I got this friend...

[samclem]

My goodness! He should at least take the $60k back so he'll be back where he started! At least that's what I'd do in Vegas...

But, he didn't like where he started! I'll bet he rolls those bones again--he now knows he can pick winning stocks, and he just needs to be right one more time to really be rolling in it! "C'mon, seven! Daddy needs a 4% SWR!!.
This might not end well, but I wish him the best.

 

[redduck]

My goodness! He should at least take the $60k back so he'll be back where he started! At least that's what I'd do in Vegas...

Perhaps that's a rational, sane personal might do. But, there's no indication of those qualities here. The $60k is really not much help to him given his circumstances (Anyhow, that's how he sees it). And, if nothing else, this is probably a once-in-a-lifetime experience.

 

[bright eyed]

must be hard to watch a friend do this!

 

[redduck]

must be hard to watch a friend do this!

I'm not sure what you mean:

1. Is it hard to watch a friend do this: because it's so important and nerve-racking with the chance if he's too greedy he'll lose it all. He did lose a bunch of money in the dot.com craze buying stocks because he liked their names (e.g. Fat Brain and Razor Fish).

2. Is it hard to watch a friend do this: because I'm a jealous, selfish, little person; and there is no God. Over the years I've explained to him the importance of diversification & asset allocation. He didn't pay attention. He never did get on board with stuff like bonds and emerging markets. To him, diversification is surf and turf.

 

[bright eyed]

i just mean, if they are your friend, it's hard to watch them do things that are not good for them...i have friends who do the same and after a while i've learned to "divest" myself so i don't feel so upset every time...but even then, it can still be uncomfortable...

 

[Moemg]

He may do great . He just has to know when to sell . I was in an investment club and we bought Oracle at the start of the dot.com insanity . We all made a chunk of money because it had become such a large part of our portfolio that we decided to sell most of it and as luck would have it this was right before the tech bust . When to sell is for me harder to determine than when to buy .

 

[tryan]

Easy to pile-on to this poor soul ... but the reality is that Mr. Market has cut many wads in half; so MOST investors are just a: divorce, health care crisis and/or uninsured loss away from joining him.

Desperate times call for desperate measures.

 

[redduck]

So DNDN is at $17.03 and your friend has tripled his money (if he held it through the dip). That's great! Now what? Will he be happy with $180K or will he go for another roll of the dice with the whole wad? (Or, go for what is behind Carol Merrill and Curtain Number 3?)

Well, as of now he's still holding all his shares. DNDN went on sort of a wild ride today. It started the day at $22.32, ended the day at $11.81 and in after hours trading it went back to up $25.75. He's hoping behind curtain Number 3 there's a cardiologist with a defibrillator.

Could this stock be the answer to Nords' question of what to replace Berkshire with?

 

[Dawg52]

Well, as of now he's still holding all his shares. DNDN went on sort of a wild ride today. It started the day at $22.32, ended the day at $11.81 and in after hours trading it went back to up $25.75. He's hoping behind curtain Number 3 there's a cardiologist with a defibrillator.

Could this stock be the answer to Nords' question of what to replace Berkshire with?

Damn, I would have crapped in my pants when it went to $11.81. I would sell after going back to $25.75. But who knows, maybe it will run to $100.

 

[Robert the Red]

The OP's friend's only realistic hope is SS + Medicare -- work until his late 60s and his SS payout will be enough to get by on -- not rich but if his house is paid off by then, he'll do OK. Assuming he lives in a low cost area. Otherwise, he should then re-locate (assuming he can sell his house at that time).

 

[redduck]

Damn, I would have crapped in my pants when it went to $11.81. I would sell after going back to $25.75. But who knows, maybe it will run to $100.

Dawg54...

He did just that. Take a look (not a close look)...He did crap in your pants.

 

[hova22]

Dawg54...

He did just that. Take a look (not a close look)...He did crap in your pants.

I just let out a burst of laughter amid my cube farm. That was hysterical. In one of those moods where every time I reread it gets harder and harder to control my laughter...

 

[easysurfer]

I almost made a knee-jerk reaction that would have paid off

My investments are in Index funds and some US Savings bonds. I'm a buy and hold investor, dollar cost average and reallocate each year when my percent allocations are off.

Way back when there was talk that Apple Computer might go away as a company, their share price was down to around $13 a share. Like I said, I really don't invest in stocks outside of Index Funds, but I almost "rolled the dice" to buy $10,000 worth of Apple stock. That would have been just a hunch as that time, Apple was just about to come out with OS X.
(This was before the iPod).

Sometimes I kick myself because had I guessed right, looking at the share price of Apple now, my portfolio could have been sitting prettier had I made the impulsive buy. But also, I am proud that I decided to stick to my plan of not investing in sometime I really didn't know much about.

Wally

 

[kumquat]

I like the thread title. I'm surprised I've managed to refrain from posting this so far.

Back in the late 60's a friend, then a upper year med student, worked in the local [-]VD[/-] STD clinic. Every day some guy would lead off with "I've got this friend.....". His response was "well, pull your friend out of your pants and let's have a look at him"