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    Sunday, March 31, 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: 30 Mar 2019 05:12 AM PDT

    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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    Lyft is wildly unprofitable and lost $911 million last year — here’s how other unprofitable companies fared after they went public

    Posted: 30 Mar 2019 06:48 AM PDT

    https://www.businessinsider.sg/initial-public-offering-how-unprofitable-companies-fared-2019-3/

    Lyft went public Friday at a valuation of more than $20 billion despite recording heavy losses ahead of its initial public offering.

    Several other money-losing tech companies, like Uber and Pinterest, are preparing IPO filings.

    Markets Insider has compiled several examples of money-losing tech firms going public – they range from bankruptcies at Pets.com and Webvan to huge gains at Amazon.

    submitted by /u/coolcomfort123
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    Google parent company Alphabet has more than doubled its money on Lyft to $1 billion in just 17 months (CNBC)

    Posted: 30 Mar 2019 07:19 AM PDT

    submitted by /u/markyu007
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    Lazy Portfolio Returns March 2019 Update

    Posted: 30 Mar 2019 09:02 AM PDT

    I have been tracking the returns for the Vanguard lazy portfolio returns for Aggressive (90% Stock / 10% Bond), Balanced (60% Stock / 40% Bond), and Conservative (30% Stock / 70% Bond). I think everyone should pay attention to these and use them as their portfolio benchmarks, especially for those that pick their own stocks. I've also included the market returns for reference. Here are the year to date returns so far for 2019:

    Aggressive: 11.5%

    Balanced: 8.5%

    Conservative: 5.6%

    Market Returns:

    S&P 500: 13.5%

    Russell 2000: 14.6%

    Dow Jones: 12.0%

    US Aggregate Bond: 2.9%

    MSCI Emerging Markets: 9.7%

    submitted by /u/investdonttrade
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    Many new companies running expanding negative earnings. Is this a new phenomenon? Is this a good thing?

    Posted: 31 Mar 2019 03:03 AM PDT

    Looking at the earnings of many companies lately, especially the one's that are new, I've noticed this trend. What are your thoughts on this and is it sustainable?

    Examples of negative earnings companies: Square, Twilio, Wix, Netflix, Lyft, Snap

    submitted by /u/opencoins
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    Feedback needed on these 2 bonds (newbie)!

    Posted: 31 Mar 2019 02:49 AM PDT

    So I'm looking to start investing and keep a 70% stocks - 30% bonds portfolio. I'm looking to pick a small amount each month (ie. dollar-cost averaging), so I found 2 bond ETFs that I think are safe and with decent returns:

    1. iShares Global Inflation Linked Govt Bond UCITS ETF
    2. Vanguard USD Treasury Bond UCITS ETF

    And now for the questions:

    1. What do you think about these in general?
    2. Should I find more bonds in addition to the above, so that I can further diversify? Or are these two enough?

    P.S. I'm in Europe and will buy via Degiro.

    submitted by /u/hyu-
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    Do you guys listen to any good podcasts on spotify?

    Posted: 30 Mar 2019 02:07 PM PDT

    I'd love to hear some recommendations for people who talk about trading stocks and options.

    submitted by /u/_rewrapt
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    What is to stop a market order from being completed at an unfair price?

    Posted: 30 Mar 2019 08:10 AM PDT

    I'm very new to investing and I'm trying to understand the basics.

    If I want to buy a stock priced at $5/share, and I place a market order, the way I understand it is that I will buy from someone who is selling the stock at the market price. But what if no one is selling at $5, but someone out there has a limit sell order to execute if the stock ever gets to $100.

    What's to stop my order from executing at $100 instead of $5?

    submitted by /u/intrepid604
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    Getting a Loan for Business Investment

    Posted: 30 Mar 2019 10:20 PM PDT

    Hey guys, I was looking to invest into my next business venture. My brother and I have 5 pizzeria franchises. Our group is about 10 guys, 2 of which have been in the business for 20+ years. I have been investing 10-20k per store, and now will be getting an opportunity to invest "what I can afford". With 4/5 being profitable, I can afford plenty if I budget correctly. First time I sold my car. Second time I borrowed money from parents (paid back). And the last 2 times it was between savings and a small personal loan(paid).

    Question is, where and how do I get the money for it? Looking for roughly $35k, maybe up to $52.5.

    submitted by /u/polish94
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    Any app/website to connect Robinhood account?

    Posted: 30 Mar 2019 05:45 PM PDT

    Robinhood's trading graphs suck. Are there any services where I can connect Robinhood account to do some TA and just better real time tracking. I tried Yahoo money but thats not very great. Thanks.

    submitted by /u/gambler_no_1
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    Foreign companies - ever concerned taking numbers at face value?

    Posted: 30 Mar 2019 09:22 PM PDT

    Does any one have hesitations investing in some foreign markets as to how countries treat financial reporting? I know it's not perfect in North America, but I feel fairly confident numbers being reported are above board (yes there's shell games). I know nothing for instance how India (doesn't mean they don't, I'm just not familiar) ensure reporting is accurate and true. I get concerns I'll invest in something like China and meanwhile the governments turning a blind eye for example to make things look better than they are.

    Anyone else concerned about versions of this?

    submitted by /u/Abevigodaschoda
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    Why is everybody, including the media, focusing on market cap instead of enterprise value?

    Posted: 30 Mar 2019 12:12 PM PDT

    I really don't get this. For instance, Tesla's mkt cap is around $48B, EV is $57B (debt is $13B).

    But then GM has a market cap of $52B, but an EV of $134B (debt is $104B)

    And then Ford has a market cap of $35B, but an EV of $155B (debt is $154B)

    I know debt is cheap these days, but that's not the problem - what I don't get is why people don't focus more on EV? Every time I watch CNBC, nobody ever talks about EV. But wouldn't it be much more relevant, even crucial to only focus on EV when it is multiple times the market cap?

    submitted by /u/Dotald_Trump
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    Stocks with massive drawdowns that came back to produce big gains

    Posted: 30 Mar 2019 08:16 PM PDT

    Clunky title but I'm looking for some examples of stocks that got absolutely hammered but have still put up some big CAGRs. Was looking at SBAC which had a drawdown of over 99% at one point but still put up 13.1% CAGR since its IPO vs. 5.4% for the S&P.

    submitted by /u/salfasano
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    How can I invest in KAZATOMPROM? (kazakhstan uranium)

    Posted: 30 Mar 2019 05:54 PM PDT

    As the title mentions, what brokerages can I use to invest into KAZATOMPROM?

    I currently use Fidelity for all of my trading needs but during my quick search (Even after enabling international trading) I was not able to find it.

    Appreciate the assistance!

    submitted by /u/loeras
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    What is the relationship between FCFF and FCFE? Are they supposed to move together or can they diverge?

    Posted: 30 Mar 2019 05:14 PM PDT

    What I mean by that is, can one of them go up and the other goes down or must they move together? The way I understand the two is that they have to move together otherwise something is wrong. If FCFF is how much is available to all stakeholders in a company then it would make sense to me that a slice of that would be available to only the equity owners, meaning if FCFF as a whole shrinks then FCFE would have to shrink also. But I know I don't fully understand the nitty gritty of this stuff just yet so can someone please explain this to me?

    submitted by /u/howtoreadspaghetti
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    The future of small cap stocks/companies?

    Posted: 30 Mar 2019 05:08 PM PDT

    With these monsters like Amazon taking so much market share, how can smaller companies like Macy's and smaller retail stores compete at all? How will small caps continue to perform in a future with the mega companies eating up market share?

    submitted by /u/Masteron-K4
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    Best investment for 1-5 years?

    Posted: 30 Mar 2019 05:04 PM PDT

    Hello! I'm planning on putting money towards a down payment on a house as a wedding present for a friend. However, they don't plan to buy right away, so I was going to put it into a high interest savings account, or CD until they are ready. Does anyone have any suggestions or tips for what type of account or other investment to look for? How would I go about the gifting or transfer process from me to them? Any help would be much appreciated!

    EDIT: Are any accounts or investments easier to transfer to other people than others?

    submitted by /u/jmoshoginis
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    How does M1 Finance let you buy fractional shares?

    Posted: 30 Mar 2019 07:13 AM PDT

    I thought shares could only be bought in wholes? How does this work? Sounds too good to be true.

    submitted by /u/Masteron-K4
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    Low liquidity FZROX?

    Posted: 30 Mar 2019 04:52 PM PDT

    Since it's not as large as the other index funds, would this be an issue in the future if a lot of people don't buy into FZROX?

    submitted by /u/Masteron-K4
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    How to ask for fair equity stake in a start up.

    Posted: 30 Mar 2019 04:34 PM PDT

    Say one was to invest 5k into a friends business. What is the best way to figure out an appropriate amount of equity to ask for in exchange for said capital?

    submitted by /u/ownseagls
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    Starboard value and other activist investors: do they do anything besides take a big stake in a company and then try to get it sold?

    Posted: 30 Mar 2019 08:43 AM PDT

    Starboard value took a huge stake in BMY, opposed the acquisition of CEL by BMY, set up a proxy battle, then quit out basically as soon as BMY started that they have not had any serious queries/ diligence on being bought by PFE or Novartis since 2016.

    Same deal for starboard value with Papa John's and the YUM buy out. Same deal again with starboard value and Yahoo. They put people into the board, but I assume those board members just advise to shuffle things around in order to facilitate a sale.

    Does starboard value (or any activist investor) have any other moves besides "get the target company sold"?

    submitted by /u/bleearch
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    Peter Schiff and Euro Pac?

    Posted: 30 Mar 2019 03:56 PM PDT

    Thoughts on Peter Schiff and Euro Pacific Capital? Has anyone used his services?

    submitted by /u/entropiceggplant
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    Trading in a Roth IRA?

    Posted: 30 Mar 2019 12:02 PM PDT

    I'm currently investing enough in my 401k to max out my employer's matching contributions and am starting to think about what to invest in next. I know the general consensus here (assuming one has enough money) is to max out IRA contributions next and then max out overall 401k contributions. The consensus also seems to be to employ a purely passive trading strategy in all of the above accounts, with active trading reserved for a "play money" brokerage account.

    What I'm wondering is why not take advantage of being able to trade in a Roth IRA without worrying about short or long term capital gains? I'm not thinking of doing day trading or anything too aggressive, but there seem to be a few strategies out there that would be very appealing except for their tax inefficiency.

    This strategy or something like it seems like it could do very well in a Roth IRA account. What are your thoughts on employing some sort of long-term, active strategy in a Roth IRA?

    submitted by /u/remitnotpaucity
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    Young teenager looking for advice

    Posted: 30 Mar 2019 03:47 PM PDT

    I am almost going to be 15 years old and have saved up a little over a hundred dollars, I am looking for a moderately safe way to invest my money and increase it by at least twice. I have never invested in any companies or mutual funding.

    Please leave your answers/advice/instructions. I would be infinitely greatful :)

    submitted by /u/fares751
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