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    Thursday, August 2, 2018

    It's moronic Monday, the Wednesday edition, your chance to ask any of those questions that you're embarrassed to ask in real life. Investing

    It's moronic Monday, the Wednesday edition, your chance to ask any of those questions that you're embarrassed to ask in real life. Investing


    It's moronic Monday, the Wednesday edition, your chance to ask any of those questions that you're embarrassed to ask in real life.

    Posted: 01 Aug 2018 05:05 AM PDT

    We encourage all our visitors to ask those investing related questions they were always too afraid to ask.

    The members of /r/investing are here to answer and educate!

    NOTE 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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    Wells Fargo to pay $2 billion penalty for alleged misrepresentation of loan quality, report says

    Posted: 01 Aug 2018 10:36 AM PDT

    Tesla Second Quarter 2018 Update

    Posted: 01 Aug 2018 01:45 PM PDT

    http://ir.tesla.com/static-files/7235e525-db16-470c-8dce-9ecac0ad7712

    • Q2 Automotive gross margin increased to 20.6% GAAP and 21.0% non-GAAP
    • Model 3 gross margin turned slightly positive in Q2, expecting roughly 15% in Q3
    • Expecting to produce 50-55k Model 3s in Q3; deliveries should exceed that
    • Major cost restructuring executed in Q2
    • $2.2B of cash and cash equivalents at Q2-end, expected to grow in Q3 and Q4
    • Capex projection in 2018 adjusted to <$2.5B
    submitted by /u/AlexanderNigma
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    Facebook to start monetizing WhatsApp

    Posted: 02 Aug 2018 12:55 AM PDT

    What I absorbed from my mistakes

    Posted: 01 Aug 2018 06:47 AM PDT

    I had been deliberating initiation of a post discussing mistakes. I've tried and recalled by mistakes, errors of judgement in my short exposure to capital markets. I'm a resident of India. Hence, some terms may seem foreign. Please bear with me.

    Lesson 1: I started taking a keen interest in markets in 2012. My trading and investment decisions were based on stock recommendations offered by analysts on TV channels.

    The returns generated were decent. I truly wondered why people thought trading/investing was difficult. I thought I had discovered the recipe for success in stock markets. It was easy. It required little effort from my end. All I had to do was imitate the analyst's stock pick.

    My condition was great. Until one day. The stock picks recommended for intraday started failing. It was unfathomable to me that I was losing so much money. I resorted to revenge trading. Lost even more money.

    Whatever profits I had generated were evaporated in a relatively short duration. I could've never imagined such an outcome. In hindsight I should've thought that there's never a free lunch. Why would anyone offer their stock picks without anything in return?

    Lesson: Trust no one blindly. Assess, examine trading/ investment decisions.

    Every action of assistance, guidance towards us in the stock market should be looked at with glasses of cynicism. It's a brutal place.

    Lesson 2: On a popular stock app there's a bustling interaction medium. Stock picks are often offered for free and people wax eloquent about the tremendous potential the company possesses to multiply our wealth.

    I came across one such message recommending investment in an investment company. It'd be inappropriate to share the stock pick.

    The stock was described as being at the cusp of a great transition to being a large cap company. Messages loaded with superlatives describing the management bombarded the board. It seemed like the ideal investment opportunity.

    I trusted them and invested 10 % of my portfolio. The stock went from X to 3X in 5 months. My happiness knew no bounds. I was ecstatic. I continued averaging at upper levels expecting even more upside.

    One day, the stock began its downward slide. Lower circuit after lower circuit. Surveillance measures were taken by the exchange and moved to 5% circuit. The fall was excruciating. It stopped when it reached 1.5 X.

    I continued to average. Since, I had purchased heavily at upper levels my average price became very high. Losses incurred were significant. The fall wasn't arrested yet. It kept falling. The stock formed 35% of my portfolio.

    My portfolio was painted in red. There was little chance the stock would regain its past glory. I had to book my losses. It dawned on me that the stock move was a meticulously engineered operation by bigger investors. I had invested by trusting someone else.

    Summary of Lesson 2: If possible avoid excessive concentration in any stock pick. Conditions can deteriorate at any point. Introduce adequate safeguards to protect profits.

    Booking profits will reduce cost of carry. It was my greed that destroyed my portfolio. It's difficult to tame greed but those who succeeed at doing so will likely emerge victorious in the market.

    Lesson 3: In 2016, I came across a petrochemical company which was showing some signs of a turnaround. Imposition of an anti dumping duty was expected which would enable an improvement in the company's financials.

    I invested based on this thesis. Management seemed to be decent. I invested 15% of my portfolio. It was my first turnaround investment.

    When the results were declared the turnaround wasn't very convincing. Instead of waiting and appreciating that turnarounds take time I exited my holdings.

    I had purchased at X. I exited at 1.3 X. A 30 % profit. It seemed a healthy return to me in 3-4 months. The same company, in the next 7 quarters underwent an extraordinary turnaround. From losses to double digit profit margins. And, the stock went from X to 5X.

    I couldn't believe my eyes. I blamed my luck and derived solace that I had some profit. But, heart of hearts I knew I had made a massive error of judgement.

    Lesson: Be patient. If you're convinced about a stock after enough research stay invested for some time. Investments take time to mature, to grow. In investments without conviction profit booking would be sensible. But, if enough conviction has been developed- Be patient, do nothing.

    Sometimes inactivity is better than activity. Here, I was a victim of fear of losing money. Hence, sold too early. Fear and greed are major causes of bad decisions.

    Lesson 4: An important lesson I learned is on appreciation of the role of luck and the limitations of our expertise.

    I have often mistaken my luck for skill. And, it has cost me a lot. Stock trading/ investing is an incredibly complicated activity. There are so many variables involved that it's difficult for linear thinkers like us to piece the information and take rational decisions.

    To simplify the task, we resort to substituting difficult questions for easy ones. Instead of analyzing a company based on its financials I'll check if I like the product manufactured by that company and invest based on that.

    I've succumbed to it often. And, needless to say, I lost money. Also, being rigid is harmful to us. Despite knowing that a strategy doesn't work, I refused to accept it. I suffered from the illusion of validity.

    Acceptance is crucial for success. Most factors are beyond our control. Frankly, there's hardly anything in our control.

    I stopped thinking of myself as a person who has everything in control and accepted the fact that I was at the mercy of variables I could do nothing about. This change in behavior, approach helped me. I started appreciating the contribution of luck in success.

    From where we're born, the upbringing we receive , the socioeconomic status are rarely in our control. And,these factors play an instrumental role in moulding the future behavioral patterns of a person.

    Summary of Lesson 4: The lesson I learned was that I should shed my delusion of being in control and acknowledge that despite my best efforts there will be consequences totally opposite to my expectations.

    Lesson 5: The most important lesson I learned is that I should have realistic expectations. Stock markets aren't get rich quick schemes. It's a way to participate in the growth story of a real business.

    For an ordinary person like me it's impossible to sustain 20% CAGR for long durations. I tempered my expectations to 10-11% over the long term.

    After all, what causes pain- When expectations are not met we suffer from pain, grief. Solution is to have low expectations. If the outcome is better than our expectations our joy will be indescribable.

    I humbly share the lessons I've learned. This forum has played an instrumental role in my growth as a person. My heartfelt thanks to each and every member here. I've realised that there's always something to learn. Yet again, my gratitude to all. My apologies if I've erred. Best wishes.

    submitted by /u/worldhello1221
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    U.S. Federal Reserve Leaves Interest Rates Unchanged

    Posted: 01 Aug 2018 11:02 AM PDT

    Tesla shares surge as much as 11% as Elon Musk apologizes for 'bad manners'

    Posted: 01 Aug 2018 03:21 PM PDT

    Apple can cross the $1 Trillion mark by hitting $207.05

    Posted: 01 Aug 2018 04:22 PM PDT

    Apple released their updated outstanding share count today, pushing the $1T mark up a bit. We'll see how long it takes them to break it.

    https://www.cnbc.com/2018/08/01/apple-1-trillion-share-price-threshold.html

    submitted by /u/XNY
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    Tesla posts $717.5M 2Q loss, burns $739.5M cash

    Posted: 01 Aug 2018 01:48 PM PDT

    Trump's Tariff Threats Erase $220 Billion From Asia Stock Values

    Posted: 02 Aug 2018 02:14 AM PDT

    NEW 2 Fidelity index mutual funds FZROX and FZILX with a zero expense ratio

    Posted: 01 Aug 2018 07:59 AM PDT

    NEW 2 Fidelity index mutual funds FZROX and FZILX with a zero expense ratio

    NEW No minimums to invest in Fidelity mutual funds

    $0 for Fidelity funds and hundreds of other funds with no transaction fees

    Introducing zero expense ratio index mutual funds, FZROX and FZILX available on August 3, 2018

    How do they manage for expenses? Or where do they absorb the expenses/cost of owning/maintaining..etc?

    submitted by /u/firebyrealestate
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    China's Peer-to-Peer Lenders Are Falling Like Dominoes as Panic Spreads

    Posted: 01 Aug 2018 11:14 AM PDT

    I bought my first 5 shares yesterday

    Posted: 01 Aug 2018 06:50 AM PDT

    Made my first trade of all time yesterday. PAYC is a local company in my area and I know they have been doing really well and are hiring more people so I expected positive growth in their Q2 Earning statement. I bought 5 shares of PAYC @ 101.7125 and today it opened at 115.51.

    submitted by /u/PointlessPankcake
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    What dividend paying stocks would you recommend?

    Posted: 01 Aug 2018 05:08 PM PDT

    I'm looking to set aside some capital to invest for dividend gains. I'd prefer more consistently performing stock with lower dividends than risky/volatile ones with high dividends.

    What do you recommend and why?

    submitted by /u/burning_dark
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    Stamps.com (STMP) beats on top and bottom lines, $2.75 earnings per share on revenues of $139.6 million

    Posted: 01 Aug 2018 03:59 PM PDT

    $2.75 earnings vs $2.41 expected. Revenue and income up 20% and 47% YoY respectively. Impressive!

    submitted by /u/m4329b
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    Did I just hear that right? Tesla is working on GPUs?

    Posted: 01 Aug 2018 03:03 PM PDT

    I was listening to the $TSLA earnings call and Andrej Karpathy with Elon spoke about their new chipset for the vision in autonomous cars that would do 2,000 frames per second versus $NVDA 200 frames per second?

    submitted by /u/theidesofmargin
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    Which website to use to view financial statement and valuation metrics?

    Posted: 02 Aug 2018 04:06 AM PDT

    I have used YCharts to make a table of about 50 stocks. I can then see their revenue, 3 year revenue growth, EBIT, market cap, enterprise value and other such metrics, and use them to order and filter, which is very convenient. Unfortunately my free trial has run out and I am a cheapskate. Do you know of any free alternatives or other smart cheap ways of doing this? I can do it manually by copy-pasting data from Yahoo Finance into Excel, but that is a lot of continuous manual labor...

    submitted by /u/BroccoBaba
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    Here's another reminder that everyone makes mistakes (Odd Lots podcast)

    Posted: 01 Aug 2018 11:34 PM PDT

    What percentage of money in the US stock market is from individuals as opposed to investment companies?

    Posted: 01 Aug 2018 12:42 PM PDT

    What percentage of money in the US stock market is from individuals as opposed to investment companies?

    submitted by /u/ilovetheinternet1234
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    Why should anyone pay attention to historical stock market returns before 1990s?

    Posted: 02 Aug 2018 02:31 AM PDT

    When people are trying to determine what the stock market will do tomorrow and the next 30 years going forward, many so called experts look at historical statistics. They look at what the stock market did 30-40-50 years ago to help analyze future trends and price movement. To me this seems silly.

    Before online brokers and low cost trading, mutual funds, ETF's and index funds, very few people were participating in the stock market. And today most trading is done by super computers that move in and out of a stock in a split second using incredible technology. How does this even compare to the investing world in the 20th Century?

    What are your thoughts about the practical use of analyzing how the stock market moved in the 20th Century vs today when determining stock market returns?

    submitted by /u/KillingTime56
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    Low risk, highly liquid investment vehicles for the next 12-24 months?

    Posted: 01 Aug 2018 08:28 PM PDT

    Can anyone suggest a relatively low risk, highly liquid investment vehicle with a holding time-span of roughly 12-24 months?

    As anyone with their ear to the ground in the financial markets knows, the past six months have seen the return of volatility to the markets. Investors caught their first major whiff of correction in late February and while the market quickly moved back into the green, indices have been range bound, failing to break through the highs set in late 2017 and early 2018. The Fed has made good on its promise to raise rates and is scheduled to do so twice more before year-end. Meanwhile, the yield-curve is flattening, heading towards inversion, geopolitical risk has heightened while the white house trades blows with some of the U.S.'s largest trading partners and domestically, investors face uncertainty as midterm elections approach.

    All this being said, investors should remain long term bullish on the stock market. However, in the meantime, with cash reserves to spare and little value-investment opportunities (with stocks trading hundreds of times their earnings), where can an investor stash money that will still generate income at rates higher than a money market or CD, but hold less risk than equities and are still relatively liquid?

    My first thought: TIPS.

    Suggestions?

    submitted by /u/narkflint
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    Sodastream beats on earnings and revenue, shares up 20+%

    Posted: 01 Aug 2018 08:40 AM PDT

    $SODA beat earnings by 60% and revenue by 14%. EPS of 1.14 compared to estimates of .71.

    I bought SODA as a speculative play after JAB purchased Keurig. They haven't been acquired (yet) but they're up a solid 25% on just plain good business since then.

    submitted by /u/ellipses1
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    Options vs Stocks?

    Posted: 01 Aug 2018 09:42 PM PDT

    As the title implies, what do you guys prefer most? Options or stocks? Do you have any strategies that you follow to stay green? Personally I'm digging Iron condors these days for the reduced risk but boy is it complicated to get a filled order on those 😒

    submitted by /u/DavWhatmor
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    What smart investing minds do you follow on Twitter?

    Posted: 01 Aug 2018 06:18 PM PDT

    Just got into investing and looking to learn from those who know much more than myself.

    Also, how serious do I take r/wallstreetbets and how do they gain thousands every day?

    submitted by /u/dcmc6d
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    Does anyone have experience with Securities Lending?

    Posted: 01 Aug 2018 08:33 AM PDT

    Stash has an option for Securities Lending. This is the first time I really heard of this. Does anyone have any experience in how this is handled and if the benefits outweigh the potential risk?

    I consider my investment profile risk as moderate meaning the money I have in the market is there to grow but I am young and it wouldn't be the death of me if I lost some or even all of what I've invested.

    Here is a link to what I found: https://learn.stashinvest.com/securities-lending

    Looking forward to some insight, cheers!

    submitted by /u/systemfive
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