The same goes for mutuals. I am invested heavily in Vanguard funds, one of the most highly regarded fund families out there. I followed the advise of a well known financial analyst and purchased "Total Market Index", which has generally faired well except for the past year due to market fall offs resulting in poorer performance though still generally profiting, "Prime cap", which has traditionally and still performs generally well even in down markets though not necessarily a high roller, "Life growth", an IRA designed fund that has had about the same results as Prime Cap, and then "Windsor II", which performed tremendously well averaging around 35 to 40 percent for the first year and a half from when I got in it. Then this fund took a new direction as it's yield plummeted to around 4 percent, then 2 percent, and then slightly in the red. After little change and unforseeable reversal in the relative future I chose to sell it six months later. To date I continue to watch it and it has yet to performed all that well so that seems to have been a wise choice. Synopsis: Tomorrow's performers can easily become tomorrow's clunkers in a hurry. While all investments require patients and should be regarded as long term, (five years minimum with the possible exception of significant reversals in performance), one should be checking the quotes regularly for signs of change. During a bearish economy as we are currently experiencing recovery can require considerable time but that doesn't neccessarily mean it's time to bail out of that particular investment. Rolling over into better looking prospects is sometimes prudent although this shouldn't be done in an emotional panic. The market goes up the market goes down, it's the long term results over many years that is important, and traditionally over the long haul the market only goes up. All the more reason to keep a careful eye. Even what seems to be a positive new direction after a trade can become a clunker without warning and require yet another trade. When it's your retirement we're talking about, especially for piano techs when most don't have pensions or other back up sources like a rich uncle with a will, you need to pay attention to the markets but don't abandon them. In spite of risks and the need to monitor your investments regularly, most simply can't afford to not be involved in market for their retirement. Savings accounts and CDs are next to worthless as investments and savings bonds are worse than useless. If you are NOT investing see a financial advisor soon. When it comes to your retirement nest egg time is not something that can be made up later. Long term compounding investments are the ONLY real way to make your money work for you. Reverting back to Baldwin, I see it as a very risky investment and not likely to turn a significant profit any time soon and if it goes belly up then you can kiss it all goodbye. There are simply too many better options out there. When it comes to your retirement you are looking for what makes money not investments in a company you "feel sorry for" and dump money into so you can feel better about yourself. If throwing money away makes you feel good about yourself then by all means feel free to pay my taxes. Then you can feel really terrific. Long live capitalism! Rob Goodale, RPT Las Vegas, NV toto@fovea.pndr.upenn.edu wrote: > Regarding Baldwin Piano stock: > > Here is what can happen to you when you buy stocks based on "heard on the > street" news, rumors, and heresay. I am NOT proud of these fiascos, but > there may be something to be learned from them. <snip> > On the plus side: My father gave me stock in SmithKlein Beckman (before > tagamet hit the market) as a dollege graduation gift. The next ten years > saw 20-25% annual growth in the value of the stock, more than making up for > all of my other losses. So, in conclusion, my record for picking stocks is > terrible and has taught me that you can't believe everything that you hear. > Even the great analysts make bad calls. > > Be careful out there.
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