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    Wednesday, October 28, 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: 27 Oct 2020 05:10 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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    Microsoft beats on sales and earnings as Azure growth outpaces expectations

    Posted: 27 Oct 2020 02:15 PM PDT

    https://www.cnbc.com/2020/10/27/microsoft-msft-earnings-q1-2021.html

    Here's how the company did:

    Earnings: $1.82 per share, adjusted, vs. $1.54 per share as expected by analysts, according to Refinitiv.

    Revenue: $37.15 billion, vs. $35.72 billion as expected by analysts, according to Refinitiv.

    Microsoft revenue grew 12% on an annualized basis, down from 13% growth in the prior quarter, according to a statement.

    Revenue for commercial PCs cratered 22% months after support for Windows 7 ended and the coronavirus pandemic took hold; the category had surged last year, making outperformance this year more difficult.

    But one of the fastest-growing parts of Microsoft, the Azure public cloud for hosting applications and websites, grew 48%, accelerating from 47% in the prior quarter. Microsoft doesn't disclose revenue from Azure in dollars. Analysts had expected around 44% growth.

    submitted by /u/noahnoah900
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    Microsoft's acquisition of Mojang (Minecraft) over 6 years later.

    Posted: 27 Oct 2020 12:28 PM PDT

    It's almost 6 years since Microsoft went through with the acquisition of Mojang (creators of Minecraft) for $2.5 billion.

    Gamers were pissed and reception to the buyout was mixed. A lot of people have curious as to why Minecraft (an already big game at the time) was worth $2.5 billion. At the time, Minecraft was already insanely popular and was already the most sold PC game of all time. Annual revenues have shown over $290m. So why the gigantic inflation of $2.5 billion?

    I will spare you the description of Minecraft as the people who don't know what it is will be in the minority. I think it's important to talk about the concept of what Minecraft was at the time of its creation and how that contributed to its mass following. Minecraft's indie aesthetic and open nature almost allowed the players to create a game that they were looking for. Notch (creator) was very active with the Minecraft community and constantly releasing updates and engaging directly with the players (This ended up having huge personal consequences for him). Although this concept is not 100% new, it was the first to really become popular. Notch's openness for Youtube Creators to publish content of them playing his game (something that a lot of developers were against at the time) only increased the reception the game had.

    It's common for the video game industry to have games come and go. Hype is a very big thing with video games. So did Microsoft make a $2.5 billion mistake?

    As of now, Minecraft has officially topped at 200 million purchases across all their platforms and over 126 million playing monthly. Prices differ per platform but if counted for all platforms at an average of $15 per copy, we can see roughly around $3,000,000,000 revenue.

    Outside of the game itself, Minecraft offers a hosted multiplayer model that will let you play with your friends in a hosted cloud-based world. Merchandise is also a huge source of revenue for Minecraft as well. Spinoffs and installation of almost any device have really put Minecraft everywhere.

    It's easy to be skeptical over acquisitions this large at the time, but in 2020 Microsoft made an incredibly smart move by purchasing Mojang.

    Thoughts?

    submitted by /u/LewisTheScot
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    Virgin Galactic hires 2 more pilots bringing the total to 8 in preparation for commercial operations in Q1 2021.

    Posted: 27 Oct 2020 10:37 AM PDT

    https://www.skiesmag.com/press-releases/virgin-galactic-hires-2-new-pilots-into-its-pilot-corps/

    Virgin Galactic hires 2 new pilots. Reason I believe this is important is that it shows that commercial operations are immediate soon.

    With the final test flights happening any day now the company will complete its FAA certification for its spaceship VSS Unity and start commercial operations with Richard Branson being the first customer in Q1 2021, followed by many other celebrities who booked with them.

    This is a very exciting time to be a space enthusiast!

    submitted by /u/joey_tv_show
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    [SlashGear] Waymo and Daimler Trucks are partnering to build and sell self-driving freight trucks in the US over the coming years

    Posted: 28 Oct 2020 12:02 AM PDT

    https://www.slashgear.com/waymo-and-daimler-team-up-to-sell-autonomous-trucks-in-the-us-27644606/

    Waymo and Daimler Trucks are teaming up on autonomous haulage, aiming to build and sell a production self-driving truck in the US. The collaboration will see Waymo contribute the driverless tech that is powering its Waymo One autonomous ride-hailing program, which recently came out of closed beta in Phoenix, Arizona.

    There, members of the program can summon a fully-autonomous Waymo vehicle from their phone, much in the way that they might an Uber or Lyft. Back in 2019, Waymo began offering rides to the public – in closed beta – in autonomous vehicles without a human safety driver in the car; traditionally, that driver would be present at the wheel, to take over in case the system encountered a problem it couldn't deal with itself.

    Now the technology is being applied to much larger vehicles. Waymo has always been upfront about seeing self-driving trucks as part of its future, and the deal with Daimler Trucks North America gives it a heavyweight partner for that vision. Daimler, indeed, is no stranger to the concept, having tested out its own self-driving truck tech all the way back in 2015.

    The focus of the collaboration will be the Freightliner Cascadia truck, which will be outfitted with the Waymo Driver platform. It's a Class 8 vehicle, and already billed as one of the most advanced the Daimler-owned brand offers. It comes as standard with the so-called Detroit Assurance 5.0 suite of active safety tech, including active brake assistance and adaptive cruise control, while lane departure warnings and lane-keeping are optional.

    The Waymo Driver, though, will be far more capable than that. The Level 4 system envisaged for the trucks will mean they will be able to handle all driving functions, though not necessarily in every condition: heavy inclement weather, for example, could prove a challenge, though Waymo has been testing in different locations around the US to give its system a taste of alternative climates.

    That's included autonomous truck testing, though as with Waymo's passenger car partnerships the future always looked likely to involve manufacturing partners rather than an in-house truck. All the same, the path from bold self-driving idea to actual commercial haulage is a tough one, and has claimed several startups hoping to achieve the same. Earlier this year, Starsky Robotics shut down its own self-driving and remote control truck company, with its CEO sharing some cold home truths about the challenges the industry faced.

    Waymo and Daimler's driverless trucks won't be ready to purchase any time soon, it seems. "The autonomous Freightliner Cascadia truck, equipped with the Waymo Driver, will be available to customers in the U.S. in the coming years," the two companies say, giving no more specific timeline than that. "Waymo and Daimler Trucks will investigate expansion to other markets and brands in the near future."

    submitted by /u/skysmoker
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    Automating Investing through Interactive Brokers?

    Posted: 28 Oct 2020 03:36 AM PDT

    I am a Canadian expat living and working abroad.

    This country has no retirement plan, so I need to figure it out on my own.

    I want to add 10% of my monthly salary towards VOO until retirement.

    The bank transfer to Interactive Broker can be automated, but has anyone automate the purchase of shares on a monthly basis through them?

    Or does anyone ever do that?

    submitted by /u/kikipi
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    Fidelity Performance Tab enabled

    Posted: 27 Oct 2020 08:00 PM PDT

    I just wanted to throw out a data point about Fidelity's investment tab. Historically they reserved it for accounts with >$250k before they would enable the tab on their website. I chatted with a rep a few months ago to inquire about it and they claimed they were exploring enabling it for all users. Well, it looks like they followed through because I noticed today it was available on my account! A very nice surprise indeed.

    submitted by /u/XNY
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    Do you think that Bitcoin is a legit investment now that Square and PayPal seem to be promoting its mass adoption?

    Posted: 27 Oct 2020 10:15 AM PDT

    I made a topic on this last week, but it was removed as I made some incorrect statements.

    1. I thought Fidelity was recommending allocating 5% of one's portfolio in bitcoin. But it turns out that a subsidiary of Fidelity, (fidelity digital assets) wrote an article recommending "considering the implications of holding 5% in bitcoin."
    2. PayPal/Venmo hasn't fully rolled out bitcoin purchasing yet, but will sometime in 2021.

    The market cap of bitcoin is at 200 billion as of today. What are your thoughts? What are the implication of there only ever being a fixed supply of bitcoin? Does demand just cap off at a certain point, or does it keep rising due to human psychology?

    sources:

    [1] https://www.theverge.com/2020/10/21/21527288/paypal-cryptocurrency-support-buy-sell-venmo-bitcoin

    [2] https://www.fidelitydigitalassets.com/articles/bitcoin-as-alternative-investment?ccmedia=owned&ccchannel=social&cccampaign=BIT_ALT&cctactics=twitter

    submitted by /u/Okmanl
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    Wondering about long term investment buy in strategy if there is one.

    Posted: 27 Oct 2020 07:40 PM PDT

    Going long buy in strategy. When going long does it matter all too much when your buying in, or are there certain features/attributes you look for that indicate the best time to buy in at the time. So I was wonder what are some of the things people here use in order to determine when they think is the right time to invest because there are numerous factors you may either have to discard or take into account. (Not the most expedited investor so I don't have a very well detailed idea of what to look for regarding the timeframe or window which is most opportune to buy in.)

    submitted by /u/user1461462426
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    [Question for the pros] YTD, what were your biggest Wins this year? Mine were TSLA, GRWG, and MWK.

    Posted: 27 Oct 2020 07:36 AM PDT

    Would be interesting to see what were some of the best trades and wins across the r/investing community this year.

    Despite all the chaos, this was a pretty decent year for me with TSLA leading the pack in my portfolio. Aside from blue chips, I've also managed to bump into smaller cap players that have been on a tear (MWK and GRWG).

    Fingers crossed, the US electioon results won't impact my portfolio too much.. Curious, if people are considering liquidating some of their holdings just in case.

    submitted by /u/Maat_66
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    "The Efficient Market Hypothesis does not imply prices will always be 'correct' or that all market participants are always rational. There is abundant evidence that market participants are far from rational. It simply implies that we can never be sure whether prices are too high or too low."

    Posted: 27 Oct 2020 08:40 AM PDT

    https://www.pairagraph.com/dialogue/c93c449006c344ce94e6e2e8fbe7aba3

    Burton Malkiel discusses the peculiar behavior of markets with Robert Shiller. This part, in particular, is worth highlighting:

    Malkiel: "The Efficient Market Hypothesis incorporates two fundamental tenets. It first asserts that public information gets reflected in asset prices without delay. If a pharmaceutical company now selling at $20 per share receives approval for a new drug that will give the company a value of $40 tomorrow, the price will move to $40 without delay, not slowly over time.

    It is, of course, possible that the full effect of the new information is not immediately obvious to market participants. Some participants may vastly underestimate the significance of the drug, but others may greatly overestimate it. Therefore markets could underreact or overreact to news. The COVID-19 pandemic presents an excellent example of how investor sentiment and the difficulty of predicting the extent and severity of the resulting economic disruption can intensify market volatility. But it is far from clear that systematic underreaction or overreaction to news presents an arbitrage opportunity promising traders extraordinary gains. It is this aspect of EMH that implies a second, and in my view the most fundamental, tenet of the hypothesis: In an efficient market, no arbitrage opportunities exist.

    EMH does not imply that prices will always be "correct" or that all market participants are always rational. There is abundant evidence that many (perhaps even most) market participants are far from rational. But even if price setting was always determined by rational profit-maximizing investors, prices (which depend on imperfect forecasts) can never be "correct." They are "wrong" all the time. EMH implies that we can never be sure whether they are too high or too low. And any profits attributable to judgments that are more accurate than the market consensus will not represent unexploited arbitrage possibilities.

    In my view the most compelling evidence that our stock markets are extremely efficient is that they are extraordinarily hard to beat. If market prices were generally determined by irrational investors and if it were easy to identify predictable patterns in security returns or exploitable anomalies in security prices, then professional investment managers should be able to beat the market. There is abundant evidence that they do not. Direct tests of the actual returns earned by professionals, who are compensated with strong incentives to outperform, should represent the most compelling evidence of market efficiency.

    A true market inefficiency ought to be an exploitable opportunity. If there's nothing investors can exploit in a systematic way, then it's very hard to say that information is not being properly incorporated into stock prices and that our stock markets are not remarkably efficient."

    submitted by /u/Odd_Paleontologist80
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    Pacific Ethanol Strategic Shift from Renewable Fuels to Specialty Alcohols

    Posted: 27 Oct 2020 06:32 PM PDT

    Pacific Ethanol (NASDAQ: PEIX) is a relatively trendy stock, given it recently had its first profitable quarter and saw a subsequent spike in its share price, bringing it out of penny stock territory and into microcap land ($462M). It saw its shares boost in concert with the clean energy bump the last few weeks that I'm assuming we all attribute to markets pricing in a Biden win. It had a seat on the clean energy ride because its stated business focus was " to supply low carbon renewable fuel for the transportation market." (Link.)

    They announced in the last couple days that they have shifted their strategic focus to "specialty alcohols and essential ingredients used in consumer products, including alcoholic beverages, personal care products, sanitizers, cleaners and pharmaceuticals. "

    I assume this is behind the decreased enthusiasm the market has shown by way of its 40% skydiving binge over the last week.

    My question for my fellow bag-holders or possible PEIX watch-listers is, do you think this has long-term viability? I realize the issue shifting focus away from the trendy topic that appears to have gotten it some market love recently. Do you see any future profitability there? Will it be valued anywhere near enough to justify holding it if we bought when it was being valued through a clean energy lens and not a consumer staples lens?

    submitted by /u/Boomtown626
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    IIPR room for continued growth?

    Posted: 27 Oct 2020 02:11 PM PDT

    Whenever I research "pot" stocks IIPR is not one of those that comes to the top, yet when you look at their financials, revenue growth, the share price growth, and the fact that they have over a 3% dividend yield things look peachy. They are a cannabis properties REIT for those unaware. Someone tell me why this is not a great investment with the Cannabis industry eventually taking off? Please look up their YOY revenues at their multiple and tell me their 2.6bn market cap cannot grow massively. Am I missing something? Is their TAM capped?

    submitted by /u/Immerdurstig
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    Double down on intel?

    Posted: 27 Oct 2020 10:44 AM PDT

    So i did a cash flow analysis on intel back in may and saw a valuation of about 70, and so i purchased at 58.

    However with whats been going on now, do you think jt wise to repurchase at 45 and bring my average down to 51?

    Or is this a dead company? Theyre financials are strong so i dont understand

    submitted by /u/Saladin19
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    Advanced Energy Storage Systems Market is estimated to surpass a $7 billion valuation by 2022.

    Posted: 28 Oct 2020 01:56 AM PDT

    Global advanced energy storage systems industry size was over 3.5 GW in 2014, and is expected to register installations exceeding 11 GW by 2022.

    𝐆𝐞𝐭 𝐝𝐞𝐭𝐚𝐢𝐥𝐞𝐝 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐢𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐚𝐭: https://www.gminsights.com/request-sample/detail/104

    Energy management systems deliver efficient management of energy sources using the load shifting technique, which helps meet the demands of advanced grid systems, subsequently driving industry growth. High energy prices have resulted in the rising adoption of energy management systems worldwide, which will also fuel this industry in the coming years.

    Flywheel technology boasts of high reliability, low maintenance, improved efficiency, and a considerably long shelf life, which can be implemented for upcoming grid storage systems. 𝗣𝗼𝘄𝗲𝗿𝗲𝗱 𝗯𝘆 𝘁𝗵𝗲𝘀𝗲 𝗲𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝘁 𝗳𝗲𝗮𝘁𝘂𝗿𝗲𝘀, 𝗳𝗹𝘆𝘄𝗵𝗲𝗲𝗹 𝗯𝗮𝘀𝗲𝗱 𝗮𝗱𝘃𝗮𝗻𝗰𝗲𝗱 𝗲𝗻𝗲𝗿𝗴𝘆 𝘀𝘁𝗼𝗿𝗮𝗴𝗲 𝘀𝘆𝘀𝘁𝗲𝗺𝘀 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗶𝘀 𝗳𝗼𝗿𝗲𝗰𝗮𝘀𝘁 𝘁𝗼 𝗱𝗲𝗽𝗶𝗰𝘁 𝗮 𝗖𝗔𝗚𝗥 𝗼𝗳 𝟭𝟴% 𝗼𝘃𝗲𝗿 𝟮𝟬𝟭𝟱-𝟮𝟬𝟮𝟮.

    submitted by /u/energy010
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    Best way to short the market right now?

    Posted: 28 Oct 2020 01:03 AM PDT

    If we see massive drops in equities in the next 2-3 weeks (like in March) what are the most effective ways to short the market?

    I was looking at leveraged index bear funds (like SPXS), E-minis, and their associated options seem decent but are there methods that would yield more during a market crash? Or would you say puts on these assets are the way to go?

    submitted by /u/Biorobotchemist
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    Latest Picks from Motely Fool 5G Next-Gen Supercycle

    Posted: 28 Oct 2020 12:10 AM PDT

    I'm a newbie here. I have the new list of stock picks from the MF 5G Next-Gen Supercycle and am looking to compare notes. I'm very interested in their Highest Conviction stocks from the list and also wonder why two of the other picks were put on hold. They say the portfolio has increased 26%. Is that good or bad?

    submitted by /u/dalejessica53
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    Investing for expat in Japan

    Posted: 27 Oct 2020 11:16 PM PDT

    I'm expat living in Japan. I want to invest small amount (maybe 50usd monthly at start) in stocks while I live here. I am trying to verify my account on Trading212 but the customer service is very slow and keep rejecting my documents (already struggling for a month).

    Is there any other alternative? I am originally EU citizen but haven't lived there for a while.

    submitted by /u/91jw
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    Options on Futures contract dated to expire after underlying future contract

    Posted: 27 Oct 2020 11:08 PM PDT

    Hey, I have been very confused on the concept of options on futures. I was going through IB, and the options on futures expire after the date of the underlying future. How is this possible? So apone expiration if the futures contract' date has already passed what would be delivered when the options expire? Also, then what is the pricing based on? If there is no underlying, if thats the case.

    submitted by /u/UnstoppableClown
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    NVIDIA: A Software Company That Produces Chips?

    Posted: 27 Oct 2020 12:04 PM PDT

    "Just 5 years ago, our engineers that we had were mostly focused on hardware, meaning we had a larger organization in hardware than we did in terms of software. As you've seen us talk about the overall software over the last couple of days, you see now in fiscal year '19, we have a larger percentage of software engineers, a significantly larger amount of overall software engineers than we do overall hardware. When we think about our R&D, therefore, by those platforms, and starting at the bottom in terms of the underlying architecture, the GPU architecture, that makes up 40% of our overall hardware -- excuse me, our overall R&D cost. Our software layer is, therefore, about 30% of the overall cost as we string that across all of the different GPUs and all of the different systems that we have."

    https://www.unhedged.com/exchange/5f96fef4b18e6c40f3fa2d1b/?l=5f986f32b021d7001076aac0

    submitted by /u/radkapital1
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    Is this a popular stock investing strategy?

    Posted: 27 Oct 2020 10:12 PM PDT

    Lets say i was planning to invest in certain stocks for a moderate amount of time...lets say 3 months. After 3 months i decide to take a portion of of each stocks earnings and reinvest into another stock or my highest growing stock.Is it a common/wise strategy to do this or can it potentially lead to way too many stocks to keep up with?

    submitted by /u/9Epicman1
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    Cryptocurrency vs precious metals

    Posted: 27 Oct 2020 01:17 PM PDT

    Which one would be a better investment cryptocurrency or precious metals. Precious metals include copper, platinum, silver, gold, and I believe there's like a couple more out there. But with the rise of cryptocurrency and the idea that the first trillionair will be made through cryptocurrency which one would be a better investment in the end, crypto or precious metals? Also depending on what you think how would one get into investing into one of these types and what would be the best way to invest in it? For example is there a stock like thing out there or would I just start buying gold/silver coins or straight up buying cryptocurrency?

    submitted by /u/Gangyshark
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    Roth or Traditional IRA for Young Investor?

    Posted: 27 Oct 2020 08:01 PM PDT

    Quick question for you all,

    I recently opened a traditional IRA with the intentions of using it as the start of a retirement account for myself. I am 19, and was interested in the traditional IRA for the fact that I had the flexibility of removing those funds within a 5 year window if I did a Roth conversion. So, if I possibly had the ability to retire before the required withdrawal age, I thought it would be nice to have that ability. Given the tax benefits of each, which would be the best option for me? I understand that many would recommend a Roth because I will likely be in a higher tax bracket at the age of retirement then I am now. But if I were to do a Roth conversion with a traditional Ira 5 years before I planned to retire, at whatever age that might be, would I avoid the taxes I would normally incur when withdrawing from the standard Ira? I appreciate the help

    submitted by /u/ironwood18
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