All things STOCKS

[kiddiedoc]

Isn’t Novo Nordisk the leader in treating diabetes? If they have a huge block buster drug for obesity that might cannibalize their diabetes side.

The snack food companies certainly got slammed by the weight loss drugs’ emergence.

Yes, and they have Wegovy, which is what made me the big bucks.

Lilly has now gotten approval for Zepbound (AKA Wegovy) to be marketed for weight loss. It is more than just a GLP1 agonist, with a second biochemical property that will likely supplant Wegovy as the industry darling. I've heard projections for it to possibly become the most widely used drug on the planet.

 

[Thunder Good-Oil]

The healthcare sector is my favorite because of the demographics. But it can be volatile in the near term depending on what insurance companies and the government do.

Big Pharma probably has the most $100 billion market caps of any industry, but I don’t try to follow the names. Patents, reimbursements, exposure to liability, R&D, competing drugs. It’s too much for me to dig into. But I have owned Pfizer, Merck, and their spin offs (Viatris and Organon) for several years.

 

[Thunder Good-Oil]

My biggest healthcare sector holdings are ISRG-Intuitive Surgical (recurring revenue from licensing/maintenance and the difficulty of switching to a competing system), Pfizer, GE Healthcare (GEHC), XLV (Select Sector ETF), CURE (leveraged ETF), Merck, Medtronic (not nearly as big of an investment - it’s been a stagnant holding), and SRCL (Stericycle) as an ancillary business (WM (Waste Management) has been a far better investment).

If I add it will most likely be through the 2 ETFs, XLV and CURE.

 

[Thunder Good-Oil]

Or CVS and/or an insurer like UHC. Maybe JNJ if they’ve gotten past the talc litigation. Or XRAY (Dentsply Sirona).

 

[@1RBFjr]

Do you already have an account at a brokerage/mutual fund company(i.e. Vanguard)?
you might need to be concerned about fees.

When one of our kids got their first job we set up a Roth for them. Free with TD Ameritrade, which then became Schwab. VOO and TMFC primarily in it.

 

[Go aeiou]

When one of our kids got their first job we set up a Roth for them. Free with TD Ameritrade, which then became Schwab. VOO and TMFC primarily in it.

Your child should appreciate that. Roths are especially good when just starting out. Starting young is what Buffett preaches. He started at 14.
I have a bunch of VOO.
that Motely Fool ETF beats my etf, VONG which should be similar..
I'm getting too old to fool with a lot of individual stocks. Have to own a few though. BRK-B, REGN, MRNA, COST, BX

 

[@1RBFjr]

Your child should appreciate that. Roths are especially good when just starting out. Starting young is what Buffett preaches. He started at 14.
I have a bunch of VOO.
that Motely Fool ETF beats my etf, VONG which should be similar..
I'm getting too old to fool with a lot of individual stocks. Have to own a few though. BRK-B, REGN, MRNA, COST, BX

Thanks. We hope it's a lesson that sticks. We'll do the same when our other kid gets their first job.

We have more individual stocks than funds. I'm buy and hold. Many of our funds are Vanguard because of low fees, but we do have some actively managed ones (but I watch fees). Individual stocks are (hopefully) more fun to follow than a fund. AAPL is our best performer; we've had it something like 12-14 years. We also have VOO and BRK-B like you.

 

[Thunder Good-Oil]

For anybody shopping for a great company to buy shares in, FedEx is on sale after hours at 10% off. They missed earnings by about 5% and revenue was a slight miss as well. But being patient and able to stomach volatile share prices and possibly falling or doing little for the next few quarters is important.

I was worried about Amazon’s delivery build out being a big problem for FDX, but even AMZN would have a rough time competing with FDX’s footprint. Facilities at airports aren’t unlimited.

FedEx needs to lock down their contract with the USPS. If that was to fail then shares would be under a lot of pressure.

Look at Plane Finder or Flight Aware and the number of FedEx (and UPS) flights are crazy. But TYS isn’t to far from Memphis and Louisville.

 

[Majors]

WTH rate cut

 

[Velo Vol]

Amazing.

 

[jvol1]

Amazing.

No need for war. They'll come to us when it gets bad enough. You cant have western prosperity without western freedom.

 

[Thunder Good-Oil]

No need for war. They'll come to us when it gets bad enough. You cant have western prosperity without western freedom.

The Chinese economy would crash without the assistance that we provide - especially ensuring that their shipping routes aren’t being disrupted. They need to play nice and we don’t need leadership that lets them get away with their crap without any pushback.

 

[kiddiedoc]

So, my son has some saved money from work, and he wants me to invest it in something that will likely yield him more than a CD (currently around 5% with promotional rates) without incurring a ton of short-term risk. I was thinking a fairly conservative ETF might be a good idea.

Any suggestions? The Motley fool 100 Index looks pretty solid. I could also spread it between 2-3.

 

[95 Vol Alum]

So, my son has some saved money from work, and he wants me to invest it in something that will likely yield him more than a CD (currently around 5% with promotional rates) without incurring a ton of short-term risk. I was thinking a fairly conservative ETF might be a good idea.

Any suggestions? The Motley fool 100 Index looks pretty solid. I could also spread it between 2-3.

Not sure anything in equities wouldn’t include short term risk. I’d do VTI if wanting a market option, though. Just be the US market.

5.25% 12-month CD at Ally. I-bonds about the same, I believe. FYI

 

[kiddiedoc]

Not sure anything in equities wouldn’t include short term risk. I’d do VTI if wanting a market option, though. Just be the US market.

5.25% 12-month CD at Ally. I-bonds about the same, I believe. FYI

Yeah I thought maybe put him in 2-3. Vanguard, iShares, Fidelity all have low-cost options. I thought including one with more potential upside might be ok (like Motley)...

 

[Thunder Good-Oil]

So, my son has some saved money from work, and he wants me to invest it in something that will likely yield him more than a CD (currently around 5% with promotional rates) without incurring a ton of short-term risk. I was thinking a fairly conservative ETF might be a good idea.

Any suggestions? The Motley fool 100 Index looks pretty solid. I could also spread it between 2-3.

Go with DIA. The Diamonds ETF. It would be a good educational experience. It’s flawed as a representative of the overall market. Only 30 stocks which are all very large. And the DJIA is price weighted rather than market cap weighted.

But to avoid more risk, something like the VTI or VOO might be more suitable for equities with diversification.

After the calendar turns I think I’ll buy Beekshire-Hathaway for the first time. They didn’t participate as much in price appreciation recently. There’s not a dividend, so I’m putting it in a taxable account.

I’d be wary of the QQQs as the Magnificent 7 have carried that average. But MSFT would also carry a lot of weight in the DIA.

 

[Thunder Good-Oil]

Treasury dot gov is a good idea. But it might require leaving cash in the securities for a while to avoid penalties.

 

[Firebirdparts]

So, my son has some saved money from work, and he wants me to invest it in something that will likely yield him more than a CD (currently around 5% with promotional rates) without incurring a ton of short-term risk. I was thinking a fairly conservative ETF might be a good idea.

Any suggestions? The Motley fool 100 Index looks pretty solid. I could also spread it between 2-3.

My suggestion is to fight back hard against the idea of safety and risk. Young people should be seeking the best compensated risks they can find. maybe that's what you think the Motley fool 100 does for you. That's not a bad option. But then SPY is not a bad option. Most people don't keep up with SPY.

The major uncompensated risk is buying individual stocks. Teach your kid to invest in total market and be done with it. If he wants to waste a lot of time gambling, make him do that on his own time. DON"T SPEND YOUR MONEY, Diversify and stay the course, three biggest lessons a young person needs. the first one is about 10 times more important than the other two.

 

[Thunder Good-Oil]

My suggestion is to fight back hard against the idea of safety and risk. Young people should be seeking the best compensated risks they can find. maybe that's what you think the Motley fool 100 does for you. That's not a bad option. But then SPY is not a bad option. Most people don't keep up with SPY.

The major uncompensated risk is buying individual stocks. Teach your kid to invest in total market and be done with it. If he wants to waste a lot of time gambling, make him do that on his own time. DON"T SPEND YOUR MONEY, Diversify and stay the course, three biggest lessons a young person needs. the first one is about 10 times more important than the other two.

It kind of sounded like he’s looking for somewhere safe to park his cash for the short term. In which case, owning debt rather than equities would be a good idea with 3 possible/probable Fed rate cuts coming in 2024.

If it’s an investment, then a Roth IRA with something throwing off income is the way to go when there are decades of appreciation ahead.

 

[BigOrangeMojo]

@kiddiedoc

Your kid is about the same age as mine. Roth IRA all day at that age....

 

[@1RBFjr]

Treasury dot gov is a good idea. But it might require leaving cash in the securities for a while to avoid penalties.

I think you can't touch it for a full year in an I-bond.

 

[@1RBFjr]

Yeah I thought maybe put him in 2-3. Vanguard, iShares, Fidelity all have low-cost options. I thought including one with more potential upside might be ok (like Motley)...

In case you haven't seen it, scroll up a few posts. We opened a Roth for one of our kids when they had their first job. TMFC and VOO are the two primary investments. He's also having a little fun with BATRA since he likes the Braves.

 

[Tin Man]

In the late 70s, I received a modest distribution from my late father’s life insurance policy. I bought a used pickup truck. I wish that I’d invested in shares of Intel and Nike (my interest at the time).

Last year, I retired, sold my remaining holdings of individual stocks, and consolidated my investments in broad based mutual funds. It suits my outlook for my foreseeable future.

Edit: I’ve been a long term investor throughout my life, always looking for growth and income over a period of years.

 

[Tin Man]

To qualify, in the late 70s, I was in my 20s, and willing to take risks. I correctly anticipated the coming growth in computing and running for fitness. Intel seemed a better bet than the nascent computer companies, as they were positioned to provide the “guts” to multiple players. I did not foresee Nike’s entry into basketball shoes or their deal with Michael Jordan.

 

[Firebirdparts]

I feel like the top of the volcano is blowing off so I am selling off a little.

Once I started messing around with bonds that gave me a way to adjust the total amount in stocks at will. Then I started using leverage as well. Then I started loading up on long bonds and jacking up the leverage when stocks and bonds went down together. So for 2 months bonds and stocks have both gone up together and when this is leveraged it covers a lot of ground.