All things STOCKS

#14,427
#14,427
Rocky_Top_Vol13 said:
So I would like to ask a question to the posters who frequent this thread because I would like to know just how much I'm "small potatoes" in the grand scheme of it all. Also, I'm not trying to ask an inappropriate question by any means but how much new money do yall invest in the markets per month? I'm not interested in gains or losses and it doesn't matter if you're doing options or limit orders. I never invest more than I can stand to lose and I seriously doubt I'll be completely financially free due to my investments, but I do hope to have a nice little nest egg to go along with my other retirement goals down the road.
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I max out my 401K and with company contributions I max out the 415c limits. Those figures are readily available with a simple search. I also max out contributions to my health savings account and invest a portion of those funds in three different mutual funds offered by the company that manages the HSA. I own a little bit of real estate for some income and have another brokerage account that I put money in, all fairly high yielding dividend stocks (5% to 8%) and a couple of high yield income funds. Contributions to that vary throughout the year.
 
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#14,428
#14,428
Thunder Good-Oil said:
I probably have posted that a high dividend yield ALONE isn’t a good reason to buy a stock. It has to be sustainable with profits. EPS needs to be greater than the dividends/share and preferably by a lot.
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It is surprising how many "pros" recommend stocks that pay unsustainable dividends.
 
#14,429
#14,429
Go aeiou said:
It is surprising how many "pros" recommend stocks that pay unsustainable dividends.
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Also, if the earnings aren’t high enough to cover the dividend payout, the shareholder is going to be hit with a tax liability on the dividend and they most likely lose value in their holdings as companies with weak earnings usually fall in value. Theoretically, share prices will fall on the ex-dividend date by exactly the value of those dividends paid. There are lots of other variables to factor into a share’s price however.

It can get really bad holding mutual funds in a taxable account. Annual dividends and capital gains are distributed in Q4 and then the mutual funds shares can fall considerably in value 5 or 6 months later when taxes are due.
 
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#14,430
#14,430
Thunder Good-Oil said:
I don’t remember saying that..
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I mostly joshing you. Not that you didn't say it, but I'm stretching it more than you probably meant by your post.

It is interesting that GOOG doesn't pay a dividend. One would think they have enough cash that holding more won't help them grow the business.
 
#14,431
#14,431
I don't know anything about this company, but I did notice their West Knoxville dealership hasn't had any cars in front of it in a while.

 
#14,432
#14,432
A guy on a podcast I'm listening to says now is a good time to start moving from short-duration to longer-duration bonds, because he thinks there's not much upside left on the latter's interest rates.

Thoughts?
 
#14,433
#14,433
I spend a lot of time on this (and gamble a lot of money). Bond prices are set by people like me, so yeah, they bottomed out back in October. There is an expectation that the values have to rebound "soon" and I am comfortable with that. The universe is not going to let you buy those bonds cheaper than the universe wants to sell them (just like stocks). prices set by trading.

A big reason I look at this is that I was running "hedgefundies excellent adventure" in a Roth which is about 50/50 UPRO/TMF. I hope you all know that when you lose 10%, you need to come back up 11% to be even. With the 3X ETF's, they reset daily, so it's not going to recover when the market recovers. Mathematically it shouldn't. This is called "volatility decay". With TMF, there's not much appreciation available to offset the decay, and so I got out of it and bought back in later. Later for me was "way too early" as is usually the case with me. I am very tempted to buy more, but again, there's not so much upside available if I'm wrong.
 
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#14,434
#14,434
Velo Vol said:
I don't know anything about this company, but I did notice their West Knoxville dealership hasn't had any cars in front of it in a while.

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The location of one of their dealerships not far from where I live has been carless/shuttered for a few months as well, and started tapering down last summer iirc.
 
#14,437
#14,437
Velo Vol said:
A guy on a podcast I'm listening to says now is a good time to start moving from short-duration to longer-duration bonds, because he thinks there's not much upside left on the latter's interest rates.

Thoughts?
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Vanguard has 18 month and 5 year CD @5.25%
Treasuries yeild about .25-.5% less.

I'll put a little cash in CDs during the next month or two.
Interest rates are more diffacult to predict than stocks.
 
#14,439
#14,439
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#14,442
#14,442
Apex Bank just purchased the previous HGTV/Scripps/Discovery facility on Sherrill Blvd. I couldn’t find them as a publicly traded financial institution. Haslam money maybe? They are buying the Milwaukee Bucks. Berkshire-Hathaway just took another big equity stake in Pilot Travel so the family is flush with cash.

Edit: doesn’t appear to big a connection to the Haslams. But there was once an association between Apex and the Claytons.
 
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#14,443
#14,443
Thunder Good-Oil said:
Apex Bank just purchased the previous HGTV/Scripps/Discovery facility on Sherrill Blvd. I couldn’t find them as a publicly traded financial institution. Haslam money maybe? They are buying the Milwaukee Bucks. Berkshire-Hathaway just took another big equity stake in Pilot Travel so the family is flush with cash.
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Are you saying that Warren Buffett is buying into Pilot Flying J?

If so, that move surprised me.
 
#14,444
#14,444
Jax_Vol said:
Are you saying that Warren Buffett is buying into Pilot Flying J?

If so, that move surprised me.
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Apex doesn’t seem connected to the Haslams. They were based an hour west of Nashville.

Yes. Berkshire-Hathaway bought controlling interest in Pilot/Flying J several years ago. They’ve completely bought out the family that had owned Flying J before they merged with Pilot Travel Centers.

The Haslams kept the Pilot C-stores after selling control of the truck stops. Casey’s bought those stores from the family last year. They are public - CASY is the ticker symbol.

I’m pretty sure that BRK recently exercised an option to purchase a bigger equity stake in Pilot Travel.
 
#14,446
#14,446
Jax_Vol said:
Are you saying that Warren Buffett is buying into Pilot Flying J?

If so, that move surprised me.
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Here's the press release: Pilot Flying J

More details from the above:

Under the terms of the agreement, Berkshire will acquire a 38.6 percent equity stake in Pilot Flying J. The Haslam family will continue to hold a majority interest with 50.1 percent ownership in the Company and FJ Management, Inc., owned by the Maggelet family, will retain 11.3 percent ownership until 2023. In 2023, Berkshire will become the majority shareholder by acquiring an additional 41.4 percent equity stake and the Haslam family will retain 20 percent ownership in the Company and remain involved with Pilot Flying J.
 
#14,448
#14,448
@1RBFjr said:
Here's the press release: Pilot Flying J

More details from the above:

Under the terms of the agreement, Berkshire will acquire a 38.6 percent equity stake in Pilot Flying J. The Haslam family will continue to hold a majority interest with 50.1 percent ownership in the Company and FJ Management, Inc., owned by the Maggelet family, will retain 11.3 percent ownership until 2023. In 2023, Berkshire will become the majority shareholder by acquiring an additional 41.4 percent equity stake and the Haslam family will retain 20 percent ownership in the Company and remain involved with Pilot Flying J.
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Wow! Really surprised Warren would enter into a business venture with the Haslam's.

I guess with him having control, he feels he can manage them.
 
#14,449
#14,449
Jax_Vol said:
Wow! Really surprised Warren would enter into a business venture with the Haslam's.

I guess with him having control, he feels he can manage them.
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Buffett likes to keep the main office bare bones and have the existing management continue to run the operations of acquisitions. I think that Jim Clayton’s son (Kevin) still runs Clayton Homes for BRK.

Jimmy Haslam seems to be more focused on running his sports business. Pilot has been hiring out of family management for a while. James Sr still hits the Pilot office early every day despite being about 92 years old. Close to Warren’s age. Mere children relative to Charlie Munger (99 years old).
 
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