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.
- Tesla has soared 50% since announcing its stock split — last week
- S&P500 Closes at All-Time High
- As I'm writing this Nvidia has a higher market cap than Intel and AMD - combined
- What individual stocks and or industries haven’t fully “rebounded” since March that you’re keeping an eye on?
- Why doesn’t everyone just copy the portfolio of Buffett?
- Apple ($AAPL) surge (up 70% YTD)
- Stock-market wizard William O'Neil famously turned $5,000 into $200,000 in just a few years. Here's the 7-part model he uses to sniff out winning stocks.
- Could you have predicted that Diamond Offshore would go bankrupt a quarter before it did?
- Any reasons to avoid tech stocks?
- When will music stop ?
- If an ETF is performing well, why does it matter what the expense ratio is?
- Can we please discuss Warren Buffett's investment into Restoration Hardware?
- Banking, Real-estate, and Energy sectors post-Corona hit since Feb
- Used Vehicle Prices Explode To All Time Highs After Plunging Just Months Ago
- Is there any downside to not rolling over your company 401k to your new company or and IRA?
- thoughts on Airbnb IPO and long term holding?
- UK centric YouTube content
- Shipping stocks for expected vaccine shipping
- Miners
- QQQ vs. VGT: Calculator? DRIP? ER? Overall?
- Trade ETF at NAV?
- Private Placement Program - Fake or Genuine?
- Norwegian Air stocks
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 21 Aug 2020 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:
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! [link] [comments]  |
| Tesla has soared 50% since announcing its stock split — last week Posted: 21 Aug 2020 12:54 PM PDT New York (CNN Business)Tesla is preparing to split its stock, making it more affordable for average investors. It may need to do another one pretty soon if its shares keep surging.Tesla (TSLA) has skyrocketed 50% since announcing the stock split on August 11. It now trades at nearly $2,100 a share.Once the split goes into effect on August 31, current Tesla investors will get five shares for each one they own. That will cut the price by a fifth, to almost $420 a share. The market value of Tesla, now hovering around $390 billion, will remain the same.But does Tesla deserve to trade at such a high valuation? While the Elon Musk-led company is generating consistent profits, its sales are dwarfed by the major auto giants.Tesla is expected to generate nearly $30 billion in annual revenue this year. That's nothing to sneeze at. But Fiat Chrysler (FCAU) is estimated to report $100 billion in sales for 2020. GM (GM) and Ford (F) are each forecast to post annual revenue of more than $110 billion.Still, Tesla's market value is now more than four times the combined market caps of Detroit's Big 3. A majority of Wall Street analysts are betting against Tesla. Of the 33 that officially track the stock, only eight have a buy rating on Tesla while 15 have it rated a hold and 10 are recommending a sell on it.Only three of the Tesla analysts currently have a price target for it above $2,000. The consensus target is just under $1,300 — almost 40% below its current price.Tesla continues to be a big target of short sellers, investors who borrow the stock and sell it with the hopes of eventually buying it back at a lower price.Of course, Tesla fans can correctly point out that analysts have been consistently wrong and that Wall Street will eventually have to raise its earnings forecasts and price targets on the stock.Tesla may also get a further boost if it is finally added to the blue-chip S&P 500 index — a move that could soon happen now that the company has posted a consistent run of profitable quarters. Full Article: http://pioret.com/tesla-has-soared-50-since-announcing-its-stock-split-last-week [link] [comments]  |
| S&P500 Closes at All-Time High Posted: 21 Aug 2020 01:17 PM PDT
What a time to be alive. Closes today at 3,397.16. Intraday high also today at 3,399.96 Nasdaq also closed at All-Time High today. [link] [comments]  |
| As I'm writing this Nvidia has a higher market cap than Intel and AMD - combined Posted: 21 Aug 2020 08:44 AM PDT NVDA 310B INTC 208B AMD 98B Just thought it's interesting, feels like it was just weeks ago that NVDA passed INTC and now they added a casual AMD on top. Crazy how quickly valuations changed in such a short time. NVDA reported a convincing quarter and INTC announced big numbers too but also further 7nm problems. Intel will try to compete in discrete gaming GPUs next year alongside Nvidia and AMD. Nvidia meanwhile has gone full steam ahead towards growing it's datacenter business. [link] [comments]  |
| Posted: 21 Aug 2020 08:40 PM PDT I feel like this may be an obvious or repetitive response but airlines is one of them for me, ie United or southwest. Now while there are a lot of headwind for them to get back online, this is a long game and at some point we will get back to normalcy. An issue with United is their debt load. I'm curious what other companies or industries you are watching and or buying right now. While I love tech as much as the next guy I have a hard time buying at these levels with so much uncertainty (obviously I'm the idiot as I have been sitting and watch for the last 6 months) [link] [comments]  |
| Why doesn’t everyone just copy the portfolio of Buffett? Posted: 21 Aug 2020 03:23 PM PDT I feel like this must be a frequently asked question because it was the first thing that came to my mind when i looked at his portfolio: what would happen if i just copied it? I mean he makes like 30% per year or something absurd, what's stopping me from doing the same? As a further question, what about fractional shares in Berkshire Hathaway Class A? Isn't there like a whole ass team behind them making better investing decisions than i could ever hope to? Again, apologies if this is a frequently asked or dumb question. [link] [comments]  |
| Apple ($AAPL) surge (up 70% YTD) Posted: 21 Aug 2020 12:11 PM PDT Beside the stock split, which fundamentally adds no value to the company yet it added half a trillion $ to its valuation. What is driving this insane rally? AMZN ~+73% (YTD) AAPL ~+70% (YTD) MSFT ~+30% (YTD) theoretically MSFT, AMZN and all the software service companies would be the most beneficiary in the last 6 month because of the COVID. However, AAPL actually doubled in valuation. Their revenue hasn't grown to justify this price levels, so what gives? AAPL isn't a meme stock like TSLA, so i am genuinely surprised. Is Apple overvalued or AMZN and MSFT undervalued? [link] [comments]  |
| Posted: 21 Aug 2020 07:55 PM PDT "I went through the same process that most people do. I subscribed to a few investment letters and most of them didn't do too well." That's what William O'Neil, the legendary trader and author of "How to Make Money in Stocks," told Jack Schwager in a 1989 interview for his classic "Market Wizards" series. Out of frustration, O'Neil took the matter into his own hands. He knew a better way to trade was out there — all he had to do was uncover it. After all, he was seeing an array of fund managers crush the competition. "Back in 1959, I did a study of the people that were doing very well in the market," he said. "At that time, the Dreyfus fund was a very small fund, managing only about $15 million. Jack Dreyfus, who managed the fund, was doubling the results of all his competitors." O'Neil scoured Dreyfus' quarterly reports, searching tirelessly for any commonalities he could apply to his own methodology. After mapping out more than 100 of Dreyfus' stock purchase points, O'Neil hit pay dirt. "There were over 100 of these securities and when I laid them out on a table, I made my first real discovery: Not some, not most, but every single stock had been bought when it went to a new high price," he said. That unearthing opened the flood gates. O'Neil knew there were more secrets waiting to be uncovered. The search continued. O'Neil shifted his focus to the market's biggest winners, trying to connect the dots between the characteristics of certain stocks and their superior performance. Eventually, his research culminated in a simple seven-part model: CANSLIM. Allow O'Neil to explain: "Each letter of this name represents one of the seven chief characteristics of the all-time great winning stocks during their early developing stages, just before they made huge advances," he said. O'Neil's discovery translated to massive profits. "During 1962-63, by pyramiding the profits in three exceptional back-to-back trades — short Korvette, long Chrysler, and long Syntex — he managed to parlay an initial $5,000 investment into $200,000," Schwager said. Let's take a closer look at O'Neil's famed CANSLIM principles. All quotes below are from O'Neil. C: 'Current earnings per share' "The 'C' stands for current earnings per share," he said. "So, our first basic rule in stock selection is that quarterly earnings per share should be up by at least 20 to 50 percent year to year." A: 'Annual earnings per share' "In our studies, the prior five-year average annual compounded earnings growth rate of outstanding performing stocks at their early emerging stage was 24%," he said. "Ideally, each year's earnings per share should show an increase over the prior year's earnings." N - 'Something New' "The 'new' can be a new product or service, a change in the industry, or new management," he said. "In our research we found that 95 percent of the greatest winners had something new that fell within these categories." S - 'Shares outstanding' "Ninety-five percent of the stocks that performed best in our studies had less than twenty-five million shares of capitalization during the period when they had their best performance," he said. "Many institutional investors handicap themselves by restricting their purchases to only large-capitalization companies." L - 'Leader or laggard' "So, another basic rule in stock selection is to pick the leading stocks — the ones with the high relative strength values — and avoid the laggard stocks," he said. "I tend to restrict purchases to companies with relative strength ranks above 80." I - 'Institutional sponsorship' "Leading stocks usually have institutional backing," he said. "However, although some institutional sponsorship is desired, excessive sponsorship is not, because it would be a source of large selling if anything went wrong with the company or the market in general." M - 'Market' "Three out of four stocks will go in the same direction as a significant move in the market averages," he said. "That is why you need to learn how to interpret price and volume on a daily basis for signs that the market has topped." [link] [comments]  |
| Could you have predicted that Diamond Offshore would go bankrupt a quarter before it did? Posted: 21 Aug 2020 06:40 PM PDT Hey, Ive been looking into companies that have gone bankrupt, trying to figure out how someone could have predicted a bankruptcy prior to it happening as I feel this skill is contingent to successful investing. Along my search, I found this quarterly report, which as far as I can tell (with limited experience) looks perfectly fine. Especially when compared to the bankruptcy that happened only a few months later. I would have felt comfortable in buying this company based on its Ballance sheet and a 10$ per share and am wondering if you see anything different. To make matters more frustrating I cannot find a single line talking about the 2.3b of long term debt that becomes due only a few months later. First quarterly https://www.sec.gov/ix?doc=/Archives/edgar/data/949039/000156459019038037/do-10q_20190930.htm Bankruptcy filed around this quarterly https://www.sec.gov/ix?doc=/Archives/edgar/data/949039/000156459020020673/do-10q_20200331.htm [link] [comments]  |
| Any reasons to avoid tech stocks? Posted: 21 Aug 2020 10:51 PM PDT With the huge run up, it seems liek tech stocks are getting all the attention and all of the classic DOW stocks, along with financials, oil, industry, car manufacturers(except tesla), and materials have all lagged and not even came up to pre corona levels. But, all of the tech stocks have surpassed and exceeded the pre-corona level, which doesn't make sense considering the amount of debt and negative earnings some of these companies have. They also don't have near as much revenue as the stable companies that have slower moving stocks. Buffet and Gates both also hardly have any tech portions in their portfolios, many of the indexes don't have a lot of the speculative cloud stocks either, they'll have microsoft, apple, and amazon, but won't include companies like datadog, twilio, or alibaba for insance. Even though Buffet has trailed this past decade, I still feel like something could happen to this overvalued companies. What do you all think, do you think tech stocks should be avoided and what are the reasons to avoid them? The valuations are also so absurb it's hard do buy any more than a few shares. [link] [comments]  |
| Posted: 21 Aug 2020 11:26 PM PDT With all the people working from home and trying their luck in the market, now it feels like the valuation is way past the actual value of the companies by looking at the ground realities, so when this'll end, some traders would be holding the biggest shit pile ever seen and it's coming soon, so when do you guys think we'll see the day of reckoning? [link] [comments]  |
| If an ETF is performing well, why does it matter what the expense ratio is? Posted: 21 Aug 2020 09:11 AM PDT Everywhere I look, I see articles saying that the first thing you should examine when assessing an ETF is their expense ratio. I understand the importance of that value, but why isn't the actual performance of the ETF also considered? There are plenty of examples of ETFs that would've netted an investor serious gains over the last year that have very high expense ratios. Off the top of my head, ACES, VEGN, SKYY, NERD, and ICLN. Is there more to this that I am not understanding? [link] [comments]  |
| Can we please discuss Warren Buffett's investment into Restoration Hardware? Posted: 21 Aug 2020 09:58 AM PDT Hey guys, So a business partner of mine asked what I thought of RH as a stock since Buffett invested in it. I hadn't heard about it so I did some research, I read quick numbers on finviz, and I even read through the 10Q of the company for the quarter before Buffett bought his stake. What the fuck gives? The company had negative stockholders equity (and NOT from buybacks like Verisign did back in 2012-2014), had a poor P/E ratio when buying, terrible P/B (expected as markup on furniture insane, but still). The only good thing I can see with the company is that they were trying a different marketing scheme and in some sense they have a moat, but I'd argue this is the shallowest moat of all time. Buffett hates fashion and like anything related to taste, a luxury furniture store could very easily turn into a dated furniture store. This had to be a decision by one of his protégés, no? I would love to hear your guys' thoughts on this. [link] [comments]  |
| Banking, Real-estate, and Energy sectors post-Corona hit since Feb Posted: 21 Aug 2020 11:02 PM PDT The market has been awfully down in February and March. Most of the stock gains from the past few years have been wiped out. Now we are almost end of August and Market has more than made up for the numbers lost in Feb and Mar also, maybe added few more to hit all-time highs. But the interesting fact is the growth since COVID hit has been uneven and most of the money went into Tech & Health. When I say, Tech and Health I mean only Tech & Health. Banking, Real estate, and Energy are still not recovering or failing to get investors & general market confidence. I went with the Real estate(made some decent returns on NXRT but still way down from Feb levels & decent valuation) & Banks considering them undervalued. I'm looking for a plausible & reasonable take on how these sectors will do for the rest of the year or possibly what the future holds. What if the vaccine comes out in October or November. will that act as a head start on the road for recovery for these sectors? PS: I left Travel alone bcos though I find the companies(eg: Expedia) in there undervalued, for now, I feel they are a lost cause without knowing how travel is going to change for best or worst. APPRECIATE YOUR TAKE!! [link] [comments]  |
| Used Vehicle Prices Explode To All Time Highs After Plunging Just Months Ago Posted: 21 Aug 2020 04:31 AM PDT I know of one stock poised to fly on this market condition, LMPX. CEO, Sam Tawfik, anticipated this and went big on inventory months ago and is now selling into the white hot market, as he described on the earnings call last Friday, which was open to the public. Are there any other investments that will be benefiting from this market condition that you're aware of? [link] [comments]  |
| Is there any downside to not rolling over your company 401k to your new company or and IRA? Posted: 22 Aug 2020 01:04 AM PDT First time posting here. I moved jobs 2 years ago and have yet to roll over my 401k to my new company or a personal IRA. Is there any downside to this? I guess I'm ashamed to say this, but the "cash out" period where your funds get sent you to you makes me anxious and has played a role in me not rolling over the account. Additionally, my new (current) company doesn't offer a 401k match so also less incentive. Thanks in advance for any insight provided! [link] [comments]  |
| thoughts on Airbnb IPO and long term holding? Posted: 21 Aug 2020 06:11 PM PDT With the news about Airbnb IPO coming out, I was wondering if I should add it to my portfolio. However I feel like I might pass on it because of so many risks that come with the business model. For example, countries like Japan required many home owners before renting their homes to legally acquire specific documents and strictly enforcing laws that made it harder for home owners to rent their property, especially on Airbnb. This could happen in any country Airbnb is available in and that is only one of the problems I saw. What does everyone else think? [link] [comments]  |
| Posted: 21 Aug 2020 11:40 AM PDT I'm a chartered wealth manager in the UK and work for a large consultancy firm. I specialise in finance and investing in all areas of wealth management. I'm considering starting a YouTube channel to lay out the benefits of investing (for people in every wealth bracket) and go through the terminology, key points and any misconceptions about the financial world. The reason for this post is I'm checking whether there would be any interest in this? There are some decent channels that already do this, however they are far more US and Canada centric and therefore don't always apply well to people in the UK. If there is any interest, I'd be very keen to hear what in particular you would be interested in hearing more about, and any other ideas you may have for the content. Thanks 😁 [link] [comments]  |
| Shipping stocks for expected vaccine shipping Posted: 21 Aug 2020 10:19 PM PDT Trying to see if I can think ahead or outside the square with my shares. However as I'm from NZ we don't have a lot of exposure to shipping companies or huge corporations here. If I was to buy stocks now, expecting that demand will be high for shipping once a vaccine is out, what international shipping company/Corp is best to look at?I assume there are many countries that can produce vaccines locally and may have to ship large amounts in. I am currently in the beginning stages of researching the shipping industry. but would love any thoughts or advice. Thank you all. I am willing to hold for a long period of time. The size of my investment will be 10k. [link] [comments]  |
| Posted: 21 Aug 2020 04:21 PM PDT What do people here thing about miners? And we are not talking about just gold miners. Let's say iron, copper etc minera - to be specific rio tinto. It is the 2nd biggest mining company in the world, good dividends. In the near future with infrastructure devpt, iron will be in demand. So will copper. Considering current quarter, any gold mined with bring in huge profits. Any downside to it? [link] [comments]  |
| QQQ vs. VGT: Calculator? DRIP? ER? Overall? Posted: 21 Aug 2020 08:35 PM PDT Looking to compare these two ETFs. I am looking for more "tech" and I like VGT low fees (0.1) and more holdings (300+) but I don't like how 40% of VGT is AAPL+MSFT. QQQ top holdings are more evenly dispersed. Having hundreds of holdings of miniscule % like VGT also doesn't seem like it makes much difference tbh. I also like how QQQ has other tech-ish stocks like AMZN, GOOG, TSLA, etc., making it more diverse, sector-wise. Performance of these are pretty close and go back and forth in the past decade. I've done a ton of searching on comparison of these two. One thing I have yet to find is how DRIP and expense ratio factor in. I was hoping to find a calculator that charts overall returns of 2 portfolios based on varying dividend and expense ratio (keeping performance equal). I am trying to figure out how much dividend (QQQ 0.59%; VGT 0.98%) and ER should factor into my decision on which to choose long-term. Also would be interesting if a calculator also factored in actual historical returns + reinvest dividends + ER. (I read somewhere that QQQ is not DRIP-eligible? What does this mean exactly.) Also any input on what y'all think about QQQ vs. VGT. Horizon is 10-15 years. This would be a complement to my main portfolio, which is growth (~100% stocks, mainly S&P). Not looking for international or bond exposure currently. [link] [comments]  |
| Posted: 21 Aug 2020 09:51 PM PDT I've heard on european exchanges it is possible to trade an etf exactly at NAV like a mutual fund? If this is true, can it be done on US exchanges? (Would be very useful for low volume etfs) On an extremely low volume etf, would you have to just always eat the huge spread? [link] [comments]  |
| Private Placement Program - Fake or Genuine? Posted: 22 Aug 2020 03:48 AM PDT I own a real estate business in India dealing with land development and residential construction. As the RE sector has been suffering for the last 3-4 years, I was looking for funding for my company in various avenues to complete my on going projects. I got approached by a few people who said that if I have certain amount say $1 million in my company account, I could get funding through something called Private Placement Program (PPP). As per their explanation, The term "Private Placement" represents a category of investments that are not available in the open market. There exists a special type of PPP that is sometimes referred to as a Private Placement Investment Program, Private Placement Transaction Program, Managed Buy/Sell Program, or Bank Trade. These are private and by invitation only. PPP Trading takes place all over the world from the limited platform among top – tier banks. They are only available to Ultra High Net Worth Individuals or Qualified Institutional Investors. They occur at the upper echelons of the world financial system and are not available to the general public. The returns are usually contractual double-digit monthly returns and the capital is not put at risk in the trading. With properly structured programs, the Investor's capital never even leaves their own bank account. Trade proceeds are usually disbursed weekly, over a 40-week period (international banking weeks over 12 calendar months). These are regulated by strict guidelines established by the Federal Reserve, European Central Bank, and the Bank of International Settlement (BIS). But most of the time it is looked by Federal Reserve. So for example, if I have $1 million in my company account, after signing some documents along with bank statement and confirmation from the bank regarding balance in the account, the trader trades this deposit amount in the international market for a period of 40 weeks. I, as a investor will be getting weekly returns for the amount held in my account. Returns will be in the range of 10 to 25 percent of $1 million dollars on weekly basis (not yearly but weekly 10 to 25 percent). Please note that the amount will never leave my account in Indian bank. I will not be giving any signed cheques or anything else where I will be risking my funds being withdrawn. I will only be giving signed document with my company information in their format and signed bank statement with verification of funds. The funds will be blocked for 40 weeks in my account in India bank (that's the only opportunity cost for me) and after which I will be free to use my amount in whatever way I want. I have googled PPP and there are some website that talk about it and explain the same thing. I know all of this might sound fake but I also know that there are a lot of bank instruments and transaction which common man like myself will not be aware off. CDOs and MBS where very uncommon terms before 2007 and if someone told these things existed, people would probably laugh. Therefore my question is, 1) is PPP genuine or fake? Has anybody heard of such things. Does such transactions actually happen in the US or European Money Markets? 2) if it does happen there, is it something that happen in India? 3) if it happens here, how does it work? I am desperately looking for some genuine answers. Sorry for such long essay. Thank you for reading all the way. [link] [comments]  |
| Posted: 22 Aug 2020 03:29 AM PDT What are your thoughts about buying Norwegian Air stocks? The price of it dropped from $40 to $1.3 since coronavirus started. But I am afraid that they will go bankrupt because even before coronavirus they had some financial difficulties and their traffic is down 90% compared to the year before and also Sweden rejected a credit guarantee for Norwegian Air. [link] [comments]  |
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