>I have time on my side so I want to be aggressive and one fund my account offers is FGKFX which Im currently mostly invested in. Long term tends to favor value, not growth, designated. >Im thinking about a few funds like XLK and SMH ETFs where one its more heavily investing in Apple and MSFT and the other is investing more in Semiconductors (specific focus). Why take such a sector bet? Especially such a narrow sector? Why do you think the broader market hasn't priced semiconductors correctly? >I know past performance does not guarantee future performance but both of those funds have performed very nicely! Then you clearly don't understand it. Winners don't stay winners forever, favor rotates. Performance chasing is often a better way to end up behind, not ahead: you're buying after something has already been bid up. >Does it make sense to make a switch? I don't think I'd use a single one of these funds.
Hi All, I just found out about Brokerage link and Im thinking about investing in some ETFs rather than the options that are available in my account. I have time on my side so I want to be aggressive and one fund my account offers is FGKFX which Im currently mostly invested in. I can get \~50 shares or so per paycheck because its NAV right now is \~21.36 Im thinking about a few funds like XLK and SMH ETFs where one its more heavily investing in Apple and MSFT and the other is investing more in Semiconductors (specific focus). Both those ETFs offer a lower expense ratio than FGKFX, but the thing im thinking about is their price, right now they both trade in the $160+ range so that means Id be getting maybe a few shares every few weeks. I know past performance does not guarantee future performance but both of those funds have performed very nicely! Does it make sense to make a switch?
Everyone says "invest in founder companies." The truth is Filo and Yang completely fucked up this company. All the mistakes listed are a direct result of their decisions. Fucking Yang went into the desert to ponder the MSFT offer. LMFAO....came out and decided an independent YHOO would be more valuable.
My wife’s friend joined us on vaca with her husband. I was spacing out when I heard him mention “consolidating to go lower.” He then told me he shorted MSFT at the bottom and has been bagholding natural gas commodities. Next move is to go all in on gold. The loss porn is sweeter IRL.
good question...when I was looking at the the BIG SEVEN (Msoft, Tsla, META< Google, etc) this week, I started thinking how NONE of them include a carrier--- ​ The stock market's "Magnificent Seven" consists of Apple, Microsoft (NASDAQ: MSFT), Alphabet, Amazon, Nvidia, Meta Platforms (NASDAQ: META), and Tesla.
And by essentially locking up 95%+ of shares it also shows that they’re EXTREMELY optimistic and believe their customers so severely undervalued they’re pretty much willing to go all in on it, planning to one day sell these shares back to the public at a premium. Ballsy move, reminds me of META, MSFT, APPL, TSLA but this is on another level. If you bought leap calls AND puts i’d say you’re just about guaranteed to make money because the way they have their shares structured its either gonna go to the moon if they do well, or its gonna have 5 Reverse splits and they’re gonna sell back those $10M worth of shares for a fraction of what they paid. If i had to guess, id say from their confidence, its probably gonna moon…
I keep my APPL and MSFT each to about ~5% of my portfolio and I used to do the same for FB and AMZN but then the bottom fell out on those and only FB has recently surged back. Diversify or die on the hill; it's all a big silly popularity contest.
It may not be restrictive for Apple, but if you look at companies in the Russell 2K or Russell 1K outside of the S&P 500, or even just the S&P 600, their interest expenses are shooting up to high proportions of their EBITDA. And that's just publicly traded companies. I saw your comment about this maturity wall that keeps getting talked about, but that never came to fruition or mattered because of indefinite refinancing. Now they're going to refinance at 6-8% unless Fed cuts soon. If you truly believe financial conditions aren't that restrictive, no worries about weak profitability companies, and we'll avoid a hard landing, then you should be even more bullish than me about small cap value, which is pricing in a hard landing and is ripe for massive outperformance if that doesn't pan out. It's sometimes odd to me how much of a quality bias you have, when given our relative bullishness about the macro, it is you who should prefer the relatively low quality junk! I should be the one pushing for MSFT/AMZN/META/etc. and you for AVUV.
Since this is your first time investing, I'd say go 50% VTI 50% SNSXX (or another treasury money market fund). If the market (VTI) crashes, sell your money market fund and buy more VTI. If the market keeps crashing, sell your VTI to buy some QQQ (or MSFT). Statistically it's better to lump sum 100% into stocks, but doing it this way avoids the worst case scenario of you getting scared and cashing out after a 20% drop and missing the recovery.
I’m in the same boat and heavily overweighted with AAPL and MSFT. I believe it’s ok to hold as long as you keep up with quarterly earnings and forecasts. If you don’t want to do homework then I agree you’re better off with VOO etc…
Apologies, I think when I looked at this a couple of months ago microsoft was a lot lower market cap. But even then you're still right. I was trying to recall a lot of that from memory. And the ttm of profit for MSFT is 151 billion according to yahoo finance. Anyways, better comparison: amazon which is currently the next highest company in market cap after NVDA. Amazon has 85 billion in profit. Almost 3 times the profit of NVDA but similar market caps. Or META which is a spot behind nvda in market cap. 100 billion in profit. Over 3x that of nvda and nvda is valued more than meta. You're getting caught in the details and missing my big point. Nvda is currently valued at the same value as companys that are producing multiples of profits of nvda. My opinions are pretty accurate when it comes to that statement. I personally like to invest in value. Not speculative growth. Nvda is not a value stock. If you invest on speculation, go for it. But from a value standpoint, nvda is overvalued.
Yup. I have about the same MSFT and AAPL in my portfolio and they’ve been great, but I’m totally willing to sell them at the first sign of trouble. Look back 10, 20, 30 or more years and see who the biggest companies on earth are and you’ll understand how cyclical and ever changing these things can be.
MSFT IPOed on March 13, 1986. That is almost 40 years ago. If it performs decently for another 20 years, that's 60. I don't know about forever, but certainly in a person's lifetime, it's a "forever" stock. Berkshire Hathaway IPO in 1980. This is probably the closest you can get to a forever stock, since I can't see a future where insurance would not exist...
NVDA's forward PE is ~24 which is substantially lower than MSFT or AAPL The only question around NVDA is what the market for their chips looks like it the out years, 2025 and beyond. As others have pointed out, NVDA doesn't just have the market cornered in terms of hardware, many developers are used to CUDA so switching to AMD's or some other hardware in the future isn't easy.
I'm picking the direction when I open the position. I actually feel like I need to do better in hedging my bets and I don't use enough multi-trade strategies. I will pick the entry point based on RSI & MACD, use volume to confirm momentum, and check up to 1y charts for any patterns that might be forming. If the trade is based on a news event I won't care about the charts and buy short duration as soon as I'm confident on the direction (e.g. MSFT). I will wait for my setup the day before and buy a 1 day if I can or a 1 week if I have to. I try to save the 0DTEs for strong momentum days (like whenever JPOW speaks), in case my setup fails hard and I get stopped out before end of day, or for the good old revenge trade.
Market cap relates to share price in as much as it reflects the number of shares and the share price. It say nothing intrinsic value of the business. I’ve held MSFT since the 90s, AAPL since 2001, NVDA for over 15 years…among others. I clearly know the difference between market cap and value. Value is determined by fundamentals. Enough with the blatant idiocy. Good luck to you.
>And where do you get that information? This is a tautological argument, I didn't think it needed to be explained. As a stock trader... I've done okay. Starting from an initial 30k investment in 2008 (which I took out after I made my first doubling that year) I've earned close to 7 figures. I've made mistakes (lost ~200k in 2022 when the war tanked the S&P while I was parked there) but overall I've done fine just moving where the market is going. Way back in 2008 I thought I knew things that other people didn't know and I bought stocks based on that. You know what? I was right! And people never really figured it out and those companies are only worth about 2x what they were back in 2008 - while other terrible companies are worth well over their 2008 prices. I learned from that. The market will tell you were it is going and it isn't that hard to follow it. Just don't follow forever. MSFT has a big win in the AM? Great! Buy it, ride the wave, get out before it gets too inflated. You found out 2 hours later? Avoid it and look for something else. With Options you can easily mitigate your risk or increase your leverage for very little exposure. If someone wants to invest and forget - I am never going to correct them. It is a valid way to manage your money and risk profiles are different for everyone - but some of us like to manage our own money and aside from my issues in 2022 I've made over 40% returns most years. But I don't re-invest my money in the market - I take it out and use it on my life (doing crazy things like buying beach front property on an island, buying a small farm, etc).
CRM starts out around $220 then makes a $5 move up ahead of anticipated good earnings, fine. Then it moves up to $250 on decent earnings. Earnings were good but a $25 move? Surely that needs a cooldown, right? Then it closes north of $260? A $40+ move giving it a 98.85 p/e ratio? Are you fucking kidding me? I am not closing my short. I am doubling down. They talk about AI on every call. They have little to no AI engineers and no AI value being returned to current customers. This is absurd. Their earnings YOY are falling off like the 15 year old mature software company that they are, and you would think they are a real AI company like MSFT or NVDA. Whoever is pumping this should dump it soon.
I am an investor from Europe and own some stocks of tech companies like NVDA, MSFT, AAPL, AVGO, AMD. I am investing some amount of money each month. As I am from Europe and not able to buy American-issued ETFs it took me time to find Ireland-based ISHARES NASDAQ 100 which combines thing I own and even more. The question here is what to do with the stock I own right now. They have shown pretty good growth as I invested in them around a year ago, so now I have 2 options: Leave them as is in my portfolio and start buying ETF from the next month deposit Sell them and invest all money in ETF. My motivation to switch to ETF is because it is beginning to be hard to manage all of them and I am feeling not right when I have so much separate tech stocks in my portfolio as I am trying to make it diversified. Any advice is appreciated, thanks!
"But the values of the company at this point in time are the same" Where are you getting this wrong info from? Market Cap of MSFT is nearly triple NVDA ($2.7 trillion vs $1.1 Trillion). Also MSFT had profits of $77 billion in the last 12 Months, not $151 Billion.... hard to form an accurate opinion on valuations when your numbers are so incredibly off.
Yeah, I look at their profit too. They have similar profit margins. But you have to consider raw values too. Share prices reflect the raw value of a companies profits/earnings. Profit at MSFT is 151 billion. Profit at NVDA is 31 billion. But the values of the company at this point in time are the same? I'm not really an expert. There's probably better ways to look at it like you mentioned. But I keep things simple. I never fomo after a huge run up. I think it will continue to perform great. But I think people that expect it to 10x or even 2x again aren't really managing their expectations. There's a million dollar oppurtunity every day on the market. Not going to chase NVDA and just position myself in a place to take advantage of the next one.
Here are the top 10 companies with the highest amount of debt. We see them falling into distinct industry sectors, each using debt for sector-specific purposes: Telecommunications ($VZ, $T, $TMUS): Large debt is often used to fund network expansions and technology upgrades like 5G. Technology ($AMZN, $AAPL, $MSFT): Debt is typically used for diverse purposes like research and development, expanding digital infrastructure, and venturing into new market segments. Automotive ($F, $GM): Debt is used primarily for manufacturing advances, developing electric and autonomous vehicles, and coping with the cyclical nature of the auto industry. Media and Broadcasting ($CMCSA, $CHTR): Debt is used for content acquisition, infrastructure development for broadcasting, and competing in the rapidly evolving digital media landscape. Accumulating debt can increase a company's financial risk, especially if a company has variable-rate debt, as rising interest rates can significantly increase its debt cost. Key indicators like the debt-to-equity ratio and the company's ability to generate increasing revenue and cash flow are the key metrics to look at when determining if a company can manage its debt. This was covered in detail [here](https://www.carbonfinance.io/p/companies-with-most-debt).
MSFT and GOOGL make no sense. Bers have seen nothing yet, we weren’t pumping lately, the real pump past ATHs is just starting. That’s how markets work. You had two major stock market crashes in the last 3-4 years, more than ever before, Idk what you expect lmao.