[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance


View post   

File: 13 KB, 250x250, warren-buffett.jpg [View same] [iqdb] [saucenao] [google]
12778006 No.12778006 [Reply] [Original]

Whats your investing style? Half of my portfolio is based on dividend investing while the other half is value investing. I'm curious what the rest of biz is doing aside from shitcoins

inb4 boomer stocks

>> No.12778009

>>12778006
It's really pretty easy, all in on link.

>> No.12778019

>>12778006
index funds

>> No.12778114

>>12778006
I like value investing but even though I am excited about it, the more I read, the more I understand this is an insanely difficult thing to be successful at.
Imagine competing with wall street sharks who have been doing this their whole lives. Throw in insanely knowledgeable autists from out of this world, HFTs and insiders - guess who's money is targeted in this fuckfest.
First you need to go through and accounting and finance course, then spend a few years in a particular field just to get to know the business you want to invest in.
Then you can spend at least 100 hours studying the business (cash flow statements, balance sheets, management, performance, etc.) and guess what - 90% of the times the stock will be fairly valued.
So you would spend 1000 hours of proffessional work just to bet on a stock which *should* go up at some point in the future.

TLDR: look into private equity opportunities.

>> No.12778428
File: 26 KB, 729x434, 1532288375047.png [View same] [iqdb] [saucenao] [google]
12778428

Ever since last year's Trump tax cuts, dividend stocks (and particularly REITs) have been tax inefficient compared to stocks that do buy-backs.

The advantage of REITs is that they don't have to pay corporate income tax on their profits, because the shareholders pay income tax on the dividends, and the government doesn't want to double-tax the corporate profits.
Before the tax cuts, this meant that REITs avoided paying ~30% corporate income tax on their profits, and the shareholders would pay ~25% income taxes on the profits distributed as dividends, meaning that the REIT tax structure would save ~5% of the profits from being taxed away.
But now that the corporate income tax is ~18%, REITs are hugely tax inefficient and wind up costing you an additional ~7% of company profit compared to if the company wasn't a REIT.

Moving past REITs to discuss normal dividend stocks, which pay the ~18% corporate income tax on profits before deciding whether to distribute what's left as dividends or stock buybacks.
They're still tax inefficient, because dividends are taxed as income (~25%), whereas stock buy-backs are taxed as capital gains (15~20%).

So basically the only argument left for buying dividend stocks instead of stocks that do share buybacks is the belief that dividend-paying stocks will behave differently in a way that creates more long-term value for shareholders.
This may or may not actually be true.

At any rate, if you are going to buy dividend stocks, be sure to only do so in retirement accounts (401k, Roth 401k, IRA, Roth IRA) because then you don't have to pay income tax on the dividends.
Putting a lot of dividend stocks in your taxable account is probably not worth it in the long run unless congress changes the tax laws to treat dividends and stock buybacks more equally.
There's actually a buyback tax proposal floating around Congress that Marco Rubio introduced which may do exactly that; stay tuned.

>> No.12778456

>>12778006
buy and hodl. will sell when i see a 3 inch candle on the screen. ez

>> No.12778727

right now I'm invested in short selling the markets.

>> No.12778763
File: 1.46 MB, 320x240, 1548607781620.gif [View same] [iqdb] [saucenao] [google]
12778763

>>12778727
I hope you did so using puts and not an actual short position.

If inflation picks up, that's going to increase the dollar value of stocks (company value stays the same, dollar is less valuable, so dollar value of company goes up), and your short position will get fucked.

At least with puts you can control upfront how much money you're willing to lose. Whereas shorts have the potential to lose money infinitely, *and* you pay interest as long as the position is open.

>> No.12778893

>>12778763
no chance I'm using puts. and your analysis is dogshit.

>> No.12779307

Rating3 sir

>> No.12779344

>>12778006
second for indexing.
unless you have delusions of gaming the market then it's not hard to figure out that anything else is throwing money away.

>> No.12779427
File: 83 KB, 788x685, 1529821599018.jpg [View same] [iqdb] [saucenao] [google]
12779427

>>12778893

I have a friend who has been calling the top and shorting the market since 2016.

He has been getting absolutely rekd over these last three years. The guy earns low six figures and has almost no savings left to show for it.

Meanwhile I'm about 25% of the way to my retirement savings goal.

While you're paying interest on your open short position, and also losing money to price inflation, I'll be over here collecting dividends on my long positions and keeping up with price inflation.

See you at Millionaire Acres, friend!

>> No.12779473

~$2.000 in blog ads per month.
~$4.70 in /weg/ games

>> No.12779540

>>12779427
good luck with those longs. I'm sure you 'bought the dip' too. your friend is an idiot btw.

>> No.12780051

>>12778006
Good job OP anon, you should stick to your guns and stay away from crypto, let the children play "the greater fool" till the game stops

>> No.12780082

>>12779540
I bought the dip, I'm about 2 years into a 30 year investing lifetime. People who sell on a dip are fools. Aka crypto people who sold at 19k.

Stocks are not in a bubble if you stay away from idiotic investments like TSLA that can't turn a profit

>> No.12780151

>>12780082
you will sell lower.