i am very intertwined with this area of the industry, i wouldn't touch a big supplier like that. all the push is to local regional mines, they pop up everywhere, are cheaper, and everyone is using them.
What is everyone’s thoughts on OXY? Near 15 year low but has Buffett as an investor. Beaten down due to the anadarko deal but seems like it’s cheap.
Not a home run but if you guys want a solid double digit IRR that should be relatively uncorrelated with the market, take a look at BCRH. It’s a wind down of an insurance company that will pay the bulk in 2020 and everything by 2021. Low volume so you want to use limit trades rather than market but unless there’s a massive (historic level) natural disaster you should yield 11-12% IRR from now until the wind down and delisting. Also can’t stress enough that this would be a good play for people who want something uncorrelated with the broader stock market.
Buffett is an investor in the sense that he has a tremendously advantageous position of preferred stock. Oxy is poorly run and doesn't have the cash flow to drill out their acreage to become cash flow positive. Meanwhile they're paying Buffett an 8% dividend on his 100,000 shares of preferred stock.
Great points. So many people don't realize that the sweet, grandfatherly, under-taxed Warren Buffet gets sweetheart deals on publicly traded companies that the general public would never sniff.
I did read the preferred stock piece. He got a similarly sweet deal with bac several years ago. Thought I saw he also had a large holding of common stock as well. Not sure on that part though. But it sure does make it easy to make money with some of the deals he gets.
I believe he has an option to buy common stock at $60/share which he obviously won't be doing right now
Anyone have a good podcast they’d recommend? Not looking for something technical, just general investing and/or current events in business.
Something about investing in a company that issued $40B of debt to complete its acquisition, along with being very natural gas heavy in a lousy market and big in deepwater production just doesn't sit well with me in this current energy environment. But I bid you good fortune
The SECURE Act was passed today. The main items: - Raised the RMD age from 70.5 to 72 - Allow small businesses to band together for 401k plans and allows long-term part-time employees to get retirement benefits. - Allow 529 money to go to student loans (up to $10,000) - Allow $5,000 to be withdrawn from 401ks for birth or adoption - More allowances for annuities in 401ks - Changed the way money must be removed from inherited IRAs. Changed from taking required withdrawals over the lifetime of the inheritor to the withdrawals have to be done in 10 years. This will really impact those that inherit money by possibly jumping them up in tax brackets.
529s towards student loans sounds like a big plus. Glad those accounts have gotten more flexibility over the last few years ...
If you have money in a 529 plan in the first place why are you not tapping into those funds before you take out loans?
Yeah I was trying to think that one through. Maybe it could come in during a beneficiary change to a familial member you didnt anticipate needing/wanting to help through college?
I don't have a problem with it. I actually think it is a very good idea that follows the intent the plan was originally designed for. It will just have limited applications.
Wanted to come back to this. Was talking with some friends in the RR biz. Their car volume moving sand is 1/40 of what it was at peak due to this move to local regional mines.
Thinking more about this, maybe there's a world one day where 4 year college tuition is viewed the same as other significant life purchases such as houses or cars, IE, is it better to finance or pay up front? I guess if you got a good enough rate on the loan you could try to keep your money in the 529/market for longer?
At the end of the day it gives families more flexibility, which is a great thing as it is hard to predict actual incurred costs vs scholarships and grants for multiple children.
Hey all. This isn't so much a stock question but a house investment. Bought my first house in August on a 5/1 arm 30year. In looking at my payments I'm noticing that most of it is going to interest and not principal. Is this something I should look into changing? I'm expecting to sell this place in two years. Will the interest I'm paying in advance convert to principal? At this point, iv made 5 1200$ payments but only lowered my balance $1100. Is this standard? Is there anything I can do smarter?
Yes the bank is going to get it’s money back first should be able to make additional payments each month that go directly toward the principal
You should get a copy of your amortization schedule to see your principal/interest split on all your future payments. If you’ve got extra cash, any additional payment on top of the regular monthly payment will go directly to the principal.
With the market popping, Spoiler and my tesla stock more than doubling Spoiler Sorry couldn't resist. Truly thanks for the advice i would assume that paying down principal on a 2.85 loan wouldn't be the move right now? Also, am I paying on the full anticipated interest over the 30 years? Or just paying the interest accrued each month. Appreciate all advice. If yall ever need any science related advice Im your dude but alot of this is uncharted territory for me.
It depends on how comfortable you are with debt I personally would take as much money as a someone wanted to give me at 2.85% some people pay down their principal-a common strategy is to basically make 13 payments a year (one extra) over the course of a year on a 30 year mortgage my dad refinances constantly because he figures he can make more money in the market than the interest he pays on his house note one thing for you to consider is that if you’re planning on moving in 18 months or whatever and the value of your house stays flat you will probably come out underwater if you just pay the note every month because paying realtor + closing costs etc Others probably have better insight on this than I do
Doesn't he have a deal for an 8% dividend for his occidental shares? Something to think about as well. I bought a good bit of BABA at the end of last year when it was trading at <140, finally seeing some rewards. Cleared a lot of traffic to get above 195 then so on. Cost Basis currently of $154/share. The amount in this play in proportion to overall portfolio would freak most out (26% of portfolio). My brain is telling me I should probably take some profits, maybe 400 or so shares to diversifty post 1 yr hold for cap gains, but my gut is telling me to stay long. The magnitude of their addressable market as well as their involvement in almost all chines transactions with AliPay, Ant Financial, Cloud, marketplace, shipping maganate. If measured against Amazon's metrics, Baba should be priced at $370. There's also fear in my mind of having to restate past earnings due to not having proper controls in place. But I'm hoping Ma got that figured out before leaving.
So you have an ARM and are planning on selling in a few years. That's good news as long as you sell before the ARM converts to a 30 yr mortgage. As others have loans are structured with that payments in start with paying off your interest, not the principal. Main advice is to understand the loan before you do anything. Don't get hit with penalties. You need to do this and ask questions to professionals who know. As long as there are no penalties make sure you refi or sell before the 5 years are up. Assuming that's your plan.
I bought NVDA for ~$25 a share in 2008 I only bought 20 shares Was on my Scottrade account when I used my college graduation money
Amortization isn't magic. It's just the smoothing of payments over intervals so that you pay the same amount over a set period of time. The initial payments will always be higher in interest because you are carrying a higher balance.
I understand that aspect, My justification is that 96% of their revenues are non-US. It's not like a node on a US company's supply chain. I appreciate your answer, but would like a bit more dialogue. I've spoken with probably 7-8 informed people and all had varying opinions.
No one on this site is going to do your due diligence on a suspect Chinese company. All Ty Webb is saying is that this should be your funny money, let's give it a shot investment; not your entire portfolio.
I’m on BABA as well. I don’t think it’s a fraud by any means. They’ve got a huge client/user base obviously and lots of room to grow with cloud computing. Little more risk involved than other companies but I still like the stock.
I bought a house that has since become a rental property. Have to find tenants for the first time now. Does TMB have a thread dedicated to house hacking, flipping, etc.? Would that be of interest to any of you?
I don't remember if we discussed this one or not, but I got in on VTR last week at $55.89 a share, I'll be picking up more tomorrow where it sits at $57.48. I'm sure you guys are going to tell me I'm wrong, but odds are I'll crush this one out of the park too. It's probably best you guys hand over your passwords and I'll run your portfolios going forward.
It split a bunch so those 20 shares should be more like 240 (I don't remember when the splits occured). But that'd put you over 50k if that's true. Not a bad $500 investment.
Definitely would be interested in something like this. I just bought my first house with the ultimate goal of turning it into a rental in 4-5 years. I noticed an insane number of flips as I was looking for my house and it kind of has me intrigued as well.
Anyone have any investing thoughts for a president Warren or Sanders? Just pull out of the market until it stabilises or are there some good stocks or funds to transition too? Or am I just wrong on how the market would respond to that outcome?
I believe the stat is the last 38 out of 40 presidencies the incumbent has won elections when the stock market has seen gains.
Assuming that that is unlikely was just hoping to avoid the drop and maybe even be a bit ahead of the game.