Warren Buffett's favorite market indicator soars to record high, signaling stocks are overvalued and a crash may be coming Investment Club |
- Warren Buffett's favorite market indicator soars to record high, signaling stocks are overvalued and a crash may be coming
- Should I withdraw my 1million in stocks to invest in 2 homes or apartments?
- Invest in IPOs
- A Value Investors Guide and Strategies I Use
- Vestas anounces largest wind turbine in the world
- Thoughts on Disney earnings anyone?
- ENPH for long term investment
- 2/10: SNDL Deep Dive Analysis
| Posted: 11 Feb 2021 09:12 AM PST
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| Should I withdraw my 1million in stocks to invest in 2 homes or apartments? Posted: 10 Feb 2021 01:40 PM PST So ive reached 1mill on my taxable brokerage account and im debating whether or not to withdraw it to buy a few apartments or perhaps 2 homes and airBnB them. I dont plan on quitting my job just in case anything fails, but would like to try and retire in my late 40s. I do have a ROTH, but I am not touching that till I reach 50. I am guessing after taxes, I will be left with about 600k, so it might leave room for 3 or 4 apartments or 2 homes. The issue to is, I can keep investing and say I just average 10%, that will be 100k a year (depending on market correction) A little about me, I am mid 30s, married, career/small business and still looking ways to invest with my taxable account, not my roth. My main goal is just to somehow retire by mid 40s in an RV and dirtbike around. I dont have a luxury life style. Yes this is a serious question, I have no idea what I should do. thoughts/advice? [link] [comments]  | ||
| Posted: 10 Feb 2021 06:17 PM PST How and where can I invest in IPOs before they skyrocket in the market? [link] [comments]  | ||
| A Value Investors Guide and Strategies I Use Posted: 10 Feb 2021 10:37 AM PST Hello all. First time posting here and although I dont want this to be "yet another GME post" I do want to utilize some of what we witnessed to help some investors make money ,not with speculation and news coverage, but with actual fundamental analysis and with a better understanding over the typical "buy and sell" basic methods of investing. As a value investor myself I'd like to help teach some people different strategies that I use to make money in either an uptrend or a down trend. Im no expert and this is NO WAY a "get rich quick scheme" or even financial advice. I'm fairly new at this myself so Im very open to corrections and explanations in the comments. Note: I use FINviz to help me screen stocks. Ok, so to start this off I went and screened stocks with what I see as "Value Investments" and came across ticker FNF or "Fidelity National Financial". This was the results of my screening to what I believe to be a good ratio. "FNF" Fidelity National Financial Research Price as of 2/10/21 $39.08 P/E Ratio = 11.18 (Under 15 is Good!) P/B Ratio = 1.59 (Under 1.5 is Good!) D/E Ratio = .37 (Under .5 is Good!) P/FCF Ratio = 12.64 (Under 15 is Good!) P/E/G Ratio = 1.38 (Under 1 is Good!) Current Valuation as of 2/10/2021 = $39.08 15 (a belief that a stock should not trade more than a P/E ratio of 15) x 1.5(a belief that a stock should trade no more than 1.5 times its earnings) = 22.5 Current EPS = $3.48 Current BVPS = $24.54 22.5 × ($3.48 × $24.54) = 1,921.482 Square root of 1,921.482 = $43.83 This is how I find the "Graham Number". Under current market conditions a "Fair Value" of "FNF" is $43.83 per share. The current valuation of $39.08 is undervalued by 10.84%. ($43.83 - $39.08 = $4.75) (4.75 × 100 = 475) (475/43.83 = 10.837% or rounded to 10.84% 10.84% is the "sale percentage" as if a pair of jeans was marked down in walmart. This would be your return when the market hits "Fair Value". If it takes a year to go back to fair value then your unrealized profits are 10.84% in that year. Thats better than the average yearly return of 6%. This would be a good "buy and hold" value investment strategy. If the company has a good dividend payout history and a good sign of dividend growth in the future I would reinvest all dividends to further share acquisition. Using this same strategy to determine a fair value of the company we can sell a PUT option contract of 100 shares and wait for better percentages to buy at during high volatility or receive a premium if the value of the company no longer falls offering buyers flexibility in the event they want to limit their losses. If I want to purchase this company for cheaper and increase my return percentage of say 15% (My margin of safety) I would want to purchase the stock at $37.25 (Strike Price of PUT contract) rather than buy now at $39.08 if I feel the stock should fall more due to high volatility (think fear in the markets, lots of panic news coverage i.e. $GME). If I sell the PUT contract I am given a premium by the buyer ,lets say 12% or $4.47 per share (Thats $447 of instant income) for allowing the buyer to have flexibility in purchasing shares at a later date. The Strike Price minus the Premium is my break even Price or ($37.25 - $4.47 = $32.78). If the PUT contract expires staying above $37.25 ( lets say a year later) and the buyer doesn't execute their right (not obligation) to purchase the shares then you walk away with $447 or 12% which would be greater than the 10.84% yearly return. (High premiums like 12% usually only happen during high volatility, its usually more common for less volatile stocks to have 2%-6% premiums). If the PUT option is executed at the strike price of $37.25 or below then that means you are forced to purchase 100 shares at $37.25 or you invested $3,725 into equity of the company now owning the shares. ALL PUT OPTIONS MUST BE CASH SECURED. If at the least you dont have $3,725 you must have a minimum of $3,278 (Strike price ($37.25) minus the premium ($4.47) multiplied by the total number of shares (100). We can save the premium income to help us purchase the stock. Say after 1 year "FNF" returns to a fair value price of $43.83. Your investment of $3,278 would now be increased to $4,383 ($43.83 x 100) or an unrealized gain of $1,105. Thats a 33.71% unrealized return in 1 year! Remember that all investments are subject to risk! This was just to help demonstrate how understanding the fundamentals of a company can help you make money during uptrends and downtrends. The risk with selling puts is margin and not being cash secure (naked put option) or if the company bankrupted and the right was executed at $0 and you had to purchase the shares at a loss. To better understand a company even further, I suggest following the 4M's of value investing. MEANING -The overall goals of the company and what its striving to accomplish. MOAT -What protects this company from competitors and volatility? Is it its brand? Its secrets? Its pricing? Management -Research the board members and the executive officers. Do they seem like a strong team that understands its company goals or are they just there for a pay raise? Margin of Safety - Your minimum acceptable rate of return. Some things to further help valuation of companies and markets are indexes and funds like VIX(Used for volatility, TMI (Used to evaluate the US economy in (TMC/GDP) or (TMC/GDP + Total Assets of the Federal Reserve) ratios, S&P 500 Index (Index of the top 500 US companies) and Federal Reserve Interest rates (High rates means more for savers to earn but also means more will be owed on borrowed money and low rates mean less for savers to earn but less will be owed on borrowed money). Hopefully this can help any new investors entering the markets. [link] [comments]  | ||
| Vestas anounces largest wind turbine in the world Posted: 10 Feb 2021 05:25 PM PST Vestas Wind systems revealed a 15MW wind turbine which will be the largest in the world. Do you guys think it can invert the negative trend, and possibly be a good LT investment? [link] [comments]  | ||
| Thoughts on Disney earnings anyone? Posted: 10 Feb 2021 01:47 PM PST I think Disney is looking good going into earnings, might be priced in. But they've done well adapting to online presence with Dis+ and have upside potential with the rest of their business with economic reopening in the future. Thought? [link] [comments]  | ||
| Posted: 10 Feb 2021 02:27 PM PST What is everyone's sentient on ENPH as an investment? I recently picked up shares for a long term hold at $184, on the recent dip. It seems to have an edge over other microinverter companies in the solar energy field. The company has seen some insane growth over the last year, but fundamentally, the company seems to be poised for strong growth based on the previous four earnings. In addition, their energy storage products are seeing lots of growth. Just wanted to see what everyone's thoughts are on valuation and potential growth moving forward. Thanks! [link] [comments]  | ||
| Posted: 10 Feb 2021 07:58 PM PST 2/10: SNDL Deep Dive Analysis📷 SNDL is catching up to where we thought it should should be a few months ago, $2-3 range before additional news. PathwayRX had some good news yesterday (SNDL owns 50% PathwayRX). Consolidation in these levels is impressive for 1.27B volume as this volume analysis chart shows, should lead to some stability at these levels. Still a buy for me, but use caution. I am struggling to find accurate short sale data for SNDL but from what I can tell, shorting increased yesterday despite the climb In prices. Sundial operates as Canadian Cannabis company. The sector is currently increasing across all symbols due to global expansion and legalization in multiple countries. The price has increased 10x in three months, which makes it extremely unknown at these levels. Please consider my DD as personal assessment and opinion. Consolidating with bids stacking and small ASK walls, at this price level!? Although the chart maintains a healthy look you have to wonder after this much gain in a short time... This company works in the CBD industry and has had great partnerships and licensing, with most positive news still ahead Some unknowns with current revenue. [link] [comments]  |
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