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    Sunday, October 4, 2020

    If you're new to investing, don't trust the "gurus." Investing

    If you're new to investing, don't trust the "gurus." Investing


    If you're new to investing, don't trust the "gurus."

    Posted: 03 Oct 2020 07:36 PM PDT

    My friends - as a beginner who has recently started making (a little bit more serious) efforts into learning how to invest and trading, let me share some findings with you.

    1. DO NOT LISTEN TO PEOPLE LIKE STEVEN DUX. Every person in the financial industry has an objective one way or another. Why do you think they keep playing up the fact that they're rich but ask you to participate in their courses or "learn their secrets" for a couple thousands of your hard-earned cash? Because they want to take advantage of your inexperience and sell you something that seems grand but is usually something that you can Google or learn easily on your own. There are no "industry trade secrets" in investing; if there were, a lot more people like these ones offering you such "secrets" would be billionaires and wouldn't bother trying to "teach" you something that you don't know.

    1. Take information from a variety of resources. Don't take anyone's offer in selecting "stocks" for you that will make you rich overnight. These are tremendous red flags because investments are a deeply personal choice. You invest in companies that you believe in and that YOU think will do well. If all he/she does is offer you a plan that is obscure in where you're putting your money or promises instant wealth with "unicorn" companies, they will run with your money. Do your research, learn basic financial concepts from places like Investopedia, and find companies that you truly think will stand the test of time and will grow. Think about it: would you want to throw all your funds at "tried and tested" companies like Exxon because some investment guru said it's the best choice (but you personally disagree with or think is going to fail in the future), or invest in a company like Patagonia (ethically respectable, well-known, and trusted) or Google (world-renowned and used, not the best ethically but you know that no one's going to give up their search engine in a long, long time) that you trust for the medium-long term?

    TL;DR: Make your own decisions and learn things for yourself one step at a time instead of placing your trust and funds into the hands of another. It'll pay off in the long run, I guarantee it.

    submitted by /u/christmaws
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    Airbnb seeks to raise roughly $3 billion in IPO

    Posted: 03 Oct 2020 07:05 AM PDT

    Home rental company Airbnb is aiming to raise around $3 billion in its upcoming initial public offering, people familiar with the matter said on Friday.

    Airbnb said in August it had filed confidentially for an IPO with U.S. regulators.

    Airbnb will be one of the largest and most anticipated U.S. stock market listings of 2020 which has already been a blockbuster year for IPOs.

    https://www.cnbc.com/amp/2020/10/02/airbnb-seeks-to-raise-roughly-3-billion-in-ipo.html

    submitted by /u/cannainform2
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    Favorite websites for stock market news/analysis?

    Posted: 03 Oct 2020 12:25 PM PDT

    I've been investing for a few years now and have a couple of websites that I use regularly to keep me up-to-date. My favorites are:

    Macrotrends.com ->Plethora of financial information about companies. Probably my favorite, plus it's all GAAP info

    smp-500.com -> News and updates on earnings, dividends, IPOs, company profiles and bunch of other stuff

    Yahoo finance -> Like to use it for price targets and future earnings/revenue estimates

    CNBC/WSJ/MarketWatch -> Updates on business news etc.

    Curious to see how many people use these same sites and which ones did I not mention that are your favorite?

    submitted by /u/nikolas_z
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    Resources for evaluating REITS

    Posted: 03 Oct 2020 01:45 PM PDT

    I happen to like Louis Rossmans youtube channel and lately he's been talking about NYC real estate and the absolutely massive drops in price that are starting to show up as long term vacancy becomes less tenable for landlords. We're talking rents 1/4 of pre covid market rate. My understanding is that part of whats kept prices from dropping is terms written into the financing for the buildings regarding nominal value based on rent and requiring (prohibitively large) floats to be paid if that value drops. That got me thinking about REITs with major New York City exposure, as well as exposure to other overblown major metro areas. These asset prices are already severely beaten down, and generally still at around 50% or less pre-COVID prices but I was wondering if anyone had resources about reading balance sheets for corporate real estate. I'm moderately comfortable with a 10-k but less sure how to evaluate these instruments.

    submitted by /u/awkwardturtletime
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    What's the catch with fidelity mutual funds?

    Posted: 03 Oct 2020 04:14 PM PDT

    I've been playing with Robinhood for a while... Yes yes, I'm not proud either.

    Anyways, I've seen very great success (110% in a year), and I know it is just from dumb luck and the market popping.

    Now that I'm starting my PhD, I am looking into investing in something that takes less time. I came across things like: https://fundresearch.fidelity.com/mutual-funds/summary/316390822

    Which have an average return of 16.70% since 1985?? and only 0.71% management fees??

    So I can park $10,000 in there and I'm set to retire and never have to save again?

    Why do anything else???????????????????????????????????????????????????

    submitted by /u/Llamatree69
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    What is your biggest loss?

    Posted: 03 Oct 2020 05:53 PM PDT

    So like many WSB a****** I made some insane money during the whole COVID fiasco.

    I think at one point I was +65-70k in around a two month period and I didn't even time it perfect with the bottom like a lot of you guys did.

    Then about a month ago I decided to do some risky plays (the oldest story in the books).

    I got caught in the oil dip along with some other things and quickly lost 60k -_-

    I got to enjoy life changing money and within a very short period got to see it fall through my fingers..

    So what have been some of your biggest losses and what is the story about it, or the biggest losses you have heard of and seen from friends and family (not just rumors).

    This should be entertaining Lol

    submitted by /u/Godkingcoconut
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    Tips on beginning to create a portfolio - recent college grad

    Posted: 03 Oct 2020 04:39 PM PDT

    Hi all, I'm new to this subreddit and looking for any advice. Thank you in advance.

    I'm a recent college grad, and due to COVID, work remotely at home. This has allowed me to build some savings and I'd like to begin investing. I've bought a few stocks in the past but never truly created a portfolio. What suggestions would you give someone starting out in their investing career? I'd love to hear any lessons you've learned over your investing career.

    submitted by /u/SpiritualMushroom6
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    5% Dividend stock or 5% coupon bond?

    Posted: 04 Oct 2020 03:33 AM PDT

    Hey r/investing

    I'm new to investing and I'm planning out how I want to build my portfolio. I know I want to have some dividend stock for the yield, but from reading through the sub it seems people are skeptical of high dividend yield stocks and the favorite rule of thumb is within 5%. My question is why accept a 5% yield when there are bonds out there that offer a 5% coupon? You get to sit higher in the capital structure for the same return. For the sake of the argument let's assume that no income tax is charged on both investments, and let's assume that capital appreciation is not a factor here.

    Thanks!

    submitted by /u/Muscatier
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    Broker for passive investing in EU

    Posted: 04 Oct 2020 04:03 AM PDT

    Hello everyone!

    I am 25 years old, live in EU and going to invest passively each month around 500-1000€. I already have emergency fund, so this money will form my capital for retirement. I am beginner in investing, so I am searching for really simple platform which will allow me to invest money.

    The key things which are important for me:

    • Security (I am going to invest for about 25-30 years, so it will be most of my money)
    • Not having Inactivity fee
    • Having stocks (US oriented), bonds (EU/US), ETF (Worldwide)
    • Relatively low trading fees (for example Saxobank takes minimum 10$ for US stocks trading comission)

    Nice to have:

    • Friendly UX (I am a beginner and not going to deep dive in each day trading)
    • Credit/Debit card for deposit/withdraw

    So, I studied a few brokers and found a few one, which are probably good enough for my purpose:

    1. eToro
    2. Degiro
    3. Trade Station Global

    I used https://brokerchooser.com/ for analysis

    Let's shortly get pros/cons of them:

    eToro

    Pros Cons
    Not having inactivity fee (technically it has - monthly after 1 year of inactivity, but I think it is not so relevant) Doesn't have bonds at all
    A lot of US stocks, ETF, indices Questions about security - it is not listed on any stock exchange, does not disclose financial information and does not have a bank parent
    Friendly UX Transparency - commission is build into a spread
    Credit/Debit card for deposit/withdraw
    Investor protection 20 000 euros
    Low trading fees (for US stocks - 0.7 is the average spread cost during peak trading hours)

    Degiro

    Pros Cons
    Doesn't have inactivity fee Credit/Debit card for deposit/withdraw not available
    A lot of US stocks, Bonds (US/EU), ETF Questions about security - Not listed on stock exchange, does not disclose financial information
    Friendly UX
    Investor protection 100 000 euros
    Low trading fees (US stock for example $0.004 per share + €0.5)

    Trade Station Global

    Pros Cons
    Doesn't have inactivity fee Deposit/withdraw is not user-friendly
    A lot of US stocks, Bonds (US/EU), ETF Questions about security - Does not hold a banking license. Also I don't understand relation between Interactive Brokers and Trade Station Global - is it subcompany?
    Investor protection 85 000 British pounds Not so friendly UX
    Low trading fees (for US stocks $0.007 per share, min. $1.5)

    So, after everything I would consider Degiro as a final decision. It has a better investor insurance and holds a bank license. Also, it has bonds, which is important for me. And it is much more user-friendly than Trade Station Global (at least for me, as a beginner)

    What do you think about best broker in EU for my purpose? Maybe in my analysis I missed something. Would be glad for any feedback :)

    submitted by /u/SheepherderSenior
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    Why do some companies have missing 10-Q and 10-K filings?

    Posted: 03 Oct 2020 09:24 PM PDT

    Blackberry (NYSE: BB) has been around since 1999 but the earliest 10-Q filed is on 2020-06-25 and 10-K on 2020-04-07.

    https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001070235&type=10-q&dateb=&owner=exclude&count=40&search_text=

    Their press releases go back all the way to 2013 but there is no other 10-Q or 10-Ks available.

    Edit: Its under the 40-F as Canadian filings.

    submitted by /u/rInvestingAccount
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    Can a Note Broker Find Me Deals?

    Posted: 04 Oct 2020 12:10 AM PDT

    Still learning and getting familiar with the note buying business, but I've been having trouble sourcing note deals. I'm pretty sure the whole thing about note brokers is that they find deals and connect those deals to buyers. With a quick google search I run into a lot of sites wanting to sell notes or convert me to a broker.

    How do I get my hands on a broker that's gonna find me a deal? I'm a complete beginner so feel free to provide any advice you see fit.

    submitted by /u/ScoreStudent
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    Talk me out of (or into keeping) BOND FUNDS

    Posted: 03 Oct 2020 01:49 PM PDT

    40yo male, 25 years to go in the markets. Maxing 401k, maxing Roth, several individual equities in brokerage, 1 year liquid cash, zero debt other than 200k left on mortgage at 2.75%, zero kids, zero trips anywhere planned, etc...

    Strong gut, no panic, rode out March 2020, rode out 2008, rode out 1999-2000, etc.

    40K of my portfolio is in bond funds - BND and BNDX. Not looking to start a flame war or be pro-bond or anti-bond, but here is my thinking. I'd rather have the 40K being more active in index/mutual funds vs. acting as "cushion" for the inevitable market craters that WILL happen. When have another 30-40% all encompassing drop, which is likely to happen several more times over my horizon, having 40K in bond funds (and later 50K, then 60K, etc) is not going to make a lick of a difference when the whole portfolio takes a 30% or so hit.

    Am I thinking about this the wrong way? Am I thinking about this the right way?

    submitted by /u/kale-salad-
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    Tesla has monopoly like valuations when it is a car company.

    Posted: 03 Oct 2020 10:55 AM PDT

    I like tesla as a company but there is no reason why it has tech company like valuations. They are not a monopoly and will face stiff competition from other car makers as the world moves to EVs. And as a mass market car, which is needed to jusify it's current valuation, I doubt they will be able to capitalize on prestige. I also doubt they can garner brand loyalty in a competitive space like cars where there are 100s of other makers ready to up their game.

    We all know profits are close to 0 when competition is stiff. I cannot jusify buying tesla.

    submitted by /u/EarthOribitor
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    VGT is the best ETF in the game

    Posted: 03 Oct 2020 09:48 PM PDT

    As a 21-year-old, I'm constantly wondering what the proper investment strategy for me is going to be. Should I just do an S&p500 or a total stock market fund buy it and forget it? Pick 20-30 individual stocks myself? Monthly dividends?

    No. The new strategy and proper investment play = VGT (vanguard information technology ETF).

    VGT has an expense ratio of .10%. It's averaged 20%+ over the past 10 years.

    A lot of people are saying "over the long run no one sector is better than a total stock market fund." Or that "there's no way to tell what the future holds."

    I don't know a lot, but one thing I know for a fact is that technology isn't going anywhere. I actually think we're on the edge of the exponential curve of processing power (Moore's law). Technology is only getting bigger and more pervasive. Technology is the new oil.

    I'll be investing all of my money into VGT going forward for at least 10-15 years. I don't see it going anywhere. I believe it will average north of 15% over that time frame.

    PS: Even if VGT fell in half from where it is right now, over the past twenty years it still would have outperformed the S&P500.

    submitted by /u/Independent-Memory53
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    Are there seriously no screeners that allow you to perform extended hours screens for specific days?

    Posted: 03 Oct 2020 04:57 PM PDT

    Literally all of the screeners I have seen do not allow for this. They only let you look at this data for the last trading day, and once a new one rolls around, the previous day's extended hours data is inaccessible.

    This makes it take a lot longer to backtest strategies that are dependent on extended hours moves, because you literally have to do the screens each day, and you can't look into the past.

    submitted by /u/stocksrcool
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    what is the obsession with Cathie wood and ARK etfs? is it a meme?

    Posted: 03 Oct 2020 08:29 PM PDT

    as far as I can tell these ETFs were created in the best bull run in history, with low interest rates aka cheap debt

    so throwing your dart at any stock could have made you a messiah

    what sort of track record does Cathie wood have to make her an authority on these "meme" stocks

    submitted by /u/uoftsucks
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    Lithium Investments

    Posted: 03 Oct 2020 08:07 PM PDT

    So my coworker has been absolutely raving to me about Lithium stocks, WWR in particular. It makes sense if EVs are the future, and his big thing is that WWR has a US based Lithium mine when all others are foreign. Trump just issued the rare earth materials executive order in an attempt to stop the reliance on China for rare earth materials. Would love to hear some thoughts on this.

    submitted by /u/CadillacKid46
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    Stock portfolio allocation based on duration

    Posted: 03 Oct 2020 08:04 PM PDT

    Hello, how many percentage do you allocate in each stock category? Thanks.

    1. Long term blue chips
    2. Long term growth stocks
    3. Dividend play
    4. Long term dividend stocks
    5. Mid term blue chips
    6. Mid term growth stocks
    7. Short term trading

    Edit: middle age and high risk tolerance.

    submitted by /u/djtron99
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    Growth stocks

    Posted: 03 Oct 2020 03:23 PM PDT

    Hi, new to this investing game, looking for some growth stock ideas to fill in some space and diversity , something other than the huge tech companies, maybe something up and coming or just some staple growth stock ideas, it's for a taxable account btw, have my dividends in the Roth, thanks.

    submitted by /u/AndromedaM_31
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    Favorite bond ETF to park cash?

    Posted: 03 Oct 2020 01:22 PM PDT

    So nearly half of all my assets is in a .6% hysa at Goldman. I feel like that is not enough and I'm looking to park my cash in a bond etf yielding 1-3%.

    Any recommendations by ya'll? Thanks! Keep in mind I plan to make a big housing purchase in 2-3 years.

    submitted by /u/loopey33
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    Questions about Norbert's Gambit to convert CAD to USD

    Posted: 03 Oct 2020 01:12 PM PDT

    I need to convert CAD to USD and I have been reading on reddit about what best way to do so.

    I see Norbert's Gambit mentioned many times but I don't see any recent posts.

    It appears this ETF exists solely for the purposes of converting money, wow!

    I am using Questrade (TFSA). I have two questions:

    1. I am curious as to how much CAD I should convert to USD to make it worth it ?

    Some of the posts I read do talk about this but then people go on to use terminology I am not yet familiar with and it gets confusing very fast.

    1. Do I first need to open a USD account with Questrade as I would need to at a regular bank? Or can the TFSA somehow be used to trade both cad and usd ?

    Thanks in advance

    submitted by /u/tor_ont
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    What effect would the stimulus plan have on airline stocks

    Posted: 03 Oct 2020 04:15 PM PDT

    Hey guys,

    I know that airline stocks are not people's favorite right now since it might take years for the airline industry to go back where it was due to great decay in travel. moreover, we can all agree that there is a very high probability that we might get a stimulus plan before October 13th since.

    My question is how can we predict what happens to airline stocks like Delta stock these next couple of weeks? LUV is probably the strongest in the airlines because it has more cash I think and because it has the lowest debt and more stimulus will only ensure that it won't go bankrupt which means it will go back to its original price eventually even if that takes years, but what I want to know is what is the short-run effect of that stimulus aid? Do you think that airlines will react to stimulus like tesla reacts to news, in other words, they will go up before but start going down the moment the stimulus happens? or do you think they will keep going up a little or stay at that price little longer? or maybe nothing happens at all? or do you think they might even go down?

    submitted by /u/Fancy-hello
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    Missing dividends

    Posted: 03 Oct 2020 03:59 PM PDT

    I have a few positions that I've had since mid March that haven't paid out dividends on Q2 or Q3, so far the only position I have that has paid out as schedules is T. Would there be a scenario where a company or etf is allowed to not pay out dividends as scheduled? Is this something they would disclose on their prospectus? Not really sure where I should be looking for more information.

    EDIT: I found the issue. Looking at the Ex-Div date, it looks like I missed it by a month on all but one position. DIS just outright said screw 2020 you guys get nothing.

    submitted by /u/Injector22
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