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    Thursday, February 28, 2019

    Daily advice thread. All questions about your personal situation should be asked here Investing

    Daily advice thread. All questions about your personal situation should be asked here Investing


    Daily advice thread. All questions about your personal situation should be asked here

    Posted: 28 Feb 2019 04:12 AM PST

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions. If you are going to ask how to invest you should include relevant information, such as the following:

    • 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 significant other?
    • 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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    Wallstreetbets is private

    Posted: 27 Feb 2019 05:30 PM PST

    Probably because of the post indicating Berkshire will buy Tesla.

    submitted by /u/TheTerroristAlWaleed
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    Amazon reportedly pulls plans to expand into new Seattle skyscraper after abandoning HQ2 plans in NYC

    Posted: 27 Feb 2019 10:28 AM PST

    https://www.cnbc.com/2019/02/27/amazon-backs-out-of-rainier-square-tower-in-seattle-geekwire.html

    Amazon is scaling back its expansion in Seattle by seeking tenants for the 30 floors of office space it leased there, GeekWire reports.

    The news comes just weeks after Amazon dropped expansion plans to New York's Long Island City for part of its "HQ2."

    Amazon's future in Seattle has been uncertain. The company has reportedly been laying off employees there and has fought city officials on corporate taxes.

    submitted by /u/coolcomfort123
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    Financial Term of the Week: Investing

    Posted: 28 Feb 2019 02:02 AM PST

    Why am I doing this?

    Most of us are probably active on this subreddit, because they want to increase their financial education in some way or the other.

    So do I! I want to improve my financial education by learning at least one new financial term every week.

    For me the best way to learn about a new topic is through these steps: researching, explaining and discussing.

    I'll explain a financial term and give some of my own thoughts about it. You may have a different opinion on the definition I chose or think about that topic in another way.

    And that's where I hope, the discussion kicks in.

    But now.. Let's start with this weeks financial term: Investing

    The first things I think about, when I hear the words investing or investment are money, Wall Street, and stocks. However, 'investing' can be considered in a much broader sense (e.g. invest time in educating yourself).

    Generally, investing is understood as the committing of resources into some endeavor or thing in the expectation of a positive return.

    Examples

    A non-financial way of investing would be investing your time (resource) to read some books about finance (thing) in order to improve your financial education (positive return).

    Financial investments look like this: Commit money (resource) to a business, project, real estate, stock, … (endeavor or thing) in order to get interest earnings, assets or financial profits in some other way (positive return).

    What do you think about…?

    The thing about investing is, that you only have the expectation of a positive return, not the guarantee.. This is where risk comes into play. You certainly want to minimize risk (or at least calculate with potential risks) so the odds are better, that a positive return really occurs. I have the following hypothesis:

    Before investing money you should always invest time first.

    Because you want to minimize risk and have high expectations of high returns, investing money into something you have absolutely no knowledge about is pure gambling. Knowledge and in this context financial education is crucial for being successful with your investments. But in order to gain knowledge you first need to invest time.

    What do you think about my hypothesis? Feel free to ask questions, comment on my thoughts and give your honest feedback. If you are interested in learning and discussing more financial terms together, let me know. Finally.. thank you for taking your time, reading this and sharing your thoughts with us!

    submitted by /u/AMillionPI
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    WSB is Down, But Here's Some Napkin Math on $PCG Equity

    Posted: 27 Feb 2019 05:27 PM PST

    Stated equity at time of chapter 11 filing was ~$20B ($71.4B in assets - $51.7B in liabilities). Let's do the math, liabilities:

    • $21.7B in debt
    • $30B in wildfire claims (actual submitted claims are probably closer to $35B atm looking at prime clerk.)
    • $5.5B in senior DIP financing
    • $1B in legal fees (last BK was ~$400 million IIRC, and that was almost 20 years ago).
    • $2.3B in proposed fire mitigation for the year (PGE's number, I think they spent that much on fire mitigation in total for the past 4-5 years).

    That leaves ~$10.9B in equity, which is about $20/share (with 516m in common shares, not considering preferred, that's $10.3B) price target barring other costs. Half of the wildfire liabilities (estimated at $16.5B) are Camp Fire alone which the recent WSJ article lays at their feet. To go above $20 there'd need to be a reduction in other liabilities or significant increase in rates/bailout, most of which are fixed other than wildfire claims, with 11 of the 17 fires already being determined to be PGE's fault for 2017 alone. That's without any other fines, penalties, damages, or costs.

    Could this go higher? Sure why not, this is the little piece of shit stock that could. Is there a good reason for it to go higher?

    submitted by /u/louieanderson
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    Teladoc stock plunges 20% after disappointing forecast

    Posted: 28 Feb 2019 02:22 AM PST

    Vanguard Cuts ETF Fees on 10 Funds

    Posted: 27 Feb 2019 06:25 AM PST

    https://finance.yahoo.com/news/vanguard-intensifies-etf-fee-war-130001510.html

    >>

    Vanguard FTSE Emerging Markets ETF (VWO) - from 14 to 12 bps
    Vanguard FTSE Europe ETF (VGK) - from 10 to 9 bps
    Vanguard FTSE Pacific ETF (VPL) - from 10 to 9 bps
    Vanguard FTSE All-World ex-US ETF (VEU) - from 11 to 9 bps
    Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) - from 13 to 12 bps
    Vanguard High Dividend Yield ETF (VYM) – from 8 to 6 bps
    Vanguard Total World Stock ETF (VT) – from 10 to 9 bps
    Vanguard Tax-Exempt Bond ETF (VTEB) – from 9 to 8 bps
    Vanguard Total International Bond ETF (BNDX) – from 11 to 9 bps
    Vanguard Total International Stock ETF (VXUS) – from 11 to 9 bps
    <<

    As if you needed another reason to hold index ETFs instead of shares of individual companies, Vanguard has lowered the expense ratio on a number of funds. I'm particularly happy to see VXUS on this list.

    submitted by /u/notabot_v1
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    Square falls despite beating on earnings and revenue

    Posted: 27 Feb 2019 01:14 PM PST

    https://www.cnbc.com/2019/02/27/square-earnings-q4-2018.html

    Here's how the company did compared with Refinitiv consensus estimates:

    Earnings: 14 cents per share vs. 13 cents per share, forecast by Refinitiv Adjusted revenue: $464 million vs. $454 million, forecast by Refinitiv

    Payment company Square reported fourth-quarter results that beat analysts' expectations for earnings and revenue on Wednesday.

    Its first-quarter earnings guidance came up short of expectations, while Wall Street also paid attention to slower organic growth. Shares dropped 7 percent in after-hours trading.

    Square's peer-to-peer Cash App had a break-out quarter with more than 15 million monthly active customers in December 2018, more than double what it was a year earlier.

    submitted by /u/coolcomfort123
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    WSB Down... excellent $TSLA DD... Tendies for all!

    Posted: 27 Feb 2019 09:55 PM PST

    How to Make 19,267% in China and Lose It All in 24 Hours (Bloomberg)

    Posted: 27 Feb 2019 10:02 AM PST

    Even by the boom-bust standards of China, the moves are incredible: gains as large as 19,267 percent in one trading session, a near-complete wipeout in the next.

    more: https://www.bloomberg.com/news/articles/2019-02-27/how-to-make-19-267-and-lose-it-all-in-24-hours-trading-china

    submitted by /u/markyu007
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    dividends

    Posted: 28 Feb 2019 02:47 AM PST

    What's stopping me from putting in all my money in a stock right before the dividend pay date, getting paid, then selling my shares back? I'm sure theres an obvious answer im not seeing as it cant be that simple.

    submitted by /u/ssblue-cremo
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    When is a high expense ratio fund worth the cost?

    Posted: 28 Feb 2019 12:19 AM PST

    Low expense ratio example: Fidelity 500 Index. Expense ratio of 0.015% and a 10 year annualized return of 14.99%. Hypothetical growth of $10K, invested 10 years ago, would be $40K today.

    Higher expense ratio example 1: Fidelity Select Technology Portfolio. Expense ratio of 0.75% but 10 year annualized return of 21.10%. Hypothetical growth of $10K, invested 10 years ago, would be $67,850 today. Of course it's less diversified than the S&P 500 index.

    Higher expense ratio example 2: Fidelity Large Cap Stock Fund. Expense ratio of 0.67% with 10 year annualized return of 16.75%. Hypothetical growth of $10K invested 10 years ago would be $47K today. More diversified than example 1 above but less diversified than S&P 500.

    In a lot of instances, the higher expense ratio pays for itself in terms of additional returns over a S&P 500 index fund. However, most posts I read, an index fund seems to be the first and foremost recommendation based on the lower expense ratio and diversification. But diversification aside, a high expense ratio isn't always bad such as the cases above, am I right? or am I missing something? Question is scoped to a tax deferred or exempt account.

    submitted by /u/millamb4
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    Starbucks' China rival Luckin Coffee taps three banks for U.S. IPO: sources

    Posted: 27 Feb 2019 11:53 PM PST

    U.S. trade chief sees long-term China challenges, continued tariff threat

    Posted: 28 Feb 2019 01:53 AM PST

    The United States will need to maintain the threat of tariffs on Chinese goods for years even if Washington and Beijing strike a deal to end a costly tariff war, President Donald Trump's chief trade negotiator told lawmakers on Wednesday.

    U.S. Trade Representative Robert Lighthizer cautioned that much work was still needed to nail down a U.S.-China trade agreement, including working out how it will be enforced.

    "If we can complete this effort - and again I say if ... we might be able to have an agreement that helps us turn the corner in our economic relationship with China," Lighthizer said in testimony to the U.S. House Ways and Means Committee.

    http://uk.reuters.com/article/uk-usa-trade-china-house/u-s-trade-chief-sees-long-term-china-challenges-continued-tariff-threat-idUKKCN1QG241

    submitted by /u/jacquesopper
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    Best Buy shares soar 11% on earnings beat

    Posted: 27 Feb 2019 04:41 AM PST

    https://www.cnbc.com/2019/02/27/best-buy-reports-fourth-quarter-earnings-2018.html

    Best Buy reported net income for the fourth quarter ended Feb. 2 of $735 million, or $2.69 per share, compared with $364 million, or $1.23 a share, a year ago. The fourth quarter of 2018 included one less week than in 2017, Best Buy said. Excluding one-time items, Best Buy earned $2.72 a share, topping expectations for $2.57, according to Refinitiv data.

    Revenue fell to $14.80 billion during the quarter from $15.36 billion a year ago. But that was still ahead of expectations for $14.70 billion.

    submitted by /u/coolcomfort123
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    Does anyone have experience investing in Fundrise? Looking for an alternative to stocks.

    Posted: 27 Feb 2019 10:53 PM PST

    Hey guys, I have a lot tied up in the market right now, and I am looking for a safer alternative to the market that's not bonds. I think owning physical assets, at least a portion of them, is a great option.

    If you have experience with Fundrise, could you share your thoughts.

    Thank you

    submitted by /u/bstout25
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    How to profit off climat change?

    Posted: 28 Feb 2019 04:22 AM PST

    Invest in cold areas? AC manufacturers?
    I even heard that vineyards have been popping up in the UK in the recent years because of it.

    submitted by /u/OlivierDeCarglass
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    Elon ‘Tusk’? Tesla CEO changes Twitter handle, says there will be news on Thursday

    Posted: 27 Feb 2019 11:42 AM PST

    Why are Fannie Mae and Freddie Mac stock prices so low compared to 2008?

    Posted: 28 Feb 2019 12:22 AM PST

    I understand there was a mortgage crisis, however the stock value seems to be 30-60x less than what it was. Fannie Mae is still the 5th largest financial services company by revenue, but their market cap is $3.11bn, with a revenue of over a $100bn. I'm sure this has been discussed many times before, but I can't find a satisfactory answer on the internet and I'm baffled by what I'm seeing

    submitted by /u/ses92
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    Trade deficit in goods jumps 12.8 percent amid tariff battle

    Posted: 27 Feb 2019 06:56 AM PST

    The U.S. trade deficit in goods rose 12.8 percent in December, according to an advanced estimate from the Census Bureau.

    The move comes amid trade hostilities between the U.S. and China and a White House effort to lower the gap.

    Rising trade deficits subtract from GDP, meaning that fourth-quarter estimates could be reduced.

    https://www.cnbc.com/2019/02/27/trade-deficit-in-goods-jumps-12point8-percent-amid-tariff-battle.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

    submitted by /u/NineteenEighty9
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    How to do stock research for busy people?

    Posted: 28 Feb 2019 02:56 AM PST

    What are some key points or tips on stock picking?

    submitted by /u/wilsonckao
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    Is it a dumb idea to use a Vanguard target fund for non-retirement investing?

    Posted: 27 Feb 2019 11:27 AM PST

    Dont laugh at me! I have two retirement accounts already but want to branch out into more investing. This is money I dont need anytime soon and could leave untouched for a couple decades. Is there a disadvantage to choosing a target fund I'm not aware of? I guess I just like the portfolio, and I'm not advanced enough to pick and choose which specific funds in the Vanguard portfolio are best suited for this. Is cost the biggest drawback, most likely?

    submitted by /u/midwestmuhfugga
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    Stock finder guy?

    Posted: 27 Feb 2019 02:26 PM PST

    There was a post on here recently about a somebody who built a tool that allows the user change input sliders for certain criteria (price, market cap, shares outstanding, etc) and receive a list of stocks that fit the criteria. Can somebody please link me? I forgot to save it.

    If not, does anybody know of any similar tools I can use? I'm looking for volatile stocks that I can hop onto for swing trading

    Thanks!

    submitted by /u/seventhandgreen
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    Question about W-8 BEN and DeGiro

    Posted: 28 Feb 2019 02:16 AM PST

    Hello,

    New to investing I just opened an account with DeGiro https://degiro.eu.

    They requesting to fill a W-8Ben form. I a small search I see this is about foreigners and US taxes. Does this mean I have to do something manually? How profitable is investing in US ETF from Europe? Does anyone have experience with DeGiro?

    submitted by /u/N_kos
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    airbnb and pinterest ipo's

    Posted: 27 Feb 2019 10:10 PM PST

    just want thoughts on these stocks, i know they have ipo's im not sure when theyre supposed to come out. pretty sure one of the two listed comes out in april-ish. would you invest into either of these companies? I feel like pinterest is kinda like an etsy, but you cant order things off of it. airbnb i feel like is a definite buy when it comes out only because it dominates its niche.

    submitted by /u/QuemziTTV
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