Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Stewie]

Originally Posted by Rain Man

I've been buying them hand over fist. Fidelity's brokerage is great about finding great rates, often with little local banks. My latest is a 5-year CD at 5.75 percent. I'm liking that a lot.

Fidelity is great. I consolidated my retirement accounts into one Fidelity account. Well, two accounts. One traditional and one Roth.


They make it very easy to shop and compare investment opportunities.



I had a TD Ameritrade retirement account that I closed and moved to Fidelity. TD was horrible when it came to finding investments that met my needs, so I moved. Since then they've been bought by Schwab and from what I've read they are bankrupt, or close to it.

[Buehler445]

Wasn't sure exactly where to put this, but I thought it was an interesting tidbit. Came in an email I got.

But....Yikes

General Motors has engine trouble.

In its third-quarter earnings report Tuesday, the legacy carmaker announced a smidge of good news encased in a truck ton of bad news. While both net income and revenue beat analyst expectations, profits were still down 7% from a year ago, and the ongoing United Auto Workers’ strike is eating away at cash flow. Oh, and its electric vehicle targets may have been wildly optimistic. And did we mention the woes of its self-driving car unit?

Detroit Flop City
The good news is that GM generated about $3.1 billion in profit in the quarter. The bad news is that this concludes the good news portion of our story. The UAW strike, which began September 15 and only comprised two weeks of its 3Q, has cost the company about $800 million in pretax earnings so far, it says, or roughly $200 million a week in lost vehicle production. Even worse: the union celebrated the earnings call by beginning a strike Tuesday at an SUV plant in Arlington, Texas, one of the company’s biggest profit centers.

Unfortunately for GM, its present woes may be speed bumps compared to the giant potholes in its future. Like much of the industry, GM has for years been touting EVs as the future of its business. But GM is now realizing that the future may be more far-flung than expected. In its earnings call Tuesday, the company was forced to make an embarrassing public U-turn on its previously announced near-term EV targets:

• In 2021, GM said it would phase out nearly all internal combustion engine vehicles by 2035, and later said it would produce 400,000 EVs over a roughly two-year stretch ending next summer. On Tuesday, the company abandoned that goal.

• That comes after news last week that it was delaying the opening of a Detroit-based EV truck factory by a year. CFO Paul Jacobson said Tuesday the walk-back of the 400,000-EV goal reflects slowing EV sales growth, as high-interest rates turn car buyers away from the pricey green alternatives.

GM also saw a 42% decrease in income from China, where it usually does solid business, due to a surge in China-based EV rivals.

Bye, Robot: As if GM needed any more negative headlines on Tuesday, the state of California’s DMV said it’s revoking the operating permits of Cruise, the self-driving taxi business in which GM has a majority stake, following a series of high-profile incidents. Now even robot drivers will be hating on the DMV.

[ChiliConCarnage]

Also,

Honda's CEO, Toshihiro Mibe, unveiled the decision, stating that after a year-long analysis of the project, it became apparent that producing affordable EVs with GM would pose significant business challenges. The two companies had agreed in April 2020 to develop a new architecture based on GM's Ultium EV battery, primarily for small crossover sport utility vehicles (SUVs). The first fruits of this partnership were slated for North American roads by 2027.

The alliance aimed to accelerate the reduction of battery costs, hoping to rival market leaders Tesla and BYD in both price and performance. The intention was to leverage GM's expertise in battery technology and Honda's manufacturing prowess to carve out a competitive space in the burgeoning EV market. However, changing business dynamics, including escalating costs related to the United Auto Workers strikes, prompted a reassessment of these plans.

[Rain Man]

This past quarter is kind of depressing. I thought we were going to make up the 2022 losses and then get back on a reasonable track, but I guess I'll learn to like the taste of cat food in retirement.

[scho63]

This is one of those markets that people who have never witnessed a Bear market keep thinking the market will turn around and keep investing as stocks just keep dropping.

I haven't made any new investments for several months. I see some nice entry points as some things are really getting cheap.

[ChiliConCarnage]

Originally Posted by Rain Man

I got into LLY based on honestchieffan's recommendation, and I had a pretty large amount of NVO already. The weight loss drugs are sending these stocks to the moon, and I think the rise is still happening. Anyone else holding these?

I'm interested in the opposite. Is anyone picking through the parts of the market getting killed due to any news on this?

A few weeks back some kidney study came out that showed good efficacy and it took down the whole medical devices ETF 5+% in a day. They'd already been slowly dying all year. I imagine there is plenty of stuff in that area that won't be impacted at all, the stuff that is impacted who knows how much.

Same with a lot of the consumer staples. They've been out of favor this year, safety and dividend yielders did well last year and this year has been growth/tech. Walmart had some internal study that showed smaller basket size with a different mix for people on the weight loss drugs. Walmart, costco, pepsi, and most non-health foods dropped a bunch that day. Some of the staples have gotten cheaper than they've been in a while relatively and I've noticed they're holding up better than the market. MKC and MDLZ are examples. Hershey was too as it's been killed this year w/ high cocoa and sugar prices but it had earnings today and dumped.

[lewdog]

Talk about a slaughter!

"But muh dividends!!!!!!"

[lewdog]

Originally Posted by Hog's Gone Fishin

Thanks Lewdog (Debbie Downer of Dividends). While the price has definitely takin a hit on TSLA dragging TSLY with it I'm benefiting immensely on growing the share count through dividend reinvestment. My share count has grown 21% in 4 months, In the grand scheme of things I see this as a blessing as long as share price eventually recovers. In 5 years this little investment should provide enough dividend payments to live on alone.

Some of the other Yieldmax funds are looking better now, NVDY,CONY, because the underlying stock has held up but TSLY is still the Gold standard in Dividend yield. Also ,Defiance has come out with some real bangers , QQQY (1.10 divi in October) and JEPY (.90 divi in October) .Yes, I'm loading those too.

Who are the shitbags that are thumbs upping your posts?!?!!

Show yourself you dividend douches who don’t understand total return is all the matters. Show yourself now!!

[Rain Man]

Proxy fight! We have a proxy fight in the investing thread!

[ChiliConCarnage]

I'd like to vote for PYPL to institute a dividend at next week's earnings. Thanks!

[Rain Man]

Originally Posted by ChiliConCarnage

I'd like to vote for PYPL to institute a dividend at next week's earnings. Thanks!

PYPL is in my doghouse bad. It's one of my worst three stocks in my portfolio. When I bought it, I thought it was pretty safe, and it's done nothing but go down ever since.

I just did my weekly summary and I'm in a really foul mood right now. My invested assets are down 9 percent since July 31st and my total net worth is down 7 percent.

[KCUnited]

Is there more to PayPal Holdings than just the PayPal transaction service?

Because of all the fintech platforms it seems like the biggest piece of shit in my experience

I get more PayPal attempted scam emails than anything else, which I guess is probably a sign that you've made it (PayPal, not me), but I rarely use it compared to Zelle, Shop, or Venmo. Matter of fact, I should probably just shut it down

Wondering if I'm off on it as a product?

[Rain Man]

Originally Posted by KCUnited

Is there more to PayPal Holdings than just the PayPal transaction service?

Because of all the fintech platforms it seems like the biggest piece of shit in my experience

I get more PayPal attempted scam emails than anything else, which I guess is probably a sign that you've made it (PayPal, not me), but I rarely use it compared to Zelle, Shop, or Venmo. Matter of fact, I should probably just shut it down

Wondering if I'm off on it as a product?

I don't use any of that stuff, so I kind of figured that it was the standard, and therefore a relatively safe investment. Maybe it's down because it apparently takes ten minutes to start up a competing service.

[KCUnited]

Originally Posted by Rain Man

I don't use any of that stuff, so I kind of figured that it was the standard, and therefore a relatively safe investment. Maybe it's down because it apparently takes ten minutes to start up a competing service.

From an investment standpoint its probably the giant that's most used since it was a pioneer for boomers

So kind of like Bud (when it was a good investment)

Something to make money on but not personally utilize/consume

[Rain Man]

Originally Posted by KCUnited

From an investment standpoint its probably the giant that's most used since it was a pioneer for boomers

So kind of like Bud (when it was a good investment)

Something to make money on but not personally utilize/consume

I also hedged a bit with some Square stock, and it's been catastrophic too, but on a lesser scale. I wish I'd never heard either name.

The feds are coming out with their own service soon, and that can't be good for these private companies, but they'd tanked long before that news.