401K Investment Allocations

[cmbrown1268]

I like the "401k autopilot" quote "set it and forget about it"....thats how my wife set my accounts up 10 years ago and wont ever change it...also IMPORTANT hope everyone is contributing at least 20% of each pay into their 401k & UPS stock and are reinvesting stock earned dividends. After 30 years of driving...,my retirement is gonna look sweet and thick.

 

[Brownslave688]

There is another factor... Bill Ackman:

http://www.fool.com/investing/gener...ll-ackman-have-fedex-stock-in-his-sights.aspx

I'll never forget when this happened. He speculated that he was looking at FedEx for one of his funds and the stock just shot up on his speculation. This article will say that it went up $6.00 that day but it kept going and going and going.

Also every time that earnings come out they seem to jump big but when our earnings come out minimal movement and sometimes losses on that day even when we meet expectation.

Illegal pharmaceutical shipments, laundering money, throwing tv's like frisbees, lowering expectations for the year, deciding first that they are going to charge by dim weight and still the stock goes up and wall st. doesn't bat an eyelash. They had just as much last minute trouble as we had last christmas but yet it was UPS that failed. Also last September they re-won the post office contract for them to haul the priority mail on the FedEx planes and have the right to have a drop box in front of every post office.

Im not saying your wrong brownslave668 but there have been other factors. I watch it everyday and just scratch my head at it. Even their dividend is .46%

Well for one long term fedex is a much more attractive long term growth company. It's also a young company compared to ups. These are two factors to look at.

However the question asked was why is fedex more than ups. Per share it is more but ups has far more outstanding shares. So ups as a company is worth more.

Now if you want to ask why Amazon is worth more than ups well that's one of those that makes no sense at all.

 

[brown metal coffin]

Well for one long term fedex is a much more attractive long term growth company. It's also a young company compared to ups. These are two factors to look at.

However the question asked was why is fedex more than ups. Per share it is more but ups has far more outstanding shares. So ups as a company is worth more.

Now if you want to ask why Amazon is worth more than ups well that's one of those that makes no sense at all.

Good point....

Why do you think that the long term growth is more attractive than UPS's long term growth? We have just as much capital and opportunities to invest as they do. I really thought we had them by the acorns when we tried to buy TNT. Unfortunately that didn't work out but I don't blame UPS in trying to swing for the fences...

 

[olroadbeech]

UPS has 908 million shares outstanding
FedEx has 283 million shares outstanding

Multiply each number by price to get the companies value. UPS is by far the more valuable company.

don't you multiply price by all shares?

 

[IVE GOTTA PACKAGE 4U]

don't you multiply price by all shares?

Yes,by all the outstanding shares.

 

[olroadbeech]

Yes,by all the outstanding shares.

thanks.

sometimes a smaller company like fedex can out perform a much larger one because they are not as bogged down by layers and layers of management. that is what happened to IBM compared to Microsoft in the 80s.

 

[Brownslave688]

Good point....

Why do you think that the long term growth is more attractive than UPS's long term growth? We have just as much capital and opportunities to invest as they do. I really thought we had them by the acorns when we tried to buy TNT. Unfortunately that didn't work out but I don't blame UPS in trying to swing for the fences...

Well fedex has been chipping away at our market share for years. I see that continuing into the future. I think that will more than be offset by the overall growth of the shipping industry.

I mean it sucks but if I was choosing a company to invest in I would go with the one paying "employees" $15 an hour not the one with overall compensation around $50 an hour.