The Official M6G Investment thread

[Cobra Jet]

Some great advice on here as well as guided opinions.

Can anyone list what stocks they’re invested in (ticker code or names)?

Not looking for personal info such as financial, gains or losses etc - just what buckets you decided are best for your individual portfolio.

Also is anyone invested in metals or mining stocks? I’m asking purely because of the fact that the Auto Industry is heading for multi-scale EV production and batteries needed for such require mined materials.

Thanks to all of those who participate in this thread!

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[machsmith]

Some great advice on here as well as guided opinions.

Can anyone list what stocks they’re invested in (ticker code or names)?

Not looking for personal info such as financial, gains or losses etc - just what buckets you decided are best for your individual portfolio.

Also is anyone invested in metals or mining stocks? I’m asking purely because of the fact that the Auto Industry is heading for multi-scale EV production and batteries needed for such require mined materials.

Thanks to all of those who participate in this thread!

I like where your mind is. Think more about what is in EVs too. Investing has a lot to do with cutting edge materials, tech, basically what is where the future is going. That's where the big gains can be made or LOST if you're not careful. do a lot of studying before buying.

 

[shogun32]

Just had to.

But over the years, the cars have been a better investment than stock and real estate.

https://www.autoblog.com/2021/01/11/rick-treworgy-muscle-car-city-closing-mecum-auction/

 

[Bull Run]

Just read an article/blog about a guy who got a million dollar margin loan to by stocks during the COVID crash. It ended up working out for him in the end (make sure to read the comments section for the latest update). I'd never find the guts to pull off something like this, even with my belief that the market goes up in the long run.

Dividend Investing with Margin Loans During a Pandemic and Market Meltdown

In a nutshell:

1. Got a $1 million margin loan with Vanguard at ~5.5%.
2. Bought $1,020,000 in stocks on margin debt between March 12th and March 15th.
3. Since he couldn't time the bottom, had to watch his portfolio drop for a week or two.
4. As of Jan 16 (per comments section), paid off the margin loan, paid $10,500 in interest, and made about $600K in capital gains.
5. No, he doesn't not advise other to do the same and he'll stick with a index fund like VTSAX.

 

[Bull Run]

Also is anyone invested in metals or mining stocks? I’m asking purely because of the fact that the Auto Industry is heading for multi-scale EV production and batteries needed for such require mined materials.

I invested in RIO and NUE as a part of the diversification, rather than as a play on EVs.

 

[shogun32]

4. As of Jan 16 (per comments section), paid off the margin loan, paid $10,500 in interest, and made about $600K in capital gains.

he got majorly, unbelievably lucky! And obviously he had assets pre-loan that if if he was wiped out Vanguard could attach and be made whole.

Remember, tulips were worth 'billions' too, till they suddenly weren't.

 

[Bull Run]

Just had to.

But over the years, the cars have been a better investment than stock and real estate.

https://www.autoblog.com/2021/01/11/rick-treworgy-muscle-car-city-closing-mecum-auction/

I saw the below posted in a S550 Classifieds FB group. Not sure if it was a troll post or not, but if not, I guess this guy is really optimistic on the value of used Mustang GTs going up.

 

[Bull Run]

he got majorly, unbelievably lucky! And obviously he had assets pre-loan that if if he was wiped out Vanguard could attach and be made whole.

Remember, tulips were worth 'billions' too, till they suddenly weren't.

I think he pretty much admitted it was more of a gambling than investing in a roundabout way. But he ended up keeping bulk of the stocks from his "experiment".

"Looking back now, the whole thing ended up being pretty lucky, but not something I would probably ever do again. "

 

[jtmat]

Just read an article/blog about a guy who got a million dollar margin loan to by stocks during the COVID crash. It ended up working out for him in the end (make sure to read the comments section for the latest update). I'd never find the guts to pull off something like this, even with my belief that the market goes up in the long run.

Dividend Investing with Margin Loans During a Pandemic and Market Meltdown

In a nutshell:

1. Got a $1 million margin loan with Vanguard at ~5.5%.
2. Bought $1,020,000 in stocks on margin debt between March 12th and March 15th.
3. Since he couldn't time the bottom, had to watch his portfolio drop for a week or two.
4. As of Jan 16 (per comments section), paid off the margin loan, paid $10,500 in interest, and made about $600K in capital gains.
5. No, he doesn't not advise other to do the same and he'll stick with a index fund like VTSAX.

That was a fun read... thanks. He took a gamble and won!

I reinvest, but I can see someone in retirement using dividends to fund trips, etc. ETFs and MFs pay dividends as well. Vanguard has a "dividend" ETF and MF.

VTSAX is great - had it for some years now. Some over on a financial forum I visit believe VTSAX is all you need.

 

[shogun32]

VTSAX is great - had it for some years now. Some over on a financial forum I visit believe VTSAX is all you need.

I saw a article a day or two ago whose premise was that passive investing and market-funds like that are the principle driver of the out of control rise and (unhinged) valuation of the SP500 and other broad indexes. The collapse is going to be epic. Or we'll pull a Zimbabwe.

 

[jtmat]

I saw a article a day or two ago whose premise was that passive investing and market-funds like that are the principle driver of the out of control rise and (unhinged) valuation of the SP500 and other broad indexes. The collapse is going to be epic. Or we'll pull a Zimbabwe.

You should probably read better publications.

I purchased and sold stock for years in the 90s and early 2000s. No time for it when my business took off so I went into ETFs and MFs and never looked back.

I get it, I'm sure there are people who can look at the stocks and pick winners over and over without research or monitoring. I'm only good if I perform tons of research and monitor my portfolio.

ETFs and MFs, I drop money in and walk away. Don't sell... only buy.

 

[Shifting_Gears]

I saw the below posted in a S550 Classifieds FB group. Not sure if it was a troll post or not, but if not, I guess this guy is really optimistic on the value of used Mustang GTs going up.

WTF

The fact that’s his payoff makes me scared to know what he financed for the car. It’s a freaking PP1 for Pete’s sake. Someone could go to a dealer and literally pay $20k less.

 

[GreenS550]

Here is more information:

- since $ are used as a conduit to exchange goods and services for goods and services, when the government prints $ either electronically as in the forgiveness of loans, etc or in paper, this dilutes the value. Is this the definition of inflation? technically NO, but in reality what will eventually happen, and is already going on, prices will rise. At least for a while. Money has saturated the treasury, stocks and real estate. There isn't really anywhere for it to go.

- I have a pretty decent portfolio of individual stocks which I prefer over indexes. Indexes are great for starting out or just not having to really put a lot of thought in to the investment, but many, like the S&P 500 and NASDAQ are capitalized weighted unlike the DOW 30 which are price weighted. Capitalized means you add all outstanding shares together and multiply by the share price to determine market value. The 501st stock in total value is out of the S&P and a stock that is rising is pushed in. It is always a growth type of index as is the NASDAQ. Whereas the DOW 30 are 30 companies the Dow committee agrees upon to place in the "Dow". Theoretically a broad view of the U.S. market. The prices are added together and divided by a divisor which is around .14 if I remember correctly.

- Mutual funds and etfs, etc, are useful especially for higher risk areas of the market such as very aggressive or international stocks, junk bonds (BB or lower), etc. Very difficult to know which will be the winners.

- Dividends which are cash paid from earnings are paid to the shareholder after the board meets quarterly. Every dividend paid is after the board meets to agree to pay the dividend. Dividends, long term have typically been a larger percentage of total return than share price.

Stocks to buy: It was always my recommendation to clients to buy mid to large sized companies that paid what we believed were sustainable dividends that had growth. Avoiding companies that had very little growth potential. Always looking for rising earnings. As rising earnings produce rising dividends they usually produce rising share prices as well.

- Lower debt to equity.
- Lower dividend payout ratio ( dividend / earnings)
- Better pricing vs peers (say Coke to Pepsi as a very simple example)
- Unique product or service which is not easily replicated. Such as Microsoft, Coke, Intel, Valero, etc.
- Must have a history of decent management, cash flow, rising earnings, dividends.
- Highly rated debt. BBB or better.
- A quick formula for comparing pricing is the PEGY. P= stock price, E=earnings/share, G=Estimated 5 year annual growth(ah estimate!! who knows for sure) rate, Y=Dividend yield in %. There are PEGYS for different market sectors. Pick the one that seems the cheapest. Look for stocks with lower dividend payout ratios. It helps when companies have a rainy day.

Finally, no one can time the market perfectly. Yes, those of us with cash bought stock 9 months ago. It wasn't rocket science and we made a lot of money. Those times are rare and emotion is usually your enemy. Avoid the hoards and lemmings. If you have dividend payers, and you don't have additional bucks to invest, the dividends will do it for you.

Good luck and make sure you save a portion of every dollar you make. Those GT500s are expensive!

 

[Bull Run]

WTF

The fact that’s his payoff makes me scared to know what he financed for the car. It’s a freaking PP1 for Pete’s sake. Someone could go to a dealer and literally pay $20k less.

An extra $10K, will get you an extra "T".

2016 Mustang GTT

 

[Shifting_Gears]

An extra $10K, will get you an extra "T".

2016 Mustang GTT

Strangely, I like it.

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