Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[ThaVirus]

Originally Posted by Rain Man

So I have a $200,000 error in my favor right now, or kind of.

I bought a $2,000 CD a while back, which was 2 shares at $1,000 each. My portfolio total is correct, but when I drill into individual investments, my fixed income total is really high even though the overall total adds up. After some investigation, it's showing that I own 200 shares at $1,000 each. I like that interest accrual.

I assume it'll get fixed soon, but it's kind of tempting to sell it all off.

They randomly dropped $34,000 into my IRA with T Rowe Price back in 2020. I just let it ride hoping they’d let that interest accrue for 35 years until retirement and be set but unfortunately they must have noticed and corrected it after about 4 months or so.

Twas a sad, sad day.

[Rain Man]

Originally Posted by ThaVirus

They randomly dropped $34,000 into my IRA with T Rowe Price back in 2020. I just let it ride hoping they’d let that interest accrue for 35 years until retirement and be set but unfortunately they must have noticed and corrected it after about 4 months or so.

Twas a sad, sad day.

I hate it when they find those errors.

Did they gift you some shares of something? Dump in some cash? How did the money appear?

[ThaVirus]

Originally Posted by Rain Man

I hate it when they find those errors.

Did they gift you some shares of something? Dump in some cash? How did the money appear?

I am pretty ignorant in most things investing so I can’t say for sure.

It was a traditional IRA with T Rowe Price. All I know is that it was a very new account, a rollover of a 401k from a job I didn’t even stay at for a year so there was only a few thousand in it. I’ve read that you can purchase shares with money you have invested in IRAs but I just let them do their thing. I assume someone manages it for you because it rises and falls just like my brokerage account..?

Anyway, I just remember logging in to look one day and there was an additional $34k in the account. It seemed to just be added to the total already there so let’s say I had like $5k in it one day. The next day I logged in it read $39k. It was pretty cool.

But yeah, someone must have noticed the error after a few months and one day I logged back in and it was gone from whence it came. That was a sad day. I enjoyed seeing the daily interest gains on the account with that much more money in it.

Funny enough, you can still see the major spike (and subsequent fall) on the graph on the front page. Every time I log in I’m reminded of what could have been..

[Rain Man]

Okay, they took my $200,000 back. I'm disappointed, but I understand.

[Rain Man]

Okay, question of the day. Boeing (BA)

Option A. Buy more because the stock has been beaten down by all of the technical problems, and at some point they'll get it all straightened out and make that money back.

Option B. Hold it if you've got it, because it's a blue chip with a big moat. Every portfolio should have some.

Option C. Sell it. They can't seem to get their act together, and it's going to have big downstream effects.


I've been running with Option B for a long time, and it hasn't paid off. About five years ago I was making great money on it, and then it got chopped in half with the various problems. Right now I'm a little in the red on the price, though dividends probably eke it a little above breakeven for me. But at best I'm not keeping up with inflation on it.

I don't have a lot of it, but it's one of those stocks that I feel like everyone should have in their portfolio if they're diversified. Frankly, though, I'm reaching my limit on patience and I'm not overly confident that they're going to work through all of their problems in time to avoid big losses in orders and sales. I'm moving toward Option C at this point.

What do y'all think?

[Peter Gibbons]

Originally Posted by Rain Man

Okay, question of the day. Boeing (BA)

Option A. Buy more because the stock has been beaten down by all of the technical problems, and at some point they'll get it all straightened out and make that money back.

Option B. Hold it if you've got it, because it's a blue chip with a big moat. Every portfolio should have some.

Option C. Sell it. They can't seem to get their act together, and it's going to have big downstream effects.


I've been running with Option B for a long time, and it hasn't paid off. About five years ago I was making great money on it, and then it got chopped in half with the various problems. Right now I'm a little in the red on the price, though dividends probably eke it a little above breakeven for me. But at best I'm not keeping up with inflation on it.

I don't have a lot of it, but it's one of those stocks that I feel like everyone should have in their portfolio if they're diversified. Frankly, though, I'm reaching my limit on patience and I'm not overly confident that they're going to work through all of their problems in time to avoid big losses in orders and sales. I'm moving toward Option C at this point.

What do y'all think?

I would sell it for one reason alone. As I travel a lot on planes, I’ve noticed the new Airbus planes to be quite superior to the Boeing offerings. They seem quieter, roomier, and the feel of the cabin is nicer with higher quality materials being used. 30 years ago I felt the exact opposite. It seems Airbus is really putting out a much better product these days and while I cannot rule out Boeing doing better in the future, I would not suspect the turn around to be fast based upon their recent offerings. YMMV.

[Buehler445]

Originally Posted by Rain Man

Okay, question of the day. Boeing (BA)

Option A. Buy more because the stock has been beaten down by all of the technical problems, and at some point they'll get it all straightened out and make that money back.

Option B. Hold it if you've got it, because it's a blue chip with a big moat. Every portfolio should have some.

Option C. Sell it. They can't seem to get their act together, and it's going to have big downstream effects.


I've been running with Option B for a long time, and it hasn't paid off. About five years ago I was making great money on it, and then it got chopped in half with the various problems. Right now I'm a little in the red on the price, though dividends probably eke it a little above breakeven for me. But at best I'm not keeping up with inflation on it.

I don't have a lot of it, but it's one of those stocks that I feel like everyone should have in their portfolio if they're diversified. Frankly, though, I'm reaching my limit on patience and I'm not overly confident that they're going to work through all of their problems in time to avoid big losses in orders and sales. I'm moving toward Option C at this point.

What do y'all think?

I dunno. I think there's probably more downside than upside. If you're looking to mitigate some risk into retirement, I'd probably look hard at that one.

[myselff77]

Originally Posted by Rain Man

Okay, question of the day. Boeing (BA)

Option A. Buy more because the stock has been beaten down by all of the technical problems, and at some point they'll get it all straightened out and make that money back.

Option B. Hold it if you've got it, because it's a blue chip with a big moat. Every portfolio should have some.

Option C. Sell it. They can't seem to get their act together, and it's going to have big downstream effects.


I've been running with Option B for a long time, and it hasn't paid off. About five years ago I was making great money on it, and then it got chopped in half with the various problems. Right now I'm a little in the red on the price, though dividends probably eke it a little above breakeven for me. But at best I'm not keeping up with inflation on it.

I don't have a lot of it, but it's one of those stocks that I feel like everyone should have in their portfolio if they're diversified. Frankly, though, I'm reaching my limit on patience and I'm not overly confident that they're going to work through all of their problems in time to avoid big losses in orders and sales. I'm moving toward Option C at this point.

What do y'all think?

Sell it. Internal Problems + potentially cheap Chinese planes to compete with in the future. They certainly could rebound, but there's probably other industries/companies that are a safer bet you could move the funds in to.

[Rain Man]

I think I'm headed that way. It feels unpatriotic, but they need to get their act together, and maybe me selling my small amount of stock will jar them into that.

[Stewie]

Originally Posted by Peter Gibbons

I would sell it for one reason alone. As I travel a lot on planes, I’ve noticed the new Airbus planes to be quite superior to the Boeing offerings. They seem quieter, roomier, and the feel of the cabin is nicer with higher quality materials being used. 30 years ago I felt the exact opposite. It seems Airbus is really putting out a much better product these days and while I cannot rule out Boeing doing better in the future, I would not suspect the turn around to be fast based upon their recent offerings. YMMV.

The purchasing airline choose the configuration and the quality of amenities. That being said, Airbus might offer better interior configurations at the same price as Boeing.

[ghak99]

Originally Posted by Rain Man

I think I'm headed that way. It feels unpatriotic, but they need to get their act together, and maybe me selling my small amount of stock will jar them into that.

Have you tried sending them a sternly worded email?

A Rain Man email might just right their ship for the thousands of other share holders.

[scho63]

This market is frothy as hell.

[Buehler445]

I thought this was an interesting graphic as we move forward here.

[Rain Man]

I've read speculation that we'll never get down to that near-zero rate again, and I figure that's probably not a bad thing. Those ultra-low rates seem like they'd limit options in different scenarios.

[Buehler445]

Originally Posted by Rain Man

I've read speculation that we'll never get down to that near-zero rate again, and I figure that's probably not a bad thing. Those ultra-low rates seem like they'd limit options in different scenarios.

I went to a conference where a KSU Ag Econ dude was talking and he postulated that the super low rates were bad for the economy because it doesn't properly allocate capital.

I took that to mean that capital is flooded towards low return (less worthwhile allocations) because there was no other return. Whereas if you want investments you're going to have to beat the treasuries over at least the intermediate term. I didn't follow up, but I thought it was an interesting way to look at fiscal policy.

I also think there are some bullshit economist assumptions in there. When Theranos started, the rates weren't super epic low, and that didn't prevent a MOUNTAIN of dumb**** otherwise successful individuals from throwing a pile of money at it and forgoing all corporate governance. Even to the point at which they didn't feel it necessary to call a biologist and ask "hey is this super common procedure even possible with this small amount of blood?" Nothing.

Same with Wework. Their biggest funding rounds were when rates came back up and NOBODY though to ask the question of, "hey, they're buying a ****ton of real estate. Should we value this obvious real estate company as a tech company? What's their cost to scale?" NOBODY

So even at higher interest rates there is apparently a ton of money out there that is wholly unwilling to do even a little bit of due diligence. So I don't think that's necessarily correct, but I don't think it's grossly incorrect either.


Nothing rates definitely limit the risk averse. Absolutely. But it can limit the front side of businesses too. R&D costs and infrastructure improvements across industries are also affected. So I think there is a case to be made either way. And again, both those probably go back to the same inappropriate efficient distribution of capital assumption that I'm not comfortable with.

So ultimately I don't have a particularly strong opinion. But as a guy that has both money borrowed and at times is trying to get a return on operating capital, I'd say the extremes are probably bad.