Quote:
Originally Posted by Maestro
Yes, all eggs in one basket is one reason, as others pointed out, it is privately held, which in this day and age is not too bad, since you do not have Wall Street Analysis telling the company to do dumb things to increase share value. But this is a down side if you do not have independent view of what they are doing, they could be heading for a wall and you will not know it until it is too late. Some small privately held companies like making employees buy in, why it makes you committed to them. Forces you to work harder. Do not get me wrong, I buy my companies stock, always have, but I do not hold it long, I am in an out and make what I can especially if I get a discount buying it.
Here is an investment, and this is not advise do you own research on this NLY, it just paid out a 3% dividend and does so every quarter for a total of 12% for the year, but it depends on when you buy in. It has been bouncing between $15 and $18, it does not grow in value, just kicks out dividends. Right now the value is trending downward so if you buy in below $16 the return could be higher.
I have another investment like this one which is not worth getting in now, but 8 yrs ago I bought in and keep reinvesting the dividend and today base on my initial investment it is kicking out 15% yearly and the value of the investment less the reinvested dividends is up 80% or about 10% per year.
The simple decision is this, if you can find an investment that will return more than a loan, make the investment and take the loan.
Today I can pay cash for most anything I want except for a house, but I have always taken loans for a car especially if I can get a loan for less then 5% or 6%. The only reason I put cash down on a car is to reduce the monthly payment.
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Sound advice all around. Thanks for the tips.
I need to find me a solid investment like yours!