Tuesday, August 24, 2010

Investment tip

If I had money and wanted to turn it into more money I think I'd buy GE shares. Its trading near its 52-week low, has a PE ratio of 14, and, this is the important part, sells stuff people have to buy even in a depression. Just consider this one tiny little part of their business: Traffic lights. Next time you are stopped at a red light take a moment to count all the light bulbs (probably LEDs now) at that intersection. But what else do they sell? More like what don't they sell. Jet engines, jet engine parts, medical devices, health insurance, money, appliances (large and small), power plants, measuring devices, aluminum smelters, gauges (They probably made the gauges in the dashboard of your car, or at least, own the patents.), and 10 thousand other products and services. And, this might be my favorite part, they pay dividends (currently at 0.48) year after year after year.

I'm still doing well in silver and analog chips and I don't want to sell just to reinvest the money somewhere else, but if I had extra money and a 10 year horizon, GE is where I'd put it.

In other news, I've discovered that buying real estate is like a part-time job. It takes a lot of time a work. The purchasing experience is not much like buying anything else.


DebD said...

LOL - you sound like my husband! Do you ever visit the "World of Wallstreet" blog?

Matt said...

No.Never heard of world of wallstreet. THanks!

Also, I dumped the chip company increased silver and bought GE. :)