EWJWNNMSG

EWJWNNMSG t1_j6pc769 wrote

Or you keep the bond part of your portfolio in something like 25% long bonds and lock the 3.5% in the 10 right now and 75% t-bill and then as the fed keeps getting to 5% you continue aggressively transitioning from the short end to the long end, I would already go beyond 50% of the portfolio if you actually get 4%. You know, as the pros are doing. I'm not of course but that's only because I don't like money

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EWJWNNMSG t1_j2092bs wrote

It's the classic question: Do you want to make money through the company, then dividends are unavoidable. Or do you want to make money through the other market participants - then buybacks can increase the amount that other people have to pay for your share. Let's say the company buys back 10% of the shares that are out there then I am willing to say that they contribute about 10% of the value that another person has to pay you for it.

In the name of tax avoidance we have now created a range of companies that do not pay dividends, which has always been the way. But what is a alphabet share? What does it do? What is its relation to the company? What is the value of it if not the sum of future dividends, their growth in relation to inflation and discounted the further away they are in time?

For me a share is a machine that I have to pay for that then pays me money every year. I pay €10, and then get 1 + 1.1 + 1.2 + 1.3 etc. From this value I create a value I am willing to pay for this share.

What are you willing to pay for a Amazon share if not that? What is the value of it? What do you get from Amazon that makes you want to buy this share?

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EWJWNNMSG t1_j200lup wrote

Tesla at the height of february 2020 before the first corona dip, split adjusted: Between 40 to 60€. Tesla at its height 2021: €350. That's almost 600% (well an increase of 500% of course) if you take the absolut height from 60 to 350.

It's almost comical.

But you are correct, that's only Tesla. Companies like Apple or Amazon only doubled during the same time period.

Doubled.

Carvana went from 87 pre pandemic to 315 at its hight in 2021, almost 400% lol.

Apple is now so oversold it has a comical dividend yield of about 0.7%, Microsoft is at like 1%. That is comically low. How much do you all expect this company to grow? How many dividends do they have to pay out to justify this price? It's laughable.

Edit: Most likely most of you don't even want dividends. That makes me laugh even harder then what the fuck are you paying for if not for the company to transfer its earnings to you

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EWJWNNMSG t1_j1z4vsd wrote

With your logic any value of any stock is a fair price, investments always go up. There are bad investments, there are overevaluations, there are bad businesses. Blindly investing because stocks only go up is the most regarded strategy out there most people have no idea what the fundamentals of a company are or what a fair price for a stock is. What's criminal is people always hyping the most unbalanced businessmodels out there because the stock grows faster than those with real business models. Every few decades people need to learn this lessons because for some reason people never learn it. So be it. This is not a crisis of the fed or of government, this is a crisis of bad investments in shady business and overvaluation

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EWJWNNMSG t1_j1ytid4 wrote

People when stocks go up 700% during the greatest pandemic in hundreds of years: Yeah this is normal I'm a genius I deserve these gains

People when stocks go down -30% because we have to return to some level of normalcy: Wow this is bullshit I do not deserve this why are these regards destroying the economy.

Here is a video for all of you [1] I suggest you watch it

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