You are not signed on; if you are a visitor please register for a free account!
|The Market Ticker Single Post Display (Show in context)||
User: Not logged on
|User Info||ROFL! 5yr P/E/G of 17?!; entered at 2018-01-12 13:42:12|
Registered: 2018-01-02 Colorado
When I was a kid my grandpa was invested in stocks for retirement. He always told me never invest in a stock that has a P/E over 10 and he preferred them much lower than that. He also told me never buy a stock that does not pay dividends.|
That formula worked for my grandparents for 60 years. Nope, they did not get rich quick but they rarely lost any significant value in the stocks even during downturns. They did not buy and sell but they held long term and they cashed those dividend checks and lived a pretty good retirement. Yes, they lost out on opportunities to get rich quick but they also slept well at night knowing the stocks they bought would still be there in the morning.
Of course today's investor will tell you that the old school methods are outdated and you are not supposed to care about Dividends or P/E ratios. I am not so sure. I think the switch from investing in companies that had rock solid financials and did something you believed to chasing ever climbing BS valuations is one of the reasons we are so screwed today. I am sure they would never be able to understand how these companies get investors or how these stock prices are able to rise with no actual profit. Then again, they lived through the 1920's probably not much different than what happened then but on a bigger scale.
Every time I think I should jump into the market I remember what he told me and I just forget about being in the market at all. I already have enough grey hair.