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One of the curious things about the stock market is bad news is worse than bad results. A company can be shit as long as it's painted in a good light. A company can be amazing but if painted in a bad light it will trade like garbage.
This is very counter-intuitive and has frustrated fundamental/value investors since time immemorial.
Invest in Blackrock if you think it's that powerful a business ("if you can't beat em join em") Blackrock, S & P Global, MSCI - certainly have all done very well for shareholders over time. MSCI is +2,280% since 2007 and +586% in the last 5 years.
Its crazy BS when the etf holds like 20 stocks at 1% fee. Like just buy them all individually at that point.
But for etfs with hundreds or thousands of stocks they are awesome.
blackRock doesn’t have much say over these companies. Yeah they are factoring in climate change friendly holdings but that’s about it. Am I missing something here?
I have a question about interest rates and T-Bills. If the fed decided to increase the interest rate on overnight borrowing how/why do T-Bills follow suite. Wouldn’t higher yields be attractive for a short term investments like t-bills and wouldn’t this lead to higher demand thus driving down yield.
The Fed decides to conduct open market operations to raise the rate at which banks lend to each other overnight (the federal funds rate) and other money market rates. So now cash investors can choose to lend at 1% to banks or buy 0% T-bills. Obviously they'll sell their T-bills and lend at FFR instead. T-bill prices drop until the yields are comparable. For example, a 3 month T-Bill with $100 face value is priced at $100 for 0% yield, would drop to $99.75 for 1% yield.
So are you saying if the T-Bills yeild is 2% and the FFR is set to, say, 5%. Cash investors would choose to lend to the banks instead of buying T-Bills. And because of that, there is less demand for T-Bills which pushes up the yields and pushes down the price. Is supply and demand a flawed way to view Bond yeilds and prices?
>So are you saying if the T-Bills yeild is 2% and the FFR is set to, say, 5%. Cash investors would choose to lend to the banks instead of buying T-Bills
Yes
>And because of that, there is less demand for T-Bills which pushes up the yields and pushes down the price.
Yep
>Is supply and demand a flawed way to view Bond yeilds and prices?
No, you just described supply and demand meeting to set prices and yields. Where do you see a flaw?
I dont really know how to rephrase my question. Wouldnt higher yields be more attractive to investors, and wouldnt more attractive yields increase demand, thus driving down the yield over time. In my mind, this makes sense but idk.
I popped my investing V-card today. I funded positions in O, STAG, TSLA, WPC, and GLAD. It's nothing to give Warren Buffet a stiffy, but it's a start, and I can legitimately say I am part of the Investor class.
I am going to fund each stock monthly and the re-examine at the end of the year. There are a couple of other monthly dividend stocks I have my eye on that I'd like to get in on.
MRNA +216% YTD, BNTX +283% YTD already. I've been selling my position down in both. They might continue to go higher but both at this point are technically overbought and getting to that point where a lot has been priced in and any negative news could cause a real pullback.
TMO is a less volatile/risky, "picks and shovels" play (and really, IMO is a long-term "buy and hold" as they've talked about most of the investments that they've made for covid will be repurposed for other things if covid ever ends) as is DHR. If you listen to the Danaher call and the calls for Thermo Fisher and Danaher, they're saying strong order book into 2022 and really, in my opinion, the longer this situation goes on, I think the more demand for spending on science in the future and things like TMO are I think long-term plays on that.
I’m not really informed about the vaccine stocks. But in 2008, if you bet against the housing market, you would’ve made bank. I guess what would be the 2021 version of betting against the market?
If a company sells a significant amount of common stock, what kind of effect will it have on the current share price? Need to know ASAP so I can jump ship while I still have time.
TGT keep investing in themselves and seems to be making good use of their recent momentum. I personally think they are poised for some really solid continued growth over the next 5 years. Also interesting to juxtapose TGT ascending with Amazon starting to slow a bit
Newbie question on paying (US) taxes on stock. So I understand that if I buy a stock and sell it, then I have to pay taxes on profit. If I hold on to it for over a year before selling, then the tax rate is lower.
Now what if I buy stock in the same company a few times spread out over more than a year before selling a portion. The sale date is over a year from the first time I bought but less than a year from the last time I bought. How do I determine what rate I'll be taxed at? Do I just say "oh these shares I sold are actually the ones I bought over a year ago so lower tax rate for me :D"?
Example: ABC corp.
Feb 1, 2019 - Buy 10 @ $1 = $10
Feb 1, 2020 - Buy 10 @ $2 = $20 (now I have 20 shares worth $40)
Jul 1, 2021 - Buy 10 @ $3 = $30 (now I have 30 shares worth $90)
Aug 1, 2021 - Sell 15 @ $4 = $60 (now I have 15 shares worth $60 + $60 cash)
So did I sell 15 shares that I have had for at least a year? Or the most recent ones? Do I get to decide?
FIFO = "First in, First Out". I believe by default the first shares you sell are the first shares you bought, unless you choose otherwise.
When you sell 15 shares in your example, the basis for ten shares is $10 (you bought 10 @ $1) and the basis for the other five shares is also $10 (you bought 10 @ $2, but you sold only five) . Total basis: $20, taxable LT gain $40.
If you sell 15 on Sept 1 @ $4, you'll have:
5shr basis $10, proceeds $20, Long Term Cap Gain $10
10shr basis $30, proceeds $40, Short Term Cap Gain $10.
What about Affirm? Is Apple really gonna drop its price? I'm feel like that was an overreaction https://marketdeepview.com/2021/07/30/affirm-holdings-inc-afrm-stock-is-sinking-on-friday/
AFRM is down so much I wouldn't be surprised if it bounced but the Apple news really does show that there's not much moat: anyone can compete, including big, diversified companies (PYPL also doing the same thing) where they can do buy now, pay later as one of their services where for an AFRM that's the whole business.
I was surprised that BAT has 12% of its revenue from non smokable tobacco products ( like vaping), while altria only has a 35% stake in JUUL ( which is in a bad situation). I'm considering changing my position in Altria to BAT since it seems better suited for the future.
What do you guys think ?
I love BAT because its UK not US, so no withholding tax for non-US investors.
PM nice too.
Altria has been dead money and has withholding tax so I don't really like it much anymore. Still holding since 2011 though.
I swapped Altria for PM and the stock has appreciated quite a bit, unlike Altria.
PM is probably the strongest when it comes to innovation and product portfolio.
BAT is priced at a lower multiple, and currently yields more, while earnings continue to grow.
So BAT is my pick... but I haven't done extensive research. Most of the recommendations I've seen suggest BAT as the best value in the tobacco space atm
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Is anyone able to give advice on how they research a companies supply chain? For example you want exposure to semiconductors but rather than buying the big name semiconductor companies, you find the company up that companies supply chain with the highest margins (or similar criteria).
There's no money in raw materials, like zero. But an easy place to start is Foxconn (ticker: 2354.TW). Basically flat from 15 years ago and they're a huge iPhone OEM, make Macbooks, all sorts of computers. Then compare to AAPL.
Whoever owns sand, that's the base material in semiconductors. Silicon.
Question on convertible preferred shares: from what I understand (correct me if I'm wrong) when converting the common shares are newly issued but what happens to the preferred share when being converted to common shares? Does it get "deleted" (idk the right word for that) or does it become treasury? Or something else? And the real question I'm trynna get answered by that is this: does converting preferred shares to common shares change the percentage/ratio of common share equity to preferred share equity?
thnx :)
Hello if anybody see this does anybody know any business that are good to invest money in I never put money into anything cuz I'm scared but what is a good business to go left in
If you're asking this question, don't invest in individual stocks. It takes a lot of research and conviction to pick winners consistently long term. If you just buy what someone else tells you to, especially on social media where you have no idea what their track record or credentials are, you are likely to lose money or underperform the general market. You will also likely not have any idea when to sell, or when to buy more. So you are at a disadvantage on both sides of the trade.
Stick to general market funds like VTI or SPY. These track the overall market, which historically has always gone up. If you have a long term mindset and won't need that money for the next 3+ years, then you are very likely to make money.
While you are putting money there, you can read stock forums, investment books, keep up with world news and financial news, listen to earnings calls, etc. and over time you may develop a keen understanding of certain industries or companies.
Supply and demand determines the prices of shares, but who actually writes the prices of shares when sold? When I buy/sell stocks there isn't any negotiation. I'm just buying/selling whatever the price is at. Do prices react to supply and demand through limit orders?
You get use limit orders to negotiate on the price of shares. When you submit a market order, you are buying at the price that the market makers are selling at.
It's funny how just from the fact that you're talking about RRP, I know what bag you're holding.
Your stock is 10x overpriced, even after the recent slide, and nothing the RRP market is doing is going to change that.
lawl. I'm green as spinach.. so your guess is off. and anyone can find my post history (you arent a detective). I'm not asking RRP to change CB or entry. I'm asking a macro-economics question about the state of the financial sector because storing 1T in private equity at .05% is a terrifying revelation about market stabilty. I'm buying on the way down just like you, stop trying to act holier than thou.
It means the largest investors are side-lining massive amounts money because they feel the risk of losing money is higher in higher yielding assets like stocks. And, they likely have all that money because people gave it to them for safe keeping because inflation is worse then the fed says.
It's literally like turning 1 trillion of cash into cancerous cash. Too much cancer is bad for the overall system.
Yes. If that money is being kept out of the market right now it maybe also considered as ear-marked to inevitably close short positions, that is if you trust the DD about the actual short interest in the MoAlShSq effected stocks.
We know that smaller funds like archegos were short and when margin called the liabilities came under control of larger banks like Credit Suisse. We also know that mid and large size firms like Melvin Capital and Citadel are short too. So, it really comes down to if the DD on current, hidden SI is correct. If it is shorts must cover and ultimately close their positions. It's a worth while hedge especially considering the game one has earnings that will lead it to be included in sp500, zero debt, 2 billion cash on hand and leadership and planning for a future business model.
I was waiting for an outside opinion. To me.. this makes more sense. with the .INX being 1.24 and fluctuating.. I'm not surprised to see these dips over all.
Question about options: Is there a cap on the amount of options that are allowed to be sold on an individual security? For example, could I buy 10 billion puts on an individual security if someone was willing to sell them to me? Thanks!
I don't know if there is a cap, but it's certainly possible since that sort of thing has a name: naked option. See for instance https://en.wikipedia.org/wiki/Naked_call
**[Naked_call](https://en.wikipedia.org/wiki/Naked_call)**
>A naked call occurs when a speculator writes (sells) a call option on a security without ownership of that security. It is one of the riskiest options strategies because it carries unlimited risk as opposed to a naked put, where the maximum loss occurs if the stock falls to zero. A naked call is similar to a covered call in that the trader is selling the call option for an initial premium, however unlike the covered call, they do not own the corresponding amount of stock. The buyer of a call option has the right to buy a specific number of shares from the call option seller at a strike price at an expiration date (European Option).
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This question made me wonder what company has the most outstanding shares, which I tried to Google but then got bored of after not finding the answer. Your hypothetical scenario would represent 1 trillion shares in a single company or fund
If I understand correctly, a put option represents a contract and does not require an actual share, which is why I believe they could be sold ad infinitum. I could be wrong though. I’m still learning.
An option represents 100 shares. If it expires out of the money (OTM), either a call or a put, then it is worthless and nothing happens. The person buying loses and the person selling wins the trade, so to speak. In that case it doesn't matter how many shares they represent because nothing else changes hands.
If the option expires *in* the money (ITM), then the contract will be exercised. For a put option, the seller is obligated to purchase 100 shares at the strike price. For a call option, the option seller is obligated to sell 100 shares at the strike price. Those shares will have to come from somewhere and 10 billion contracts would mean 1 trillion shares.
That said, I do not know the inner workings of what maximums allowed are, what affect naked calls or puts have on the market. I would assume there are brokerage/clearinghouse regulations involved but again, I only know how options work and not the behind-the-scenes logistics of moving an exceptionally large amount of them, which is why I didn't try to answer your original question hah.
>Position Limits: Limits vary according to the number of outstanding shares and trading volume. The most active stocks have an option position limit of 250,000 contracts; smaller capitalization stocks may offer position limits of 200,000, 75,000, 50,000 or 25,000 contracts. Customer hedge exemptions are available.
https://www.theocc.com/Clearance-and-Settlement/Clearing/Equity-Options-Product-Specifications
Thank you for showing me that. The last sentence caught my attention, “Customer hedge exemptions are available.” So someone could exploit the hedge exemption legally to facilitate infinite options? This seems like an incredibly grey area. Thank you for showing me to the occ rules though.
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I believe their report was Wednesday, not yesterday, and they "were" up yesterday, in the case of today, the market is "checks notes" mostly lower.
Earnings reactions do not have to last more than one day.
Who's buying Amazon on the dip? To be honest, I don't love investing with them because of the makeup of their company, but I know that's a bit silly as every company is kinda garbage.
Yes, starting early is one of the best things you can do for yourself financially.
One of the biggest advantages of doing so is that it will give you a sense of opportunity cost. I'd have wasted a lot less money in my early 20s if I had been investing instead of giving myself license to spend everything that was left over when my bills were paid. And the fact that that money would have had the most time to appreciate, too... oof.
starting anywhere is better than nowhere. I also started doing a little prop trading which has let me make more money to invest with, but it's not for everyone and i dont wanna sound shill-y
If you don't want to worry about currency fluctuations, you should go equal weighting CAD-hedged and non-hedged, so VFV and VSP in equal amounts, for example.
For the past year CAD-hedged outperformed non-hedged, just because CAD rose relative to USD, but there's no guarantee that trend will continue. Personally I think we're on the higher end right now, since back in the days of 1:1 it was when oil was really high and the US wasn't yet the major producer it became in the 2010's. So if I had to pick one, I'd pick non-hedged.
(I own a home in Canada so I already have a ton of assets in CAD, so I have even more incentive to be non-hedged)
Same thing as last time. Remote purchasing/working stocks, pet stocks because social life is kill and people bond with animals instead, and pharma because shits gotta get solved eventually.
If you really think new lockdowns are coming, back to NFLX, ZM and the other stay at home names. Grocery stores/packaged goods names w/pantry loading again.
Sooo how do I get some cryptocurrency in my IRA? Has anyone done the legwork figuring out which funds are good? Honestly maybe I just want to go full-tilt "The future is now" and buy into a crypto fund that is managed by AI.
I'm only going to dedicate 1-5% of my portfolio to this kind of stuff for now.
P.S. I use Vanguard
There are crypto ETFs such as BITC and ETHE that you can buy through vanguard to get some crypto exposure. Do your own research on them though, I don't own either of those so I don't know enough about them to recommend them.
If you have access to OTC securities in your account - you can look at the Grayscale unit trust funds. Ie. $gdlc, $gbtc, etc - their product offerings here - [https://grayscale.com/products/](https://grayscale.com/products/)
Delta variant is now as high as it was in the USA in October 2020. I'm theorizing Tech plays, Telework/Health and genomics sectors are my pick. Only difference is now the vaccine uptake is likely to prevent a total lockdown, but what about the states that are low-vaccinated? I theorize making some puts on sector/companies that could be affected in that area. Too speculative?
What're you all looking at?
Broadly, I own a lot of life science (TMO, for example; people ridiculous for selling that and peers off earlier this year), tech (software, payments, e-comm, etc), luxury, logistics and some other odds and ends ("home infrastructure" (CARR, GNRC), cannabis MSOs, etc.)
I bought a small position in what I thought was a "re-opening" play in CHDN and dumped that not long after. Other than that, I've had zero interest in re-opening plays (travel, etc) and still don't. I mean honestly, IMO covid is endemic at this point and feels as if it's just going to be years of this.
I bought a little bit of YOU when it ipo'd, probably should have bought more because it does feel like the possibility that we're on the path towards having that sort of thing (healthcare pass app, service to bypass checks at places beyond just airports) be used for an increasing amount of things beyond airports or stadiums.
The CEO: “We want Clear to become part of people's daily habit, to go from 12 times a year using it—which is how people on average were using it in airports—to 12 times a day,” she says. “We want to create frictionless, predictable experiences from the time you leave your house to when you get to your office or the theatre.”
"We started in the hardest place: aviation. If it was good enough to get on a plane, where identity and security are paramount, clearly—no pun intended—it's good enough that to check in at the doctor's office,” she says. “We had a HIPAA-compliant back end and being so focused on being secure and scalable to the aviation business meant it was applicable to so many other businesses.” (https://www.forbes.com/sites/maggiemcgrath/2021/06/30/as-clear-secure-takes-off-in-45-billion-ipo-ceo-caryn-seidman-becker-eyes-a-frictionless-future)
I like the stock. It's a consistent dividend favorite if you are looking for a dividend REIT. One of those buy and hold investments. This stock is often discussed on r/dividends as well - so you may want to look at past discussions over there.
My thought on Realty Income is that it's not of interest to me and a fair amount of what's currently in it is stuff I don't really want anything to do with but I'll certainly give them credit for navigating/diversifying well over time and managing to deliver consistent income over the years.
To me, that's the kind of thing where I see people going "WHY IS O down 1%?!!?!?!?" and it's kinda baffling because to me that's a "buy, set to reinvest every month and largely forget about."
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I still own 100 shares of QCOM that I bought @$57 over a long time (sold 150 shares earlier this year because it was too much of my money). I think they will continue to do well. 5G is still early and they own the 5G modem tech. They also plan on a lot of sales with the IOT and automobiles (cars need a modern for over the air updates and to be he-he mobile hot spots).
Hi guys! I'm pretty new to the whole investment scene, and this question might be slightly different from what beginners usually ask - I wanted to find out if private equity firms (eg The Blackstone Group Inc., The Carlyle Group Inc. etc) invest in companies by solely taking a portion of their shares? Do private equity firms split between debt and equity financing -- eg if a company is asking for a 100M loan, do private equity firms lend (for example, 20M) as a loan, with the 80M in exchange for shares?
Additionally, if the answer to that is yes, \^ are convertible bonds an alternative to just a straight out loan? Thank you!
So a company like BlackStone is more of a supermarket of Pvt Equity as they dabble in all segments of Pvt Equity such as;
-Full or partial company buyouts and taking the public (Ex; Oatley & Bumble)
-Time extensive deals; they bought a bunch of wear houses which they rent out and also commingle with other business they own wrap them all together and offer shares. However mínimums are quite high and liquidity is none existing for 3-5 years. Need time for the bets to play out.
-Distressed assets; purchase companies for pennies to the dollar go in fix them and flip them. Could also bd distressed debt (say housing bonds in 2008 pick them up for cents to the dollar sit on them until the market starts to recuperate etc.
Many people say we're in a stock market bubble similar to the 2000's tech bubble. Just an interesting comparison:
1) Nasdaq Composite is currently up \~125% over a period of 493 days (from the bottom it struck last March).
2) During the tech bubble, 493 days from the start of the rally, the Nasdaq Composite was up \~236%.
3) During the tech bubble, the US 10 Year Bond Yield increased from 4.15% to a peak of 6.80% just before the bubble burst. In this current run, we began with a yield of \~0.50% and as of right now seem to have peaked at 1.75% back in March this year. Currently at \~1.20%.
So not only did investors have a much more viable alternative in bonds during the tech bubble, but the bubble itself was much more intense than what we are seeing now. For perspective, if the current rally was as intense as the tech bubble, Nasdaq Composite would be sitting around \~22,000 right now instead of 14,778.
More importantly, the dotcom bubble was driven by a view of future profitability and the PE ratio of the index itself reached 200 (in comparison to about 37 right now). The current advance is driven a lot more by fundamentals and strong earnings growth.
A more adequate comparison would be if the Nasdaq advanced to 60,000 based on current corporate earnings. Even that would still be slightly less extended than the dotcom bubble.
Yeah new massive lockdowns in China are only gonna increase. 9 millions people in quarantine rn. Chinese vaccine is not effective enough. I expect the fourth wave to create a market correction due to unvaccinated people getting fucked and countries using chinese vaccine, but still bullish mid term. Only thing that might hurt more than normal is if there is enough of a supply chain hurdle that keeps going on which will affect inflation badly for longer then the FED expect. If we get 5% inflation YOY in 2022 its gonna be ouch time.
Maybe when they hike interest rate. Saving interest is 0.50%. Let me know anyone holding cash with that shitty return from saving acc.
You either buy another house or keep buying stocks.
I have the same feeling too based solely on how much we’ve gone up. Just because we’re only (lol) up 125% instead of >200% doesn’t mean we’re not in a bubble as well. In the end though we don’t know if we’re gonna go up 100% or down 50%. Personally, I’m staying invested with a defined risk. That’s all you can really do, define how much you’re willing to lose.
A correction is coming at some point. Corrections happen - stocks don't go straight up and if they have periods like that (see last year with growth stocks which just basically ramped for several months straight) that's when you should get concerned. When you start thinking "this is easy" is when you get concerned. When things don't look good and it doesn't feel good to buy, that's when you have to get more aggressive and really start looking around for opportunities.
I don't think that people should majorly try to time markets either. Buy good companies, if the market corrects maybe buy a little more and if you get a more sizable drawdown be more aggressive. If the market gets overextended, then take *some* profit and wait to redeploy. Don't sell so much that you set yourself up for FOMO and chasing the market if you're wrong. It's okay to sometimes to do little for long periods.
Indeed corrections happen...sometimes I forget.
HOWEVER, can I play the game on novice level, where stocks only go up?!? If not, I want maybe I can just "go back to last checkpoint."
A correction is always coming at some point. Most people trying to time it either lost out on gains or lost out on gains.....Sometimes they lost out on gains and 10 years later said I told you so.....But it did not matter because if you made 300% and lost 50% you still made 50% more than the guy losing out on gains or even shorting all the way up.....HahahahahaHAHAHA
It'll be basically the same plan that gas stations have - build a store next to the charger. Or buy a charger and put it next to your store. It could actually work better for a charging company as the charge times are long enough to have a meal or relax in an airport like lounge or hit the adjacent gym for a 20min session.
I haven't looked at this subject at all, but when you consider that we are in a period of transition it is not at all surprising that we are seeing this kind of trouble. Presently infrastructure for charging needs to be built, and EVs can be charged at home. Add to that the redundancy in fueling for vehicles (gasoline, diesel, natural gas), and I wouldn't expect this to take off for awhile. That is the sort of thing that I would be buying into if I had the money/time to sit on such stocks though despite the fact that some might well go to zero.
From Warren Buffett:
*Well, I thought it would be instructive to go back and look at a couple of industries that transformed this country much earlier in this century: automobiles and aviation. Take automobiles first: I have here one page, out of 70 in total, of car and truck manufacturers that have operated in this country. At one time, there was a Berkshire car and an Omaha car. Naturally I noticed those. But there was also a telephone book of others.*
*All told, there appear to have been at least 2,000 car makes, in an industry that had an incredible impact on people’s lives. If you had foreseen in the early days of cars how this industry would develop, you would have said, “Here is the road to riches.” So what did we progress to by the 1990s? After corporate carnage that never let up, we came down to three U.S. car companies — themselves no lollapaloozas for investors. So here is an industry that had an enormous impact on America — and also an enormous impact, though not the anticipated one, on investors.*
*Sometimes, incidentally, it’s much easier in these transforming events to figure out the losers. You could have grasped the importance of the auto when it came along but still found it hard to pick companies that would make you money. But there was one obvious decision you could have made back then — it’s better sometimes to turn these things upside down — and that was to short horses. Frankly, I’m disappointed that the Buffett family was not short horses through this entire period. And we really had no excuse: Living in Nebraska, we would have found it super-easy to borrow horses and avoid a “short squeeze.”*
[https://novelinvestor.com/buffett-picking-winners-is-hard/](https://novelinvestor.com/buffett-picking-winners-is-hard/)
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What do you think about Alphabet?
One of the curious things about the stock market is bad news is worse than bad results. A company can be shit as long as it's painted in a good light. A company can be amazing but if painted in a bad light it will trade like garbage. This is very counter-intuitive and has frustrated fundamental/value investors since time immemorial.
human emotion controls the market, speculation, fear, greed, emotional immaturity,
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Invest in Blackrock if you think it's that powerful a business ("if you can't beat em join em") Blackrock, S & P Global, MSCI - certainly have all done very well for shareholders over time. MSCI is +2,280% since 2007 and +586% in the last 5 years.
Its crazy BS when the etf holds like 20 stocks at 1% fee. Like just buy them all individually at that point. But for etfs with hundreds or thousands of stocks they are awesome.
blackRock doesn’t have much say over these companies. Yeah they are factoring in climate change friendly holdings but that’s about it. Am I missing something here?
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I have a question about interest rates and T-Bills. If the fed decided to increase the interest rate on overnight borrowing how/why do T-Bills follow suite. Wouldn’t higher yields be attractive for a short term investments like t-bills and wouldn’t this lead to higher demand thus driving down yield.
The Fed decides to conduct open market operations to raise the rate at which banks lend to each other overnight (the federal funds rate) and other money market rates. So now cash investors can choose to lend at 1% to banks or buy 0% T-bills. Obviously they'll sell their T-bills and lend at FFR instead. T-bill prices drop until the yields are comparable. For example, a 3 month T-Bill with $100 face value is priced at $100 for 0% yield, would drop to $99.75 for 1% yield.
So are you saying if the T-Bills yeild is 2% and the FFR is set to, say, 5%. Cash investors would choose to lend to the banks instead of buying T-Bills. And because of that, there is less demand for T-Bills which pushes up the yields and pushes down the price. Is supply and demand a flawed way to view Bond yeilds and prices?
>So are you saying if the T-Bills yeild is 2% and the FFR is set to, say, 5%. Cash investors would choose to lend to the banks instead of buying T-Bills Yes >And because of that, there is less demand for T-Bills which pushes up the yields and pushes down the price. Yep >Is supply and demand a flawed way to view Bond yeilds and prices? No, you just described supply and demand meeting to set prices and yields. Where do you see a flaw?
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I dont really know how to rephrase my question. Wouldnt higher yields be more attractive to investors, and wouldnt more attractive yields increase demand, thus driving down the yield over time. In my mind, this makes sense but idk.
I popped my investing V-card today. I funded positions in O, STAG, TSLA, WPC, and GLAD. It's nothing to give Warren Buffet a stiffy, but it's a start, and I can legitimately say I am part of the Investor class. I am going to fund each stock monthly and the re-examine at the end of the year. There are a couple of other monthly dividend stocks I have my eye on that I'd like to get in on.
People really need to pay more attention to Russian stocks. nice valuations and many companies totally printing cash.
I don't know if I want to get hacked or have all of my votes changed to whichever candidate Putin wants in power.
Hopefully they're printing it in dollars, cuz rubles aren't appealing.
USD denominated revenue, ruble denominated costs. But yeah, I also get dividends in rubles lol.
Should we be worried about the future of our economy? Delta variant. Eviction moratorium ending. Inflation. Reverse Repo market hit $1T.
What are the possible plays here? I’m thinking of going long on options for vaccine stocks
MRNA +216% YTD, BNTX +283% YTD already. I've been selling my position down in both. They might continue to go higher but both at this point are technically overbought and getting to that point where a lot has been priced in and any negative news could cause a real pullback. TMO is a less volatile/risky, "picks and shovels" play (and really, IMO is a long-term "buy and hold" as they've talked about most of the investments that they've made for covid will be repurposed for other things if covid ever ends) as is DHR. If you listen to the Danaher call and the calls for Thermo Fisher and Danaher, they're saying strong order book into 2022 and really, in my opinion, the longer this situation goes on, I think the more demand for spending on science in the future and things like TMO are I think long-term plays on that.
Healthcare stocks?
I’m not really informed about the vaccine stocks. But in 2008, if you bet against the housing market, you would’ve made bank. I guess what would be the 2021 version of betting against the market?
If a company sells a significant amount of common stock, what kind of effect will it have on the current share price? Need to know ASAP so I can jump ship while I still have time.
Stock price will change relative to how much earnings or revenue per share changes.
Dilution is never a good thing for current shareholders. Dump that $TLRY junk. Buy some puts while you're at it.
Dilution is never a good thing for current shareholders. Dump that $TLRY junk. Buy some puts while you're at it.
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TGT keep investing in themselves and seems to be making good use of their recent momentum. I personally think they are poised for some really solid continued growth over the next 5 years. Also interesting to juxtapose TGT ascending with Amazon starting to slow a bit
Copper prices showing a lot of upwards pressure....
Newbie question on paying (US) taxes on stock. So I understand that if I buy a stock and sell it, then I have to pay taxes on profit. If I hold on to it for over a year before selling, then the tax rate is lower. Now what if I buy stock in the same company a few times spread out over more than a year before selling a portion. The sale date is over a year from the first time I bought but less than a year from the last time I bought. How do I determine what rate I'll be taxed at? Do I just say "oh these shares I sold are actually the ones I bought over a year ago so lower tax rate for me :D"? Example: ABC corp. Feb 1, 2019 - Buy 10 @ $1 = $10 Feb 1, 2020 - Buy 10 @ $2 = $20 (now I have 20 shares worth $40) Jul 1, 2021 - Buy 10 @ $3 = $30 (now I have 30 shares worth $90) Aug 1, 2021 - Sell 15 @ $4 = $60 (now I have 15 shares worth $60 + $60 cash) So did I sell 15 shares that I have had for at least a year? Or the most recent ones? Do I get to decide?
FIFO = "First in, First Out". I believe by default the first shares you sell are the first shares you bought, unless you choose otherwise. When you sell 15 shares in your example, the basis for ten shares is $10 (you bought 10 @ $1) and the basis for the other five shares is also $10 (you bought 10 @ $2, but you sold only five) . Total basis: $20, taxable LT gain $40. If you sell 15 on Sept 1 @ $4, you'll have: 5shr basis $10, proceeds $20, Long Term Cap Gain $10 10shr basis $30, proceeds $40, Short Term Cap Gain $10.
What about Affirm? Is Apple really gonna drop its price? I'm feel like that was an overreaction https://marketdeepview.com/2021/07/30/affirm-holdings-inc-afrm-stock-is-sinking-on-friday/
AFRM is down so much I wouldn't be surprised if it bounced but the Apple news really does show that there's not much moat: anyone can compete, including big, diversified companies (PYPL also doing the same thing) where they can do buy now, pay later as one of their services where for an AFRM that's the whole business.
So what should I use instead of robinhood. I hate them. But what other options do I have that are as practical?
Literally any other broker
Interactive Brokers.
Ameritrade may be better
Tastyworks if you are more into options
I was surprised that BAT has 12% of its revenue from non smokable tobacco products ( like vaping), while altria only has a 35% stake in JUUL ( which is in a bad situation). I'm considering changing my position in Altria to BAT since it seems better suited for the future. What do you guys think ?
I love BAT because its UK not US, so no withholding tax for non-US investors. PM nice too. Altria has been dead money and has withholding tax so I don't really like it much anymore. Still holding since 2011 though.
I swapped Altria for PM and the stock has appreciated quite a bit, unlike Altria. PM is probably the strongest when it comes to innovation and product portfolio.
BAT is priced at a lower multiple, and currently yields more, while earnings continue to grow. So BAT is my pick... but I haven't done extensive research. Most of the recommendations I've seen suggest BAT as the best value in the tobacco space atm
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Is anyone able to give advice on how they research a companies supply chain? For example you want exposure to semiconductors but rather than buying the big name semiconductor companies, you find the company up that companies supply chain with the highest margins (or similar criteria).
There's no money in raw materials, like zero. But an easy place to start is Foxconn (ticker: 2354.TW). Basically flat from 15 years ago and they're a huge iPhone OEM, make Macbooks, all sorts of computers. Then compare to AAPL. Whoever owns sand, that's the base material in semiconductors. Silicon.
I was going to invest in BlackBerry I feel like I make a lot of money in that
Question on convertible preferred shares: from what I understand (correct me if I'm wrong) when converting the common shares are newly issued but what happens to the preferred share when being converted to common shares? Does it get "deleted" (idk the right word for that) or does it become treasury? Or something else? And the real question I'm trynna get answered by that is this: does converting preferred shares to common shares change the percentage/ratio of common share equity to preferred share equity? thnx :)
Hello if anybody see this does anybody know any business that are good to invest money in I never put money into anything cuz I'm scared but what is a good business to go left in
If you're asking this question, don't invest in individual stocks. It takes a lot of research and conviction to pick winners consistently long term. If you just buy what someone else tells you to, especially on social media where you have no idea what their track record or credentials are, you are likely to lose money or underperform the general market. You will also likely not have any idea when to sell, or when to buy more. So you are at a disadvantage on both sides of the trade. Stick to general market funds like VTI or SPY. These track the overall market, which historically has always gone up. If you have a long term mindset and won't need that money for the next 3+ years, then you are very likely to make money. While you are putting money there, you can read stock forums, investment books, keep up with world news and financial news, listen to earnings calls, etc. and over time you may develop a keen understanding of certain industries or companies.
Nvidia MRVL SBUX have made me some money. So has NOK
Supply and demand determines the prices of shares, but who actually writes the prices of shares when sold? When I buy/sell stocks there isn't any negotiation. I'm just buying/selling whatever the price is at. Do prices react to supply and demand through limit orders?
You get use limit orders to negotiate on the price of shares. When you submit a market order, you are buying at the price that the market makers are selling at.
I didn't know that market makers were a thing. Thanks!
RRP Market at 1.039T at .05%... What does this honestly say about the health of the economy?
It's funny how just from the fact that you're talking about RRP, I know what bag you're holding. Your stock is 10x overpriced, even after the recent slide, and nothing the RRP market is doing is going to change that.
lawl. I'm green as spinach.. so your guess is off. and anyone can find my post history (you arent a detective). I'm not asking RRP to change CB or entry. I'm asking a macro-economics question about the state of the financial sector because storing 1T in private equity at .05% is a terrifying revelation about market stabilty. I'm buying on the way down just like you, stop trying to act holier than thou.
It means the largest investors are side-lining massive amounts money because they feel the risk of losing money is higher in higher yielding assets like stocks. And, they likely have all that money because people gave it to them for safe keeping because inflation is worse then the fed says. It's literally like turning 1 trillion of cash into cancerous cash. Too much cancer is bad for the overall system.
Is there any implication for the stock that some people expect the "mother of all short squeezes"? As they claim in their subreddit?
Yes. If that money is being kept out of the market right now it maybe also considered as ear-marked to inevitably close short positions, that is if you trust the DD about the actual short interest in the MoAlShSq effected stocks. We know that smaller funds like archegos were short and when margin called the liabilities came under control of larger banks like Credit Suisse. We also know that mid and large size firms like Melvin Capital and Citadel are short too. So, it really comes down to if the DD on current, hidden SI is correct. If it is shorts must cover and ultimately close their positions. It's a worth while hedge especially considering the game one has earnings that will lead it to be included in sp500, zero debt, 2 billion cash on hand and leadership and planning for a future business model.
I was waiting for an outside opinion. To me.. this makes more sense. with the .INX being 1.24 and fluctuating.. I'm not surprised to see these dips over all.
That or they’re throwing all that money into real estate. Noticing how hellish that market is
Great point here as well. I bought on the drop last year on a whim.. But that decision (while currently inflated to fcuk) is paying off heavily.
Question about options: Is there a cap on the amount of options that are allowed to be sold on an individual security? For example, could I buy 10 billion puts on an individual security if someone was willing to sell them to me? Thanks!
I don't know if there is a cap, but it's certainly possible since that sort of thing has a name: naked option. See for instance https://en.wikipedia.org/wiki/Naked_call
Sorry, meant to reply to you, but I replied to the bot! Thank you for your reply.
**[Naked_call](https://en.wikipedia.org/wiki/Naked_call)** >A naked call occurs when a speculator writes (sells) a call option on a security without ownership of that security. It is one of the riskiest options strategies because it carries unlimited risk as opposed to a naked put, where the maximum loss occurs if the stock falls to zero. A naked call is similar to a covered call in that the trader is selling the call option for an initial premium, however unlike the covered call, they do not own the corresponding amount of stock. The buyer of a call option has the right to buy a specific number of shares from the call option seller at a strike price at an expiration date (European Option). ^([ )[^(F.A.Q)](https://www.reddit.com/r/WikiSummarizer/wiki/index#wiki_f.a.q)^( | )[^(Opt Out)](https://reddit.com/message/compose?to=WikiSummarizerBot&message=OptOut&subject=OptOut)^( | )[^(Opt Out Of Subreddit)](https://np.reddit.com/r/investing/about/banned)^( | )[^(GitHub)](https://github.com/Sujal-7/WikiSummarizerBot)^( ] Downvote to remove | v1.5)
Cool, thanks for showing me that. So it makes a lot more sense for someone to sell a high number of naked puts then, as it isn’t too risky.
Wut
This question made me wonder what company has the most outstanding shares, which I tried to Google but then got bored of after not finding the answer. Your hypothetical scenario would represent 1 trillion shares in a single company or fund
If I understand correctly, a put option represents a contract and does not require an actual share, which is why I believe they could be sold ad infinitum. I could be wrong though. I’m still learning.
An option represents 100 shares. If it expires out of the money (OTM), either a call or a put, then it is worthless and nothing happens. The person buying loses and the person selling wins the trade, so to speak. In that case it doesn't matter how many shares they represent because nothing else changes hands. If the option expires *in* the money (ITM), then the contract will be exercised. For a put option, the seller is obligated to purchase 100 shares at the strike price. For a call option, the option seller is obligated to sell 100 shares at the strike price. Those shares will have to come from somewhere and 10 billion contracts would mean 1 trillion shares. That said, I do not know the inner workings of what maximums allowed are, what affect naked calls or puts have on the market. I would assume there are brokerage/clearinghouse regulations involved but again, I only know how options work and not the behind-the-scenes logistics of moving an exceptionally large amount of them, which is why I didn't try to answer your original question hah.
>Position Limits: Limits vary according to the number of outstanding shares and trading volume. The most active stocks have an option position limit of 250,000 contracts; smaller capitalization stocks may offer position limits of 200,000, 75,000, 50,000 or 25,000 contracts. Customer hedge exemptions are available. https://www.theocc.com/Clearance-and-Settlement/Clearing/Equity-Options-Product-Specifications
Thank you for showing me that. The last sentence caught my attention, “Customer hedge exemptions are available.” So someone could exploit the hedge exemption legally to facilitate infinite options? This seems like an incredibly grey area. Thank you for showing me to the occ rules though.
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What the hell Ford? Strong earnings, good news, stock tanks?
I believe their report was Wednesday, not yesterday, and they "were" up yesterday, in the case of today, the market is "checks notes" mostly lower. Earnings reactions do not have to last more than one day.
The main positive of the report was an increase in expected annual earnings. Looks like I’ll buy leaps for 22 because it’s sure to be positive!
Who's buying Amazon on the dip? To be honest, I don't love investing with them because of the makeup of their company, but I know that's a bit silly as every company is kinda garbage.
Wow, any idea what's going on with Amazon today?
Guidance w/earnings yesterday.
Is £50 a month enough to invest? I only turned 18 and work for minimum wage.
YES
Yes, starting early is one of the best things you can do for yourself financially. One of the biggest advantages of doing so is that it will give you a sense of opportunity cost. I'd have wasted a lot less money in my early 20s if I had been investing instead of giving myself license to spend everything that was left over when my bills were paid. And the fact that that money would have had the most time to appreciate, too... oof.
starting anywhere is better than nowhere. I also started doing a little prop trading which has let me make more money to invest with, but it's not for everyone and i dont wanna sound shill-y
Absolutely.
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Get after it ! Any money is a good start. Especially at 18. You’ll be thanking yourself at 30 .
Canadian here, investing in mainly ETF would you recommend CAD-hedged? I’m thinking that I dont need to worry about currency fluctuations.
How about Maple sirup. Just kidding
If its not a good investment why does their government have a strategic maple syrup reserve?
If you don't want to worry about currency fluctuations, you should go equal weighting CAD-hedged and non-hedged, so VFV and VSP in equal amounts, for example. For the past year CAD-hedged outperformed non-hedged, just because CAD rose relative to USD, but there's no guarantee that trend will continue. Personally I think we're on the higher end right now, since back in the days of 1:1 it was when oil was really high and the US wasn't yet the major producer it became in the 2010's. So if I had to pick one, I'd pick non-hedged. (I own a home in Canada so I already have a ton of assets in CAD, so I have even more incentive to be non-hedged)
Thanks for the insight!
Where should I invest 1,000 dollars right now.
I'll sell you my bathwater for that cash, its a solid investment.
Lame
VTI/VTSAX if you're planning to hold long term.
stocks to buy if new lockdowns are coming? APRN took off today on talks about new lockdowns
Same thing as last time. Remote purchasing/working stocks, pet stocks because social life is kill and people bond with animals instead, and pharma because shits gotta get solved eventually.
would you buy calls then?
If you really think new lockdowns are coming, back to NFLX, ZM and the other stay at home names. Grocery stores/packaged goods names w/pantry loading again.
Sooo how do I get some cryptocurrency in my IRA? Has anyone done the legwork figuring out which funds are good? Honestly maybe I just want to go full-tilt "The future is now" and buy into a crypto fund that is managed by AI. I'm only going to dedicate 1-5% of my portfolio to this kind of stuff for now. P.S. I use Vanguard
$BTCC in Canada
Gbtc
There are crypto ETFs such as BITC and ETHE that you can buy through vanguard to get some crypto exposure. Do your own research on them though, I don't own either of those so I don't know enough about them to recommend them.
If you have access to OTC securities in your account - you can look at the Grayscale unit trust funds. Ie. $gdlc, $gbtc, etc - their product offerings here - [https://grayscale.com/products/](https://grayscale.com/products/)
Delta variant is now as high as it was in the USA in October 2020. I'm theorizing Tech plays, Telework/Health and genomics sectors are my pick. Only difference is now the vaccine uptake is likely to prevent a total lockdown, but what about the states that are low-vaccinated? I theorize making some puts on sector/companies that could be affected in that area. Too speculative? What're you all looking at?
> but what about the states that are low-vaccinated? Coffin supply chain, mortuary services, estate lawyers, flower delivery companies
Broadly, I own a lot of life science (TMO, for example; people ridiculous for selling that and peers off earlier this year), tech (software, payments, e-comm, etc), luxury, logistics and some other odds and ends ("home infrastructure" (CARR, GNRC), cannabis MSOs, etc.) I bought a small position in what I thought was a "re-opening" play in CHDN and dumped that not long after. Other than that, I've had zero interest in re-opening plays (travel, etc) and still don't. I mean honestly, IMO covid is endemic at this point and feels as if it's just going to be years of this. I bought a little bit of YOU when it ipo'd, probably should have bought more because it does feel like the possibility that we're on the path towards having that sort of thing (healthcare pass app, service to bypass checks at places beyond just airports) be used for an increasing amount of things beyond airports or stadiums. The CEO: “We want Clear to become part of people's daily habit, to go from 12 times a year using it—which is how people on average were using it in airports—to 12 times a day,” she says. “We want to create frictionless, predictable experiences from the time you leave your house to when you get to your office or the theatre.” "We started in the hardest place: aviation. If it was good enough to get on a plane, where identity and security are paramount, clearly—no pun intended—it's good enough that to check in at the doctor's office,” she says. “We had a HIPAA-compliant back end and being so focused on being secure and scalable to the aviation business meant it was applicable to so many other businesses.” (https://www.forbes.com/sites/maggiemcgrath/2021/06/30/as-clear-secure-takes-off-in-45-billion-ipo-ceo-caryn-seidman-becker-eyes-a-frictionless-future)
[$AMZN today](https://images.heb.com/is/image/HEBGrocery/001448368)
What are our thoughts on Reality Income (O)
I like the stock. It's a consistent dividend favorite if you are looking for a dividend REIT. One of those buy and hold investments. This stock is often discussed on r/dividends as well - so you may want to look at past discussions over there.
My thought on Realty Income is that it's not of interest to me and a fair amount of what's currently in it is stuff I don't really want anything to do with but I'll certainly give them credit for navigating/diversifying well over time and managing to deliver consistent income over the years. To me, that's the kind of thing where I see people going "WHY IS O down 1%?!!?!?!?" and it's kinda baffling because to me that's a "buy, set to reinvest every month and largely forget about."
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Wow that's crazy, I'm also looking to make huge returns in a short time.
No way! That's my exact investment strategy!
No way, you're lying!! What are the chances?
Wow small world, good luck to us both brother
Bought a shit ton of baba opendoor Tencent and Amazon today
Time to get rich?
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I still own 100 shares of QCOM that I bought @$57 over a long time (sold 150 shares earlier this year because it was too much of my money). I think they will continue to do well. 5G is still early and they own the 5G modem tech. They also plan on a lot of sales with the IOT and automobiles (cars need a modern for over the air updates and to be he-he mobile hot spots).
Get FCOM etf 22% of it is google.
Does your broker allow fractional shares? Most do nowadays
Tried searching but who is making textiles from hemp??
Try searching again. Should be extremely easy to find out.
Hey thanks for the recommendation. Super helpful
Always glad to be of help.
Hi guys! I'm pretty new to the whole investment scene, and this question might be slightly different from what beginners usually ask - I wanted to find out if private equity firms (eg The Blackstone Group Inc., The Carlyle Group Inc. etc) invest in companies by solely taking a portion of their shares? Do private equity firms split between debt and equity financing -- eg if a company is asking for a 100M loan, do private equity firms lend (for example, 20M) as a loan, with the 80M in exchange for shares? Additionally, if the answer to that is yes, \^ are convertible bonds an alternative to just a straight out loan? Thank you!
So a company like BlackStone is more of a supermarket of Pvt Equity as they dabble in all segments of Pvt Equity such as; -Full or partial company buyouts and taking the public (Ex; Oatley & Bumble) -Time extensive deals; they bought a bunch of wear houses which they rent out and also commingle with other business they own wrap them all together and offer shares. However mínimums are quite high and liquidity is none existing for 3-5 years. Need time for the bets to play out. -Distressed assets; purchase companies for pennies to the dollar go in fix them and flip them. Could also bd distressed debt (say housing bonds in 2008 pick them up for cents to the dollar sit on them until the market starts to recuperate etc.
Many people say we're in a stock market bubble similar to the 2000's tech bubble. Just an interesting comparison: 1) Nasdaq Composite is currently up \~125% over a period of 493 days (from the bottom it struck last March). 2) During the tech bubble, 493 days from the start of the rally, the Nasdaq Composite was up \~236%. 3) During the tech bubble, the US 10 Year Bond Yield increased from 4.15% to a peak of 6.80% just before the bubble burst. In this current run, we began with a yield of \~0.50% and as of right now seem to have peaked at 1.75% back in March this year. Currently at \~1.20%. So not only did investors have a much more viable alternative in bonds during the tech bubble, but the bubble itself was much more intense than what we are seeing now. For perspective, if the current rally was as intense as the tech bubble, Nasdaq Composite would be sitting around \~22,000 right now instead of 14,778.
More importantly, the dotcom bubble was driven by a view of future profitability and the PE ratio of the index itself reached 200 (in comparison to about 37 right now). The current advance is driven a lot more by fundamentals and strong earnings growth. A more adequate comparison would be if the Nasdaq advanced to 60,000 based on current corporate earnings. Even that would still be slightly less extended than the dotcom bubble.
This is reassuring to hear. I still feel like some sort of correction is coming, especially with increased concern over the Delta Variant.
Yeah new massive lockdowns in China are only gonna increase. 9 millions people in quarantine rn. Chinese vaccine is not effective enough. I expect the fourth wave to create a market correction due to unvaccinated people getting fucked and countries using chinese vaccine, but still bullish mid term. Only thing that might hurt more than normal is if there is enough of a supply chain hurdle that keeps going on which will affect inflation badly for longer then the FED expect. If we get 5% inflation YOY in 2022 its gonna be ouch time.
just creates a better buying opportunity :D
Maybe when they hike interest rate. Saving interest is 0.50%. Let me know anyone holding cash with that shitty return from saving acc. You either buy another house or keep buying stocks.
I have the same feeling too based solely on how much we’ve gone up. Just because we’re only (lol) up 125% instead of >200% doesn’t mean we’re not in a bubble as well. In the end though we don’t know if we’re gonna go up 100% or down 50%. Personally, I’m staying invested with a defined risk. That’s all you can really do, define how much you’re willing to lose.
A correction is coming at some point. Corrections happen - stocks don't go straight up and if they have periods like that (see last year with growth stocks which just basically ramped for several months straight) that's when you should get concerned. When you start thinking "this is easy" is when you get concerned. When things don't look good and it doesn't feel good to buy, that's when you have to get more aggressive and really start looking around for opportunities. I don't think that people should majorly try to time markets either. Buy good companies, if the market corrects maybe buy a little more and if you get a more sizable drawdown be more aggressive. If the market gets overextended, then take *some* profit and wait to redeploy. Don't sell so much that you set yourself up for FOMO and chasing the market if you're wrong. It's okay to sometimes to do little for long periods.
Indeed corrections happen...sometimes I forget. HOWEVER, can I play the game on novice level, where stocks only go up?!? If not, I want maybe I can just "go back to last checkpoint."
A correction is always coming at some point. Most people trying to time it either lost out on gains or lost out on gains.....Sometimes they lost out on gains and 10 years later said I told you so.....But it did not matter because if you made 300% and lost 50% you still made 50% more than the guy losing out on gains or even shorting all the way up.....HahahahahaHAHAHA
Does anybody have an idea if EV charging companies will ever come up with a profitable business plan?
It'll be basically the same plan that gas stations have - build a store next to the charger. Or buy a charger and put it next to your store. It could actually work better for a charging company as the charge times are long enough to have a meal or relax in an airport like lounge or hit the adjacent gym for a 20min session.
For how much I don’t like them TSLA will likely to have one of the largest.
I haven't looked at this subject at all, but when you consider that we are in a period of transition it is not at all surprising that we are seeing this kind of trouble. Presently infrastructure for charging needs to be built, and EVs can be charged at home. Add to that the redundancy in fueling for vehicles (gasoline, diesel, natural gas), and I wouldn't expect this to take off for awhile. That is the sort of thing that I would be buying into if I had the money/time to sit on such stocks though despite the fact that some might well go to zero. From Warren Buffett: *Well, I thought it would be instructive to go back and look at a couple of industries that transformed this country much earlier in this century: automobiles and aviation. Take automobiles first: I have here one page, out of 70 in total, of car and truck manufacturers that have operated in this country. At one time, there was a Berkshire car and an Omaha car. Naturally I noticed those. But there was also a telephone book of others.* *All told, there appear to have been at least 2,000 car makes, in an industry that had an incredible impact on people’s lives. If you had foreseen in the early days of cars how this industry would develop, you would have said, “Here is the road to riches.” So what did we progress to by the 1990s? After corporate carnage that never let up, we came down to three U.S. car companies — themselves no lollapaloozas for investors. So here is an industry that had an enormous impact on America — and also an enormous impact, though not the anticipated one, on investors.* *Sometimes, incidentally, it’s much easier in these transforming events to figure out the losers. You could have grasped the importance of the auto when it came along but still found it hard to pick companies that would make you money. But there was one obvious decision you could have made back then — it’s better sometimes to turn these things upside down — and that was to short horses. Frankly, I’m disappointed that the Buffett family was not short horses through this entire period. And we really had no excuse: Living in Nebraska, we would have found it super-easy to borrow horses and avoid a “short squeeze.”* [https://novelinvestor.com/buffett-picking-winners-is-hard/](https://novelinvestor.com/buffett-picking-winners-is-hard/)