than term in certain situations.

Lastly, in the last 10 years, even with the run up in the market of 50% in the last year, most equity funds would have underperformed a whole life policy. If you looked at it 9 months ago, it was an absolutely HORRIBLE idea to have bought term the previous 10 years.

I don't sell whole life. Never have sold a single policy in my 20 year career but I know the facts regarding it. That's my job. Sound bites don't equal a full education on the subject.

[JohnH]

I link the two because both focus on the long term, both are advocates of not giving up your winnings to the croupier, and because both are wildly successful. It is only in focusing on the short term that their styles appear to be different to a casual observer. Or as Warren Buffett likes to say, "Price is what you pay, value is what you get". I tell you, that word "anecdotal" sounds really cool & dismissive, but it won't fly in this conversation.

No surprise that the insurance-industry dominated regulatory agencies would get my license pulled for making the "buy term and invest the difference" statement if I were under their thumb. After all, it's antithetical to their interests - they'd be fools to let me operate under such a principle. I have this discussion with my insurance agent frequently, and for the past 25 years I've told him that when Consumer Reports changes their mind about term insurance, I'll consider changing mine. Needless to say, I don't get any referrals from him, nor would I expect any.