Bill Gates says letting Android win mobile was his ‘biggest mistake’ at Microsoft Investing |
- Bill Gates says letting Android win mobile was his ‘biggest mistake’ at Microsoft
- The market is wrong for already pricing in a trade war resolution being reached.
- AbbVie Nears Deal to Buy Allergan for More Than $60 Billion
- [x-post from r/stocks] - A concise guide to shorting stocks, calls, and puts for new traders. I put this together for my own self-education - have I made any mistakes?
- Everyone here says to buy and hold until the market starts falling
- How many people here are experienced enough to give advice?
- Never seen such a large spread between two Total Market funds before (VTI/VTSAX vs. ITOT)
- Does Burry still hold his water positions?
- What’s next for $BYND?
- Bloomberg: How One VC Firm Amassed a 24% Stake in Slack Worth $4.6 Billion
- Are lifecycle funds best for people who don’t have any interest in their retirement accounts?
- Where to invest in preparation for the possibility of Libra coin being a success
- CD rates have dropped ��
- Historical Market Data Vendors
- Argument against emerging markets
- Benefits of Nuveen, Vanguard and Fidelity?
- Gold stocks
- Question about how Gross Margin is calculated on income state.
- What are your top 3 stocks to own during a recession period?
- Looking for some insight on $EA movement in the last month
- Any opinions on Vanguard Target-Date Funds?
- Investing in long term ETFS with GBP
- Rule One Investing
- If you could, what would you automate for your stock research?
| Bill Gates says letting Android win mobile was his ‘biggest mistake’ at Microsoft Posted: 24 Jun 2019 12:41 PM PDT As MSFT continues to hit record highs, it really is interesting to ponder what it'd be like if they had successfully infiltrated the mobile market as well. [link] [comments]  | ||||||||||||||||||||||||||||||
| The market is wrong for already pricing in a trade war resolution being reached. Posted: 24 Jun 2019 10:48 AM PDT
This just feels like the market is setting itself up for a huge disappointment. [link] [comments]  | ||||||||||||||||||||||||||||||
| AbbVie Nears Deal to Buy Allergan for More Than $60 Billion Posted: 25 Jun 2019 03:44 AM PDT | ||||||||||||||||||||||||||||||
| Posted: 24 Jun 2019 10:00 PM PDT Hi everyone! Here's the original post: https://www.reddit.com/r/stocks/comments/c4wk9q/a_concise_guide_to_shorting_stocks_calls_and_puts/ --- Going Long on Stocks Going "long" on a stock means that if the price goes up, your profits go up. When you buy a share, you create a sort of contract with a stock exchange that is then stored on their internal, proprietary database: their ledger. The plain-English contract between you and the exchange is: "Hey, I'm Mick Ronson, and I own one share of $FOO, purchased at $100. I have the right to sell it to a buyer at any point in the future, at a price determined by the market." The contract is executed instantly. It's kind of like a game: https://i.imgur.com/Gowsqzv.png Long means "up is good; down is bad". Shorting a stock Shorting a stock is the opposite going long; if the price goes down when you're short on a stock, your profits go up. Here's how shorting works¹: Given a share price of $100 that you expect to drop, you can borrow $100 from a broker and promise to pay it back in the form of one share. If the price drops, you can buy a share using this borrowed money and give it to the broker. You gain the difference. ¹: Technically, it's a bit more complicated. The above simplification is a heuristic I use because it's conceptually accurate. To quote @DivergentViewUS:
When you're short and price increases, you either wait for it to come back down, or you eat the losses and buy a share at the higher price using the borrowed money plus some of your own money before giving it back to the broker. You'd lose the difference. The plain-English contract between you and the exchange is: "Hey, I'm Mick Ronson, and I have borrowed $100 from you with the promise of paying you back in the form of one $FOO share, currently valued at $100. I am on the hook to eventually get my hands on a share for you at any point in the future. If the price of one $FOO share increases to $120, I will have to use the money that I borrowed from you to buy a portion of that share, and then $20 of my own money to buy the rest of the share. I will then give you the share at a personal loss of 20%. If the price of one $FOO share decreases to $80, I will be able to use the money that I borrowed from you to buy an entire share, and then keep the extra $20 for myself." This game is similar to the first, but flipped: https://i.imgur.com/vkAENZX.png Short means "up is bad; down is good". Each of these instruments allow you to engage with the market through a contract that records the following:
This "smart contract" lets us bet on the direction of a stock's price. Note that "selling" without a share to sell is "shorting". --- Limit/Stop Orders The Price at time of time of contract execution doesn't have to be the current price, though. If you $FOO is currently priced at $100 and you want to go long when it hits $120 because you anticipate an upward breakout at that price, you can place a "buy stop order". If you want to go short when $FOO hits $120 because you anticipate a downward correction, you can place a "sell stop order". Even if the price of $FOO is $100, you can purchase the following contract:
This contract, in contrast to the first, will only execute if and when the price equals $120. It's a more nuanced game, but not all that different from the two we've seen so far: https://i.imgur.com/8oABtgj.png Once the share price trips the wire of your limit, the contract is executed just like the very first game we played. A notable comment from @DivergentViewUS:
--- Options An option is a slightly more complex instrument. The simple rule is that if a share price moves away from a specific value by a specific time, you profit. Going long with a call option Given a share price of $100 that you expect to climb beyond $120 by November 5th, you may purchase the option to "purchase a share - or call it into your wallet - for $120 at any point between now and November 5th". If the price increases from $100 to $200 sometime between now and November 5th, you can exercise your option for an $80 profit. If the price never hits $120, and instead falls to a November 5th price of $40, you aren't obligated to do anything; you can opt to eat the cost of the option. Here's what the option game looks like: https://i.imgur.com/SOXPdlG.png Going short with a put option Given a share price of $100 that you expect to climb no higher than $120 by November 5th, you may buy the option to "sell a share (or put it out of your wallet) for $120 at any point between now and November 5th". If the price falls to a November 5th price of $40, you can then exercise your option for an $80 profit. If the price rockets up to $200, you're under no obligations and only have to eat the relatively small cost of the option. Note that if the price never hits break-even, you're responsible for your loss of principal; it's not like there's no downside. https://i.imgur.com/6klYYGN.png --- Options and stocks are two different types of financial instruments that are traded in two different markets. The price that you pay for an option is determined by supply and demand, in the same way that the price of a share is determined by supply and demand. The supply and demand for an option is derived from the supply and demand of the underlying shares. This is why options are referred to as derivative instruments. Here's what an option contract looks like:
Note: Once you hold an option, you can do three things with it: You can manually exercise it at any time before the expiry; it can automatically be exercised by the broker at expiry; you can sell the contract back into the market. This "smart contract" lets us bet on price and time in a way that limits our losses and leverages our capital. Let's look at an example using a real stock: Tesla. Let's suppose that I have $10,000 that I would like to invest in Tesla, and that I'm so confident in Tesla that I'm willing to throw it all away on a highly leveraged, optimistic bet. $TSLA is currently trading at $221. I expect it to be far above $221 by Q4 2019. Here are my games: Game 1: Going long with stocks
Game 2: Going long with options It looks like the $225 December strike price will cost about $35 per share: https://i.imgur.com/06NgPMX.png
Options magnify my potential reward while also magnifying the potential for losses; Tesla dipping 20% means I lose 100% of my principal. Here's my "contract", in this case:
------- I hope this helps someone! If I've said anything erroneous, I'd love to hear about it. Thanks for reading. ------------ UPDATE: Definitely read some of the comments to learn more: https://www.reddit.com/r/stocks/comments/c4wk9q/a_concise_guide_to_shorting_stocks_calls_and_puts/erz02kl?utm_source=share&utm_medium=web2x Thanks to u/equities72 for the candid corrections. [link] [comments]  | ||||||||||||||||||||||||||||||
| Everyone here says to buy and hold until the market starts falling Posted: 24 Jun 2019 01:39 PM PDT Reddit wasn't as popular during the financial crisis of 2008 but just look at the data for December 2018. You can Google "Reddit archive" and find plenty of websites that allow you to view this subreddit during December 2018. Everyone was panicking and saying to sell everything - even reallocating retirement funds to cash and bonds. Then suddenly AFTER every big rally, those same people say to newcomers "buy and hold" and then proceed to down vote their post/comment that is even a little speculative. Most of you act level headed and reasonable until the market starts tanking and suddenly you're "all cash and bonds I'm a genius who can time the market" [link] [comments]  | ||||||||||||||||||||||||||||||
| How many people here are experienced enough to give advice? Posted: 24 Jun 2019 11:58 AM PDT This is just an observation. I see people dishing out advice here like they are the second coming of Warren Buffet. I understand the nature of Reddit and it doesn't bother me, but I'm truly curious as to how many of these people aren't actually compete noobs who aren't nearly qualified enough to probably even manage their own portfolios. What do you guys think? [link] [comments]  | ||||||||||||||||||||||||||||||
| Never seen such a large spread between two Total Market funds before (VTI/VTSAX vs. ITOT) Posted: 24 Jun 2019 02:32 PM PDT Just curious why VTI/VTSAX underperformed ITOT so badly today (~40bps). Looks like the dividend pay dates for both were last week, so doubt it's that. [link] [comments]  | ||||||||||||||||||||||||||||||
| Does Burry still hold his water positions? Posted: 25 Jun 2019 04:00 AM PDT | ||||||||||||||||||||||||||||||
| Posted: 25 Jun 2019 03:29 AM PDT I have a short position still open on a stock trader, open at $173 about 5 days ago, now the stock is plunging at $140 and my only concern was that I didn't buy more in the first place and that I didn't use real money (I'm on Investopedia teen stock game). Now who can guarantee that the company will ever be worth investing jn the long term? I see that their margins get thinner quarter by quarter and the alternative meat industry is getting bigger year by year. What do you guys think? [link] [comments]  | ||||||||||||||||||||||||||||||
| Bloomberg: How One VC Firm Amassed a 24% Stake in Slack Worth $4.6 Billion Posted: 24 Jun 2019 05:57 AM PDT | ||||||||||||||||||||||||||||||
| Are lifecycle funds best for people who don’t have any interest in their retirement accounts? Posted: 25 Jun 2019 03:03 AM PDT I have a couple of friends who have little or no interest in their retirement accounts. I know unsolicited advice doesn't go over well. But if I have an opportunity to recommend what they should have in their accounts, I would suggest they just put everything into lifecycle or target date funds. This seems like the best and simplest thing for such people to do. They wouldn't even have to go into their accounts to rebalance annually as is often recommended. Does this sound like good advice? [link] [comments]  | ||||||||||||||||||||||||||||||
| Where to invest in preparation for the possibility of Libra coin being a success Posted: 25 Jun 2019 02:44 AM PDT So I'm hoping this doesn't descend into a thread arguing over whether Libra will be a success or not. I'm asking for suggestions on where someone could put money in case of the possibility of Libra being a success. So I guess there's the very obvious, 'buy Libra coin when it comes out' but from what I understand the, 'Libra Association' wants the coin to be stable and not fluctuate which in my mind limits the possibility of buying the actual coin when it comes out and hoping it rises in value like some other successful cryptocurrencies. I'm presuming Facebook will make some significant gains if it's a roaring success but Facebook plan to only be a small voice within a consortium of companies and institutions that have a say in which direction it will go. can anyone suggest some other good places to invest? [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 24 Jun 2019 11:51 AM PDT My bank has pitiful cd rates, a twelve month being 1% but now it has dropped to 0.5%. I see that other national banks have dropped there rates as well. I imagine this will cause principal investors to put there money towards other securities which is a possible reason for the boom in gold. Fed is worried about economic slowdown (apparently) but what are some assumptions that can be made with this shift? [link] [comments]  | ||||||||||||||||||||||||||||||
| Historical Market Data Vendors Posted: 24 Jun 2019 06:29 PM PDT Looking for suggestions on market data vendors. I need historical data for specifically: Price data adjusted for splits, P/E (or trailing 12 mo. earnings), Fwd P/E (or forecasted earnings) at the time and preferably derived from analysts' consensus, not the firm's forecasted earnings, Dividends, Needs to be for stocks and ETFs, specifically SPY or aggregate market metrics. Obviously more than that is fine, but I'm specifically having trouble finding historical data with forward earnings estimates at the time. Doesn't have to be API, a .csv is fine. Thanks! [link] [comments]  | ||||||||||||||||||||||||||||||
| Argument against emerging markets Posted: 24 Jun 2019 03:59 PM PDT I'll admit, with the Asianization of things these days, emerging markets seems like a pretty nice bet. However, my mind has been changed after reading this article from April 2019, so I wanted to share. https://www.seeitmarket.com/emerging-markets-investment-outlook-not-now-thanks-19182/ [link] [comments]  | ||||||||||||||||||||||||||||||
| Benefits of Nuveen, Vanguard and Fidelity? Posted: 24 Jun 2019 06:35 PM PDT I'm just wondering what people's experiences have been with any of them. Vanguard seems great for low cost index funds. Fidelity I like because they're one of the few that still do Inverse funds. Looking for some income / dividend folio manager and Nuveen seems to have some nice products in that area. Would love to hear some opinions especially on the latter. [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 24 Jun 2019 01:15 PM PDT I was wondering how many of you guys hold gold equities? I've got some Barrick Gold as a holdover from the Randgold takeover. I'm happy to see the recent surge. As a non-US national it's not particularly a stock I want to hold long term as there are tax and currency complications, so I'm looking to exit during this surge if it reaches an attractive enough price. A part of me is pretty disappointed that Randgold went away as holding that would have been easier. Any other gold holders and if so are you bullish or do you reckon the spike will soon melt away? [link] [comments]  | ||||||||||||||||||||||||||||||
| Question about how Gross Margin is calculated on income state. Posted: 24 Jun 2019 05:39 PM PDT Hey guys, What is the purpose of
Are those values added into the Gross Margin? Thanks!
[link] [comments]  | ||||||||||||||||||||||||||||||
| What are your top 3 stocks to own during a recession period? Posted: 24 Jun 2019 07:33 PM PDT A recession could be around the corner in the next few upcoming years, i want to hear what stocks you would hold during that period. Thanks for any input! [link] [comments]  | ||||||||||||||||||||||||||||||
| Looking for some insight on $EA movement in the last month Posted: 24 Jun 2019 07:34 AM PDT Hello I'm new to investing and am trying to learn as much as possible. I have a few shares of EA and am confused as to why it has been consolidating for so long when it seems to me that they have had nothing but positive news. Any information or insight is helpful. Thanks [link] [comments]  | ||||||||||||||||||||||||||||||
| Any opinions on Vanguard Target-Date Funds? Posted: 24 Jun 2019 06:07 PM PDT Target-date retirement fund get a bad rep. What about Vanguards though? Like the 2055 fund? [link] [comments]  | ||||||||||||||||||||||||||||||
| Investing in long term ETFS with GBP Posted: 24 Jun 2019 12:05 PM PDT I was planning to invest in US and emerging markets ETFs using the vanguard stocks and shares is here in the UK. However, all their products are listed in GBP which annoys me as I didn't want to have this exposure (especially long term) because of Brexit. I'm 23 and looking to leave 20k for 10 years minimum. I'm I overthinking this as being too much of a big deal or shall I actually worry about it and take the money somewhere else? I like Vanguard because of the low fees. But here in the Uk we also have Hargreaves Lansdown which although has higher fees it allows investors to buy stocks and shares with other currency denominations. I'd ideally buy the stuff in dollars. Any ideas? [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 24 Jun 2019 04:27 PM PDT Is there a specific group dedicated to those who discover securities that qualify for purchase in the One Rule scheme? [link] [comments]  | ||||||||||||||||||||||||||||||
| If you could, what would you automate for your stock research? Posted: 24 Jun 2019 10:03 AM PDT Due diligence on a stock and/or sector is important. What would be your ideal process before deciding on a stock? How would you like to receive that data? (Email, text, etc...) [link] [comments]  |
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