Stock Investing

[PARROTHEAD]

15 hours ago, kingseanjohn said:

Any thoughts on Silicon Valley Bank?

Well. As unimpressive as they ran the bank. I was very impressed by how employees looted bonuses before handing off the the FDIC.

Quote

 

"Silicon Valley Bank (SVB) employees reportedly received their annual bonuses just hours before the government takeover, CNBC reported while quoting people with knowledge of the payments."

"According to Glassdoor.com, SVB bonuses range from about $12,000 for associates to $140,000 for managing directors. SVB was the highest-paying publicly traded bank in 2018, with employees getting an average of $250,683 for that year, Bloomberg reported."

 

 

[kingseanjohn]

53 minutes ago, PARROTHEAD said:

Well. As unimpressive as they ran the bank. I was very impressed by how employees looted bonuses before handing off the the FDIC.

 

From what I read they historically give their bonuses on that day. It looks shady but it may not be. My concern is the companies that use them. Roblox, Etsy, etc. Etsy has already said they’re having issues because of this. 

[PARROTHEAD]

8 minutes ago, kingseanjohn said:

From what I read they historically give their bonuses on that day. It looks shady but it may not be. My concern is the companies that use them. Roblox, Etsy, etc. Etsy has already said they’re having issues because of this. 

Yeah. March is when a lot of companies give bonuses. But the same lower level people at bigger banks were getting around a 4k avg. Not 12k+.

Roku has 26% of their cash reserve in SVB.

Tomorrow will be interesting for these companies.

[incognito_man]

On 3/10/2023 at 8:59 PM, Outpost31 said:

Disagree completely on the lack of necessity for high dividend yields.

Dividends are the most underrated aspect of investing, especially when young.

Put thousands into high dividend yield stocks and ETFs at a young age and set whichever account you have to auto reinvest dividends.

Especially now in this market.

Big, big, big fan of dividends.

Dividends: Money from the company's left hand instead of their right hand

[Shockwave]

13 hours ago, incognito_man said:

Dividends: Money from the company's left hand instead of their right hand

All they are doing it chipping off a piece of each share you own, "look how generous we are" then it's deducted from the share price the next morning. It costs them absolutely nothing on their end. They are paying you with your own money 😆

[PARROTHEAD]

Just page one.

[MacReady]

13 hours ago, Shockwave said:

All they are doing it chipping off a piece of each share you own, "look how generous we are" then it's deducted from the share price the next morning. It costs them absolutely nothing on their end. They are paying you with your own money 😆

I mean this would be true if dividend stocks haven't consistently shown less volatility and haven't historically outperformed the market.

So that's like... A really bad way of looking at dividend stocks because it's not historically accurate.

Yes, every investor should definitely watch out for and invest in growth stocks. But when dividends are growing more than the average stocks historically, that's like saying a frog should have wings if it has the opportunity to have wings or some other analogy I don't want to think of right now shut up, dividends are not what you just said they are, as reflected by history.

 

[Shockwave]

Quote

I mean this would be true if dividend stocks haven't consistently shown less volatility and haven't historically outperformed the market.

What I said IS true. It's exactly the process. The dividend is deducted from the share price the next morning. Not saying dividends/drip investing isn't profitable. I have a ton of index, etf, and div paying stocks in my IRA. They are safer, less volatile and more suitable for investing then growth stocks and tech.

Edited March 14, 2023 by Shockwave

[ramssuperbowl99]

1 hour ago, Shockwave said:

What I said IS true. It's exactly the process. The dividend is deducted from the share price the next morning. Not saying dividends/drip investing isn't profitable. I have a ton of index, etf, and div paying stocks in my IRA. They are safer, less volatile and more suitable for investing then growth stocks and tech.

Whether a company pays a dividend says more about its overall financial situation than anything else - a moderate sized yearly dividend means the company is currently making money, has places to grow, but doesn't have enough market share left to gain to justify spending every dollar it can. Companies with a high dividend may have very little growth (or suffered a massive value loss), so there is risk there, but the scheduled profit is higher. Companies without a dividend at all are reinvesting every dollar they can, so there is more risk, but lots of upside.

Saying "companies that pay dividends make more than the rest of the S&P 500 over the long haul" isn't really a surprise, that's a general positive criteria of financial health. It doesn't make a bigger dividend a good thing, placing too much weight on dividends a good thing (especially with how weird interest rates are), or only owning dividend producing stocks a good strategy.

Edited March 14, 2023 by ramssuperbowl99

[PARROTHEAD]

Hate to capitalize on the misfortune of others.

But tossing money at META everytime they fire someone pays pretty freakin good.

 

[MikeT14]

1 hour ago, PARROTHEAD said:

Hate to capitalize on the misfortune of others.

But tossing money at META everytime they fire someone pays pretty freakin good.

 

Noticed my stock way up this morning. 

[MikeT14]

Honestly, I dunno what to do in the market anymore. I just keep sprinkling money into CDs again that are 9 and 12 monthers. 

[PARROTHEAD]

28 minutes ago, MikeT14 said:

Noticed my stock way up this morning. 

I missed the 200 spike early. Saw the downtrend follow and set a 196 sale marker. Spiked off the 196.30s thankfully. Sold at 200.

Now to go shopping and lose it all before the wife knows I have it.  JPM. BAC. Here I come.

 

[MacReady]

On 3/16/2023 at 10:27 AM, MikeT14 said:

Honestly, I dunno what to do in the market anymore. I just keep sprinkling money into CDs again that are 9 and 12 monthers. 

I took this opportunity to finally start buying physical precious metals and pay off principal on my house.

The only investing I'm doing right now is dumping a bunch more into my job's IRA.

And I'm getting close to a full Bitcoin and 10 Ethereum.

 

Edited March 18, 2023 by Outpost31

[mission27]

On 3/14/2023 at 11:16 AM, ramssuperbowl99 said:

Whether a company pays a dividend says more about its overall financial situation than anything else - a moderate sized yearly dividend means the company is currently making money, has places to grow, but doesn't have enough market share left to gain to justify spending every dollar it can. Companies with a high dividend may have very little growth (or suffered a massive value loss), so there is risk there, but the scheduled profit is higher. Companies without a dividend at all are reinvesting every dollar they can, so there is more risk, but lots of upside.

Saying "companies that pay dividends make more than the rest of the S&P 500 over the long haul" isn't really a surprise, that's a general positive criteria of financial health. It doesn't make a bigger dividend a good thing, placing too much weight on dividends a good thing (especially with how weird interest rates are), or only owning dividend producing stocks a good strategy.

What you are saying is true from a Finance 101 Homo Economicus perspective 

The reality, though, is that even good companies are generally not that well managed and most management teams are not really making decisions by comparing the IRR on investment opportunities with their WACC.  

Profitable companies that do not return money to shareholders, either through dividends or buybacks, usually end up wasting that money on stupid crap IMO. 

See, e.g., most of the tech industry and what has happened to the market value of those companies. 

On the other hand if you were an investor in Apple over the past ten years, you got half a trillion dollars back, because of Carl Icahn.  And somehow they've managed to grow just fine without all that extra $$$.