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    Friday, August 14, 2020

    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 Aug 2020 05:09 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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    I paid $1000 for an Adam Khoo investing course so you don't have to! (Summarized in post)

    Posted: 13 Aug 2020 10:10 AM PDT

    Lesson one is "stock basics" summarized: (2 videos) for every buyer there's a seller, for every seller there's a buyer, fear and greed drives prices, what fundamental analysis means, what technical analysis means.

    lesson 2 is ETFs summarized: (video 1) Bull markets are opportunities, bear markets are bigger opportunity's, Bear markets never last, always followed by bull market. (video 2) The market is volatile in the short term in the long term it always goes up, what an ETF is, different types of ETF indexes. (video 3) Expands on the different types of ETFs (bonds, commodities etc). (video 3) A 35min video on dollar cost averaging lol. (Video 5) summarizing the last 4 videos.

    Lesson 3 is Steps to investing summarized: (video 1) A good business increases value over time, a valuable business has higher sales, earnings and cashflow. (video 2) invest in businesses that are undervalued or fairly valued, stocks trade below its value because investors have negative perception of the company

    lesson 4 Financials summarized (all 4 videos) where to find financials, how to use a website (Morning Star) to screen stocks, how good is the company at making money, Look for companies that have growing revenue, check growth profit margin and net profit margin of company compared to industry.

    Lesson 5 Stock Valuation summarized (2 videos) go here: https://tradebrains.in/dcf-calculator/ and look at what the calculator is asking for, go to Morning Star find the needed numbers that are required, bam you got the intrinsic vale.

    Lesson 6 Technical Analysis summarized: (all 4 videos) What are candles sticks, what do they mean, support and ceilings, consolidation levels.

    Lesson 7 The 7 step formula summarized: (3 videos) See what I wrote in lesson 3 and lesson 5.

    lesson 8 Winning portfolio summarized summarized: (video 1) Diversify, keep portfolio balanced, different sectors (video 2) More sectors, Dividends (video 3) More on sectors, more on dividends, what are different stock caps (large cap, small cap etc)

    Lesson 9 finding opportunities summarized: (video 1) see lesson 3, (video 2) creating a watch list,monitor news, company announcements, stock price, financials

    Lesson 10 psychology of success summarized: (2 videos) basically: common sense.

    Lesson 11 Finding a broker summarized: (1 video) look at fees and commissions, see minimum deposit, check margin rates, make sure it has a good trading platform.

    I just saved you 18 hours and $1000.

    submitted by /u/swagbasket34
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    Apple Readies ‘Apple One’ Subscription Bundles to Boost Services

    Posted: 13 Aug 2020 04:39 AM PDT

    https://www.bloomberg.com/news/articles/2020-08-13/apple-readies-apple-one-subscription-bundles-to-boost-services?utm_content=business&utm_campaign=socialflow-organic&cmpid=socialflow-facebook-business&utm_medium=social&utm_source=facebook

    Apple Inc. is readying a series of bundles that will let customers subscribe to several of the company's digital services at a lower monthly price, according to people with knowledge of the effort.

    The bundles, dubbed "Apple One" inside the Cupertino, California-based technology giant, are planned to launch as early as October alongside the next iPhone line, the people said. The bundles are designed to encourage customers to subscribe to more Apple services, which will generate more recurring revenue.

    There will be different tiers, according to the people, who asked not to be identified discussing private plans. A basic package will include Apple Music and Apple TV+, while a more expensive variation will have those two services and the Apple Arcade gaming service. The next tier will add Apple News+, followed by a pricier bundle with extra iCloud storage for files and photos.

    submitted by /u/MasterCookSwag
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    Survey results show 95% of Chinese iPhone owners would switch from Apple to another smartphone brand, rather than give up WeChat

    Posted: 13 Aug 2020 11:01 AM PDT

    A huge Chinese survey with more than 1.2 million responses shows that 95% of Chinese iPhone owners would switch from Apple to another smartphone brand, rather than give up WeChat. The survey follows an executive order by Donald Trump banning US companies from transactions with WeChat owner Tencent.

    source: https://9to5mac.com/2020/08/13/chinese-iphone-owners/

    submitted by /u/maybenot12
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    A small subset of Vanguard investors moved entirely into cash when the market tumbled. Here’s how they did.

    Posted: 13 Aug 2020 02:22 PM PDT

    Article here. Key Stats:

    • 0.5% of Vanguard clients moved to all-cash between Feb 19 and May 31 (article calls them cash panickers). Only 5.0% made any move at all.

    • Defined contribution panickers started with average portfolios of $105k, 69% in stock.

    • Retail investor panickers started with averages of $70k, 77% in stock.

    • At the end of March about 57% of panickers had better returns, lower than you'd expect considering it was near the bottom.

    • By the end of May, about 15% had better returns and 85% worse. That's probably even more dramatic now as the market has continued to rally.

    • Even the better-off panickers were barely better off, like less than 5% better return. The worse-off were probably around 10% worse off on average, based on eyeballing their charts).

    submitted by /u/msnf
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    WeWork gets new $1.1 billion commitment from SoftBank, cuts burn rate

    Posted: 13 Aug 2020 09:47 PM PDT

    https://www.reuters.com/article/us-wework-results-softbank-group/wework-gets-new-1-1-billion-commitment-from-softbank-cuts-burn-rate-idUSKCN25932H

    The owner of money-losing shared office provider WeWork told employees on Thursday it has slashed its cash burn rate almost in half from the end of last year and obtained a $1.1 billion commitment in new financing from majority owner SoftBank Group Corp.

    The company said in an e-mail to employees that its second-quarter results show the coronavirus pandemic has hurt business but its financial position remains strong.

    "Our early efforts to become a more streamlined, cash-conscious organization puts us in a better position to adapt quickly, navigate new realities and deliver our future business objectives," said Kimberly Ross, chief financial officer of WeWork, in the e-mail seen by Reuters.

    Revenue in the quarter reached $882 million, a 9% increase from a year earlier, Ross said. WeWork in the first quarter reported revenue of $1.1 billion, the first time it had exceeded nine figures, and its cash burn was $482 million.

    WeWork has $4.1 billion in cash and unfunded cash commitments, including the $1.1 billion in new financing, Ross said. WeWork in July indicated it expected to be cash flow positive in 2021, according to the Financial Times.

    The $1.1 billion is the last of the debt facilities included in a wide-ranging transaction announced in October 2019, a source at SoftBank said.

    WeWork ended the quarter with 612,000 members, a decline from 693,000 in the prior quarter. But 48% were from prized "Enterprise" customers, businesses with 500 employees or more.

    The results were released almost a year to the day after it filed plans to go public, when the company was valued at $47 billion and looked poised to be one of the year's hottest IPOs.

    WeWork soon entered a tailspin as revelations of corporate mismanagement emerged. The company has since undergone an enormous management shake-up and remains enmeshed in lawsuits over a $3 billion tender offer to existing shareholders.

    submitted by /u/PoolsApp
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    Tesla and Bitcoin: The Most Viewed Assets in America

    Posted: 13 Aug 2020 07:23 PM PDT

    According to TradingView: https://www.tradingview.com/chart/TSLA/qSFwTCM7-Tesla-and-Bitcoin-The-Most-Viewed-Assets-in-America/

    Tesla stock is the most viewed asset in America. Our data shows that throughout July, Tesla was the most viewed stock in 31 states. Bitcoin was not far behind. Since the start of the year, Tesla's stock has almost tripled in price. Meanwhile Bitcoin is up 60% year-to-date.

    Our findings also show the South East favors Forex and the West Coast states of California, Washington, and Oregon lean toward Bitcoin . The west coast loves crypto the most.

    We also looked into the airline industry, arguably being hardest hit by Covid-19. Stocks in this sector, including Boeing and American Airlines, saw favor among investors between March and June; Boeing was the third most viewed stock and American Airlines the 10th. It's clear that the global pandemic brought increased volatility to the airlines sector and with that came additional interest from traders and investors.

    What was particularly interesting was the largest publicly traded company, Apple , failed to reach the topmost viewed stock in any one state. Apple is nearing a $2 trillion market cap, it's up 53% year-to-date, and traders and investors still aren't paying that much attention. For now, the data clearly shows that Tesla and Bitcoin are the two assets everyone is looking at most often. As the data changes, we'll update you the best we can in research reports like this.

    submitted by /u/stockeroo
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    Initial Jobless Claims For the week ending on August 08, 2020: 963,000

    Posted: 13 Aug 2020 05:32 AM PDT

    Source: https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20201574.pdf

    Initial Jobless Claims:

    Actual: 963,000

    Prior Week: 1,186,000

    Prior Week Revised: 1,191,000

    Continuing Jobless Claims:

    Actual: 15,486,000

    Prior Week: 16,107,000

    Prior Week Revised: 16,090,000

    For comparison sake, the worst weekly jobless claims during the Global Financial Crisis was 665,000, for the week ending on March 27, 2009. This is the 1st week of new weekly jobless claims being under 1 million since the COVID-19 Global Pandemic began.

    Additional notable point:

    As of July 25, 28,257,995 Americans are claiming unemployment benefits. I am interested to see how much that number drops since on July 25 many of the additional benefits expired.

    submitted by /u/Annapurna__
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    Fed says it is developing an experimental digital currency

    Posted: 13 Aug 2020 08:12 PM PDT

    The Federal Reserve on Thursday announced it is building and testing a hypothetical digital currency, equivalent of cash.

    The goal of the program is to enhance the Fed's understanding of digital currencies, said Fed Governor Lael Brainard, in a speech to a conference on innovation sponsored by the Fed's San Francisco regional bank.

    Brainard went to great pains to stress that the central bank is not poised to issue digital dollars.

    A "separate policy process" involving thorny legal questions would be needed if the Fed ever wanted to use a digital currency. The central bank has not made a decision to even start such a process, Brainard said.

    https://www.marketwatch.com/amp/story/fed-says-it-is-developing-an-experimental-digital-currency-11597352302

    submitted by /u/MrG
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    Wish IPO

    Posted: 13 Aug 2020 11:07 PM PDT

    Any thoughts on a potential Wish IPO in 2020? Numbers for Q2 look very solid, seems Covid is having a positive effect, similar to the rest of e-comm. Do the numbers support it?

    https://www.forbes.com/sites/laurendebter/2020/07/30/wish-ecommerce-shipping-rate-increase-china-brick-and-mortar-stores-partnership/amp/

    submitted by /u/posvibez
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    Margin calculator for Interactive Brokers : ''At which price your shares must drop before you receive a margin call'' Excel Spreadsheet

    Posted: 13 Aug 2020 09:11 PM PDT

    Hi, a few day ago I responded to a question about what were the conditions for getting a margin call on Interactive Brokers and showed the calculator I created, received a lot of interest. So here it is, adapted to the US margin maintenance conditions. Please leave a comment if you see anything to improve and feel free to verify my calculations. PS: I don't even have an account at Interactive Brokers lol, I'm waiting to fill my TFSA at Questrade before opening a margin account at IBKR.

    Here's the link to download: https://drive.google.com/file/d/10RNdUvD4q1HFpP7Qdgfg8iL5vylJk6gW/view?usp=sharing

    submitted by /u/Gy7479
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    WSJ: Corporate America Worries WeChat Ban Could Be Bad for Business

    Posted: 13 Aug 2020 10:00 PM PDT

    https://www.wsj.com/articles/corporate-america-worries-wechat-ban-could-be-bad-for-business-11597311003?mod=breakingnews

    Aug 13 (Reuters) - U.S. companies whose fortunes are linked to China are pushing back against the Trump administration's plans to restrict business transactions involving Tencent Holdings Ltd's WeChat app, the Wall Street Journal reported on Thursday.

    More than a dozen major U.S. companies raised concerns in a call with White House officials on Tuesday about the broad scope and impact of Trump's executive order targeting WeChat, set to take effect late next month, the report added.

    The companies said action against the app could undermine their competitiveness in the world's second-biggest economy, according to the report.

    Apple Inc, Ford Motor Co, Walmart Inc and Walt Disney Co were among those participating in the call, the Journal reported citing people familiar with the situation. (https://on.wsj.com/2E2BCM4)

    Other participants in the call included Procter & Gamble Co , Intel Corp, MetLife Inc, Goldman Sachs Group Inc, Morgan Stanley, United Parcel Service Inc, Merck & Co Inc and Cargill Inc.

    The companies did not immediately respond to Reuters requests for comment. (Reporting by Neha Malara in Bengaluru; Editing by Shailesh Kuber)

    Since Trump's execute order (legality pending) prevents any U.S. entity (corporation or person) from transact with WeChat, this will severely damage the ability of American companies to do business in China. Apple will like lose 90% of their iPhone (and in turn, Apple Watch) sales in China and all the other companies that have a large revenue stream from China.

    For those who don't know, WeChat isn't just a message app, it's the platform where businesses conduct payment, e-commerce, marketing, etc from in China. It is so ubiquitous that even beggars on the streets carry QR code around in order to receive money.

    I am not sure how asking all American consumer companies to commit Seppuku serves American interest. If anything this would be the Chinese government's protectionist policy wet dream. Huawei will likely take close to 100% of the high end phone market in China now if Apple is no longer able to sell phones in China, ironically at the order of the American government.

    submitted by /u/cookingboy
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    USA Stock Market Crash coming October 2020 - March 2021

    Posted: 13 Aug 2020 09:58 PM PDT

    Global stock markets are now worth more than 100% of global GDP for the 1st time since 2018, pointing to a overvaluation in the Stockmarket and thus a correction meaning another stock market crash.

     

    According to Warren Buffett 2001 Fortune magazine article, a Market Cap to GDP Ratio >100% means simple means stock market overvaluation and is probably the best single measurement of where valuations stand at any given moment.

     

    If the percentage relationship falls to the 70% or 80% area, buying stocks is likely to work very well for you. If the ratio approaches 200%--as it did in 1999 and a part of 2000--you are playing with fire.

     

    The Wilshire 5000 Total Market Index was valued at about $33 trillion as of while the official advance estimate for second-quarter USA GDP, released on is $19.4 trillion . Based on those figures, the Buffett indicator now stands at about 170%, a historic high for the USA. Which is also a very strong warning of a market crash to come.

     

    The measure has a solid track record of predicting past downturns like the dot-com bubble burst and surged in the months before the 2008 financial crisis. Even on the beginning of the year this indicator stood at 154.7% as you can calculate with the data provided above and then the stock Market crash began on 20 February 2020. During March 2020, global stocks saw a downturn of at least 25%, and 30% in most G20 nations.

     

    Also look at the NASDAQ Composite (IXIC) going near vertical before the Market Crash earlier this year and is doing so again. The attempts by the government to pump up the economy with the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") on 25 Match 2020 which consists of a nearly $2 trillion stimulus package the largest in US history aimed at delivering critical assistance to the U.S. economy is resulting in it going straight into equities and into this bubble of financial assets that are spiralling up out of control..

     

    This also corresponds with the research on Dynamical Variety of Shapes in Financial Multifractality done by Polish Professor Stanislaw Drozdz from the Institute of Nuclear Physics of the Polish Academy of Sciences and his team examining economic data from the 1950s to 2016 on the S&P 500 stock market index. He mentioned:

     

    The data is, unfortunately, quite unambiguous. It seems that since the mid-2020s, a global financial crash of a previously unprecedented scale is highly probable. This time the change will be qualitative. Indeed radical!" says Prof. Stanislaw Drozdz (IFJ PAN, Cracow University of Technology). Source

     

    These events may also have been accelerated by the Coronavirus pandemic. It also maybe the reason why Gold is trading at historic highs of $2000.00/oz in early August of this year.

     

    There is talk of another $2 trillion economic relief package in the USA in September and my prediction is that we will face a stock market crash of atleast 10% in the time period of October 2020 - March 2021 if that happens and it is not only going to affect the United States of America but the rest of the world as well were ever we may be.

    submitted by /u/South_RT
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    Mistakes you may have made while investing? / What would you tell your younger self while starting out?

    Posted: 13 Aug 2020 12:15 PM PDT

    Hi there! I'm new to investing and am just starting out to learn about the market and such, if there's something that you'd want to tell your younger self in regards to investing what would it be? Or any mistakes that you may have made that looking back at you'd change?

    edit: I'm so appreciative of the comments so far, thank you so much guys! I was also wondering if there were any influential books that anyone has read along the way that think might be helpful??

    submitted by /u/lopdoderr
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    Is it ever wise to buy a company with a P/E above 100?

    Posted: 14 Aug 2020 01:26 AM PDT

    For example Tesla or Square, can they eventually bake into their valuation or is it not possible after a certain point of P/E expansion? What would be your absolute limit when it comes to buying off P/E or do you use other metrics like Price to Sales (P/S)?

    submitted by /u/saibaba90
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    Which is a better investment: Spotify Or Netflix?

    Posted: 14 Aug 2020 04:02 AM PDT

    Lockdown obviously caused streaming services to do well, but Netflix is up against Disney+ and the addition of other streaming services trying to get their share of the market. Does this make Spotify a better investment option as this has shown a consistent dominance in the music streaming market?

    What are your thoughts?

    submitted by /u/OPTO_reddit
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    Data warehousing market to reach $34.69 Billion by 2025: Investors Opportunity

    Posted: 14 Aug 2020 03:47 AM PDT

    The requirement for dedicated storage systems with the generation of huge amount of data, surge in demand for column-oriented data warehouse solutions and need for real-time view and analytics is driving the growth in the market. However, high cost of implementation and complexity restrain market growth. On the other hand, increase in the application of AI in data warehousing and rise in the adoption of virtual data warehousing create new opportunities in the market.

    submitted by /u/stormysharad1
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    Intel vs AMD?

    Posted: 13 Aug 2020 08:13 PM PDT

    I was thinking of picking up some AMD stock for a long term hold, and I was wondering if Intel actually got serious and began taking back market share from AMD, AMD's stock could drop dramatically. Anyone into the semiconductor industry have any insight on these two companies and knows if AMD is a good buy at the moment for a long term hold?

    submitted by /u/Kosano
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    I was THIS close to close on a real estate investment deal, until my friend gave me the reality that I don’t have the basics down on my personal life.

    Posted: 13 Aug 2020 01:09 PM PDT

    I don't have life insurance, no college fund for my 1 year old, no retirement plan.

    My friend is not an investor, but a man's man.

    He's purchased properties multiple times for his own personal use, so he knew what I was going to get into.

    At work, he overheard me say "I have _______ amount to invest, I can afford _ properties with 20% down each."

    That's when he came and sat down with me.

    "Before you start investing and YOLOing, get the basics down. You have a son that's turning 1... did you research on what your options are for a college fund?

    Did you think of retirement?

    Did you think of what happens if you get cancer?

    Once you have all the basics down, then invest.

    What are you now? 35 years old?

    Get all the basics down first for maximum security and plan Bs, then start looking elsewhere to invest"

    Wow. Guys and gals, I've been obsessed about this conversation now and YouTubing everything down a rabbit hole on essentials like home insurance and etc...

    It took me maybe 2 years to convince my wife that we should invest in real estate, and then this convo. came up, where this is now my new obsession.

    I've never had a father to tell me what I should be doing, and what's right. So all these are new to me.

    Is there a YouTubere that explains everything? Or what are the recommendations?

    submitted by /u/kikipi
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    Intel are getting alot of good exposure and publicity recently

    Posted: 13 Aug 2020 06:13 PM PDT

    I would expect September 2nd to be even more when they release Tiger Lake chip to the public.

    It seems marketing is being picked up for Intel.

    Price is still very cheap to get a 10% rise.

    August 13

    https://seekingalpha.com/news/3605255-intel-announces-tiger-lake-chips-to-take-on-amd

    https://seekingalpha.com/article/4368390-intel-sky-is-not-falling

    https://www.anandtech.com/show/15974/intels-xehpg-gpu-unveiled-built-for-enthusiast-gamers-built-at-a-thirdparty-fab

    https://www.theverge.com/circuitbreaker/2020/8/13/21365544/intel-tiger-lake-11th-gen-xe-graphics-gpu-preview-first-look-architecture-day-2020

    https://www.gizmodo.com.au/2020/08/intels-xe-graphics-might-mean-you-no-longer-need-a-separate-graphics-card-to-play-games/

    https://www.zdnet.com/article/with-tiger-lake-willow-cove-intel-aims-for-alacrity-and-diversity-now-it-just-has-to-make-sure-customers-understand-the-buffet/

    https://www.forbes.com/sites/antonyleather/2020/08/13/intels-surprise-ryzen-killer-alder-lake-hybrid-processors-offer-biggest-performance-leap-in-14-years/#3ee04d484f5f

    https://arstechnica.com/gadgets/2020/08/intel-promises-high-cpu-and-gpu-performance-in-tiger-lake-laptop-parts/

    https://www.theburnin.com/market-watch/intel-tops-semiconductor-supplier-rankings-2020-08-13/

    August 12

    https://www.tomshardware.com/news/intel-promo-drops-9th-gen-coffee-lake-cpu-pricing-up-to-25-percent

    August 11

    https://seekingalpha.com/article/4367834-intel-tiger-lake-will-likely-crush-amd

    August 10

    https://seekingalpha.com/article/4367324-amd-is-not-half-intel

    submitted by /u/automax
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    Possibility of swinging the vote against CEO raises as a collective group

    Posted: 13 Aug 2020 09:40 PM PDT

    So I was reading a couple articles about an investment group has worked to disallow raises for CEOs of game companies (Namely against EA and Activision-Blizzard) and was wondering how much of an impact a group of industry supporters and employees could have on preventing things like that if they decided to form some kind of coalition. How much of a stake in the company would be required to have a significant chance of disallowing the habitual raises that they give their CEOs? Not necessarily needing a majority hold and guaranteeing not allowing the raise but enough that it would certainly make the CEO think twice about doing things like firing large swaths of employees like what happened over at Blizzard. Would it even be possible with most companies?

    submitted by /u/wam9000
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    APPL market cap calculation question

    Posted: 13 Aug 2020 06:48 PM PDT

    How do you calculate the annual return of a stock based on it's projected future market cap? For example, if Apple's Mkt. Cap is 2T today, and we guess it'll be worth 2.5T in 5 years, how would we calculate the annual return over next 5 years? And what would it be in that example?

    submitted by /u/foltzyshortz
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    YoY Revenue Growth?

    Posted: 14 Aug 2020 12:44 AM PDT

    So I'm looking to investing in stocks over a long period of time and I saw that CRSP has an extremely high YoY Revenue Growth like 20,000% and TSLA is like under 100%. I read on investopedia YoY growth is like a projection of what is expected of a company's growth. What does 20,000% YoY mean?

    https://seekingalpha.com/symbol/CRSP/growth

    submitted by /u/NotSoRobot
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