It's moronic Monday, your chance to ask any of those lingering questions without fear of harassment. Investing |
- It's moronic Monday, your chance to ask any of those lingering questions without fear of harassment.
- One year ago /r/investing was asked about underrated stocks. I went back to check how we performed.
- Tesla stock set to soar after surprise SEC settlement, hint of profitability from Musk - up 17%
- Amazon Raises Minimum Wage to $15 for All U.S. Employees, Including Full-Time, Part-Time, Temporary, and Seasonal
- Here it is! The r/investing underrated stocks survey, inspired by u/galoog1 .
- Recommend underrated stocks
- Value Investing vs. Indexing - Conflicting views that coexist somehow [discussion]
- How to invest in softbank
- What happens to options at their expiration date?
- Why is TNDM down?
- Is Seeking Alpha an advertising firm?
- This bull market run has echoes of the late 1920s, Nobel Prize-winning economist Shiller says
- Bond investment information
- Any strategy to take advantage of different Brexit scenarios?
- Why do Euro zone nations have bonds?
- California’s Publicly Held Corporations Will Have to Include Women on Their Boards
- Amazon's IMDB will announce this week a new free video service to compete for TV ad dollars
- What stocks do you own that you believe are consistent winners and have done well for you that people seldom hear about? Or that don't get hyped often?
- How does an amateur stay up to speed on market news
- Pypl vs Sq
- Get Ready For A Big, Fast Rise In Interest Rates
- All weather portfolio by Ray Dalio
- EA a buy?
- [X-post from /r/personalfinance] What was your personal, employment, and financial situation when you finally started taking building wealth seriously and where are you now?
| It's moronic Monday, your chance to ask any of those lingering questions without fear of harassment. Posted: 01 Oct 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
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! [link] [comments]  |
| One year ago /r/investing was asked about underrated stocks. I went back to check how we performed. Posted: 01 Oct 2018 08:50 AM PDT About a year ago this sub was asked to recommend underrated consistent performers. I was intrigued so I saved the post to revisit and see how we did. It looks like you outperformed the market considerably. There were some real winners in there and even the losers did not lose by much. This was a lot of fun to watch for me. The top performers were middle of the pack as far as upvotes went. Novocure ILMN Idexx [link] [comments]  |
| Tesla stock set to soar after surprise SEC settlement, hint of profitability from Musk - up 17% Posted: 01 Oct 2018 06:59 AM PDT |
| Posted: 02 Oct 2018 03:11 AM PDT |
| Here it is! The r/investing underrated stocks survey, inspired by u/galoog1 . Posted: 01 Oct 2018 03:27 PM PDT Hello r/investing. I was inspired by u/galoog1 to do a similar survey to the one they did. The plan is to ask r/investing what stocks they believe are underrated, consistent winners that have done well for you, and then keep track of a paper portfolio in Investopedia that contains the top 10-20 suggestions and report the results in a year. In order to make this a bit easier to implement and track I'd like to suggest some guidelines for submitting.
After roughly 48 hours I will take the top 10-20 results and make a list in order of how many upvotes each one got. I will then take these results to Investopedia's simulator and start a game with a portfolio of $1,000,000. I will buy each stock in proportion to how many upvotes each one received and leave as little cash left as possible. For anyone who isn't familiar with Investopedia it keeps track of dividends, commissions, and interest, among other things. I believe I can post a link to the Investopedia portfolio so that everyone here can view its progress whenever they please. Also, it's an open game. Feel free to join and see if you can beat the r/investing community. Here's a link to the Investopedia game The game starts in two days. I set the commissions to match what Vanguard charges for a portfolio of $1,000,000. [link] [comments]  |
| Posted: 01 Oct 2018 10:35 AM PDT This was posted about 1 hour ago - Underrated stocks recommended by r/investing The list of stocks were analyzed by u/galloog1 Long story short, the Reddit thread's recommendations outperformed the market. I would love to see what everyone's opinions are for this next year. Let's see how good the r/investing thread is. Can we go back-to-back years beating the market ? [link] [comments]  |
| Value Investing vs. Indexing - Conflicting views that coexist somehow [discussion] Posted: 01 Oct 2018 10:26 PM PDT The indexing argument: Note - the below statements are from the perspective of buying individual stocks vs. passive index funds and not between buying passive index funds and actively managed funds. So, I don't mention fees.
It is helpful to think about indexing as a momentum strategy since it is market weighted and the stocks with more "momentum" get more of your money. This is in contrast to the value approach to investing. The Value Argument: 1. The market is not efficient or has a reasonable level of inefficiency to prove an enterprising investor with a bargain opportunity - buying below intrinsic value. 2. Buying companies below intrinsic value creates a margin of safety and limits downside risk. 3. The realization of the intrinsic value by the market is what gives an above average return. Once the security is fairly valued then the expected returns are no longer going to be that high. Value investors diverge in their approach at this point. 4. Early Buffett/Graham/Klarman would discard these companies at this point. Older Buffett/Munger would continue to hold. I don't really want to get into the different approaches to value investing but the crux of the philosophy is exploiting the market inefficiency to find bargain deals. 5. Buying momentum stocks is risky and should be avoided since the company is overvalued. At the worst you will lose a significant amount of capital. At the least you will get a mediocre return. There is enough literature and data to back both of these approaches. I understand that being a successful value investor is hard and very few possess the skills, intelligence and temperament. So getting the average return by buying the index is the most feasible approach for most people. There is considerable disparity between well known value investors about these 2 approaches. Here are a few: Warren Buffett: Warren is the most famous and the most successful value investor. His view has been that buying the index is a very good strategy for most people: http://www.berkshirehathaway.com/letters/2013ltr.pdf "I have good news for these non-professionals: The typical investor doesn't need this skill. In aggregate, American business has done wonderfully over time and will continue to do so (though, most assuredly, in unpredictable fits and starts). In the 20th Century, the Dow Jones Industrials index advanced from 66 to 11,497, paying a rising stream of dividends to boot. The 21st Century will witness further gains, almost certain to be substantial. The goal of the non-professional should not be to pick winners – neither he nor his "helpers" can do that – but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal." Seth Klarman: Value investor that has been praised by Buffet Himself. Sees indexing as a "horrendous idea": https://www.gurufocus.com/news/610303/seth-klarman-on-passive-investing "I still think indexing is a horrendous idea for a number of reasons. That said, the average person who spends a very small amount of time on investing doesn't have a lot of good choices out there. A tremendous disservice is perpetrated by the idea that stocks are for the long run, because you have to make sure you are around for the long run, that when you have unexpected pain, as many people did in 2008, you don't get out and you actually are a buyer. The prevailing view has been that the market will earn a high rate of return if the holding period is long enough, but the entry point is what really matters. Stocks trade up when they are put in an index. So, index buyers are overpaying just because a stock is included in an index. I am much more inclined to buy a stock that has been kicked out of an index because then it may have value characteristics—it has underperformed. A stock is kicked out of an index because its market cap has shrunk below the top 500 or the top 1,000. We all know that the evidence shows that when you enter at a low price, you will have good returns, and when you enter at a high valuation, you will have poor returns. That is why we have had 10–12 years of zero returns in the market. And given the recent run-up, I am worried that we will have another 10 years of, if not zero, at least very low returns from today's valuations. The mentality of "I'll save transaction costs and management fees by indexing" ignores the fact that the underlying still needs to produce for you. Indexing usually refers to equities, but the attractive asset class a year ago, on a risk-adjusted basis, was clearly debt, not equity." And from his book Margin of Safety: "I believe that indexing will turn out to be just another Wall Street fad. When it passes, the prices of securities included in popular indexes will almost certainly decline relative to those that have been excluded. More significantly, as Barron's has pointed out, "A self-reinforcing feedback loop has been created, where the success of indexing has bolstered the performance of the index itself, which, in turn promotes more indexing."" When the market trend reverses, matching the market will not seem so attractive, the selling will then adversely affect the performance of the indexers and further exacerbate the rush for the exits." Aswath Damodaran: The dean of valuation looks at indexing favorably. It boils down to a personal choice and he likens active investing to an act of faith: http://aswathdamodaran.blogspot.com/2016/12/active-investing-rest-in-peace-or.html "In fact, I have made peace with the possibility that at the end of my investing life, I could look back at the returns that I have made over my active investing lifetime and conclude that I could have done as well or better, investing in index funds. If that happens, I will not view the time that I spend analyzing and picking stocks as wasted since I have gained so much joy from the process. In short, if you don't like markets and don't enjoy the process of investing, my advice is that you put your money in index funds and spend your time on things that you truly enjoy doing!" Benjamin Graham: The intellectual father of value investing. It is interesting that although he spent considerable effort writing about value investing for the "defensive" (average) investor he actually was a proponent of index funds. https://blogs.wsj.com/totalreturn/2015/04/03/would-benjamin-graham-have-hated-index-funds/ "Stockholders as a whole must prosper or suffer with the rise and fall of corporations as a whole....An unabashed cross-section approach appears too simple to be sound, and it reduces the role of security analysis to a minimum. We suggest that the student should not dismiss it too contemptuously. It is by no means certain that the analyst will get better results from the type of selectivity most favored in Wall Street— viz., picking out the industries or individual companies that are likely to make the best comparative showing in the near future.... If we could assume that price of each of the leading issues already reflects the expectable developments of the next year or two, then a random selection should work out as well as one confined to those with the best near-term outlook." From The Intelligent Investor chapter 14 - Stock Selection for the defensive investor: "In setting up this diversified list he (the defensive investor) has two approaches, The DJIA-type of portfolio and the quantitatively tested portfolio. In the first he acquires a true crossss-section sample the leading issues, which will include both some favored growth companies, whose shares sell at high multipliers, and also less popular and less expensive enterprises." My own views are that indexing is a no-brainer method to benefit from the compounding of the advances of the American/world economy. Value investing although sound in idea is extremely hard to consistently get right. I do pick individual stocks as well but for a lot of the same reasons as Damodaran with the understanding that they have a good chance to be a headwind to my portfolio in the long run. [link] [comments]  |
| Posted: 02 Oct 2018 04:29 AM PDT Every week or so , there is news with regards to - Softbank making more tech heavy investments in future tech. Based on historical evidence, they seem to be ticking the right boxes. How would one go about making investments in softbank? [link] [comments]  |
| What happens to options at their expiration date? Posted: 01 Oct 2018 08:47 PM PDT Probably a dumb question, but I've been wondering for a while. So I know that if I'm holding an option and it expires OTM, it's worthless. I'm wondering what happens to ITM calls/puts when the expiration date hits? All that I ever see people doing are buying/selling them prior to expiration. If I'm holding an ITM option at expiration, do I then need to exercise my right to purchase at the strike price? Does it happen automatically? [link] [comments]  |
| Posted: 02 Oct 2018 04:02 AM PDT |
| Is Seeking Alpha an advertising firm? Posted: 02 Oct 2018 03:06 AM PDT Is the mission of Seeking Alpha to find a way to justify buying any stock? Is it just an advertising firm for 20th century blue chips and dividend aristocrats? Is there any large cap stock that hasn't gotten a positive review on Seeking Alpha? Every time I see a story with a title like "is X (a 50 year old large cap) the next Amazon?" Or " why X (a marijuana company) is going up by 150%" I check the source and ignore it. [link] [comments]  |
| This bull market run has echoes of the late 1920s, Nobel Prize-winning economist Shiller says Posted: 01 Oct 2018 11:18 PM PDT |
| Posted: 02 Oct 2018 02:51 AM PDT I would like to start saving $2,500 every year for stocks and bonds, respectively ($5,000 total). I am newer to bonds, and I don't know exactly how they work. Can anyone recommend a resource to learn more about how to invest in them strategically? [link] [comments]  |
| Any strategy to take advantage of different Brexit scenarios? Posted: 02 Oct 2018 02:39 AM PDT At the moment it seems like it will all end up in "No deal" Brexit. (Maybe going into currency futures betting against the pound?) [link] [comments]  |
| Why do Euro zone nations have bonds? Posted: 02 Oct 2018 02:38 AM PDT |
| California’s Publicly Held Corporations Will Have to Include Women on Their Boards Posted: 01 Oct 2018 10:23 AM PDT source: NYT
[link] [comments]  |
| Amazon's IMDB will announce this week a new free video service to compete for TV ad dollars Posted: 01 Oct 2018 03:11 PM PDT |
| Posted: 01 Oct 2018 10:13 AM PDT As I was reading the following post which was based on this post I got curious to see if we could do the same thing again. I figured that I would put down ~$1-$2k on the top picks if we end up getting enough traction. It would be a fun experiment to see how we did. [link] [comments]  |
| How does an amateur stay up to speed on market news Posted: 01 Oct 2018 11:44 AM PDT I would love to be able to stay current on what's happening in the market, but I'm not sure what sources to read and how often. Couple questions: Are there any "how to" guides to understanding the overall health of the market? [link] [comments]  |
| Posted: 01 Oct 2018 01:33 PM PDT Paypal hasn't been doing too good as of late, down from $93 to $87.5 over the past month while other fintech stocks have been mooning. Would there be any reason to hold pypl over sq atm? Venmo seems to be losing out to cash app big time. Also, I'm not too sure if the Izettle accuisition will really help paypal regain market share. What are your thoughts about this? [link] [comments]  |
| Get Ready For A Big, Fast Rise In Interest Rates Posted: 01 Oct 2018 08:29 PM PDT |
| All weather portfolio by Ray Dalio Posted: 01 Oct 2018 08:22 PM PDT All weather portfolio by Ray Dalio https://www.tonyrobbins.com/wealth-lifestyle/the-end-of-the-bull-market/ [link] [comments]  |
| Posted: 01 Oct 2018 10:52 AM PDT Whaddaya think about EA? A pretty substantial maybe slightly unreasonable dip over the past few months - think it's a buy at this valuation? [link] [comments]  |
| Posted: 01 Oct 2018 10:03 PM PDT Quick summary of who I am and where I'm at:
So here's the deal, as of these past few months I've been trying to take my financial situation more seriously. I'm getting a handle of bank statements and am beginning to discern "consumption categories" of all my out-going costs and how each category could be optimized e.g. gas, food, rent, water, electricity, cable etc. Secondly, I've been talking a lot more with my Dad about taking that first step into building and managing wealth through investing. He's a self-made man with a lot of money but has always been frugal to the bone with a knack for investing and keeping most of money tied up in the market somehow. Lastly, I picked up a copy of The Millionaire Next Door; it's a pretty interesting read and reminds me a lot of my Dad. I feel like until now (35) I've never actually truly appreciated the value of money until I realized one-day I want to retire and I can't just keep grinding out a salary from one employer to the next, it's just not sustainable without a bigger plan in mind. There's no get rich quick scheme that is sustainable enough for anyone to live out their days financially secure. I just wanted to get a quick survey and grok who you guys are and how long it took you take your finances seriously. I feel like I'm coming a little late to the game but at least feel blessed I'm not entrenched in student loans or credit card debt like so many others. [link] [comments]  |
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