Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[lewdog]

Originally Posted by rydogg58

I've seen people say this a few times now about buying partial shares. I use TD Ameritrade. Is this something I can do with them? I'm not familiar with buying partial shares.

Not everyone allows it but some do.

[lewdog]

Not that I don't mind some great pump and dump options, but some good dialogue in this thread could make it valuable.

Just a bit of thought on Apple. Most people already "own" a large position in Apple given it's heavy weight carried in many index and mutual funds that people own. Many times people will select funds in their 401k and not even know their exposure to the top companies within that fund, which many times includes Apple. I personally have no need for owning Apple as my exposure through funds is already quite high. That doesn't mean I won't swing trade it or sell/buy options on it if needed. Owning it long term is already factored into my 401k and ROTH IRA, however, so weighting myself further to Apple with individual stocks isn't a need for me.

Just some food for thought.

[SupDock]

Originally Posted by lewdog

Not that I don't mind some great pump and dump options, but some good dialogue in this thread could make it valuable.

Just a bit of thought on Apple. Most people already "own" a large position in Apple given it's heavy weight carried in many index and mutual funds that people own. Many times people will select funds in their 401k and not even know their exposure to the top companies within that fund, which many times includes Apple. I personally have no need for owning Apple as my exposure through funds is already quite high. That doesn't mean I won't swing trade it or sell/buy options on it if needed. Owning it long term is already factored into my 401k and ROTH IRA, however, so weighting myself further to Apple with individual stocks isn't a need for me.

Just some food for thought.

Exactly,

It's also interesting how many people choose to actively manage the bulk of their portfolios when generally this will underperform in the long term.

[SupDock]

Originally Posted by lewdog

It would have done that without splitting.

See Amazon.

The split does nothing. It’s a great company with a high stock price because it’s got great revenue and a huge cash pile. People can buy partial shares already, so splitting means nothing. If Apple is worth purchasing at $100/shares, it’s also worth purchasing at $500/share.

Yep

[scho63]

A stock split brings in MORE individual investors.

[MagicHef]

Originally Posted by Hammock Parties

No - what is it, you set a price you'll sell a stock for 3 months in the future or something? Hope some rube comes along?

I saw AMD was down yesterday, and figured it would likely go up soon, so I bought a couple hundred options (8/21, $87) at $0.56 each. They were cheap because AMD is not likely to go up to $87 by next Friday.

AMD did go up this morning, so while it's still unlikely to get to $87 by the 21st, it's more likely than it was yesterday. I sold the options today at $0.83 each. 48% profit in one day isn't too bad. If AMD had gone down, I could have potentially lost my entire investment, but it wasn't a very high dollar amount.

[scho63]

Originally Posted by scho63

Everybody is touting gold.........SHORT IT!

[Buehler445]

Originally Posted by scho63

BAAAAHAHHAHAHAHA. I've long said gold is a commodity and is traded as such, not an investment.

But Wow. That is serious.

[ChiliConCarnage]

Originally Posted by SupDock

The impact of splitting is confusing to me. In an era where you can buy fractional shares, why does this matter? I get that the stock surged after the news, but why?

Granted, I am a set and forget investor, so I don't pay attention much.

Buying in fractions is amazing but share price does matter. Let's say Amazon is 6k/share and I have 10k. Fidelity has a great new app and is paying to transfer your account so I want to move my account. I'll end up with 1 Amazon share and 4000 dollars and a tax bill from any profits on my fractional amount. At least I wasnt a guy with 5k of Amazon who had his whole position sold off. I'd rather my amounts held in fractions stay smaller.

I don't have fractional selling so I'd rather have more shares for flexibility. If I've got 2 shares of AMZN for $6400, the only way I can take profit is selling 50% of my position. I'd much rather they 4 to 1 split and give me the option of selling a smaller slice.

Fraction selling/buying is pretty new. Even if half of US brokerages have some version, people from outside the US buy on our markets and tend to not have as great of brokerage options.

[Rain Man]

Originally Posted by ChiliConCarnage

Buying in fractions is amazing but share price does matter. Let's say Amazon is 6k/share and I have 10k. Fidelity has a great new app and is paying to transfer your account so I want to move my account. I'll end up with 1 Amazon share and 4000 dollars and a tax bill from any profits on my fractional amount. At least I wasnt a guy with 5k of Amazon who had his whole position sold off. I'd rather my amounts held in fractions stay smaller.

I don't have fractional selling so I'd rather have more shares for flexibility. If I've got 2 shares of AMZN for $6400, the only way I can take profit is selling 50% of my position. I'd much rather they 4 to 1 split and give me the option of selling a smaller slice.

Fraction selling/buying is pretty new. Even if half of US brokerages have some version, people from outside the US buy on our markets and tend to not have as great of brokerage options.

I've never thought about this before, but I wonder if share price makes a bigger difference in retirement portfolios. If I'm retired and I want to take out my appreciation for living expenses, it may be hard to do that if the stock is really expensive and I don't have a lot of shares. I'd have to sell off more than I want in order to liquidate some of it.

[SupDock]

Originally Posted by ChiliConCarnage

Buying in fractions is amazing but share price does matter. Let's say Amazon is 6k/share and I have 10k. Fidelity has a great new app and is paying to transfer your account so I want to move my account. I'll end up with 1 Amazon share and 4000 dollars and a tax bill from any profits on my fractional amount. At least I wasnt a guy with 5k of Amazon who had his whole position sold off. I'd rather my amounts held in fractions stay smaller.

I don't have fractional selling so I'd rather have more shares for flexibility. If I've got 2 shares of AMZN for $6400, the only way I can take profit is selling 50% of my position. I'd much rather they 4 to 1 split and give me the option of selling a smaller slice.

Fraction selling/buying is pretty new. Even if half of US brokerages have some version, people from outside the US buy on our markets and tend to not have as great of brokerage options.

Excellent insight. Thanks for posting it.

[MagicHef]

I'm on Robinhood, which allows fractional buying and selling, but I haven't done it yet. I feel like it would bother me owning only a fraction of a share of something.

[ChiliConCarnage]

Originally Posted by Rain Man

I've never thought about this before, but I wonder if share price makes a bigger difference in retirement portfolios. If I'm retired and I want to take out my appreciation for living expenses, it may be hard to do that if the stock is really expensive and I don't have a lot of shares. I'd have to sell off more than I want in order to liquidate some of it.

I think this stuff is way easier in a retirement account. Have a stock that's 100k/share. Sell it. Remove 50k for expenses, then buy something else in the retirement account with the leftover 50k or fractional shares for half the 100k. In a retirement account if your fractionals get liquidated during an account transfer, you just don't have that money in the market for a short period. As soon as it lands at your new brokerage you can repurchase.

[philfree]

Made back today what I lost yesterday and maybe a fraction more. I'm thinking these swings are going to be common place until the election. If in the short term Trump starts looking undefeatable the DOW will hit 30,000..

[lewdog]

Originally Posted by scho63

A stock split brings in MORE individual investors.

Sure but enough to move the stock price much?

Anyone only wanting to buy shares because they’re “cheaper” after a split doesn’t have enough capital to move a stock much.