Wednesday, May 04, 2005

UNH--What a company!

Genetic Engineering News - The Leading Publication in Biotechnology

I was flipping though the 2004 annual report of UNITEDHEALTH GROUP last night admiring the numbers. This has been and continues to be a great company to own. Today, the company announced a 2 for one stock split.

My family has made 120 times our original investment on this stock over the past 21 years. This year the earnings grew by 41%!

Owning stocks is a fun! My youngest daughter is starting to enjoy owning stocks as a hobby. She likes getting the annual reports in the mail.

Owning mutual funds is a drag. The company cut is often hidden and quite large. The volatility is dampened which means much of the excitement is gone. The tax advantages are also muted.

Some folks do not think they have the temperament to own individual stocks. Most are wrong. Its like the kid who says he does not like to ride bikes but has never tried. Once you learn to keep your balance, it can be the most fun you will ever have.

Today was another great day for the bulls to run. Reading the blogs and watching the financial shows regularly means I have encountered hundreds of market theories in recent weeks. Some say that health care stocks will lead the next big rally, while most talk about how bad the market is. I'm hanging on to all the stocks I can. Businesses are saving billions through technology. Substitutions are being invented that are saving additional billions. It is a good time to be an investor!