How to turn $100 into $9.6 Billion

Michael, I have to agree with you on this.

> A while back there was a thread. In that
> thread passive income was mentioned.
> Investing for the long haul was mentioned.
> Slow and steady growth was mentioned. Only a
> few people were interested.

When we started investing in straight mutual funds a few years ago, we sat with our investment advisor and decided to invest 50% for the long haul, which meant conservative funds, and the other 50% in high risk funds.

As we became more educated and started learning about options and indexed funds, we did some what-if scenarios and realized that if we had invested the same money in more volatile, short term stocks, we would have had much higher ROI. So, we sold our secure, long term funds that were giving us very modest returns, and moved the money into the more volatile chip, biotech, internet sectors.

The financials have been beaten down, and although they've been a good buy since last year, I still don't own any options in the finanical sector. Too slow moving for us. One of our first experiences losing money was investing in some banking stocks.

One of the the most conservative, long term stocks that I have ever invested in is GE, and I was thrilled when the stock split last summer/fall and I got out. I just could not stand the long wait for the stock to move. I know people who have owned GE for 20 years, and with all the splits over the years, they've got a nice nest egg for their retirement. But personally, this is not my style of investing. I and my husband like the adrenalin rush we get when we can flip options.

> A while back there was a thread. In that
> thread passive income was mentioned.
> Investing for the long haul was mentioned.
> Slow and steady growth was mentioned. Only a
> few people were interested.

> Recently a thread appeared. In that thread
> INSTANT WEALTH was mentioned. Buying large
> volumes of "stock" with small
> investments was mentioned. The whole board
> went nuts over it.

> It seems to me that most people would rather
> make a quick buck than go into something for
> the long haul. Even if the long haul makes
> more sense or is a "safer" way to
> go. (matter of opinion of course)

Yes, and some of us make some pretty stupid decisions as well. With the market performing so badly for the last few weeks, in spite of all the good earnings that are coming out, we are absolutely baffled (and a bit nervous) to figure out what's happening. There was a time when I could not afford to buy a stock option days before rumors of good earnings were due to be announced. This in itself would send a stock flying. Nowadays, good earnings, like those tonight on Nortel are having negative effects on other stocks in that sector. I know about the sympathy thing where if one stock does poorly or well, this can impact all those in that sector. Unfortunately, we hold some of the others in 'that sector' and they're all down??

But, what's going on when earnings are strong and stocks in that sector all trade down after hours. Any explanations or comments, anyone??

Regards,

Eliz.