I think my split is like 70/30 or 75/25 us stonks to intl stonks either way it isn’t 100/0 so it’s a leak
100% TSLA
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Is this what the tech bubble was like or is this even crazier cuz there’s a freaking pandemic?
Hard as it is to believe, I think the tech bubble was more unhinged. And in measurable ways like forward PE, etc.
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The market wrote off issues related to COVID in April. It’s likely trying to figure out what fucking companies are positioned and will capitalize on a lengthy/permanent increase of stay at home work and spending - and prolly discovered that the richest ones that move the market were already best suited for the job and made it even easier for them to generate more revenue than before covid.
I’m at 50/50 international / US. Thinking of going down to 30 / 70.
Pretty insignificant, don’t stress about it. Split the difference and go 60/40
I figure a) Vanguard knows more than me, and b) International is poised to outperform after such a long period of under performance.
Its been going great for a month or two until today.
Imagine being a number crunching math Phd mega-quant at Vanguard and watching TSLA return 661% this year. I know they’re trained well and know its just lol stonks but it has to be somewhat jarring.
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Lmao can’t make this shit up, AAPL now an EV company too
https://twitter.com/DeItaone/status/1341120139807387649
https://twitter.com/DeItaone/status/1341120194937294852
https://twitter.com/DeItaone/status/1341120225559924736
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Better than an electric pony company imo
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Interesting bet, which happens first, apple sells an electric car or Elon Musk goes to another planet. Include the moon as a planet for bet purposes.
Literally or figuratively?
Yeah, I posted a link upthread about this. I will be doing this in retirement, when I will have room in the 0% capital gains bracket.
I will also be doing the Roth IRA ladder – converting pre-tax retirement accounts to Roth up to the Obamacare subsidy cliff, while taking withdrawals from my > 5 year old Roth contributions. You can do the Roth conversion even you make too much to be eligible to contribute directly to a Roth, so it almost always makes sense to convert after-tax contributions from traditional IRA to Roth IRA in the year you make the contribution. The exception is if you also have pre-tax rollover IRAs in non-employer accounts, you have convert those to Roth in equal percentages as well.
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In these trying days, when we’re losing a 9/11 a day of people to covid, a driverless hearse is just the innovation we need right now.
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This guy’s Twitter is excellent
https://mobile.twitter.com/ParikPatelCFA/status/1339004404419207173
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Tech bubble was insane. I was working for a big audit/consulting company at the time and I vividly remember a bunch of us just-out-of-college idiots staring constantly at the Bloomberg machine as US Robotics was mooning each day, based on the idea that its 56k modem was going to change the world. (Pretty sure we were trading options on it back then. But rather than trading for free on RobinHood, we were paying TD Waterhouse like $20 a trade, plus huge bid-ask spreads.)
There were moronic companies all over the place that were so desperate for growth, they would literally just send you free stuff. I wish I could remember the name, but I remember one of them had some deal where you get $25 off your first order (no minimum dollar amount), plus free gifts upon your first order. It was wild.
The most famous mispricing was probably the 3Com/Palm situation, where 3Com had an ownership stake in Palm that was worth more than the entire value of 3Com. Famous enough to result in a journal article by Nobel Prize winner Richard Thaler: Can the Market Add and Subtract? Mispricing in Tech Stock Carve‐outs.
Another big thing was tracking stocks. These were situations where a company like Disney would say “We think the market isn’t appreciating the value of our internet sites. But we don’t want to spin those companies off into their own stock. Instead, we’re going to create this tracking stock vehicle called Go.com, where investors will have cash flow rights to those subsidiaries.” Just utter nonsense.
That being said, things do seem to be getting crazy at a much higher dollar level. I’m currently reading Billion Dollar Loser–the story of WeWork–and that book is making it abundantly clear that there is no obvious correlation between intelligence and having millions of dollars to invest.
Also fun to see that random people are bringing out the hits from the 80s and 90s, talking about how ACTUALLY, the accountants have no idea what they’re doing. The fact that R&D and Marketing expenditures are expensed is bad, and significantly understates profits.
https://mobile.twitter.com/tanayj/status/1341201190395113473
Baruch Lev is over here on the sidelines yelling about how he was arguing for recognizing human capital on the Balance Sheet in the 1970s. (This is a sick accounting reference that no one will appreciate.)
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To me it smells like a different version of mark to market accounting. Enron famously booked an enormous profit on their Blockbuster deal that was a huge loser, boosting immediate earnings and thus the stock price. The current insanity is one step further. Rather than high stock prices being justified by fraudulent (but audited) profits, the meme stocks are being bid up on entirely theoretical future profits.
It could take a week, or could take a decade, but I’m very very sure Tesla, Door Dash etc. are absolutely awful investments right now.
Dr. Parik Patel, BA, CFA, ACCA Esq.
Amazing