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Posted on 10/17/18 at 5:38 am to I Bleed Garnet
Anyone else love Paul?
Love Finebaum.
The voice of our great conference
Love Finebaum.
The voice of our great conference
Posted on 10/17/18 at 6:55 am to I Bleed Garnet
NBA Opening week.
PJ Dozier unactive for the Eastern Conference Favorite
Sin Thornwell should get 15-20 mins of PT for LAC
PJ Dozier unactive for the Eastern Conference Favorite
Sin Thornwell should get 15-20 mins of PT for LAC
Posted on 10/17/18 at 7:14 am to TheUSC
Buyer Beware
The investing model prior to the 1980's and the .com era
Invest in individual stocks by average Americans over time with the aim of having a nest egg by retirement. Usually based on growth early in your career and income later in your career. Most solid US companies once they matured from growth to cash cows passed that on to their shareholders in the form of dividends to live off of in their golden years. If you bought P&G over time the dividends allowed you to buy their goods. Buying GE helped you afford their appliances. Buying GM helped you with the down payment on a car.
This was a good system as it spread the wealth of corporate America out across the country and had great impact on economies all across the USA.
Beginning with Reagan and the "greed is good" generation of the early 1980's management now felt entitled to the wealth of their companies and instead of adopting 25 year windows they shifted to 25 weeks. Individual investors were spoon fed the mantra that mutual funds were better than individual stocks and your mom and pop folks that had ridden the market in the 40's, 50's, 60's, and 70's were supplanted by private equity taking control and shifting wealth to limited areas of the country. Junk bonds and folks like KKR eroded what made the market great for the citizens of the country.
A classic example was Microsoft who is still below water if you invested in the 80's yet went on to become a monopoly while still not rewarding their shareholders with a reasonable dividend. Apple is hoarding what, 300 billion in cash while overcompensating those at the top and giving the investors nothing for holding the stock. Neither Apple or Microsoft have been growth companies since the 1980's. Lest you think this is sounding alarmist, consider GE who was a mainstay for almost a century in the hands of mom and pop investors and a much more secure retirement than Social Security.
Welch took over in the "greed is good" era and transformed them from a well diversified holding company to one that was heavily weighted in financials (roughly 50% at peak up from their historic levels of 10% to 15%) just ahead of the 2008 crash. Blinded by short term returns over multi decade returns was a recipe for disaster but Welch did not care as his multi million dollar perks and bonus checks rolled in to his personal gain. All the while cutting the money to the real reason for GE's historic success in the value (off the books) of the intellectual value of their work force. This came to a head (for me) when I attended the GE annual meeting about 15 years ago and saw all the "lifers" relegated to the upper deck seats so their voices could be ignored.
I sold my GE stock the next day (around $40) and walked away. I have watched the stock and dividend fall since until they got on the radar of Nelson Peltz who claims to be an advocate investor yet is neither. Advocates champion the best long term solutions but Peltz was in it for himself and in the 1980's we called the folks greenmailers. Investors are folks looking to hold long term by building long term businesses. Peltz was looking for quick wealth by breaking up the company and selling off the pieces for quick cash. Good for his wallet but bad for the wallets of folks caring about the long term health of the company. GE post Peltz is trading around 10 dollars today and the dividend has been slashed and will probably be eliminated (further reducing demand to hold the stock).
Now the company has been stripped of valuable assets at fire sale prices and GE has been delisted from the DJIA after 110 years. He has already wrecked several companies and now he has forced a seat on P&G's board with the goal of breaking the company off and selling the pieces to the Europeans and Brazilians. Sure it will enrich him, but this only makes sense if those jobs in America are relocated overseas where the much lower salaries offset the acquisition costs. P&G has about 100K direct jobs and possibly 500K indirect jobs (using a 5x multiplier) and factories and headquarters in the USA. In addition, about 10% to 15% of War Mart sales are P&G products (so much so that the "secondary" P&G HQ - was built in NW Arkansas about 20 years ago).
TL : DR
The shell game has been stacked since the 1980's to create corporate monarchies over actually rewarding long term stewardship benefitting the average American household. This will not reverse until management returns the fruits of capital back to their workers (via US jobs and wages) and their investors (via dividends and non accounting growth) in reasonable percentages to return to real long term value investing.
The investing model prior to the 1980's and the .com era
Invest in individual stocks by average Americans over time with the aim of having a nest egg by retirement. Usually based on growth early in your career and income later in your career. Most solid US companies once they matured from growth to cash cows passed that on to their shareholders in the form of dividends to live off of in their golden years. If you bought P&G over time the dividends allowed you to buy their goods. Buying GE helped you afford their appliances. Buying GM helped you with the down payment on a car.
This was a good system as it spread the wealth of corporate America out across the country and had great impact on economies all across the USA.
Beginning with Reagan and the "greed is good" generation of the early 1980's management now felt entitled to the wealth of their companies and instead of adopting 25 year windows they shifted to 25 weeks. Individual investors were spoon fed the mantra that mutual funds were better than individual stocks and your mom and pop folks that had ridden the market in the 40's, 50's, 60's, and 70's were supplanted by private equity taking control and shifting wealth to limited areas of the country. Junk bonds and folks like KKR eroded what made the market great for the citizens of the country.
A classic example was Microsoft who is still below water if you invested in the 80's yet went on to become a monopoly while still not rewarding their shareholders with a reasonable dividend. Apple is hoarding what, 300 billion in cash while overcompensating those at the top and giving the investors nothing for holding the stock. Neither Apple or Microsoft have been growth companies since the 1980's. Lest you think this is sounding alarmist, consider GE who was a mainstay for almost a century in the hands of mom and pop investors and a much more secure retirement than Social Security.
Welch took over in the "greed is good" era and transformed them from a well diversified holding company to one that was heavily weighted in financials (roughly 50% at peak up from their historic levels of 10% to 15%) just ahead of the 2008 crash. Blinded by short term returns over multi decade returns was a recipe for disaster but Welch did not care as his multi million dollar perks and bonus checks rolled in to his personal gain. All the while cutting the money to the real reason for GE's historic success in the value (off the books) of the intellectual value of their work force. This came to a head (for me) when I attended the GE annual meeting about 15 years ago and saw all the "lifers" relegated to the upper deck seats so their voices could be ignored.
I sold my GE stock the next day (around $40) and walked away. I have watched the stock and dividend fall since until they got on the radar of Nelson Peltz who claims to be an advocate investor yet is neither. Advocates champion the best long term solutions but Peltz was in it for himself and in the 1980's we called the folks greenmailers. Investors are folks looking to hold long term by building long term businesses. Peltz was looking for quick wealth by breaking up the company and selling off the pieces for quick cash. Good for his wallet but bad for the wallets of folks caring about the long term health of the company. GE post Peltz is trading around 10 dollars today and the dividend has been slashed and will probably be eliminated (further reducing demand to hold the stock).
Now the company has been stripped of valuable assets at fire sale prices and GE has been delisted from the DJIA after 110 years. He has already wrecked several companies and now he has forced a seat on P&G's board with the goal of breaking the company off and selling the pieces to the Europeans and Brazilians. Sure it will enrich him, but this only makes sense if those jobs in America are relocated overseas where the much lower salaries offset the acquisition costs. P&G has about 100K direct jobs and possibly 500K indirect jobs (using a 5x multiplier) and factories and headquarters in the USA. In addition, about 10% to 15% of War Mart sales are P&G products (so much so that the "secondary" P&G HQ - was built in NW Arkansas about 20 years ago).
TL : DR
The shell game has been stacked since the 1980's to create corporate monarchies over actually rewarding long term stewardship benefitting the average American household. This will not reverse until management returns the fruits of capital back to their workers (via US jobs and wages) and their investors (via dividends and non accounting growth) in reasonable percentages to return to real long term value investing.
Posted on 10/17/18 at 7:55 am to scrooster
quote:
It always goes back up and will continue to do so as long as this country remains Capitalist and free. And if that ever comes to an end ... none of it will matter.
The robber barons of the late 1800's were pure capitalist and they were not good for the long term success of the USA. China right now reminds me of this age in their current economy.
My elders were lifelong Republicans who weathered 2 World Wars and a Great Depression. One survived the Bataan Death March and some survived service in each of these great wars. They also lived through the Standard Oil monopoly and other such attempts to "control" by the few at the expense of the many. If they were alive today - impressive as they would be in their 120's and 130's today - they would not recognize the current Republican Party. To be fair, the current Democratic Party is far removed from where it was pre 1980. Capitalism only works beyond theory if it contains a human element that offsets the inherent human vices of greed and gluttony.
Since the 1980's (and the love of money)
We let Junk Bonds replace 2%-4% interest rates as normal and expected
We let American companies be bought by private equity and sold overseas
We let American jobs be outsourced to China and India
We let American factories get rebuilt in Asia and the non USA Americas
We let Protestant work ethic be replaced instant gratification media
We let local and regional ownership be replaced by global monopolies
We let quality control be replaced by cheap & disposable
We let savings be replaced by spending and easy credit
We let face to face service be replaced by electronic "no service"
We let kids sell their parents life work for 1 time cash
We let division supplant cooperation to distract the masses with fear & loathing
America worked for two simple reasons
#1 We had a vibrant middle class
#2 We were the only empire to (in history?) not embrace primogeniture
In the name of "Capitalism" all this is being eroded as we move forward to a monarchy based on the 1% of the 1% and fewer individuals and private equity control more and more with no human element to the US citizens they are displacing.
One side of my family were some of the first European settlers who came here because the were daughters or non primary sons and arrived with nothing to carve out a place in a wilderness where survival was usually in question. The other side of my family arrived in America via Ellis Island as their survival was in doubt from their European homelands in the late 1800's and early 1900's. They too carved out a place from hard work and multi generational wealth transfer (via family ties and history - not necessarily just $$$$ wealth - which is no longer of valued today).
TL : DR
Wage slavery in a modern age of corporate monarchies is just the end result of non Americans subduing America after ~200 years of independence by using terms for their personal control like Capitalism and Freedom.
Posted on 10/17/18 at 11:57 am to Cheese Grits
Damn. That’s a lot of info you guys have. I’m a gold, silver, diamond guy. I’ve been dealing in it sense I was around 20 or so. That other stuff is over my head but I do know presious metals and gem stones. I’m also Bit Coin mineing. I’ve got 20 S9 miners up and running. Finding the bitcoins a little at a time. Only real issue is the damn electric rate. I’m on SCE&G. Rate is .15 per kilowatt. At the $6200 per coin rate, I’m just about breaking even. Costing me around $3000 per month just to run my miners. It will depend on the future prices. I sunk over $25000 into it plus the electric bill every month. Hope it hits another $20 k high one day. It’s a roll of the dice.
Posted on 10/17/18 at 2:49 pm to TheUSC
quote:
I’m a gold, silver, diamond guy.
In my youth I did some time in a deep mine cracking quartz for gold. Some of the hardest and most miserable work I ever did but came out strong as an ox as it was swinging a big iron 2 headed pickaxe like you see in old movies. Hard as hell work and we were still on the gold standard so in the end we about broke even and did not make the riches we thought we would. My issue with such investments now is trading costs on both ends (especially diamonds) if you are a consumer and not a broker / dealer.
As for crypto currency this seems to be an even bigger issue when it comes to the exit strategy. Lawyer friend of mine was in on it early but converting it to cash - ATM's only worked in say NYC or Philly. Instead it was often redeemed in barter for junk like on your rewards card. Exit strategy seemed problematic getting real currency out so he donated it all to a university and took a big write off against other income. Let the school worry about redeeming it. Too much risk for what may be the Dutch Tulip trade of this generation. 1630's Tulip Craze
My "lightbulb" moment is, outside of bonds, who pays you for holding your money?
Solid dividend paying stocks with boards filled with investor friendly leadership is hard to beat. Some stocks now pay me more in annual dividends than was initially paid for the stock. Advice from my old man who went through the Great Depression was a common saying at the time.....
There is room for the bears
There is room for the bulls
But the Hogs get eaten
If inflation runs 3% you should require a stock to pay you something to live on annually for the time value of your money while growing at least 1% over the rate of inflation. It is not a complicated way to make money but it does take time and discipline to see it to fruition. If I am averaging 7%-9% (pretax) and not creating unnecessary capital gains taxes (long and short term) I do not need to double my money in a year.
Posted on 10/17/18 at 6:48 pm to Cheese Grits
Talk about capital gains. Omg. 5 or so years ago it killed me. As you know, gold shot up in the $1800 range. I had a good bit saved up. A house cane on the market I really wanted. It’s a 1.2 million house. Because it was a short sale, I got it for under 500 k. I sold my gold. Bought the house. Felt awesome. Then tax time came. My CPA called me. Told me I needed to meet her at my office. Then she dropped the bomb on me. I owed $125,000 in capital gains. The bright side was I got a hell of a deal on the house. Funny thing is, 3 weeks later , gold dropped to around $1200 per Troy oz. I figured it out, had I not bought the house , I would have lost more in net worth than the capital gain I had to pay. I got damn lucky.
Posted on 10/17/18 at 8:21 pm to TheUSC
I feel your pain. The drink machine took my damn dollar!
Posted on 10/18/18 at 4:52 am to SOSFAN
You can deduct that
Posted on 10/18/18 at 8:11 am to TheUSC
Is this advice legit or are you trying to get me knocked off by the irs? The drink machine is at work so is that a business expense?
Posted on 10/18/18 at 10:20 am to SOSFAN
It’s true. A business expense. Just make sure you fill out the proper forms. I think it’s 1040-coke-ripped off. Just don’t do it more than to years in a row.
Posted on 10/18/18 at 10:59 am to TheUSC
I'll be honest I haven't paid as much attention to the MLB playoffs with the times theyve had these games and the NBA now starting.
But JBJ crushing it and most likely playing in the World Series after tonight.
How many Gamecocks have won a WS?
But JBJ crushing it and most likely playing in the World Series after tonight.
How many Gamecocks have won a WS?
Posted on 10/18/18 at 11:25 am to I Bleed Garnet
quote:
How many Gamecocks have won a WS?
At least one as JBJ got a ring a couple of years ago, although he didn't play.
Posted on 10/18/18 at 12:18 pm to theGarnetWay
quote:
At least one as JBJ got a ring a couple of years ago, although he didn't play.
Well there we go!!!
Actually didn't Mookie Wilson go to USC?
Posted on 10/18/18 at 12:39 pm to I Bleed Garnet
quote:
Actually didn't Mookie Wilson go to USC?
He did indeed.
Posted on 10/18/18 at 1:59 pm to Carolina_Girl
quote:
He did indeed.
BOOM!
Posted on 10/19/18 at 2:45 pm to I Bleed Garnet
Apparently Hairy Dawg is really, really, really into his role as mascot. Looks like he's screwing the pooch dawgy style but the pooch doesn't look very happy about it.
Posted on 10/19/18 at 3:25 pm to Carolina_Girl
The hot dog lip has always bothered me
Posted on 10/19/18 at 4:03 pm to CNB
Yeah..it is weird to put it mildly. I never realized just how much it does favor a hot dog, tbh. So many jokes could be made here.
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