Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[lewdog]

Originally Posted by Rain Man

Having lived through the dotcom bubble disaster, I'm wary of a stock crashing, and honestly I've never had a stock do as well as NVDA has these last three years, so it's unprecedented for me to consider.

TSLA came close on the upside. I was up 900+ percent on it for a while, and then it lost half its value. However, I didn't have a ton of it initially so I survived the downside and am still very happy.

But NVDA? I'm up over 1,000 percent on it now, and losing half of that would still be a great win, but it would sure hurt. I'm selling off tiny bits, and the nice thing is that I can sell off 10 percent of my stock now and all the rest will be profit.

I'm also scarred by selling all of my Dell stock in the early 1990s. I doubled my money and thought I was a genius, and the stock went up a hundredfold after I sold it. That hurt. So I have to keep a fair amount of NVDA on the chance that it does the same thing, and I think it's as likely to do that as fall 90 percent.

tl;dr. I've got enough profit that I'm selling a tiny bit to get my original money out and ensure that there'll never be a loss, but I'm too scarred by past FOMO to sell a lot of it.

What percentage do you normally allocate to individual stock position size? You could sell off some of NVDA to get it down to your normal range if it's taken over a large percentage of your total individual stock percentage.

[Rain Man]

Originally Posted by Buehler445

That's all fair, and I don't have any so I recognize that it's easier for me to say.

I would say that if it has a Dell type run, is that even possible? I heard just today the market cap of NVDA is bigger than the stock market of Germany and the increas in market cap was enough to represent the ENTIRE market cap for GM, Ford and Ferrari.

If it goes up like the Dell stock did then it would just be, what? bigger than every other stock on the planet combined? I don't think I'm going out on a limb saying that move has already happened (see Hog Farmer's story).

FOMO is a real thing, but goddamn, I'd have trouble not booking at least the 10% to me to even.

Originally Posted by lewdog

What percentage do you normally allocate to individual stock position size? You could sell off some of NVDA to get it down to your normal range if it's taken over a large percentage of your total individual stock percentage.

I've historically had only a mostly hypothetical dollar amount limit on any individual stock holding, and I'm really diversified, so that limit is only about 2 percent of my total investments. I say 'hypothetical' because until the past couple of years I'd never had a stock reach that dollar amount. Now, though, I have five that are above the limit - NVDA, GOOG, MSFT, AAPL, and AMZN - because they all shot up so much last year. The last four are not too far above my limit, but NVDA shot up so much that it's now about 4 percent of my total holdings. That's making me nervous, but it's also letting me dress like that guy on the Monopoly money right now.

I'm going to keep selling off tiny amounts of NVDA if it keeps going up, but at the same time it feels like I'm voluntarily pulling my head out of one of those neverending chocolate fountains at Golden Corral. Every time I sell, the stock is 10 percent higher the next time I look. I sold my first defensive share last year at $438 and now it's pushing $800. At some point it's got to slow down, but maybe that won't happen until I'm doing two chicks at the same time. The stock may be high, but at the same time all I'm hearing is that they can't make those chips fast enough to meet the sales that are pouring in. From an investing perspective, it's tough to land a plane like that when I've been wanting a ride on it my whole life.

[myselff77]

Is your NVDA in a Roth or other tax protected account or do you take a pretty big tax hit each time you sell?

[Rain Man]

Originally Posted by myselff77

Is your NVDA in a Roth or other tax protected account or do you take a pretty big tax hit each time you sell?

About 80 percent is in an after-tax brokerage. That's what I've been selling because if it keeps growing I want to keep the part that's in the IRA. So I'm paying taxes any time I sell.

[Rain Man]

Originally Posted by Hog's Gone Fishin

You could buy an inverse 2x leveraged NVDA etf as an insurance policy.

NVDQ

NVDA tanks and NVDQ goes up at a 2X rate.

Currently 6.50

I've never done any type of hedging or options, but that's actually kind of intriguing in this particular case.

[Buehler445]

Originally Posted by Hog's Gone Fishin

I bought 5 shares just for fun and it caused NVDA to surpass the 2 Trillion Market cap .

LOL. You should have told me and I’d have bought some.

[Nixhex]

Opinion on the cheapest per share stock to buy at the moment?

[Ming the Merciless]

Originally Posted by R8RFAN

Ok ... gimme something safe to drop 10k in tomorrow

even a CD or high yield savings is 5%

better than 0

[Ming the Merciless]

Originally Posted by Nixhex

Opinion on the cheapest per share stock to buy at the moment?

my 2 cents on cheapest 'per share' is that it doesnt really say anything about value or not.


What you have to do is multiply the 'per share' cost by the total # of shares (the float) to get the market cap (market value) of the company.


Then you have to take a hard look as to whether that market cap is a 'good deal' , or 'about right' , or 'over priced'


I think what you are looking for (if I am understanding you correctly) is a stock with a low 'per share' price that also is a good VALUE and has the potential to go up in price... as opposed to just random penny stocks that will probably go down or maybe aren't a great value.


Is that right?


I personally think Ford (F) is a fairly safe stock. Picking it up at the 9$ - 12$ per share range is always a good idea. Its on the high end of that range right now but at times pays about 5% dividends on top of possible gains. Put it on a watch and start picking it up if it drops towards 11 or 10. (imo)


SoFi (SOFI) is a good one in the 7$ range. They are new , a banking company, and could be explosive growth in a few years. Buying some sofi in little chunks here and there if it stays around 7-10 could be a good long term plan. Its risky but could grow a lot.


Vacasa (VCSA) is a kind of vacation rental company similar to air-bnb (but different). They are extremely risky and extremely volatile, but in the 7's i think its a good deal.


Newegg (NEGG) the computer online store that you order hard drives and pre builts from is trading at a dollar a share. Theyre in trouble but you could try and buy some for a dollar and hope it goes up to a buck fiddy and sell.. LOL


just a few random thoughts this AM

[Rain Man]

Originally Posted by Ming the Merciless

even a CD or high yield savings is 5%

better than 0

I just got a 3-month CD at 5.4 percent the other day. It's not going to make me rich, but it's a darn good place to park money while these rates last. Then I can figure out where to put it long-term at my leisure.

[Rain Man]

Originally Posted by Hog's Gone Fishin

Yet NVDY is dropping a $2.62 dividend this week
CONY $1.66
AMDY 1.37
TSLY is at .81

Yeah, but that kind of thing is for men who dive off cliffs and hunt with crossbows and flirt with women. I'm a humble gatherer who never travels far from my financial village.

[lewdog]

Originally Posted by Hog's Gone Fishin

Yet NVDY is dropping a $2.62 dividend this week
CONY $1.66
AMDY 1.37
TSLY is at .81

Take stupid shit like TSLY off the list.

It's -11% year to date in total return, -22% in 6M return. A ****ing dog. Dividends do not matter if your capital is being sunk by a stock moving in the wrong direction!

[myselff77]

Originally Posted by Hog's Gone Fishin

Debbie Downer speaks again. Still not worth a listen.

Smart people buy good companies when they're at a discount / Warren Buffett

It's a little ironic you use that Warren Buffett quote referencing some funds that are not actual companies.

I have nothing against TSLY and similar investment funds, I just don't really understand them and the risk. Buying stocks, options, shorting stocks all make sense in terms of what could go wrong that would cause one to lose a lot of money. I Have no idea on what scenario would result in TSLY completely tanking? Does the fund manager basically bet on the stock going one direction and if it goes the other direction that would be worst case scenario?

[myselff77]

Originally Posted by Hog's Gone Fishin

TSLY performance is based on ONE company and ONE company alone. Tesla

Tesla has been down for quite some time, but seeing it's the largest EV maker in the world and involved in so many other avenues for revenue it's got a bright future. 5 years from now it will be booming as it's still in the growth stage

I was hoping you might answer the questions on the risk of TSLY. If you are talking about Tesla itself booming over the next 5 years, why not just invest in TSLA? How does TSLY share price or dividend payout grow or diminish? As long as Tesla grows is TSLY guaranteed to have more success? If Tesla tanks, does TSLY tank worse or does TSLY still make money because maybe they might be betting on TSLA to tank at that point in time?

[DaFace]

Originally Posted by Rain Man

Yeah, but that kind of thing is for men who dive off cliffs and hunt with crossbows and flirt with women. I'm a humble gatherer who never travels far from my financial village.

From the looks of it, they also sometimes dive into water that's 3' deep and then brag about how great the food is at the hospital.