Equity Vs Real Estate Investing |
- Equity Vs Real Estate
- What are the best marijuana stocks to buy in the USA?
- Book Recommendation for Beginner?
- Jack Bogle's advice during the 2008 market crash
- Your favorite site to watch stocks, etf, commodities, markets...
- $CVS: a risky investment
- Index Funds and Market Timing
- Where are you parking your money if you are waiting for an adjustment before buying index funds?
- How should I weight a dividend-focused portfolio?
- What's the most valuable trading related service that you pay for?
- Investing in solar panels
- Absolute Analysis vs. Relative Analysis
- What are tge best books to read for investing?
- Introduction Guide to Investing
- What's THE stock you buy periodically regardless of increase/decrease in price?
- 2017 market returns.
- Futures vs Commodities
- Crosspost: The reason MU fell off a cliff
- New to Bitcoin ? Ultimate Bitcoin Investment Guide
- Thoughts on FTEC and FHLC?
- $NWL; I don't understand the drop?
- Should I start buying stock in marijuana companies?
| Posted: 30 Dec 2017 11:26 PM PST Working in investments, it was always surprising to me that there is no strong consensus among professionals on the financial merits of home ownership. I was taught early on that home ownership was a lifestyle choice, and usually a bad financial choice. So buy one if you want to own a house, not because it's a good investment. This made sense to me, since home ownership goes against a lot of the conventional wisdom of investing (active, leveraged, not diversified, negative cash flow, low risk/return profile, etc.). But I also regularly meet financial analysts, portfolio managers, and CFOs that love home ownership over stocks as an investment. These are generally well educated financial professionals, so I assume they have a reason for thinking this. When I bring up the conventional arguments, they'll counter with points about tax benefits and the leverage being relatively cheap and actually a good thing. That's usually where the conversation ends, because neither of us will have the numbers to back up the economic value of the leverage and tax benefits, so we just end up agreeing that "it depends". So I did a deep dive analysis myself. The St. Louis Fed provides housing price and mortgage data from 1975. On a pure return basis, there's no question that equity dominates housing over that time period. The SP500 total return is 13,114%, or 12.0% annualized. US housing is 675% or 4.5% annualized. However, making some adjustments for leverage and tax, the difference is much smaller. SP500 is 10,923% or 11.5% annualized, and housing is 3,571% or 8.7% annualized. This is a small enough delta that I can now see how there are plenty of specific personal situations that would push housing above equity as a preferred asset class. On average, stocks are probably better, but for some people, housing might be. "It depends" is actually a very accurate answer. As an example, I did the same for California housing specifically, and it came out to 9,131% or 11.1% annualized. Just one change and already housing has almost caught up to stocks on an absolute return basis. Anyway, thought this might be a question some of you have also been meaning to look into, and just haven't had the time. In addition to sharing, I also wanted to put my calculation out there for critique. I know there are major simplifying assumptions I've made, including a mortgage that fluctuates based on housing value, multiple instances of straight line averaging instead of compounding, mixing historical and current data, heavy use of midpoint averaging, etc. but I'm wondering if any of my assumptions are a big enough distortion to render the analysis grossly inaccurate. Spreadsheet link: https://docs.google.com/spreadsheets/d/1oim4RGz-v8PUogTaQgDdc-rQDmjv-DPYi3i1xdFwvMk/edit?usp=sharing EDIT: Wow I just realized I missed a major factor. This analysis ignores rent entirely. Maybe I'll take another crack at it tomorrow morning. (Or someone else can using the spreadsheet.) EDIT 2: Rent might not be as big a deal as I thought. Gross rental yield is maybe around 2.9%, and average property tax is 1.2%. Add on all the other home ownership costs like maintenance and repairs and the net rental yield may actually be much lower than I thought. [link] [comments]  |
| What are the best marijuana stocks to buy in the USA? Posted: 30 Dec 2017 07:03 AM PST I've looked around and tons of these companies either seem like shells or aren't doing any business yet (shells). So, What we'd stocks are the most legit? And is there an ETF that is decent? I don't like putting money on individual stocks, especially in such a volatile climate. [link] [comments]  |
| Book Recommendation for Beginner? Posted: 31 Dec 2017 12:21 AM PST A little information about myself, if it helps you make a recommendation that's more relevant: 21 y.o., about to start a PhD (tuition paid by school and will be recieving a stipend). Will be making minimum wage under the table for the next few months before I start graduate school. Have the financial literacy of a highschooler. Thanks for the help :) [link] [comments]  |
| Jack Bogle's advice during the 2008 market crash Posted: 30 Dec 2017 10:39 AM PST This great little interview with Jack Bogle was done in September 2008 amid the market crash. In hindsight, Bogle's advice was really good. I think you should give this short 7 minute video a watch: [link] [comments]  |
| Your favorite site to watch stocks, etf, commodities, markets... Posted: 30 Dec 2017 08:27 PM PST My banks research website is brutal. I need suggestions asap. Thanx [link] [comments]  |
| Posted: 30 Dec 2017 07:31 PM PST There are two things that can happen in the near future for CVS The first is the company acquires Aetna for 67.5 billion. As CVS itself only has a market cap of 70 billion, the company will have to take on a significant amount of debt in order to do so. Since Aetna only has a p/e of 30 and an ev/ebitda of 15 CVS better have a perfect execution, or else they may be in danger of bankruptcy or at the very least credit downgrading and looming debt. If we hit a recession this could mean cvs is in some serious trouble. The other possibility is of course if CVS doesn't acquire Aetna. This could be due to an antitrust lawsuit, or the deal could fall through, but either way I see that as a recipe for panic selling. CVS is feeling the pressure to evolve into a healthcare company, as amazon is threatening to move in on pharmacy distribution and retail shops are imploding. There is a lot of uncertainty moving forward for this company, and I think one should wait for a clearer picture of what the company will be doing prior to investing. [link] [comments]  |
| Posted: 30 Dec 2017 10:16 PM PST After reading "the 4 pillars of investing", "a random walk through Wall Street", "what works on Wall Street" and "the little common sense book of investing" I've come to the conclusion that for someone with my investment goals index funds are the way to go. That being said, I understand there are opportunities in market dips to purchase index funds, but, is there a downside to purchasing at market highs if you plan to hold on for very long term? [link] [comments]  |
| Where are you parking your money if you are waiting for an adjustment before buying index funds? Posted: 30 Dec 2017 03:42 PM PST I want to get in the long game and buy passive index funds to sit on for 30-40 years. It seams a 10-15 point adjustment is probable in the next year. Where should I sit my money to keep it fluid while I wait for an opportunity to buy in. Thanks! [link] [comments]  |
| How should I weight a dividend-focused portfolio? Posted: 30 Dec 2017 04:42 PM PST I've been trying to find info about different weighting methods, but haven't had much luck. I was hoping to get some advice on how to weight my portfolio when I have a focus on dividends to maximize while still being diversified/not over weighted. Appreciate any thoughts/advice. [link] [comments]  |
| What's the most valuable trading related service that you pay for? Posted: 30 Dec 2017 04:08 PM PST I want to figure out what service would give me the most bang for my buck, so I want to see what premium services you guys value the most. [link] [comments]  |
| Posted: 30 Dec 2017 07:19 AM PST Most of the posts on here are about stocks. I wanted to make a post about an investment opportunity that I have been looking into that is not a stock. I have been looking into investing into solar panels. Right now I can buy a pallet of 31 solar panels for ~8,000. Those 31 panels would harvest ~1,500 a year of energy in my area. That means that an investment on solar panels will gain you around a 12% RoI the first year (this will change based on your individual initial investment cost) and ~18% RoI each year after that. [link] [comments]  |
| Absolute Analysis vs. Relative Analysis Posted: 30 Dec 2017 06:46 PM PST Do most investors prefer an absolute approach? For example, a discount cash flow model. The problem I find with this type of analysis is that it requires too many forward estimates. Or do investors prefer a relative approach? For example, comparing P/E ratios among peers in an industry. [link] [comments]  |
| What are tge best books to read for investing? Posted: 30 Dec 2017 10:43 AM PST |
| Introduction Guide to Investing Posted: 30 Dec 2017 08:55 PM PST I put together a video for people looking to get started investing. https://www.youtube.com/watch?v=-h4Jr-wL4e8&t=1s [link] [comments]  |
| What's THE stock you buy periodically regardless of increase/decrease in price? Posted: 31 Dec 2017 02:47 AM PST I'm looking for a stock that I can buy periodically (monthly?) regardless of fluctuation in price as an investment approach. I'm sure there are a few on the board who take the same approach, and thought I could gain some additional insight from seeing what others buy. Thanks! [link] [comments]  |
| Posted: 30 Dec 2017 02:49 PM PST For 2017: - Dow: +25.1% - S&P 500: +19.4% - Nasdaq: +28.2% How did you do in 2017? [link] [comments]  |
| Posted: 31 Dec 2017 12:55 AM PST Note: If asking for resource recommendations violates the "asking for advice" rule. Please message me and I will delete the post. [link] [comments]  |
| Crosspost: The reason MU fell off a cliff Posted: 30 Dec 2017 12:05 PM PST I'd figure I share a surprisingly wholesome analysis. [link] [comments]  |
| New to Bitcoin ? Ultimate Bitcoin Investment Guide Posted: 31 Dec 2017 02:47 AM PST |
| Posted: 30 Dec 2017 09:02 PM PST I've opened two new positions with these Fidelity commission free etfs hoping to get some good returns over the course of a few years. I like the holdings and recent performance. The commission free aspect is great because it allows a smaller investor like me to buy small quantities often and add shares over time. I usually just buy 2-3 shares for these per week. What are your thoughts on these etfs? [link] [comments]  |
| $NWL; I don't understand the drop? Posted: 30 Dec 2017 08:49 PM PST Can somebody with more knowledge explain what is going on with $NWL and its large drop over the last quarter? Specifically the last month. I understand that earnings were less than ideal but for a company as established in American homes dropping more than 25% in the last quarter seems a little harsh. What am I missing? [link] [comments]  |
| Should I start buying stock in marijuana companies? Posted: 30 Dec 2017 07:59 PM PST So I never invested before but this whole legalized marijuana thing has me thinking about it. I'm not into smoking the stuff (No offense if you do, smoke em if you got em). So Colorado is making a killing and it's going to be even bigger in California. Also the stocks are really cheap right now $.30 to $4. Thoughts? Thanks [link] [comments]  |
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