When you say the warrants were selling at $14, do you mean that they were available to anyone to buy at that price or that they were part of a larger transaction restricted to a certain group of people?
I mean, warrants are effectively call options (in the sense that I’d be indifferent between having a warrant and a call option at the same strike and the same maturity, assuming both could be sold or exercised at any time). So if there’s a $11.50 warrant and a $25 call on the same stock and they have the same trading restrictions and maturity date, the warrant should definitely be more expensive, and it makes total sense to sell the call and buy the warrant.**
**Total sense meaning that you’d need the appropriate brokerage clearance to sell options and you’d have to maintain a required equity cushion in that brokerage account in the same way that you do any time you write/sell an option.
Oh, hahaha yes if the warrants are redeemable by the company at their discretion than that obviously changes the risk/reward of holding them. (I don’t know any of the details of Rocket Lab’s situation)
You’re right that there’s nothing particularly obnoxious about that post in itself. I think I highlighted it because it touches on two issues that get under my skin. The first is how easy it is for fairly wealthy people to pay no federal estate tax (and also avoid a lot of income tax while they’re alive). This makes it crazy that the estate tax is somehow a “populist” issue.
The second is how common it is for well off people to get significant financial help from their parents. I don’t think it’s wrong to accept this type of help, but the problem is that most people are heavily biased to downplay the role of this help in their financial circumstances. I think in psychology it’s called the fundamental attribution error that we tend to take credit for good outcomes and blame bad outcomes (for ourselves) on external circumstances. But when it comes to others, we tend to blame them for everything, hence others should “pull themselves up by their bootstraps” even when we received significant help.
Maybe this is a better post to hate on: initially claiming to have a “lowly” 6-figure salary in the Midwest, and then admitting that his parents gave him half a million in real estate last year.
A friend of mine is posting bootstrap type posts a lot the last few years. He is currently jobless last I knew and living in a place his parents pay for with super expensive home and car audio systems they paid for while buying expensive wine on their dime also. No self reflection at all.
If you’re willing to risk the friendship, I recommend trying to stimulate that self reflection.
Sounds like he’d also be risking a hookup for some primo booze.
Yeah, that’s one we can all hate on together.
The calculation can be a little tricky. It’s the same as the one for excess IRA contributions: How to Calculate (and Fix) Excess IRA Contributions
I did the calculation, and had to send in a physical form, because Health Equity sucks balls. Still waiting for the check in the mail.
The other thing people dont realise is how much the.small and medium stuff adds up over time.
For example. I’ve paid for all of my holidays with family and home to visit family since I was 18. Along with a few trips where I’ve subsidized nephews, cousins etc.
In contrast. Many of my wealthier friends get a free ride for trips like this, one or two times per year
Add in a half dozen nice meals per year. Stuff around the house. Transport. Gifts. Borrowing cars. Holiday home instead of air bnb or hotels. Etc. And you are talking large numbers over a 20 year period. Exactly when rich kid mcbootstrap is saving his first deposit.
Expanding on this. Theres a real effect where you get pulled both up or down by your background.
The middle class person with a decent job who is the richest person in their friendship group or family will be a massive net spender. That same dude if he’s surrounded by richer people will be paid for more than he pays.
Not much to add other than these are really good posts. No one ever truly bootstraps. It wasn’t popular with conservatives, but Obama’s “you didn’t build that” was incredibly accurate. Shitty wealthy people love to tell the heroic story of how they built their fortune solely through their own hard work, but literally no one has ever become wealthy without being pulled up and/or stepping on several people on their way up.
Well a colleague of mine is retiring this week. He invested his entire signing bonus in Tesla at 30, and had bought a lot when it was smaller than that. So jealous
i like how he put “windfall” in quotes, as if being gifted real estate is any different than straight up cash.
I think windfall implies unexpected. In this case, it sounds like he probably knew it was coming, just not when the transfer would be made. In that case, windfall is not quite right and I can see why he went with “windfall”.
Here’s another one. I’m not going to quote the full history because the entry for the year after college is interesting enough.
Started my first job out of college in 1997. Started off with money leftover from college fund my grandparents funded. I went to a state college and graduated quickly. Full tuition scholarship for grad school. Currently ages 47/47. Spouse quit job last year and is now working part-time in a low-stress position. Numbers below do not account for home equity, which is about $700k, or college savings, which is $260k set aside in 529.
Year Net Worth % Change
1997 356,287.66
https://bogleheads.org/forum/viewtopic.php?p=6422400#p6422400
Started in '97 at a pretty darn expensive private school, which was around 20-25k iirc.
That seems extremely out of character for a doctor. He can’t have been working for more years than he went to college/med school/residency/fellowship, right? Does he have some big plans to channel all that achievement energy?
Did the same. Sounds about right.
I can’t read that thread without my lawnmower going into orbit and I’m a pretty seasoned hate-reader. God bless the relatively normal people in there who are grinding it out.