PepsiCo just became the latest beverage company to say it's looking at the fast-growing cannabis market Investing |
- PepsiCo just became the latest beverage company to say it's looking at the fast-growing cannabis market
- An index-plus strategy where you buy the S&P and then buy the top performers in it would not have significantly improved your performance and in fact would have hurt it in the last 30 years.
- IPO Market Has Never Been This Forgiving to Money-Losing Firms
- Toys 'R' Us lenders cancel auction, plan to revive brand
- Fed's Powell says the US is not on a sustainable fiscal path
- Official Tesla Q3 Deliveries (83,500) and Production (80,142) numbers released
- Outlook of U.S. Economy by Fed Chair Jerome Powell and Chicago Fed Chair Charles Evans > GDP could top 4% again in Q4 > Low Unemployment & Low Inflation could extend never seen since 1950’s > Corporate Profits growing at 25% > Interest Rates should be hiked to above Neutral. Evans says Neutral = >3%
- What specific rules do you follow when making long or short-term investments in equities and applicable derivative positions?
- According to you, what makes a company "fundamentally strong"?
- It's hard. It's hard. Choose 5 stocks.
- Is the day for Emerging Markets dawning?
- Business/accounting/finance students and investment professionals: Do you feel like your schooling and work experience actually makes you a much better investor in your private portfolios? Which helped you more: school or work?
- How much to spend on high quality research?
- Could Italy be the next Greece?
- I want to go long on the S&P 500 Index & Dow Jones Industrial Average.
- Can you buy long term puts?
- How good is international diversification?
- Is there a specific aggregator you guys use to find Earnings Reports or you just go to specific company website?
- Tencent Music Files for U.S. IPO under symbol TME
- Hypothetical question on inside information
- Why has Russell been crashing while SPX rises?
- What are your thoughts about BonTerra Resources (BTR)?
- Received this notice today regarding the class action lawsuit against TSLA
| Posted: 02 Oct 2018 10:26 AM PDT |
| Posted: 03 Oct 2018 12:07 AM PDT I see a common strategy that many tend to employ is to pick an index like the s&p and then pick some of the stocks in the top 10 of the index that they think are good companies. The idea behind this is to get a boost by increasing the concentration of the "winners". (I am guilty of this as well) For example buying the VFINX and then buying Apple, Visa and Microsoft because those are great companies and being slightly overweight on these great companies should translate to an above average return. I was curious whether history would agree with this approach. So, I went back ~30 years (a good time horizon when saving for retirement) to the year 1988 and found these were the top 10 companies by market cap in the s&p: IBM EXXON GENERAL ELECTRIC AT&T ROYAL DUTCH PETROL GENERAL MOTORS FORD PHILIP MORRIS MERCK DUPONT I constructed 3 portfolios. Portfolio 1: S&P 500 index only 100% VFINX Portfolio 2: S&P 500 + the top 5 companies in the index 50/50 50% VFINX 10% IBM 10% EXXON 10% General Electric 10% AT&T 10% RoyaL Dutch Petrol Portfolio 3: Top 5 companies in the index equally weighted 20% IBM 20% EXXON 20% General Electric 20% AT&T 20% RoyaL Dutch Petrol You can see the results here: Portfolio 1 had a CAGR of 10.65% Portfolio 2 had a CAGR of 10.42% Portfolio3 had a CAGR of 9.42% You actually underperformed by using the "index plus" strategy and if you just picked the hot stocks of that year you would have lost more than 1% in annual return. Picking winners is very hard. IBM at the time was cutting-edge tech. If you had bought it and held until now, it would have given you a CAGR of 7.82% grossly underperforming the index. GE, which probably seemed unstoppable at the time, would have done even worse at 6.74%. You would have done just as well (and better compared to GE) if you had just bought Long Term Treasuries that would have returned 7.64% CAGR. This was a simple exercise and I'm sure you can find a myriad of exceptions but I think it illustrates the point that you most likely won't beat the market average in the long run. Now some of you might say that picking less well known stocks not in the index might have helped in outperforming the index. Maybe, but most amateur investors just buy what is well known (look at what is mentioned on this and other subs). If they ventured off this path and tried to buy obscure companies they likely would do much worse because valuation is very hard. Indexing isn't sexy. It's lazy. But it works. [link] [comments]  |
| IPO Market Has Never Been This Forgiving to Money-Losing Firms Posted: 02 Oct 2018 06:09 AM PDT |
| Toys 'R' Us lenders cancel auction, plan to revive brand Posted: 02 Oct 2018 01:56 PM PDT |
| Fed's Powell says the US is not on a sustainable fiscal path Posted: 03 Oct 2018 02:46 AM PDT Federal Reserve chairman Jerome Powell answers questions from the audience at the NABE meeting in Boston. [link] [comments]  |
| Official Tesla Q3 Deliveries (83,500) and Production (80,142) numbers released Posted: 02 Oct 2018 06:47 AM PDT |
| Posted: 03 Oct 2018 03:01 AM PDT |
| Posted: 02 Oct 2018 10:48 PM PDT I would like to know, so I can put together a generic "list for beginners," for some friends and myself of specific rules people strictly follow when making investment decisions so as to help facilitate the establishment of some guidelines to try and mitigate bias or outside sentiment when making investment decisions: Please include any all rules you may individually follow when opening and closing positions, including any specific metrics, thresholds, volumes, valuations, etc...that you adhere to. I appreciate any and all responses and will gladly share the list after I have compiled it; pending enough information is shared here. If you view it, please take the time to quickly add something; it may benefit us all. If you don't have any specific rules, are there any guidelines you follow as a result of a trade gone bad in the past or even gone well, if so please briefly share what you learned from that experience. Generally speaking I'd prefer to keep the topic focused on individual equities and any applicable derivatives. Thanks a million! Edit: I plan to cross post this in r/stocks, so if I should not do that, please just let me know and I will delete one. [link] [comments]  |
| According to you, what makes a company "fundamentally strong"? Posted: 02 Oct 2018 10:06 PM PDT Just read an article that states that over 80% of the companies that IPOed in 2018, didn't make any profit in the last one year. And yet some of those stocks have sky-rocketed. I am trying to understand what can I look for in a company's earnings report that can tell me a bit more about economic stability and longevity of the company. This could be things like a company making more profit per $100 than investing the same amount of money in S&P500 may be! Or more profit than the GDP growth of the country its listed in. Or more profit % than the inflation rate? These are just some things that come to my mind and may be they are all senseless. How do you gauge the fundamentals of the company. Do you consider how old the company is? [link] [comments]  |
| It's hard. It's hard. Choose 5 stocks. Posted: 03 Oct 2018 03:23 AM PDT Buffet says 6. Munger says 4. Let's meet in the middle. Narrow it down. Problem is, when we narrow it dow we have to be less speculative, right? My picks: ILMN, CGNX, IDXX, STZ, and ISRG. So hard to choose. Give it a try! [link] [comments]  |
| Is the day for Emerging Markets dawning? Posted: 02 Oct 2018 07:47 PM PDT Is anyone adding weight to their EM positions or do you anticipate more bleeding? Would I be crazy to up my stake prior to this whole trade tensions settling down? [link] [comments]  |
| Posted: 02 Oct 2018 09:08 PM PDT |
| How much to spend on high quality research? Posted: 02 Oct 2018 12:08 PM PDT I understand that institutions spend a good amount on research. How about retail investors? How much do you all spend on research and what do you look for? Also I'd like to add that I've tried SeekingAlpha and it just feels that it seems like the content advertises a specific sector or asset. [link] [comments]  |
| Could Italy be the next Greece? Posted: 02 Oct 2018 10:41 PM PDT "Italy to Bow to EU and Cut Deficit Targets, Corriere Says" Despite bowing down to the EU and cutting the budget deficit, do you guys think that their populist government will become more fiscally reponsible? Imo we might see a scenario similar to the 2010 Greek debt crisis sooner rather than later. [link] [comments]  |
| I want to go long on the S&P 500 Index & Dow Jones Industrial Average. Posted: 03 Oct 2018 02:26 AM PDT From the author who asked "how to short the S&P 500 Index & Dow Jones Industrial Average." how would you go long on S&P 500 Index & Dow Jones Industrial Average. which ETF do recommend? Thank you for your answers. [link] [comments]  |
| Posted: 03 Oct 2018 12:26 AM PDT |
| How good is international diversification? Posted: 02 Oct 2018 10:53 AM PDT Depends on where's your money! To enlight u/Fueghost yesterday I made a python script to show him how would perform a portfolio only the SP500 vs 50% SP500 & 50% TSX during the last 18 years, however I got curious about other countries so I made a comparison between other major indexes of the world and optimized the capital allocation to find out whats the optimal weights to maximize the sharpe ratio of the respective portfolio. After 24 hours here's the result! If you wanna check the GitHub repository here it is but its gonna be under development Quick explanation of the script: 1 - Gets data from Yahoo Finance for all the requested tickers 2 - Shows cumulative return of indexing 18 years ago 3 - Shows cumulative return of holding the respective index for 1 year (over the last 18 years) 4 - Shows the mean sharpe ratio of it 5 - Shows the mean sortino ratio of it, although it clearly shows that standard deviation isn't the same as losing money, that's why it suggests shanghai composite as the best index (less standard deviation isn't good because all losses are big) 6 - Optimizes portfolio weights in order to find the best sharpe ratio, an "optimally risk-adjusted portfolio" and compares it with an equally weighted portfolio [link] [comments]  |
| Posted: 02 Oct 2018 05:52 PM PDT |
| Tencent Music Files for U.S. IPO under symbol TME Posted: 02 Oct 2018 02:00 PM PDT |
| Hypothetical question on inside information Posted: 02 Oct 2018 02:55 PM PDT To be clear, I don't intend to follow through on this since the most I could see making is a couple thousand dollars and the stress/downside seems too much. However, I was curious I was wondering about this situation and whether or not it would be considered illegal. I am friends with someone at a private company. They are launching a product/service which will compete with a product/service at a publicly traded company. Because of the reputation of the private company, I imagine there is a good chance that shares of the public company will slide a bit once the private company makes their announcement. Is it still inside information if the non-public information is about the private information? In theory, I suppose it is information about the public company's information (the execs of the company are aware that the private company is thinking of entering the space) but was curious about the definition! [link] [comments]  |
| Why has Russell been crashing while SPX rises? Posted: 02 Oct 2018 11:07 AM PDT Saw that RUT is 5% off the highs and SPX is still pushing ATH. Are people dumping small caps? Some other index flows / seasonal thing? [link] [comments]  |
| What are your thoughts about BonTerra Resources (BTR)? Posted: 02 Oct 2018 04:00 PM PDT |
| Received this notice today regarding the class action lawsuit against TSLA Posted: 02 Oct 2018 03:52 PM PDT |
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