***Official*** 2018 Stock Market Thread

[DietDrThunder]

I wish I had bought in to NVDA when it dropped below 140 last year. My biggest regret for the past few years.

Don't feel bad. According to my calculations, I bought my initial position in NVDA 12.83 years ago. Total % gain of 2,615.57%, or annualized % gain of 203.91%. I just wish I had bought more back then.

The stock I really got lucky with was NFLX. I have 700 shares 11 years ago with a cost basis of $3.26.

 

[Ns1]

Holy shit Cepak. $3.26!

 

[dasherHampton]

My brother in law made a fortune on Netflix.

That piece of crap CHK is up 18%. What the hell.

 

[DietDrThunder]

Holy shit Cepak. $3.26!

I originally bought 100 shares of NFLX on 2/28/2007 at a cost basis of $22.84, but they had a stock split in 2015 which turned my 100 shares into 700, and reduced my cost basis to $3.26.

 

[dasherHampton]

That's sweet.

I've tracked GE long enough to take a mini plunge. In at 14.88, will sell if it drops below 14.70.

 

[AznAnarchy99]

Stock newbie here.

Is it a bad move to buy a single share of Amazon around the $1400s right now?

 

[FIVR]

Stock newbie here.

Is it a bad move to buy a single share of Amazon around the $1400s right now?

It's not a bad investment but if you only have $1400 to spend you will get more (100x more) for your money if you wait for an opportune time to buy a single LEAP call. Now would not be a great time to buy calls though IMO. All time highs are not good entry points for calls. Amazon tends to miss earnings occasionally so maybe wait for a dip and buy a call.

If you can't trade options then go ahead and buy the share. It's a good investment.

 

[dasherHampton]

What are you trying to get out of your $1400?

I should specify: what are your expectations for returns? What percentage of your net worth is it? Are you just looking for a safe place to stash it?

 

[s0me0nesmind1]

Amazon is a lot like Tesla... it's already priced for what people expect it to do in that both are vastly over-valued. IMO.

People's expectations and reality can often differ.

 

[DietDrThunder]

What are you trying to get out of your $1400?

I should specify: what are your expectations for returns? What percentage of your net worth is it? Are you just looking for a safe place to stash it?

Yeah, I was wondering the same thing. To make it worth the commissions (although now they are like $4.95 a trade) I usually don't buy lots less than 100 shares. Look at stocks like ARCO which have great annual returns, and right now the share price is hovering around $9.80 a share.

 

[FIVR]

Yeah, I was wondering the same thing. To make it worth the commissions (although now they are like $4.95 a trade) I usually don't buy lots less than 100 shares. Look at stocks like ARCO which have great annual returns, and right now the share price is hovering around $9.80 a share.

The number of shares he buys (or anyone buys) is meaningless. You do not pay commissions based on # of shares. If he bought 100 shares of stock X @ 14$ a share he would pay the same commissions as he would buying 1 share of AMZN at 1400.


$1400 is a big enough purchase that commissions will be less than .5% anyway so I don't see what the problem is.

 

[FIVR]

Amazon is a lot like Tesla... it's already priced for what people expect it to do in that both are vastly over-valued. IMO.

People's expectations and reality can often differ.

AMZN and TSLA are growth stocks and neither is overpriced. If anything TSLA is a bargain at current prices. Will probably be $1500 a share by 2020

 

[AznAnarchy99]

What are you trying to get out of your $1400?

I should specify: what are your expectations for returns? What percentage of your net worth is it? Are you just looking for a safe place to stash it?

I don't have any real expectations at this point. I'm 26 and I'm just putting spare money into the market for the hell of it and I'm not planning to sell and cash out anytime in the near future unless it's for an emergency cash need.

 

[Ns1]

robinhood = no commissions

I can buy 1 stock of SHLD right now for $2.xx

 

[dasherHampton]

I've never owned Amazon but I can't see any glaring issues with buying a share if that's what you really want to do with your spare money. There are certainly a lot worse things a person could do with $1400.

 

[DietDrThunder]

I've never owned Amazon but I can't see any glaring issues with buying a share if that's what you really want to do with your spare money. There are certainly a lot worse things a person could do with $1400.

I wasn't dissing AMZN as I bought 100 shares back in 2008 at $47.07 a share. I just don't know if I personally want to buy more at $1,484 a share.

 

[Ns1]

I guess we found the stock market baller here.

O_O

 

[DietDrThunder]

The number of shares he buys (or anyone buys) is meaningless. You do not pay commissions based on # of shares. If he bought 100 shares of stock X @ 14$ a share he would pay the same commissions as he would buying 1 share of AMZN at 1400.


$1400 is a big enough purchase that commissions will be less than .5% anyway so I don't see what the problem is.

I did state "although now they are like $4.95 a trade", so it doesn't really matter.

 

[DietDrThunder]

I guess we found the stock market baller here.

O_O

What does that mean?

 

[Ns1]

What does that mean?

I am interested in subscribing to your newsletter.

 

[DietDrThunder]

I am interested in subscribing to your newsletter.

There is nothing special that I do compared to anyone else. Any knowledge I've gained I learned the hard way. I goofed off in high school and never brought home any books to read or homework, but I still managed to make A's and B's. Went to college and flunked out my Freshman year. I got my Class A commercial license and drove a rig for 5 years. I was having back problems at 22 and decided I'd better get serious and go back to school. I worked full time while getting my a BS in Computer Science (debt free), 13 years after graduating from high school. Found a good job, then kept jumping companies every couple of years until I bumped my salary high enough. All the while living way below my means and socking away and investing as much as I could. I'm now with my current company for 29 years. 22 more months until the company stops contributing to my pension, then I'll switch companies again. I always max the percentage of my salary for the company's matching of the 401k. I can self manage 75% of it, so I do. Always rolled the 401k's from the other companies I worked for into a 401k that I control. Did a lot of reading of the Wall Street Journal and other financial magazines. Any time there is a major dip, I buy more stock. I don't typically day trade unless I see a stock like NVDA that fluctuates from week to week. I invest for the long term and the average age of my investments is around 11 years (the last major dip was 2008, so this explains why I've held these for so long).

In summary, find a career that you can make a decent living at, even if it means going back to school. Jump jobs every couple of years to get your salary increases. Companies aren't loyal, so you shouldn't be either. Live way below your means and save and invest. Also, invest in things that you are familiar with. If you see you and others using a product/service/retailer/etc., research the company, and if you feel comfortable about it, buy their stock. There is nothing wrong with them, but I typically don't buy mutual funds. I just don't see paying someone for managing a fund that for the most part, doesn't do better than an S&P 500 Index ETF.

That's my two cents.

 

[Ns1]

In summary, find a career that you can make a decent living at, even if it means going back to school. Jump jobs every couple of years to get your salary increases. Companies aren't loyal, so you shouldn't be either. Live way below your means and save and invest.

you had me until the last line. haha

 

[s0me0nesmind1]

I always max the percentage of my salary for the company's matching of the 401k. I can self manage 75% of it, so I do. Always rolled the 401k's from the other companies I worked for into a 401k that I control.
That's my two cents.

As someone that works in tax, you shouldn't be contributing to your 401k based on what your company matches - you should be maxing it out every single year. You also shouldn't necessarily be rolling it over - your previous employer could have way better fees than your current.

You should also max out a ROTH IRA before puttign money in taxable stocks.

 

[ImpulsE69]

I bought AMZN at $1050 and thought I was crazy then....I dumped it at $1400. It may go up, but I think it will go down first. If it doesn't..oh well. Too rich for me.

 

[DietDrThunder]

As someone that works in tax, you shouldn't be contributing to your 401k based on what your company matches - you should be maxing it out every single year. You also shouldn't necessarily be rolling it over - your previous employer could have way better fees than your current.

You should also max out a ROTH IRA before puttign money in taxable stocks.

I should have stated it differently. I was using 401K as a generic name and I shouldn't have, and I am sorry. I should probably go modify my original post to reflect what I should have said. I contribute to my employer's Savings Incentive Match Plan as a Roth at the maximum matching rate, which is 6%, which almost hits the standard limit. I make additional catch up contributions since I'm over 50 to the maximum legal limit to my Roth IRA at a brokerage account. I do this so I can have 100% control of my investments, and not the 70% that my company allows.

Also, the rollovers from other companies went into the same self managed IRA at the brokerage company. The former companies that I worked for had brokerage fees that were too high, and the choices for investments were very limited, so this is the reason I rolled them into the brokerage account.

I also have a separate standard brokerage account where excess savings goes and do investing from there as well.