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    Friday, June 14, 2019

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing


    Daily Advice Thread - All basic help or advice questions must be posted here.

    Posted: 13 Jun 2019 05:14 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.

    Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq

    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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    If you had $500 a month given to you what would you do to invest it? Very new to investing money/ stocks/ bonds/ 401k stuff. Basically new to everything. So if someone gave you $500 every month what would you do with it investment wise?

    Posted: 13 Jun 2019 08:57 AM PDT

    Fiverr, a marketplace for freelance services, is now valued $1 billion after soaring 90% on IPO day. Revenues for Fiverr climbed to $75.5 million last year, from $52.1 million a year prior, while losses swelled to $36.1 million from $19.3 million.

    Posted: 13 Jun 2019 08:06 PM PDT

    Tyson Foods unveils plant-based nuggets as it moves into meat alternatives

    Posted: 13 Jun 2019 09:49 AM PDT

    Tyson Foods will begin selling plant-based nuggets this summer.

    The nation's largest meatpacker divested from Beyond Meat prior to the latter's initial public offering because it wanted to develop its own plant-based products.

    Tyson CEO Noel White says alternative protein could be a billion-dollar business for the company.

    https://www.cnbc.com/2019/06/13/tyson-foods-unveils-plant-based-nuggets-in-move-into-meat-alternatives.html

    submitted by /u/NineteenEighty9
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    The Intelligent Investor

    Posted: 13 Jun 2019 03:16 PM PDT

    Hi all I recently purchased 'The Intelligent Investor' and was wondering if there was any books you guys would recommend to read before hand, or if I would be fine just going straight into this book. Thanks!

    submitted by /u/wilrab
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    Is it really a no-brainer to invest in index funds?

    Posted: 14 Jun 2019 02:53 AM PDT

    I recently started reading Security Analysis and Graham mentions several times forms of investments that were considered no-brainers during their time. Company bonds, US bonds (when they still paid high interest), railroad stocks etc. For basically all of them it turned out that this assumption was false and they ceased to be good investments (at least not under every possible circumstance).

    Today everyone is screaming to invest in index ETFs. People argue to not even think about it, to just do it. In general I think not thinking about your investments is a bad idea. If we look at the last 30 years of the Japanese NIKKEI, it's been trading sideways for that timeframe, even down a little.

    Am I crazy to think that our periods no-brainer can turn out to be what every other periods no brainer was: Something too good to be true?

    submitted by /u/-JPMorgan
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    New GMO paper explaining why value stocks have underperformed since 2009

    Posted: 13 Jun 2019 08:30 AM PDT

    Fiverr up 90% in IPO Debut - Opened at $26, closed at $39.90

    Posted: 13 Jun 2019 03:30 PM PDT

    More IPO madness. Yet another company posting massive losses and raking it in after going public. Unbelievable that this company is worth anything close to this, really.

    http://fortune.com/2019/06/13/fiverr-ipo-gig-economy/

    submitted by /u/oarabbus
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    CHEWY IPO: Pets.com moment in this business cycle.

    Posted: 14 Jun 2019 12:52 AM PDT

    YET another unprofitable company IPO.

    I don't see how they are a viable business once Amazon decides to focus on pet care delivery.

    But, no doubt its stock will move a lot higher because marker movers will make it so.

    Theres a famous business proverb that at the peak of a bubble only shit companies IPO.

    We are at that moment in the business cycle.

    submitted by /u/youtubehead
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    ZM valuation/revenue/share analysis

    Posted: 13 Jun 2019 08:29 PM PDT

    Hoping the experts on this forum can confirm my analysis:

    From the Yahoo page - 32M shares are outstanding with a float of 20M shares => implication that the 12M shares could be considered "employee/management" shares.

    - 32M shares @$100 share price is $3.2B which is about 12% of the market cap.

    - 12M shares may mostly go to the employees/managers or $1.2B is new wealth created for the ~2000 employees or $600K per employee. And this includes any vested options etc.

    - and most of the valuation (88%) or ~$25B is locked up with insiders. I'm assuming that would be the CEO, key execs, board members, and angel investor, VC types

    The primary valuation is revenues i.e. P/S of 70 and anticipated growth. So to increase their net worth, if the "super-insiders" maintain the revenue growth projections, they keep control of this $25B of wealth.

    Or to put it in context => if I am an insider, my incentives are to maintain/grow each $1 of revenue which means I maintain/increase $7 of my wealth.

    submitted by /u/gm12344
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    Investing in S&P500 (VOO) instead of US Total Market (VTI) to avoid recent cash-bleeding IPOs

    Posted: 14 Jun 2019 03:48 AM PDT

    The S&P500 index has more requirements than simply being a top 500 market cap stock.

    These requirements include the company being:

    • at least half a year since its initial public offering
    • Four straight quarters of positive as-reported earnings

    As a result, companies like Tesla which IPOd in 2010 are still not in the S&P 500.

    These means that tracker funds such as Vanguard's VOO for the S&P 500 and VTI for the total US market differ in their holdings for even a top 500 market cap company. Taking Tesla: VTI had 0.17% of its holdings in Tesla as of the 2018 annual report while VOO had 0%.

    In 2019 we've seen a lot of companies with questionable long term profitability going to IPO (Uber, Lyft, Zoom, Beyond Meat, etc.)

    The way I see it, if an investor wanted to avoid the Ubers and Lyfts creeping into their index funds perhaps the easiest way to do this would be to sell any VTI shares and instead invest in a VOO.

    Does anyone have any thoughts on the above? Of course you lose some diversification into other small caps which you may want, but personally I see the risk of these high cash losers all forecasting huge growth rates as much more troublesome.

    submitted by /u/noodlesource
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    Related party sale and purchases of shares

    Posted: 14 Jun 2019 03:27 AM PDT

    Does anybody know of a good source, or indeed do any sort of analysis themselves, of sales and purchases of shares my related parties (e.g. directors, key personnel etc.)? As basic of an analysis as it is, it would be good to see any hard analysis done on whether there is a statistically significant relationship between these transactions and the subsequent movement in the share price of a company (either by virtue of the market following the move of someone in the know, and almost driving the sale, or by the sale being a red flag for news to come in a few weeks time that will impact the price regardless).

    I'm also wondering how easy it would be to build something that scoured a website that has news of RP transactions and runs some form of regression against stock prices, that could be as up to date as possible (suppose this depends on how quickly the data becomes available).

    More of a thought dump than anything useful I suppose, but interested in people's thoughts.

    submitted by /u/punknick23
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    Degiro chipping away free margin

    Posted: 14 Jun 2019 03:26 AM PDT

    As far as I know I have not made any investment with margin. I have only bought US equities, is this associated in any way to euro and dollar conversion interests or? Sorry if it sounds stupid, I am a little noob but I realized Degiro is chipping away 1 cent every day from my positive free margin in the account.

    submitted by /u/xFantasi
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    What's next for Western Digital (WDC)?

    Posted: 13 Jun 2019 12:42 PM PDT

    Hi. WDC is the most prominent name in HDD. They were late to the game in SSD. Lower storage pricing, tariff talks have hit them hard.

    They went from $105 to $37. Now freezing out business with Huawei is another blow.

    What do u guys think is next for WDC. Looking into stocks vs long options.

    Personally I don't see more downside but I've been wrong many times.

    submitted by /u/Geronemo3
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    Looking for a social trading broker...

    Posted: 14 Jun 2019 01:22 AM PDT

    ... that is neither eToro nor Ayondo nor Wikifolio.
    Should be available in the EU.

    Any alternatives?

    submitted by /u/_shellsort_
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    Would you rather spend a year with Warren Buffett or be given $50,000?

    Posted: 13 Jun 2019 07:03 PM PDT

    How to fire wealth manager and move TD Ameritrade Funds to Vanguard?

    Posted: 13 Jun 2019 12:07 PM PDT

    Hi! I'm 22 and have $200k in funds with my wealth manager / risk manager in TD Ameritrade. He gets 1% of it per year whether it goes down or up. Within it is a SEP which is the non taxed fund or something like that that I can't take out until retirement. I also have a Vanguard account with $250k in it. I've worked very hard from nothing since I was 16 to run 2 successful online businesses.

    I just got heavily into figuring out how to manage my own wealth as well as online investing & reading a lot of books on Warren Buffet.

    After research, I've concluded having a wealth manager is stupid and I can just take all the funds he's managing for me and throw it safely into VFFVX fund which is a Vanguard 2055 target retirement fund. That would save me the $2k+ a year on the 1% he's getting from me.

    I'm a bit shy and unsure how to make this happen. Can I knock him off my TD Ameritrade account without doing any meeting in person? Then how to I do the transfer to consolidate everything over to my Vanguard account? For that I assume I can call and inquire myself how to do that.

    I suppose I'll just send an email to the wealth advisor to say things are done? He's put my funds into specific holdings... would I have to take them out of them?

    submitted by /u/stealnova
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    Xbox Excitement Lifts Microsoft Stock to All-Time High

    Posted: 13 Jun 2019 07:57 AM PDT

    BRKB holdings

    Posted: 13 Jun 2019 11:41 PM PDT

    Yahoo Finance normally lists the holdings but they don't list the holdings of BRKB. Maybe I am using the wrong search engines - I don't use Google for privacy reasons - but I am having an extremely hard time finding all the holdings of BRKB. Would anyone have a link to all the holdings of BRKB?

    submitted by /u/questionsrx
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    Large line of credit @3.25% interest

    Posted: 13 Jun 2019 09:00 AM PDT

    You are given access to a large line of credit at 3.25% interest ... what would you do with it?

    submitted by /u/Socal_Okie
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    Any rule of thumb for % of NW invested?

    Posted: 13 Jun 2019 11:52 AM PDT

    24m

    75% vested 25% cash

    Currently more cash than normal, car at 172k miles.. stay liquid in case of emergency..

    Any rule of thumb for these %'s?

    Cheers.

    submitted by /u/DogHouseExec
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    Are there any discount brokers that support leverage in a Roth IRA, and are their rates competitive?

    Posted: 13 Jun 2019 06:26 PM PDT

    It's no secret that the contribution limits are pretty low, and I would like to maximize the potential of this vehicle. M1 Finance appears to only support margin in a taxable account, but who else has decent margin rates and will allow it in an IRA?

    If anyone is wondering, I am looking at a portfolio along these general lines:

    100% SPLV, ~30% SPHD, ~-30% Cash.

    submitted by /u/thisistheperfectname
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    A Morgan Stanley reading on the economy collapses by the most ever

    Posted: 13 Jun 2019 01:22 PM PDT

    https://www.cnbc.com/2019/06/13/a-morgan-stanley-reading-on-the-economy-collapses-by-the-most-ever.html

    I think that this signals combined with other weakening indicators over the past couple of weeks that we are heading into a slowdown.

    submitted by /u/FriendsFan30
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