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.
- Berkshire Hathaway buys back $9B in stock in Q3
- What is a True Market Leader (TML) + And how to find them? (Ex. SHOP 2016-2020, ZM 2020, AAPL 2005-2012
- I have AMZN, FB, and MSFT - I want to drop one and consolidate my positions into two. Which would you choose?
- Is the S&P 500 really the best bet with dead companies and a quarter allocation to FAAMG?
- If you had $200k to invest. How would you?
- What are some subscriptions that give you the best BANG for your BUCK? (e.g. Amazon Prime)
- Vanguard sent a vote proposal to convert fund from diversified to non-diversified status (VWUSX) What does this mean?
- Beginner level investing
- Teladoc... a buy?
- Throw money on TQQQ for amazing returns?
- Lowest bracket, long term gains query
- What could shut down the aggressive lifecycle for large cap silicon valley companies?
- Stock game contest
- Long term hold picks
- Any reason why Aurora Cannabis and Tilray skyrocketed but Aphria Inc remained the same when news of ballot measures to legalize recreational marijuana were approved in 4 states.
- WMT, HD, TGT and Lowes
- ETF Diversification Arguments - Why Weighting Matters More Than Holdings - QQQ
- Nintendo(TYO 7974) Analysis
- Downloading Stock Price and Accounting Variables in R!
- Structured Notes
- Foreign investments seem counter intuitive?
- How does intellectual property work in terms of NIO's battery as a service?
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 08 Nov 2020 04:11 AM PST 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]  |
| Berkshire Hathaway buys back $9B in stock in Q3 Posted: 07 Nov 2020 10:54 AM PST Berkshire Hathaway (NYSE:BRK.B) (NYSE:BRK.A) bought back ~$9B of stock during Q3, bringing the nine-month total to ~$16B. That's up from the $5.1B of stock the conglomerate bought in Q2. Q3 operating earnings of $5.48B vs. $5.51B in Q2 and $8.07B in the year-ago quarter. The only major business segment to see a Y/Y increase in operating earnings was railroad, utilities and energy, while insurance underwriting posted a loss vs. a year-ago profit. (updated at 8:18 AM). Losses and costs associated with COVID-19 negatively hurt its commercial insurance and reinsurance underwriting results; furthermore, future judicial rulings and regulatory and legislative actions relating to insurance coverage and claims may affect future results. "Our underwriting results for the remainder of 2020 and the first quarter of 2021 for certain business may be adversely affected from lower premiums attributable to credits granted to policyholders and where premiums are a function of the insured's payroll," the company said in its 10-Q. Operating earnings by segment:
Q3 net earnings of $30.1B vs. $26.3B in Q2 and $16.5B a year ago; investment gains fell to $24.8B vs. $31.0B in Q2 and rose from $8.7B a year ago. Insurance float was ~$135B at Sept. 30, 2020, vs. ~$131B at June 30, 2020. The company had ~$145.7B of cash, equivalents and short-term investments as of Sept. 30, 2020, just under the $146.6B it had at June 30. About 70% of Berkshire's investments in equities securities' aggregate fair value at Sept. 30 was concentrated in four companies with Apple (NASDAQ:AAPL) by far the biggest, at $111.7B. The others are Bank of America (NYSE:BAC) at $24.9B, Coca-Cola (NYSE:KO) at $19.7B, and American Express (NYSE:AXP) at $15.2B. At Dec. 31, 2019, its investments in those four companies represented 60% of aggregate fair value — $73.7B for AAPL, $33.4B for BAC, $22.1B for KO and $18.9B for AXP. Digging further down into Berkshire's 10-Q filing and the company's unit results, its railroad, BNSF saw earnings before income taxes slip to $1.78B vs. $1.94B in Q3 2019, primarily due to lower volumes because of the pandemic. Berkshire Hathaway Energy's earnings before income taxes increased to $1.12B from $1.06B a year earlier. Manufacturing earnings before income taxes fell to $2.26B from $2.48B, and service and retailing earnings before income tax increased to $779M from $639M. McLane Company saw earnings before income taxes nearly double Y/Y to $96M from $50M. https://seekingalpha.com/news/3633328-berkshire-hathaway-buys-back-9b-in-stock-in-q3 [link] [comments]  |
| Posted: 07 Nov 2020 04:03 PM PST TLDR: In one sentence a TML is an institutional quality stock in a leading industry group with superior fundamentals and technicals. These are monster stocks which over the course of weeks and months increase +100% to +5,000% . These stocks are disruptors which change how we work, live, or play. TMLs are popular with traders/investors whose methodology is based on the CANSLIM system developed by William O'Neil. He called them Model Book Stocks. Huge winners worth studying to identify common characteristics that they all share O'Neil studied over 1000 model book stocks going back to the 1880s. Many are shown and discussed in these must read books
A few Historical Examples from William O'Neil's How To Find & Own America's Greatest Opportunities Apple 2003 https://imgur.com/2Egn9z5 Netflix 2009 https://imgur.com/BHCtJpo Home Depot 1982 https://imgur.com/tBU3JgU Qualcomm 1997 https://imgur.com/oYPItOW Yahoo 1996 https://imgur.com/ToOxnQJ So what are the Fundamental characteristics of a TML? You want to see superior:
And above all else you want the stock to have a great story- A new and innovative product or service that changes how we work live or play. Not every TML will have all of these criteria, but in general their record should be outstanding with regards to most of them. The higher these values the better. Earnings and Sales growth over 100% YoY is ideal. Annual Estimates for next year over 100% would be exceptional. TMLs are also often in the Top 20 Industry groups at the times of their runs. The TML is the leader of an overall top group which is riding the tailwinds of changing environments. Recent examples $SE $SHOP $AMZN Retail-Internet and $TSLA $NIO Electric Vehicles (Auto Manufacturers) Additionally base liquidity is required for these stocks to be institutional quality. Dollar Volume > $30 Million is essential and most should have DV much higher than that. Accumulation by big hedge funds and mutual funds like Fidelity Contrafund are what move the markets. They won't touch a promising stock unless it has liquidity. Now for Technical (Price Action) Characteristics of TMLs. They should be:
During corrections and overall market weakness they should be near all time highs, above their longer term moving averages. They should be standing out like a sore thumb and yelling "Buy me". And during Market Uptrends they should be trending above the shorter term moving averages, forming sideways price shelfs during small pullbacks and then breaking out again. Most stay above their 50 SMAs and even 21 emas for extended periods of time. So how to scan for them: Use MarketSmith, the IBD Stock Screener, Finviz, or another screener and screen for the fundamental criteria mentioned above combined with the stock over the 200+50 SMA. It's helpful to have multiple screens splitting up the criteria for instance one scan for the earnings and one for sales. Here is an example Finviz TML Scan: https://imgur.com/a/CzwHdM8 Recent examples to study $LVGO 2020 [link] [comments]  |
| Posted: 07 Nov 2020 06:06 PM PST The case for AMZN - it can grow in so many directions and has surprised us time and time again. The case for FB - leader in social networking. sure, they've maxed out on users, but they are opening other revenue streams with instagram. The case for MSFT - just a steady beast. growth is not that sexy and has been a lame duck in my portfolio. Sure, Azure is hot, but it's competing with AWS, so I feel there's some duplication here. Honestly, I'm leaning towards dropping MSFT - getting greedy. The other side of me wants to keep MSFT because it's the "safest" out of the three. Thoughts? edit: My goal is to further consolidate my positions to accelerate growth. I have other positions but now evaluating these 3 at the moment. [link] [comments]  |
| Is the S&P 500 really the best bet with dead companies and a quarter allocation to FAAMG? Posted: 07 Nov 2020 04:32 AM PST So I quite frequently see that your best investment for long term strategy is to just buy and hold something like VOO. I've been questioning if it really is because it doesn't seem to be as diversified as people may think. With consideration of the index being 22% FAAMG, it doesn't seem to be THAT diversified. Also a good chunk of the companies are probably companies will never recover, have even stock price, or continue to downtrend? Is the s&p really that great of a bet if you're willing to do just a little bit of active management and weed out some of these garbage companies? Is it ok that there will be companies that don't perform well, because those will be smaller %s of the fund? But even then, why have that dead weight in your portfolio? I guess I'd really just love to know what y'all think, if you agree or disagree, or if you can open my eyes to the light for this so I can be more confident in investing in something like VOO. It's hard, especially now, to keep putting money in VOO when I've been splitting my money evenly between VOO and QQQ and see QQQ drastically outperform. I'm in my mid 20s, so maybe its worth staying riskier with QQQ and VOO isn't worth it for me? Would appreciate some thoughts! [link] [comments]  |
| If you had $200k to invest. How would you? Posted: 07 Nov 2020 11:20 PM PST Just curious how people would invest $200k with the eventual goal of trying to retire in a low income country in the next 5 to 10 years. Yes, this is a pretty specific hypothetical lol. This is a rather simple question the does not need real eleaberation, so this whole blurb is to appease the automode god. [link] [comments]  |
| What are some subscriptions that give you the best BANG for your BUCK? (e.g. Amazon Prime) Posted: 08 Nov 2020 03:12 AM PST I'm looking into companies that cater into more than one sector, for example: Amazon. Their subscription program--Amazon Prime--allows you access to shipping and delivery benefits, Twitch Prime benefits, movie/show streaming benefits, gaming benefits, and even kindle benefits. If you know any subscriptions that are similar in nature to Amazon Prime--in that they cater to more than one economic sector--then please suggest below. [link] [comments]  |
| Posted: 08 Nov 2020 01:13 AM PST
I voted no...was that a bad idea? [link] [comments]  |
| Posted: 07 Nov 2020 07:51 PM PST Hello everyone, I'm 21f, living at home, uni student looking to start investing, but my big question is: where do I start? I've started reading investing for dummies to grasp the theory but is there anything else I should do? Or anything you wish you had done earlier? [link] [comments]  |
| Posted: 08 Nov 2020 04:05 AM PST Teledoc- an buy? They've managed to do well in the current climate with their virtual health care offering. It's has seen its shares skyrocket 146% this year, soundly beating the S&P 500 and its 8.5% returns. Virtual visits for the three-month period reached 2.8 million, a 206% increase from the prior-year period. For perspective, Teladoc's virtual visits totaled 4.1 million for all of 2019. It's on track to smash that number this year, already reporting 7.6 million visits through the first nine months of 2020. As a result of the strong increase in virtual visits, Teladoc's top line also got a big boost in Q3, climbing 109% to $288.8 million With all this being said it looks very promising and I'm considering going bullish- does anyone have any thoughts against doing so? [link] [comments]  |
| Throw money on TQQQ for amazing returns? Posted: 08 Nov 2020 03:19 AM PST I read a little about the dangers of leveraged etfs. They could possibly go down to zero, more interest due to debt, losing when there's high volatility around a fixed price. Still.. why shouldn't I just put a relatively small amount of money on TQQQ that I can live with if I lose for possibly amazing returns? In the last 10 years TQQQ around 1000% return. Why the general advice is to avoid leveraged etfs for long term investments? [link] [comments]  |
| Lowest bracket, long term gains query Posted: 08 Nov 2020 03:03 AM PST Let's say I am married, filing jointly, and have $75k from ordinary income. Now day two years ago i bought $10k worth of stock that is now worth $15k. I sell it all, and buy it back the same day. Now I'm curious about the wash rule and purchasing stock back, capital gains, and if I'm missing something. Here's what I'd like to happen, and also not commit a crime: I sell my stock at noon. I buy it back at 12:01 for substantially the same price. This changes my cost basis to the current price, it becomes a short term holding again, and it's a taxable event that triggers capital gains for the sale (at a 0% rate). I buy and hold the stock again for at least another year before doing anything, and would only have to pay future gains on my new, elevated, cost basis. That sound right? [link] [comments]  |
| What could shut down the aggressive lifecycle for large cap silicon valley companies? Posted: 07 Nov 2020 04:38 PM PST I know there is a lot of advice out there as to ; if you're not sure what exactly youre doing its better to buy the entire market. There's been a subset of stocks, FAANG, that seem to have outperformed the market for the past decade or so (maybe longer). Whenever I try to see if these companies have any chance of failing it seems like they are invulnerable. Not only, are they resilient despite shutdowns, interest rate hikes, even economic downturns so far, whenever they see competition they seem to just buy it. Rather than discuss if its a good idea to buy them or not directly versus a broader index, WHAT WOULD IT TAKE, to bring these companies down? More importantly- the stock down? [link] [comments]  |
| Posted: 08 Nov 2020 03:58 AM PST I'm joining a local investment game, it will last 2 months. The person who realizes the most gain wins 10 000 dollars. What is a good strategy to have a chance at winning? Suggestions? [link] [comments]  |
| Posted: 08 Nov 2020 03:51 AM PST Hey guys, I was hoping to get a feedback on my long term hold portfolio. I currently hold the following. I am in my 20s so can afford a bit higher risk like SPCE and it's very heavily tech focused but in different sectors, like automotive, retail, ai and pharma TSLA 10% NVDA 15% AMD 15% MSFT 15% AMZN 15% NVTA 10% MRNA 10% VISA 5% SPCE 5% [link] [comments]  |
| Posted: 07 Nov 2020 06:16 AM PST The stocks of aurora and Tilray skyrocketed yesterday however the same didn't happen for Aphria. All three are in recreational and medicinal marijuana. All three are in Canadian and new york stock exchange. All three have almost the same mode of operations. All were operating in the same single dollar price bracket. I am trying to understand what could be the reason why one stock didn't do as well when such a positive news came out. It didn't even grow on the high ride of fellow companies. [link] [comments]  |
| Posted: 07 Nov 2020 04:15 PM PST Read this somewhere that Walmart, Home Depot, Lowes and Target are shipping 300% of their normal peak volume right now. Not sure if this is true but anyone seeing an increase in traffic at stores/ increase in consumer demand ? A new normal or Q1 2021 will see a dip ? Any thoughts ? [link] [comments]  |
| ETF Diversification Arguments - Why Weighting Matters More Than Holdings - QQQ Posted: 07 Nov 2020 01:08 PM PST Introduction:This will be a short post regarding the weighting of individual securities in an ETF and taking the implications of that into consideration. ETFs can often be associated with security due to their large number of holdings, it is seen as an indicator for reduced risk, but something that needs to be considered more is this - are all your holdings being weighed equally, why/why not? Weighting Matters and How It Will Increase/Decrease Your Risk Exposure:An important consideration is that the "diverse" ETFs or funds may not be as diversified as you think when the weightings of individual securities are taken into account. Let's take a very popular ETF as an example: QQQ. QQQ is very popular market-cap-weighted (larger companies are given more weight more than smaller ones) tracking the NASDAQ 100 index. Because of this weighting system, the top 8 of the stocks in QQQ have a much more significant impact to the growth or decline of the ETF than the other 92! Technology stocks alone make up over 50% of QQQ, so how diversified are you really when over 50% of your potential portfolio is dependent on how well the largest 8 tech companies are doing? The way to minimize your risk to one particular sector or from ETFs that are overweight on several stocks would be to simply search for equal-weight funds (funds that give equal weighting to large/smaller companies), or funds that are simply more broadly diversified than the NASDAQ-100. However be aware there are also plenty of arguments against these funds. For example, you limit your upsides potential, or you give more weight to potential bad apples since all companies are not created equal. Regardless the point here is, if you are looking for diversification/security, then, the most important thing is exposure to different sectors so that your portfolio isn't subject to the exact same risks. (Tech / Oil / Subway) Not all market sectors move in tandem, the tech sector has done incredibly well over the past year, however, it is dangerous to take that and project it forward into the future. It was this exact thinking that led to the 2000 tech bubble. Final Thoughts:This is not an argument against owning QQQ (or any similar ETFs), it simply a post regarding to how the weighting of stocks in a fund can affect performance and sector exposure. Take your risk tolerance into account, are you fine with a large percentage of your portfolio being dedicated to tech, or some other sector? If yeah then have at it, but always do you research. If not, then more broadly diversified funds like SPY or VTI will be more your friend. There are many sites that break down the goals of ETFs and their individual holdings + weightings of those holdings. Research your funds to ensure they line up with your diversification or consolidation goals. Thanks for reading guys, if anyone has good researching recommendations or favorite ETFs to recommend then please comment. And have a good day! (or don't if you don't want to, I'm not your mom, I can't tell you what to do) [link] [comments]  |
| Posted: 07 Nov 2020 09:46 AM PST Nintendo, I think is the best gaming stock to buy. My partial reasonings:
Risks:
Final commentary: Gaming has entered a mega-trend territory. I think Nintendo is best positioned to capture this mega-trend as they have all the ingredients of success. Plus, Nintendo being undervalued compared to its peers make it a good opportunity to ride this trend. Gaming is ultimately a risky business and no other publisher(other than MSFT, which already is valued to the teeth) is as well positioned in this market as Nintendo. TL;DR: I think Nintendo is the best stock for the next 3-4 years among other gaming stocks. Have a good day! :-) [link] [comments]  |
| Downloading Stock Price and Accounting Variables in R! Posted: 07 Nov 2020 06:06 PM PST If anyone is interested in downloading daily/weekly/monthly/yearly stock price data in R, I've made a quick video on how to do so! The packages that I use are super flexible and can help you obtain firm level data on prices (open/close/high/low) as well as dat`a from firm's 10Ks (assets, liabilities, debt, etc). Sorry if these posts are not allowed, but I thought that this might help some people. I tried to keep the video really brief, but I attached all code in the Youtube descriptions. https://www.youtube.com/watch?v=CD-Bk1YAYXk Thanks! [link] [comments]  |
| Posted: 07 Nov 2020 11:58 PM PST Hi guys, I wanted to get your opinion on investing in structured notes. I have came across a structured note paying 16.50% P.A and it is invested in Amazon, Netflix and Facebook. It looks like a steady return with good loss protection barriers. I understand that if the stocks go up more than the structured notes amount of given interest rate I wont profit as much as investing directly however by investing in the note you also have loss prevention barriers which you don't get directly in the stock. Any advice would be greatly appreciated. [link] [comments]  |
| Foreign investments seem counter intuitive? Posted: 07 Nov 2020 04:02 PM PST I live in the UK, and facing a small conundrum.. but this can apply to anyone investing in foreign markets with another currency. Lets say you I am investing in stocks listed on the LSE in GBP but I also want to buy stocks on the NYSE in USD. At the moment I make a trade for US stocks, I am doing so with a certain exchange rate. Assuming this exchange rate never changes, your profit after selling (lets say after 1 year) will only be the rise in stock price. Great, but this is unlikely. The exchange rate will go up or down. But lets say this exchange rate rises (either as a result of a stronger GBP or a weaker USD). When I want to sell my stocks that I initially bought at the lower exchange rate, the profits are suppressed by this rise in exchange rate. This incentivises me to want the exchange rate to get lower in order to get a higher return on my investment in US stocks. But the paradox is that any native UK stocks I bought and sold during this time are now giving me profit (okay) but it is not worth as much because the exchange rate is lower (i.e the GBP is weaker). Am I missing something here? Its almost like you should just do one or the other. Doing both is like betting for 2 different and opposite outcomes, you are going nowhere. Still learning, if anyone can clear this up - would be great. [link] [comments]  |
| How does intellectual property work in terms of NIO's battery as a service? Posted: 07 Nov 2020 06:09 AM PST Hello, everyone. I'm among the bullish investors in NIO and I'm currently conjuring up possibilities with their BaaS. However, I have one concern that's been bugging me because I'm not well-versed in this topic. My main question is: Can another EV company or company in general establish a service similar to BaaS (Battery as a Service) like the one NIO has? And if they do establish it, would it be considered intellectual theft and illegal? I hope this is not an obvious answer question, but I'm genuinely concerned about it. Because if it's not something other companies can up and copy, then it might be something other EV companies like XPENG or LI, maybe even TESLA can use to bridge a partnership between themselves and NIO. [link] [comments]  |
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