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    Saturday, December 30, 2017

    What did you lose in the crash of 2008? Investing

    What did you lose in the crash of 2008? Investing


    What did you lose in the crash of 2008?

    Posted: 29 Dec 2017 10:18 AM PST

    Just started investing, made a little (opensource) program to analyze australian stock exchange.

    Posted: 29 Dec 2017 08:59 PM PST

    It's here https://github.com/jappeace/autotrading

    Basically what it does is fetch the financial data from moriningstar (which is public for some reason) and then fetch the realtime(-ish) data from the asx to calculate which shares are 'bargains'. In other words, which shares return lots of dividend compared to their price. An html page is generated to present the result which is sorted on bargain-ish.

    I calculate the dividend and earnings per share as a discounted sum, where more in the passed is more discounted (because they're less reliable). Then I take use whichever is smaller to calculate how good the bargain is. this value is used to sort the final table.

    I know this is a pretty naive approach. So if you guys have any ideas I'm all ears. (I'm new to finance)

    submitted by /u/DontBeSpooked-Frank
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    Time to buy GE?

    Posted: 29 Dec 2017 05:49 PM PST

    GE has been falling hard recently. As of today, it is 17.45. They recently but their dividends in half, to $0.12. They might get kicked out of the DOW. However, they are GE and I doubt they will drop too much further. Thoughts on buying up a few hundred shares?

    submitted by /u/turtledoves2
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    Proof That Jon Najarian Lied On CNBC About Who Controls Bitcoin Cash

    Posted: 30 Dec 2017 03:46 AM PST

    This graph clearly shows that no 2 entities control bitcoin cash and no entity is anywhere close to controlling 50%. Unless Haiyang can find a way to contact and recruit all the individual & anonymous miners, which is impossible. Roger ver and Jihan Wu control less than 40% of bitcoin cash's hash rate.

    Jihan Wu alone controls over 41% of bitcoin legacy (btc).

    full article: https://medium.com/@withoutfear/proof-that-jon-najarian-lied-on-cnbc-about-who-controls-bitcoin-cash-864a3be567a1

    submitted by /u/geekmonk
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    What’s your experience with Robo-Advisors?

    Posted: 29 Dec 2017 09:23 AM PST

    I am considering Robo-investing to complement my 401k and individual brokerage account. What's your experience with betterment or Wealthfront or other? They are pretty close.

    Edit 1: lots great advice about being able to do this on your own, but Wealthfront and Betterment seem worth it.

    Edit 2: A great tip on F1 Finance, which is new comer offering free services, auto-rebalancing, auto-investing, fractional shares. There seems to be a lot of love for it in the thread.

    Edit 3: F1 Finance, future advisor, personal capital, and mint are great together for passive investing.

    https://www.cashcowcouple.com/wealthfront-vs-betterment-vs-m1finance/

    http://tisbutamoment.com/free-finance-tools/

    http://tisbutamoment.com/m1-gets-it/

    Edit 4: I came in ignorant and left enlightened!

    Edit 5: Wealthfront offers stock selling plan, because I do have stock options. So I will look into that. I might be interested in Wealthfront and M1 Finance after all

    Edit 6: M1 Finance allows me to trade in individual stock, because I still want to invest in individual stock like appl, amzn, msft, fb, baba, tsla. Personally, I believe that in the long term, these companies in the long term have nowhere to go but up. :)

    submitted by /u/ThrowDC
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    Motley Fool Investing "information"

    Posted: 30 Dec 2017 01:58 AM PST

    Do the writers at Motley Fool even speak to one another? Signs point to no, since the websites thoughts and advice on companies are worse than the mood swings of Mr. Market.

    Let me give you a pick that I mentioned recently, gilead sciences, GILD.

    On December 10th, Motley Fool released this article: https://www.google.com/amp/s/www.fool.com/amp/investing/2017/12/10/is-gilead-sciences-inc-a-buy.aspx

    This is an article pretty much ensuring that the author thinks the company is a strong buy.

    Yesterday, Motley Fool released this article: https://www.fool.com/investing/2017/12/29/why-gilead-sciences-stock-should-be-avoided-in-201.aspx

    This is an article that uses the same information and is ensuring the company is a strong sell. So what has changed fundamentally in the company over the last few weeks? The answer is nothing. Do your own research and don't listen to the vagaries of Motley Fool writers.

    submitted by /u/InvestingLifeSavings
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    Where to invest in my early 20's?

    Posted: 29 Dec 2017 08:52 AM PST

    My husband and I are both working full time in a high COL city but manage to have about $2,000-$2,500/month after all expenses and our company's minimum 401(k) contributions to receive a full match. Because of our jobs, we're both prohibited by our employers from investing in individual stocks, bonds, or REITs. Should we just pour what we can into diversified ETFs and let them grow over the years?

    Updated for more context: We're 23 (me) and 25 (him). We have no fear of losing all the principal we invest at our current age and don't have a "goal" retirement age. In our current fields, it is not uncommon to have raises of 5-10% annually, all of which we intend to add to our investments.

    submitted by /u/urenotdoingthatright
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    Can Stocks go negative?

    Posted: 29 Dec 2017 07:01 PM PST

    Hopefully not the dumbest question. :?

    submitted by /u/Gingunger
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    Opinions on Unilever?

    Posted: 29 Dec 2017 06:49 PM PST

    I've been searching for quality stocks at fair prices,because it's my belief that great companies will allows investors to build significant wealth in the long term. There are about 5 checkpoints I use- First the company must generate a lot of cash and be competitive. This means that they must have an above average return on invested capital AND cash return on investment, using FCF/Invested Capital. Both must be significantly above the average cost of capital for the business. The second thing I look for is a wide economic moat. Something to protect their profit margins and returns. Thirdly, I analyze the growth potential and strength/quality of the business with Philip fisher's fifteen points. Also, the share price must be attractive contrarian wise. And lastly, the executive management must be competent and dedicated to shareholder value.

    Unilever: (ADR: UL)

    Check 1- With a few calculations, UL easily passes this with a TTM ROIC of 20%, and a CROIC of 16%. Both significantly above the WACC of 8.3% Check 2- According to the company, 2.5 billion people a day use Unilever products. The brands they own such as dove, axe, and Lipton are extremely common household products, giving it a wide moat. Check 3- UL passes about all of the points. Check 4 - The stock price is 55 dollars, a discount to the quality and scale of the business. Check 5- Paul Polman, the CEO, is an excellent man of integrity, who is dedicated to making his business more sustainable for high profitability and growth by lowering costs and analyzing consumer trends.

    I'm just starting to follow it, I would definitely appreciate a second opinion, or if someone knows anything I don't

    submitted by /u/Harrisonmeyer0
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    The Importance Of Return On Invested Capital When Investing

    Posted: 29 Dec 2017 02:07 PM PST

    One of Warren Buffett's favourite formulas for valuing a company and its brand power is return on invested capital. While the concept is self-explanatory, it is a metric that unlocks hidden value for investors...

    ROIC is a brilliant metric for measuring the success of a company's brand, "moat", or sustainable competitive advantage. If a company has a high ROIC it means it can sustain high returns, even when competitors try to inevitably compete to steal these high returns.

    The metric gives investors a general viewpoint on how well a company generates returns (and how well it could beat the index)

    Below I have pulled up some great performers with a very high ROIC and I will compare them to the benchmark to show the power of ROIC!

    KLa Tenor is the largest player in the semi-conductor control segment - it controls almost 50% of the market.

    From 2013 to 2017, it boosted its ROIC from 29% to 56%.

    Since 1980 it has comfortable beaten the benchmark.

    https://ibb.co/fwoT1b

    Amgen

    Is another high performer was a 22% ROIC for most of its lifetime..

    Since 1983, Amgen has crushed the S&P without mercy.

    https://ibb.co/jEJiZw

    Ross Stores

    Ross Stores is one retailer that is thriving in an Amazon lead world.

    It has had 20% ROIC for the past seven years and has compounded revenue at 8% for those years as well.

    Again, it has crushed the S&P.

    https://ibb.co/i6Pe7G

    Discover Financial Services DSF is another big player with 19% ROIC for the past several years.

    It has a customer satisfaction ranked first in customer satisfaction for the past three years.

    It has only gone public since the 2000s, yet it has comfortably outpaced the index since then...

    https://ibb.co/dKa81b

    It is not a coincidence that FAANG stocks are ranked the highest for returns on invested capital. Obviously Apple, Microsoft and the other tech behemoths ranks very very highly for ROIC.

    But another unlikely winner is MasterCard, which has returned 600% over the past few years - or 25% when compounded annually over a decade...

    https://ibb.co/bzrsSG

    Ignore ROIC calculations at your peril!

    I was wondering whether it would be possible to pull together a motif etc which invests in companies with a very high ROIC.

    I pretty much scraped this from a forum, so original post here:

    https://forum.basic-capital.com/t/the-importance-of-return-on-invested-capital/150

    submitted by /u/the-lifestyle
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    Daily advice thread. All questions about your personal situation should be asked here

    Posted: 30 Dec 2017 04:05 AM PST

    If your question is "I have $10,000, what do I do?" or anything similar. There is no single answer to this question, but we will also need A LOT MORE information if we are to give some sort of answer

    • How old are you?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (buy a house? Retirement savings?)
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
    • Any other assets? House paid off? Cars? Expensive girlfriend? (not really an asset)
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • Any big debts?
    • Any other relevant financial information will be useful to give you a proper answer.

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
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    TD Ameritrade - Commission Free ETF's...liquidity

    Posted: 29 Dec 2017 06:46 AM PST

    Hey /r/investing...I have been looking for ideas on what to do with my current TD Ameritrade account. I currently own 7 assets with 6 of those being Vanguard. Vanguard is obviously no longer on the commission-free list. Before the change, I would buy shares every month but with the new fee it isn't cost friendly to do that. So my main question is, would it be better to buy my Vanguard shares quarterly with more money or start buying SPDR funds monthly without the fee? What I have read online is that people are worried about the liquidity of the SPDR funds and Bid/Ask spreads.

    I am a 23m that opened this account on 1/1/2017 (Short term capital gains tax). My goal is to buy and hold but possibly sell some shares in the future for a down payment on a house.

    Thanks!

    submitted by /u/Seaver_Of_Son
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    Impact of turnover on your portfolio

    Posted: 29 Dec 2017 11:07 PM PST

    Investors who ignore the implications of turnover when selecting investments do so at their own risk. The research conducted suggests that portfolio turnover has a notable impact on performance, risk and risk-adjusted performance. Investments with higher turnover rates have lower returns and higher risk than those funds with lower turnover rates. Each 100 percent of turnover reduces (pre-tax) performance for Large Cap equity, Mid Cap equity, Small Cap equity and International equity by 19 bps, 45 bps, 80 bps and 98 bps, respectively. The average turnover loss for all categories was 48 basis points for each 100 percent of turnover. Including the tax impact of turnover for taxable investors would further increase the net cost of turnover on investor wealth.

    Link for this paper - http://www.etf.com/publications/journalofindexes/joi-articles/2623.html?nopaging=1

    submitted by /u/bxk259
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    Have 10,000 in SEP to invest in a 2045-ish retirement account. Any recommendations?

    Posted: 29 Dec 2017 10:16 PM PST

    So I have 10K to move around into some mutual funds in a SEP account. I was looking at retirement funds that for 2045 but I was wondering if anyone had advice on which one to choose. I'm fairly green at all this.

    submitted by /u/mooseroast
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    Is buying Robinhood gold worth it?

    Posted: 29 Dec 2017 04:12 PM PST

    I was just going to get the $6/month plan. I only have 1,500 in my account at the moment but I plan on buying a car soon and will probably have around 500. After my car is bought I'll add around 200 to it bi-weekly. Is it worth it considering my situation?

    submitted by /u/cpayne_10
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    Why do options take only 1 day to settle where as stock shares take 2 days?

    Posted: 29 Dec 2017 10:43 AM PST

    My account shows that it takes 2 days for cash to settle when I buy and sell stock shares, but it only takes 1 day for cash to settle when I buy and sell options or someone exercises the ones that I sold.

    Is there a reason why it is only 1 day for the options?

    submitted by /u/IndexMyAss
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    Can you give an example of a company that was dying but then made a big comeback?

    Posted: 30 Dec 2017 01:37 AM PST

    Better understanding margin trading

    Posted: 29 Dec 2017 07:09 AM PST

    I'm trying to wrap my head around the basics of margin trading. I understand that a broker is basically extending you a loan to purchase some stock, with the collateral for that loan being the other stocks and cash in your account.

    What I haven't been able to figure out is, how does one basically repay that loan, without selling the stock in question? For example, I buy $1,000 worth of MSFT on a margin account, and I want to keep that stock long-term. Basically, how do I settle that loan with my broker, so that I "own" the stock outright? (I suspect I'm not using quite the correct terminology here, but I hope the substance of my question is communicated clearly enough.)

    submitted by /u/gmdm1234
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    Long-term automotive electrification plays

    Posted: 29 Dec 2017 08:55 PM PST

    Curious people's thoughts on under the radar equity plays for the broad based electrification of vehicles. Certainly AMD and Nvidia have grown based on technology to further autonomous driving. Tesla from an OEM perspective.

    Looking for more core or ancillary materials as we move away from ICE's.

    submitted by /u/midwestguy11
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    New to dealing with capital gains tax - is this thinking right?

    Posted: 29 Dec 2017 08:08 PM PST

    I'm new to thinking about the capital gains tax, so forgive me if this is obvious to more experienced readers. I have some assets to sell that will be taxed as short term capital gains.

    As an example, let's say I made 40k this year in regular income. Then I have 250k in assets (cost basis 0) to sell that would fall under short term capital gains. If I understand this correctly, it would be wise to sell ~117k worth of said asset before Jan 1st. This would put me in the 24% tax rate bracket (according to https://www.forbes.com/sites/robertberger/2017/12/17/the-new-2018-federal-income-tax-brackets-rates/#2fc3045a292a) with a total yearly income of 157k

    Then next year I can sell the final 133k of said asset and reach the 24% tax bracket.

    However, if I waited to sell everything (250k) until next year, I would reach into the 35% bracket.

    Does this logic make sense?

    submitted by /u/kremer5
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    Trade Like a Casino for Consistent Profits by Adam Khoo

    Posted: 29 Dec 2017 11:49 PM PST

    In previous few months or almost a year, I watched this suggested YT video then I learned Risk Management without knowing it. o_o

    Youtube: Trade Like a Casino for Consistent Profits by Adam Khoo

    I think Adam Khoo is one of the best trader in the world

    https://en.wikipedia.org/wiki/Adam_Khoo

    Adam Khoo Yean Ann is a Singaporean serial entrepreneur, author, trainer and a stocks and FX trader. In 2001, Khoo became Singapore's youngest self-made millionaire at the age of 26.

    I'm 90% sure you will cry after you read his "Inspiring Success Story" in Wikipedia.

    submitted by /u/marcm28
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    Tips on discipline

    Posted: 29 Dec 2017 05:22 PM PST

    I've recently lost a large portion of my profits due to buying high and selling low and panick selling. What are your tips on discipline?

    I know for one is not gawk at my stocks 24/7. What are other ways?

    For example I panic sold APH.to today and lost a large portion of my profits

    submitted by /u/LeBersabee
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    Invest in failing businesses?

    Posted: 29 Dec 2017 04:34 AM PST

    What would happen if I invest in Sears and then they go bankrupt? I would loose everything, right? What would happen if they get bought out?


    Statistically, do these companies every make a come back?


    Is there any upside to investing in a failing business?

    submitted by /u/Lumo5
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    Thoughts on Buckeye Partners LP

    Posted: 29 Dec 2017 12:13 PM PST

    Feel free to call me crazy here as Zacks just issued a sell rating on BPL, but I'm thinking of opening a position in BPL going into 2018. The company has suffered this year due to adverse weather conditions affecting its operations in Texas, Florida and Puerto Rico and it just recently made a 1.1B acquisition.

    Based on their last earnings call, management is considering halting increases on their cash distributions in order to focus more greatly on reinvesting into itself, as they feel the 10% currently yielded on the stock isn't helping the share price, like reinvesting would.

    Zacks listed its main concern that the weather adversely impacted the company, but that's a temporary setback.

    submitted by /u/InvestingLifeSavings
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