Interesting article about stocks and beating the indexes:
OT: Stock and Investment Thread
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this little bear is having a great year, 17 and 18% (well above the S&P) returns so far in my 401k PCRA and brokerage account in 2021. Just because I think that many tech stocks (and other speculative investments) are well over priced (e.g. TSLA) doesn’t mean I don’t benefit from a continued bull market.
I agree with you here (lol), the data does speak for itself. And the market doesn’t like the data resulting in TSLA with an initial drop of 4%. Maybe Cathie can drive it back up.
If the economy is growing at 3%, it's common sense that the bulk of the companies comprising the economy are growing at an average of 3%. What this blog post fails to mention is the bulk of the 22% of "gone" companies were well run companies acquired by larger companies who used inflated stock as currency. When a company valued at 20x sales acquires a company valued at 3x sales, that "gone" company is immediately worth 6x it's value, even if the stock ticker is gone.
History shows that's a sustainable business practice for high priced stocks, until it's not sustainable.
So you are a hypocrite? HA! J/K.
Party on, great year so far!
no, mostly a value investor and not a speculator. And this year has been great for most of my 45 stocks. Also, siting on a lot of cash. Although I am benefiting on what I own, the overall market is overpriced.
Interesting point. How do you know that the bulk of the 22% are acquired? Do you have a breakdown of this?
Hopefully you haven't been a value investor for the past 10 years. If you have been, the S&P is crushing you, but this depends on your definition of "value".
I have an account that focuses on "value tech", which is essentially traditional tech that is not spec or momentum. Value for tech, but not value in the textbook definition.
certainly missed out on Netflix, Tesla, Bitcoin and other high flyers, but I have done just fine and can sleep at night. (For example, I sold Tesla years ago at $60 ($12 adjusted for the split)
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25 years of industry experience. LOL. It's really hard for a company without debt to fail. They ultimately just issue stock until the minority shareholders are all diluted away and spend their years on the pink sheets getting manipulated by kids on reddit.
I'm mostly a fund/etf investor (which accounts for more than 95% of our retirement investments). I do have a nice mix of managed funds and indexes. Long time investor in FDGRX, PRGTX, PRHSX, and PRNHX. These have had amazing performances over the past decade. As such, we only need an average 7.5% return over the next 16 years to achieve our super-stretch retirement goal. I try to shoot for 10% per year, but it's nice to have a cushion.
The other 4-5% is made up of 13 tech stocks and our crypto portfolio (GBTC, ETHE, and 4 stocks).
Goldman increases price target for TSLA after earnings report ($860):
MSFT crushes revenue growth and earnings, but stock down 3% after hours. People are stupid. LOL!
Nice Google #'s as well.
Nice Google #'s as well.
I don't know about BS artist, but it is strange to use bitcoin sale to increase your profit on the books. He is still a visionary guy who has completely changing the future of the car industry. There is no denying that fact. My guess is that Elon Musk and the Tesla board realizes that the stock has run up too far and it will take time for the company to catch up in fundamentals, so they are using ancillary sources of income to inflate their books. Keep your stock popped up until the profits are ready to justify the stock price.
You must have missed the part that Musk just hit the hurdle for 11 billion payout. LOL
Quality of earnings matters. When you are an EV company but makes more selling BTC than cars, that’s a problem.
I hear you, but if you look back at the Tesla BTC purchases Musk had an entirely different spin. Why would Tesla sell BTC when it was/is going to the moon? To book a $100M profit?
Hey man, you and I would do the same thing if we were in his shoes.
I am not in their board meetings, so I can't tell you exactly their reasoning. But to my eyes, it seems like they will be selling bitcoin intermittently to book profits.
They have said publicly numerous times that they want their cash to earn returns, which is why they moved some to BTC. They earned those returns and will earn more in the future.
Good business decisions 101.
You are off your rocker. You really think it makes sense to invest your operating cash or excess liquidity in a speculative, highly volatile asset? No business book will suggest such an approach.
Makes perfect sense - buy BTC…pump BTC…sell BTC at profit…help hide a terrible quarter and trigger massive Musk payment. Sure, “good business decisions 101” if snake oil is your primary product.
@T2Kplus20
surprised you didn’t get you CFO on board with BTC.
At least you know why BTC sold off last week. LOL
There could be another run up on BTC when TSLA buys back in. Do they have to wait 30 days?
surprised you didn’t get you CFO on board with BTC.
At least you know why BTC sold off last week. LOL
There could be another run up on BTC when TSLA buys back in. Do they have to wait 30 days?
Well it’s interesting that the EIB issued a Bond that is in the ETH network
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">European Investment Bank is issuing 2 year digital bonds on Ethereum through Goldman, Santander, and Societe. <br><br>Wow. <a href="https://twitter.com/GoldmanSachs?ref_src=twsrc^tfw">@GoldmanSachs</a> <a href="https://twitter.com/hashtag/Ethereum?src=hash&ref_src=twsrc^tfw">#Ethereum</a> <a href="https://twitter.com/RaoulGMI?ref_src=twsrc^tfw">@RaoulGMI</a> <a href="https://t.co/kaQIrZ9C9V">pic.twitter.com/kaQIrZ9C9V</a></p>— Michael Tant (@MichaelTant3) <a href="">April 27, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">European Investment Bank is issuing 2 year digital bonds on Ethereum through Goldman, Santander, and Societe. <br><br>Wow. <a href="https://twitter.com/GoldmanSachs?ref_src=twsrc^tfw">@GoldmanSachs</a> <a href="https://twitter.com/hashtag/Ethereum?src=hash&ref_src=twsrc^tfw">#Ethereum</a> <a href="https://twitter.com/RaoulGMI?ref_src=twsrc^tfw">@RaoulGMI</a> <a href="https://t.co/kaQIrZ9C9V">pic.twitter.com/kaQIrZ9C9V</a></p>— Michael Tant (@MichaelTant3) <a href="">April 27, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
C'mon now, Tesla cars are not snake oil. They are an awesome ride. You can say the stock price is overvalued, but not fair to call the car a snake oil.
Why wait 30 days?
I try to not buy stocks right at earnings - crazy things always seem to happen. But MSFT is one of those set it and forget it stocks.
Edit: GOOGL is another.
Most companies will use their cash to invest in startups and other things that maybe volatile as well. Criticizing Tesla for doing that is not fair. By the way, I am not a blind Tesla bull and will sell my stock if I feel the future is bleak.
My crypto account is up 60% YTD.
Seriously. VTI or a total stock market index is great, unless we get a repeat of the 2000's. Keep an eye on it. During the 2000's, small/mid-cap value and healthcare ruled the day. I don't think this is coming anytime soon, but don't just set it and forget it.
The 30 days was a joke about wash sale rules. Tesla doesn’t mark to market BTC and only reports what’s realized. So, if they buy it back at a higher price, do they give back those gains? LOL
I also understand why Musk is pumping Dogecoin. He understands there is a correlation in crypto. He can’t pump BTC. Dogecoin provides a very cheap way to pump up crypto. Pure genius.
saw that
I'll guarantee you we see regulation that makes companies mk to mkt given it's volatility. Can you imagine a large company with losses on this that has a wide impact? No one in their right mind can think TSLA is attractive after yesterday and especially with the headwinds and possible battery changes.
I'm a big ETH guy and hold a nice chunk however, I'm selling into rally as I expect increased scrutiny and a former colleague of mine told me that regulators will bring this under the umbrella sooner rather than later. Now that can be good long-term as money on the sidelines will jump in but it will lead to volatility and some nice declines until the smoke clearls imho
Cuban as well although the usage is skyrocketing. I still see no way this reaches parity with the dollar and can't imagine the powers that be will sit still for much longer
Bad idea on GOOG. Morningstar's FMV (which tends to be on the conservative side) was just raised to $2925. You are going to miss out on a lot of nice returns. GOOG is a buy and forget about it.
take some profits and wait for the 25-30% dipFYI - new all-time high for ETH.