Investing

What did you buy? What might you buy??

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  • Dec 18th, 2018 7:49 am
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May 11, 2014
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Iqaluit, NT
CCHIPSS wrote:
Oct 11th, 2018 11:53 am

You are going to use margin during a possible start of a bear market? Are you trying to invest, or are you trying to gamble your life savings away.

We don't know if this is going to be bear. But during every bear market, there are people that use margin and ended up bankrupt, losing their house and all their assets.

If you time it perfectly, then of course you would win big. But it is funny that these are often the same people who yell at others for selling, asking "can you time the market"? Apparently those that sells early cannot time the market, but only those that uses margin to gamble everything away can time the market. (No offense to anyone of course. I am just saying we invest differently.)

I suggest this about investing: Taking a few punches is OK. But never take knockout blows.
You need to be able to grasp and analyze what company's share actually have value. You can't assess the value of a single company based on the entire economy at large. This is called throwing the baby out with the bath water.
This is what happened in 2008. As an example, everything was being sold down even good companies. You're getting too worked up about the market as a whole yet not letting yourself look at individual companies on their merit.


The use of leverage in itself is not risky. Borrowing money is risky if you cannot afford it. Similar to buying a home. Buying a home when home prices go down doesn't make it more risky. You are buying an asset you feel has value at the price you accept. This is the exact same thing people should do with stocks.
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Jan 21, 2014
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Jojo_Madman wrote:
Oct 11th, 2018 1:05 pm
Run from a day low of about $6.80 up to $8.44 and sitting at about $8.30 at the moment ... I could have bought in lower, but I don't try to time the market, I just look for an oversold stock ;)
Did it give that high of a dividend payout every month consistently? yield is like almost 20%
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Jan 28, 2007
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Earth for now
mkl38s wrote:
Oct 11th, 2018 3:22 pm
Did it give that high of a dividend payout every month consistently? yield is like almost 20%
When their NAV is at or above $15 it was consistent ... they have had a period for about a 12 months or so 6 years back where it didnt pay a dividend ... I've owned this stock with a 32% yield at times ... but this stock can be volatile
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Jan 27, 2006
9333 posts
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Vancouver, BC
rivermornings wrote:
Oct 11th, 2018 12:34 pm
I don't understand why banks are falling?
A few things:

1. With the increasing rates, people are concerned about fewer people being able to afford loans... I know it's counter to what everyone has said in the past where increasing rates means better bank profits. While it's true that banks typically suffer near the end of a rate cycle as fewer borrowers come out of the wood work, personally, I think it's a little early in the rate cycle to assume that's going to happen. I would expect some deterioration in bank profits when rates are twice what they are now.
2. People are using banks as a source of funds either to cover margin calls OR to fund additional purchases.
3. The masses are panicking and are selling their ETFs which, due to market weighting, include a lot of banks.
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Jul 7, 2004
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What do you guys think of Berkshire B at this price?
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Jun 27, 2007
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CCHIPSS wrote:
Oct 11th, 2018 11:53 am
You are going to use margin during a possible start of a bear market? Are you trying to invest, or are you trying to gamble your life savings away.

We don't know if this is going to be bear. But during every bear market, there are people that use margin and ended up bankrupt, losing their house and all their assets.
I think I agree with your line of thinking. After longest bull run ever, it's not wise to go all in with mere 5% off the highs. Corrections are 10-15% and bear market could be 20-40%. Imagine 20% off 2940 - that's 600 points lower. Given where the last leg of the rally started (2135 post Trump election), I would say support lies somewhere near 2200. With numbers getting large, corrections will be larger too. 700 points on S&P is just 24% correction - while average bear market territory has been 40% decline (1700 SPX). Eventually, prior breakouts get tested and I see three major levels below -
1. 2500-2600
2. 2100-2200
3. 1500-1600

with extraordinary measures in the recovery (ZIRP, monetary easing, currency devaluation, other "tools"), there could be extraordinary corrections in the stock market. Money are still cheap, consumers over leveraged and debt levels are epic = conditions are ripe for another bomb to go off.

P.s. And nobody talking about failed easing efforts by Chinese government. They tried, but the measures exacerbated decline and it spilled over to the US market. If China buckles, we will see +1000 points decline within one day and market will get killed. Ok, I take off my bear goggles now.
It's easy to grin when your ship comes in and you've got the stock market beat.
But the man worthwhile is the man who can smile when his shorts are too tight in the seat 😃
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Nov 9, 2013
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Edmonton, AB
baz5 wrote:
Oct 11th, 2018 7:57 pm
What do you guys think of Berkshire B at this price?
A few different things I've read suggest that the estimated value is about 700 B (based on a sum of the parts valuation) which puts it at a ~28% discount. If this is indeed true, I would anticipate Buffet would be executing buybacks - I don't think we would find this out though until after the fact.

I think it's an attractive buy.
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Feb 4, 2015
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Canada, Eh!!
Enjoy logging in to brokerage accts and buy/sell BUT was so engrossed with it on Wed and Thurs amidst intermittent internet that today feel blahhh... like next day after heavy night partying.

So unlikely [99.9%] to do any trades today.

Have a great weekend all!!
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May 25, 2008
1338 posts
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Mississauga
After almost no buying/selling activity in the last 6 months, sold 1/2 my position in PKI (T) (first tranche in 2009) for a nice profit and bought more ENB.
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May 11, 2014
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STP123 wrote:
Oct 12th, 2018 10:09 am
After almost no buying/selling activity in the last 6 months, sold 1/2 my position in PKI (T) (first tranche in 2009) for a nice profit and bought more ENB.
Nicely done! Was on the fence on PKI earlier this year and didn't commit. I definitely missed out.
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Mar 4, 2009
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I think I will buy ENB if it goes below $40 and BNS if it goes below $70.

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