OT: Favorite Wall Street Investments Currently
Alwyas looking for great investments to research. No shame in sharing information in helping everyone make money. Post your favorite stock investment(s) and why.
MU (Micron)
Pros: Incredibly Undervalued based on PE. EPS/Revenues growing at incredible rate for a company under 10 PE. Demand for NAND and DRAM chips are robust and continue to grow. With IOT as the next revolution, growth very well will accelerate propeling MU to new levels.
Cons: In past, DRAM demand/supply has been cyclical. MU would reap rewards one year, lose money the next. Handful of analysts still beleive their chipsets will remain cyclical going forward.
DQ (Daqo New Energy)
Pros: Again, like MU, currently incredibly undervalued. EPS/Revenue growth exponential with PE under 10. Pure Polysilicon supplier currently at 18,000 MT with aggressive Expansion plans to 30,000 MT end of 2018, 65,000 MT end of 2019, 100,000 MT end of 2020. China Trade war helping DQ as Hemlock Semiconductor cannot afford to shp Poly to China because of Tarifs. China largest consumer of Poly (Polysilicon is the raw material of wafers/cells/modules). DQ is the lowest cost producer of Polysilicon.
Cons: Do you trust a chinese company and their numbers? What happens when Chinese trade war has ended? What if Thin Film modules somehow take over in efficiency against PV modules? Are expansion plans to aggressive?
Do your own research as always. List yours, i always love recommendations.
I own shares in three REITs that all pay around 10% dividends. My wife wanted to invest in real estate. I'm not the type to own a rental property. But I figure this spreads our risk among many residential properties and three separate funds. I agree with MGrowOld though, the majority of my 401K is in an S&P500 index fund.
I bought some WWE stock about 7 years ago when I noticed they had a huge dividend payout, something like 11%. It appeared to be a scam for Vince McMahon to pay his family at a lower tax bracket, but that didn't last long. The stock is up 369% since I bought it though after gaining 14% last week (USA cable renewal) and another 15% this week (Fox picking up one of their shows.) There is a sucker born every minute, and that sucker grows up to be a pro wrestling fan. Event-driven live TV demands a premium.
I have also bought stock in a couple companies that my former colleagues went to work at (OLED) or started (IPHI.) They are up 500+% and 100+% in the decade+ that I've owned them. OLED is interesting because it has a UofM connection through Prof. Forrest, who co-founded the company. If I had followed my first boss to Universal Display, I would be fabulously wealthy now, but I'd also have to live in.... NEW JERSEY!
I agree with your point on REITs - two points of note:
1 - with REITs they are very sensitive to interest rates, so as they continue to rise some REITs may see massively decreased earnings
2 - the upside (or down) of real-estate vs. a REIT is if you have a real estate investment it will have some leverage (20% down mortgage, aka 5x leverage). So long as you get a tenent to cover costs / etc you get better ROI.
The taxes are relentless though.
I remember buying Amozon in July and selling it right after Turkey Day, I idid this from 2000 - 2010, made for some good holiday cash. Now I wish I would have just doubled down and held on to this stock. I still play stocks and have a nice portfolio of 4 to 5 stocks I trade and will play different sectors. I use to to options but in the old days, you had to spend a lot of time on getting the right puts and calls. I gues it is easiery now a days and when I have more time I may get back in options. If you do not have the knowledge you can lose a lot of money. My 401K is all in S&P index funds, and if I feel a bear market is about to begin I have a good bond market fund to drop into. I've avoided the dot com/911 and 2008 bear markets. I think we are in good shape for a year or two more but watch out when main street begins to top out and it heading there. Fall '18 through Fall '19, I've issued a bear market watch. It will be another 40 percent drop in the S&P, but will eventually recover after 3 or 4 years. So, if you just forget about it you will be ahead in the long run with a good index fund. I'm within 10 years until I retire and hope my experience will help me out to avoid the next bear market, since I may only have another 5 or 6 years to go waiting for the next bull market.
An old mattress in the shed.
In reality, I'm waiting for this ridiculous bubble to explode so I can make some money afterwards.
That's why I'm not rich, most likely. I have no idea what I'm doing and seemingly neither do the professionals I hire to manage my money.
Agree - i have been waiting 5 years for the bubble to burst. The economy keeps going, and going, and going.....
If you try to time the market you fail. Its pretty simple. Index funds are the only thing that make sense and outperform almost everything in the long haul.
If you have a ton of money and want to turn it into even more ludicrous amounts of money over short term time periods you can worry about individual stocks and performance, That is for like .01% of the population, for most any stock trading should be done as a hobby with entertainment funds, not as a savings/retirement strategy. I do think CVS is markedly under valued right now because rather than using the tax break to buy back stocks like most companies are they are using if for Aetna and other ventures. Leaves them undervalued relative to the market given the other companies engaging in buy backs. If/when Aetna merger gets approved I think CVS will climb back over $100 at least like it was in 2015 and its at $65 right now.
I have had CVS on my watch-list for a few months. Really like that one, but did not buy yet as their are others i simply like a bit more.
#richguy
EDIT: fuck Wall street. I live near Inglewood in LA, and due to gentrification and the new football stadium, real estate in the area is a solid short-term investment. Not that I can afford to invest.
Blue Horseshoe Loves Anacott Steel
I could tell you, but...... I'd have to........
I could lose my licenses.
Its rarely the 'sexy' picks that turn into big gains. Years ago I would have to tell clients that its good to be engaged and its good to do some homework..... But you're paying me to manage your portfolio and at the end of the year you'll be holding me accountable for the performance.... So, its only fair to let me do the job you're paying me to do.
Qcom
SNY
F
WELL
have a place in a well diversified portfolio.
All investments have the ability to suffer loss in value, past performance is not a guarantee of future results. Images in mirror may be closer than they seem. Don't try this at home.
Now you tell me.
I've got all my money in the tulip commodities market. I LOVE the long term upside of tulips...
Vanguard Total Stock Market Index Fund for domestic stocks
Vanguard Total International Stock Market for international stocks
Vanguard Total Bond for bonds
Done. For life.
Whew, now I have a lot of other time for enjoying life rather than rolling the dice on individual stocks, PLUS I'll outperform most individual stock pickers over my lifetime by a bunch
Correct.
For years I traded all over the place. Chased every hot stock and trend. It was almost a hobby of sorts.
Remember "Tracking Stocks"? That's how bad it got.
Then one day I realized that the only one making any money was my broker.
So I had a little conversation with myself: "Self, you need to make a choice: Do you want a hobby or do you want to make money?" I decided that I wanted to make money.
So I turned off all the noise, stopped watching the Jim Cramer's of the world, and dollar-cost-average invested every month in just four no-load low cost Vanguard index funds:
- Domestic Large Cap (SP 500),
- Domestic Small Cap,
- International Developed Markets,
- International Emerging Markets.
That's it. You could throw in a Bond Index fund too if you are more risk adverse than I am.
Then I stuck with it though bubble and troughs, including the dot com bubble and the Great Recession. I never missed.
It's boring as hell and I never have any cool "Bitcoin" elevator stories to tell.
But because of it, my retirement will be early and it will be lucrative.
How do you get started investing in this Vanguard index fund? How high is the minimum "buy-in" to have an account? I'd love to get started, but I know literally less than nothing about long term investing.
Vanguard (https://investor.vanguard.com) is pretty consumer-friendly. So is Fidelity (https://www.fidelity.com/).
I started a long time ago and never changed it. But if I was starting now, I would go with ETFs instead of Index funds. ETFs and Index funds both attempt to do the same thing (track a specific part of the stock market) but ETF taxes are lower and the minimum buy-ins are lower.
You set up an account with either company, and then you typically set up a direct withdraw from a checking account each month (or quarter) that goes directly into the investments. You never miss the money that way.
They are happy to coach you over the phone on setting it all up.
If you are young and don't need the money during the next five years, I would put an equal amount into these 4 Vanguard ETFs each month (or quarter):
- Domestic Large Cap ETF: VOO
- Domestic Small Cap ETF: VB
- International Developed Markets ETF: VEA
- International Emerging Markets ETF: VWO
That's pretty much it. Leave it alone and don't bother looking at it every day, it will take care of itself over time.
(Fidelity has similar no-commission low-fee index / ETF investments as well.)
You can retire before the next bear market or you have 5 years left after the bear market before you retire. It will be tricky for some planning on retiring in the next 5 years. We are over due for the next bear market cycle and the bull market was probably prolonged by the slow growth on main-street. I agree with you that the best retirement savings is through a low cost index fund in the long run. I just wish investing was as easy, since online investing started in the mid 90s, when I first started working in the mid 80s. I feel like missed out on some extra retirement $$$. If you can I would max out your 401K savings, or at least go 10 percent.
If I could, I would put every dime into VTSAX. Because of limited options in certain vehicles, I'm also in VFIAX and SWTSX.
Can't get more diverse and can't get lower fees. The global nature of the S&P 500 eliminates any desire to go international, and I have no interest in moderating my growth with bonds.
As other posters have said, I invest to make money, not to entertain myself.
Admiral shares. Nice.
You 'da man!
I laughed
I mean.....it seems like a slam dunk to me.
Nice :)
You need to make your way over to http://www.reddit.com/r/wallstreetbets
Edit: Deleting just to be safe
I prefer to invest in building silver mines. And if that doesn't work out, I usually build a rollercoaster instead.
weed stocks
My investment strategy? I'm long my 1987 Topps Bo Jackson Future Stars baseball card. Also have a few top notch Donruss Rated Rookie cards that should pull in a mint when it's time to sell.
but a robo advisor and use smart deposit and let it go. Don't set / forget, certainly keep an eye out, but let it run it's course
What advice do the advisors on here give me? Should a diversified fund like vanguard be the main thrust or should I dabble with small amounts in the stock market?
Also, can anyone tell me more about “alternative investments?” I’m hearing about real estate investments that guarantee 8% returns with safety measures built in because the homes have already been purchased or construction has begun. I literally learned of this last week for the first time, but it was given by a CEO of a non profit whom I respect a great deal. Any advice is appreciated. I feel that most advisors locally are just trying to find a way to syphon some fees out of me.
I would never ever ever trust anything with a "guaranteed" return. As far as for everything else you asked I would say it depends
1 - What is your risk tolerance? Indices tend to do well over long-term but any given stock can deviate from the market (for better or worse)
2 - How much time do you have to manage it? If you can spend hours a week reading, learning, researching etc, then go for it. If you want to have capital at risk with light touch, stick with what you have and consistently contribute.
Treasuries are guaranteed by the gov't...