Stock Market

Willhound

Nice doge, nice doge.

Willhound

The "Oracle of Omaha" speaks the truth.

Billionaire Warren Buffett warned people not to think investing is an easy way to make a fortune as he answered a variety of questions at Berkshire Hathaway's annual meeting Saturday.

https://www.ctvnews.ca/business/warren-buffett-warns-investors-not-to-gamble-on-stocks-1.5410301

randy56

Its' a know fact Buffett is not impressed with cripto. thanks for shareing this artical.

I have a few EFT's in my portfolio, At the first of march . Added VGT to my watch list. It was $342 when added, it is now, $377. If you look at the history over the last 5 years it has a steady increase in value. have not bought any yet. 

Does anyone else have EFT's what is your experance ?

Willhound

While I do not hold any ETF's (Exchange Traded Fund) I have studied them and given them serious consideration. Basically a basket of securities (stocks primarily) that give some built in diversification by virtue of not holding just one stock, however, not necessarily a true diversification as they might focus on one particular sector, i.e. Tech, Biomedical, etc. so if that sector as a whole drops the fund can tank. There are three main differences between an ETF and a Mutual Fund. ETF's trade throughout the day and price and therefore buy and sell can fluctuate. Mutual funds are bought and sold and value fixed at end of market day. ETF's are not actively managed, that is, while a manager or analyst (or group of) might look at it from time to time, they are virtually hands off, so whatever the market does, it does. Many of them are based on indexes, for example the S&P 500 and mimic the market by holding securities at the same ratio of the index. But because of that, the fees associated with ETF's are very low (sometimes zero) compared to Mutual Funds. But you get what you pay for. An ETF might do better over time because of the lower fees, however a Mutual Fund that is actively managed by a good management team can do better over time because some very smart people are babysitting it and returns can be higher.
It's another case of doing your homework and deciding what it best for you and how much you want to monitor it.
At risk of sounding like a broken record, I happened to look at my own portfolio this morning. Primarily all blue chip stocks with a few mutual funds thrown in for sectors that I want to leave to the professionals. My best performers over the last ten years are consumer disposables, that is, items that the average Joe will buy year in, year out, regardless of how the economy is doing. Everybody has to eat, buy diapers and toothpaste and wash their clothes. Johnson and Johnson (JNJ:NY) has given me an annualized return of 16.5%. Each dollar I put in 10 years ago is worth $4.60 today. I've never touched it and never worried about it. A lot of that gain is derived from a dividend re-investment program (DRIP) so I own more and more of it without putting in another dollar. My other big hitters are Proctor and Gamble (PG) (Tide, Crest etc.) and some Canadian grocery store chains. My worst performer is 8.7%.
Next up are some large financials (banks, insurance) that all average 12% overall. A new acquisition has doubled my money in 7 months but that was a one-off, I happened to buy Bank of Montreal when value dropped when everyone was jittery over Covid and it has rode the recovery up ever since.

So, back to ETF's. Find some with good track records, watch the sector if a sector based fund, but if it were me, I'd be looking at things like VOO which is the Vanguard S&P 500 ETF. One year return of 56%...which is an anomaly, but hey, it works. 10 year average is 13.87%. At that rate you'll double your money every 5 years and not worry about it much.
Easy peasy.

YYZRC

So @Willhound - real estate or stock market?! Where do you put your money today...?

MarkB

randy56 said:

Its' a know fact Buffett is not impressed with cripto. thanks for shareing this artical.

I have a few EFT's in my portfolio, At the first of march . Added VGT to my watch list. It was $342 when added, it is now, $377. If you look at the history over the last 5 years it has a steady increase in value. have not bought any yet. 

Does anyone else have EFT's what is your experance ?

Buffett is a dinosaur ... he's gonna be gone soon (simply due to age) ... 

Crypto made a nice comeback over the weekend, I've recouped ALL my short term losses since that dip last week, AND most of my coins haven't even peaked.  I think the market is getting ready for the next big move up.

randy56

@Willhound thanks informative. will look a VOO
@MarkB agree he is 90 years old, he did very well for his time period.

sigh - the last 3 market days have been red, making changes. 

Willhound

YYZRC said:

So @Willhound - real estate or stock market?! Where do you put your money today...?

Personally my only real estate investment is my home, although it has almost tripled in value since I purchased it 13 years ago. I wish I had done some real estate investing in my younger years, I had a chance to partner in a small apartment building with a buddy but couldn't swing the cash. Well, could have, but it would have taken every cent I had and we had a baby on the way. My buddy is retired now and owns several other buildings that provide a nice income. But even though he's "retired" he still spends 40 hours a week dealing with maintenance and tenant issues.
I have looked at REIT's as a way of investing in real estate, but I think a lot of the growth has gone out of that sector as so many of the good one's are now owned by hedge funds. I also think that we are in for a real estate correction as the effect of empty commercial space hits. A lot of companies are re-thinking large downtown office leases and retail will also take a hit as a result of Covid. Those sectors haven't dropped huge yet, but I think it's coming once the market has a chance to analyze the effects. Both the US and Canadian Fed's have also been signaling a potential increase in borrowing rates to cool off inflation and stabilizing the housing markets so I think real estate will still hold it's value but we'll see a short term drop followed by slower growth, not the doubling and tripling we've seen the last 7 to 10 years. And not to get political but if some of the rumblings we're hearing on capital gains tax happen, real estate will not be such an attractive investment.

Dream_Inn

Willhound, VOO is where I've been putting my kids ROTH IRAs.  I also like VTI as well.  Thanks for your insight on things.  I agree that the consumables is great.  I have PG, BGS foods and a few other consumables that have decent dividends that I just keep putting a little in and also letting it DRIP.  Good stuff for sure!

I also have a few REITs, but ones with good dividend.  I do agree that at some point they will correct, but even if rates go up a little, it is still low and real estate will be good for a while yet.  I definitely am not into having that "second" job though of renting.  Just not my thing!  I'd rather have a good dividend stock pay me without the extra work.

LaRea

@Willhound - What are you hearing on capital gains as it relates to real estate?

J3ff

Doge NEW all time HIGH just now!! 

Willhound

LaRea said:

@Willhound - What are you hearing on capital gains as it relates to real estate?

My comment was in relation to the question from @YYZRC, a fellow Canadian, so from a Canadian perspective where our current Federal ruling party has been discussing changes to Capital Gains tax. Our current structure is that the first 50% of a capital gain is tax free and the other half taxable at an individuals tax rate. This pertains to primarily stock and market investments but also to all real estate except a primary residence. There was a proposal made at a policy convention a few weeks ago to eliminate the capital gains 50% exemption and also to apply capital gains tax on sales of primary residences. We already pay capital gains on the sale of all other real estate "investments" including recreational and secondary properties (cottages, camps etc) as well as rental units. Thankfully the proposal was defeated, but only by about a 62 to 38 margin, so fully almost 40% of the delegates supported the idea. They did pass proposals to investigate and support a Universal Basic Income and some more "Green" initiatives that will have to be paid for somehow if they come to fruition. Hence the worry that they will re-visit the capital gains issue. This was the same convention where they passed the new "luxury tax" on boats over $250,000 and road vehicles over $100,000.
I'm not sure what the situation is in the U.S. but I am aware that in a lot of cases mortgage interest is deductible from income, in Canada it is not, so another tax disadvantage for real estate investment. 

Aqua_Aura

For the US they have proposed capital gains tax on profits over 500k from real estate sales which means no more 1031 exchanges. Didn't seem like a big deal to me as most people are not in this level of real estate deals with that much profit however when I saw the example of a business selling there office for a new one and not being able to use an exchange well that turns into a big cut into their capital to invest in growing the business. 

J3ff

Doge almost hit .50 over night!! up 74% in the past 7 days! 

LaRea

Are any of you guys in MarineMax?  Seems they've been doing okay lately, and they just acquired Cruisers Yachts.  

randy56

market is down 4 day in a row, everyone going to criptos' ? 

Handymans342

Oil, gas and lumber up big time. 

Dream_Inn

Looking like a time to buy a few things up again, although I may wait a little longer.

J3ff

Doge is the way.   

YYZRC

J3ff said:

Doge is the way.   

@J3ff I am ready to buy your boat. I have a buyer up here. Are you ready to sell now? You can invest the proceeds in Doge. Or I can pay you in Doge!

J3ff

YYZRC said:

J3ff said:

Doge is the way.   

@J3ff I am ready to buy your boat. I have a buyer up here. Are you ready to sell now? You can invest the proceeds in Doge. Or I can pay you in Doge!

LoL, well, we better get talking soon, I just got off the phone w/ the mechanic about having it taken out Mid june, motor coming BACK out and addressing that knocking noise while it's in neutral. The new mechanic thinks it's some kind of plate that is attached to the rubber hub thing. Someone else I know down here says "Everything I own is always for sale...just make me an offer" - send me what you're thinking if you are serious. I'm ready to move on to something with an outboard.

J3ff

Doge this morning! What a missed opportunity over here on my end...

Aqua_Aura

Haven't been paying attention till recently so here are my thoughts. 

PTON is down after there recall, seems like a good opportunity. They are priced around their September 2020 pricing and it eliminated all that "pandemic spike" earnings is today after close. 

RKT is also down on a small earnings miss but seems like a good time to get in as they are sitting at there long term average around $20.

Disclosure I do hold RKT at $20.70

Dream_Inn

Aqua, I hold RKT as well and bought up another 300 shares today at $19.70 (should've waited a bit, but I thought it would go up after the bell).

Aqua_Aura

Yeah so did I. Probably had some auto sell at opening as well as some people dumping it now it looks to be recovering. 

Aqua_Aura

ROKU stock looks like a buy again after settling from a big rally back down to normal levels. 

randy56

Back in the green today, after 5 days of red. 

Handymans342

randy56 said:

Back in the green today, after 5 days of red. 

DDD is terible

boatman37

I put out my monthly and weekly watchlist on my Twitter Monday morning (@optionizerSS). Checked results today and so far every one that triggered hit it's 1st target except 1and it is 1/2 way there and still has the rest of the month to get there and a few hit target 2. I bought XOM calls early this week and I'm up about 60% on those so far. A few have not triggered. I had TSLA alert set for a break up but it never went up so that one did not trigger.

A trader friend of mine introduced me to The Strat a little over a year ago and it has been a game changer for me. I'm just still too chicken to ride these out to targets. I tend to sell about 1/2 way there and leaving alot on the table. Hopefully I can overcome that and start making bigger profits on these.

Here is my watchlist I posted Monday morning:

randy56

DDD seems to be in legal trouble. I bought it @ $7 sold @ 32. I still think 3 d printing is in our future. I bought some PRNT an EFT in 3 D printing. Has not done much yet. We'll see I'm long on it.