Boiler Room: The Official Stock Market Discussion

[Domingo Halliburton]

I'm not quite fond of the stock market and the insurmountable stress associated with it as seen here:



Due to my limited understanding of finance/economics my plan may seem ridiculous/stupid/unrealistic so bear with me.

Ultimately I want to buy an equity stake in small/local companies (i.e.: small hotels, restaurants, night clubs, etc.) and be paid dividends and/or charge the companies some sort of admin fee. If any of the businesses are failing I can (or someone I hire) advise them on how to turn the company back to profitability. Basically I would live off the dividends and do very little work.

Is my plan remotely realistic?

This plan sounds more appealing to me than frantically researching stock market as I would have more of a personal relationship with the CEOs, and I would be privy to his/her company's inner workings. I was always under the impression that most companies don't even pay dividends and if they do then it's minuscule (and not enough for a 'fulltime' income). Local companies tend to be small and private (don't trade on the stock market) so I'm assuming buying their stocks would be a little more difficult.

It's not a bad plan. Do you have capital? You can certainly be a silent investor. Do you have experience in the spaces you're mentioning?

 

[Domingo Halliburton]

I'm thinking of jumping in Chegg (CHGG). More and more students are starting to use it and could change the whole textbook industry. Any thoughts on it?

I used it in college and I like their service. College book stores are a scam.

My only question is can they compete with amazon long term?

 

[MewTwo]

It's not a bad plan. Do you have capital? You can certainly be a silent investor. Do you have experience in the spaces you're mentioning?

As of now I don't have much capital. Currently I'm running a small internet marketing business and am slowly saving money. I want to save enough so that I can buy a piece of my father's friend's restaurant (a small local restaurant that appears to be growing). After that, put my money in other things and be able to live comfortably. I don't have much experience with investing or know much about the 'restaurant industry' if that's what you're asking.

I just want to be able to live off residual income and not do much work. To be monthly/yearly compensated for owning equity in a company. Whenever I tell people about my plan they almost always give a violent reaction. I guess it's expected that we should all miserable participants of the rat race.

 

[Creeper]

I used it in college and I like their service. College book stores are a scam.

My only question is can they compete with amazon long term?

There are rumors (not sure how valid they are) that Amazon is thinking of buying them out.

 

[7oclock]

It's not a bad plan. Do you have capital? You can certainly be a silent investor. Do you have experience in the spaces you're mentioning?

it's a bad move for most people - especially for "passive" investors. How many small business fail a year? PUt your money into something esp if you don't know what you're doing;

if you do go that route, ensure the contracts are TIGHT and ensure the valuations of the book assets are sound -(since you will get paid in liquidation if bankruptcy occurs)

 

[Domingo Halliburton]

it's a bad move for most people - especially for "passive" investors. How many small business fail a year? PUt your money into something esp if you don't know what you're doing;

if you do go that route, ensure the contracts are TIGHT and ensure the valuations of the book assets are sound -(since you will get paid in liquidation if bankruptcy occurs)

Yeah thats definitely true. But at the same time if his friend's restaurant has been around for years it's certainly safer than a start up.

equity owners are the last to get anything in a bankruptcy. the creditors are probably not going to leave much left.

 

[88m3]

Any thoughts on what will happen with Blackberry?

 

[7oclock]

BBRY will rebound , the move with Foxconn inherently will increase margins - I expect 2Q from now positive growth and reduction in the hemmoraging of cash.

 

[Domingo Halliburton]

Any thoughts on what will happen with Blackberry?

I would bet on some private equity firm or one of the big phone companies buys them out.

 

[7oclock]

I would bet on some private equity firm or one of the big phone companies buys them out.

not gonna happen

 

[Domingo Halliburton]

not gonna happen

you think they got a turnaround in them? they were almost bought a few months ago, weren't they?

 

[7oclock]

you think they got a turnaround in them? they were almost bought a few months ago, weren't they?

yeah, I think they are in it for the turnaround - really don't think they are contemplating a buyout or going private at this point. Unless they got a crazy deal

 

[Donald J Trump]

Gonna be filing my own taxes for the first time ever, im 22, my cheap dad that i havent lived with in years says he needs a copy of my documents to do his..

Why does he REALLY need a copy

 

[MewTwo]

Gonna be filing my own taxes for the first time ever, im 22, my cheap dad that i havent lived with in years says he needs a copy of my documents to do his..

Why does he REALLY need a copy

I try my best to hide my money from my family. Even so far as to telling my mom that my job is an 'unpaid internship' and that the house/car is owned by the company I worked for. If my parents had an inkling that I'm making money then I'm screwed. "Can I borrow a dollar" quickly turns into "Can I borrow a thousand? I'll pay you back." (hint: I never get paid back and the money is used for something stupid)

 

[7oclock]

Gonna be filing my own taxes for the first time ever, im 22, my cheap dad that i havent lived with in years says he needs a copy of my documents to do his..

Why does he REALLY need a copy

are you serious? umm, he's probably claiming you as a dependent...