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Last weekend we conducted 4chan PMQ/Q&A #3, with 1400 people contributing 4500 posts over 22 hours. I managed to spend the better part of a day answering as many questions as possible—thread here.
Since loading large threads can be a bit of a pain on slower computers, you can also see my replies from the /q/ index (hover over the "Administrator Replies" quotelinks).

Thanks to everyone who asked questions and participated!

Signed up for Snapchat as "MOOTCHAT"—can't wait for the torrent of dick pix!


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Which stocks does /pol/ like for medium to long-term (5-10 years)?
>>
Facebook
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IBM, Google
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>>14506017
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>>14506045
>IBM
Why exactly? Some people say IBM isn't even relevant in 2013.
>>
Microsoft.
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>>14505949 (OP)
Canned food and firearms.
>>
>>14505949 (OP)
Teesla, they nearly doubled this past week after the announcement their model s got a 99/100 on consumer reports reviews. The highest rated car EVER.
>>
>>14506297
>Teesla
Lel.

Where do you see Tesla's stock in 10 years?
>>
>investing by yourself
Nope.
Put it into some managed funds. I can guarantee you that they know how to invest better than they do. Just let the fucking professionals do it.
>>
>>14506171
>still thinking IBM makes computers
IBM is all about business to business. They don't cater to plebs like you
>>
Cigarettes. Always cigarettes. Philip Morris International (PM)
>>
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>>14505949 (OP)
The market is broken.

Summer is coming.
Invest in delicious popsicles.
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ONVO, AMZN, GOOG, KNDI, BAC (I think it might hit 20 before summer's end), DIS, RGR, LNKD, TASR, BRK.B

>>14506297
They're going to suffer soon though. Currently in bubble stage. Correction imminent, just like SCTY did today.
>>
>>14505949 (OP)

i'm a nationalist socialist, i don't believe in jew ways of making money, i believe in hard work
>>
>implying a crash/violent revolution isn't coming.
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>>14506484
ROFL. Enjoy losing 40% of your money to commission fees and other fees, assuming your money doesn't go to $0 from someone who doesn't know what they're doing.
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>>14506534
What exactly do they do that makes them a long-term prospect?
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>>14506713
only in your dreams, boy.
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>>14506722
>Enjoy losing 40% of your money to commission fees
Sure, if you're investing like 500 dollars.
>assuming your money doesn't go to $0 from someone who doesn't know what they're doing.
You really think you're going to know more about this stuff than a professional who does it for a living?
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>>14506746

Provide Apple, Samsung, Google, etc with supplies, patents, etc
>>
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>>14506484

Not independently managing your own finances.

Really Nigger?
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>>14506746
To tell you the truth, I really don't know what exactly they do, other than manage and crunch data for other big companies. A lot of consulting for fortune 500 firms. Good enough for Buffett, he owns a huge stake.

I own 2 shares, because why the fuck not? Its a dow component, pays a dividend, and accounts for less than 1% of my portfolio
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>>14506484

fuck those jews. don't let them gamble your money on thier kike friends. grow some balls, do your own investing.
>>
>>14506722
>>14506484

>Work at money management fund
>entertaining myself by watching Game of Thrones on my computer
>get a phone call
>some new customer
>Fuck
>"Of course sir, give me a moment to set up your new account."
>Call Joe, my underling
>"Hey Joe. We got another sucker. Set hhim with a portfolio filled with shitty mutual funds and a few odd picks. Skim over the fees as much as you can."
>"Fuck no, I don't want to do that."
>"Rank motherfucker, rank. Besides, you can do it in 10 minutes if you bite the bullet and work through it."
>"Fine, fine."
>back to the customer
>"Alright sir, allow me to transfer you over to my colleague, Joseph. He'll help you get set up with a professionally managed portfolio. And thank you for choosing [company name]."
>redirect him
>done
>decide it's time for lunch

That's pretty much how it works.
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>>14506250
>>14506250

My nigga

3-6 months after "it happens" don't shoot on sight. Could be a friendly, trader, or ally.
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>>14506944
>money management fund
Don't you mean firm?
Also, where are you located?
Are you working for an independent company (Joe's Investment, etc.) or something like Edward Jones?
How many new clients does your company get a day?
I want to do what you do, only be honest and try to make money for people.
Or was your post a joke?
>>
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>>14506722
>>14506944

look, a couple of maroons who learned everything they know about investing from Boiler Room.

Vanguard targetted retirement funds are the best bang for your buck. 0.18% in management fees. they pretty much mimic the "your age in bonds, the rest in domestic and international stocks" theory and they do it for you. max out an IRA from 25 to 65 and you'll have a couple million to retire on.
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>>14506297
>after the announcement their model s got a 99/100

It was the earnings release that drove the stock, not some product review. If you can't read accounting statements you have no business owning individual stocks
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>>14507062
Probably a joke.
OP:

Nuance - their behind some aspects of siri.
LinkedIn - Profitable facebook
American tower - 4g stuff
Statoil/Marathon oil - basically anyone with a contract for dakota shale oil, google it
3D/Stratasys - 3d printing

And some 'safer' bets
Unilever - we always need shampoo etc
Glaxosmithkline- same as above, drugs
Monsanto - despite the lobbyists

That's all your getting for now.
>>
>>14507062
Half joke, half real. I work in policy and do my own trade, but a friend of mine does work at such a firm. That's an idea of it works, according to him. As he describes it:

>Poor people get absolutely nothing.
>Rich people who would have had large savings anyway get a nice tax cut that offers no meaningful incentive effect.
>Middle class, the quantity of subsidy received is linked to the marginal tax rate you pay (ie, inverse to need)
>Small minority of middle-class people manage to file the paperwork to save an adequate amount and then select a prudent low-fee, broadly diversified fund as their savings vehicle.
>Most middle-class savers end up either undersaving, overtrading, investing in excessively high-fee vehicles or some combination of the three.
>Small number of highly compensated folks (ie, my friend) now have lucrative careers offering bad investment products to a middle-class mass market based on their ability to swindle people.

If you don't know how to manage your own money in this world, you're a mark ready to be exploited for all that you're worth.
>>
>>14507324
Yes, made money for the first time and paid back gubbmint loans.
>>
Suncor (SU.TO)

Undervalued, underestimated. Don't just take my word for it: check 1 year targets from practically any rating agency on the planet.
>>
>>14507349
>That's all your getting for now.
Are you in a secret society or something? Are those stocks a sure-fire slam dunk?
>>
>long term in the stock market

Are you a retard?
>>
Fucking retarded OP.

Use a proper picture when starting a investment thread.

This way people glancing the catalog can see.

Also bump.
>>
>>14507464
Since it seems like you are Canadian, check out liq.to. It is a REIT that owns 240 liquor stores, mostly in Alberta. Churns out a monthly 9 cent CAD dividend and has a 0.62 beta. Leverage it up and enjoy the cash flow.
>>
>>14507796
>Doesn't know how to buy and hold successful stocks.
>Thinks 50% of his earnings should be paid in taxes.
>Doesn't know about Warren Buffett.
Stay pleb.
>>
>>14505949 (OP)

Lets go with diversified American Megacaps with a dividend:

Some names:

WMT: Feeds on the lower middle class. A mainstay.
MSFT: Could go with AAPL but I like the diversity of MSFT.
XOM: Fracking, although I think that field is more reserved for up-and-comers. This is guaranteed to be around in 20 years though.
PG: Cheaper than JNJ, higher divvy.
GE: Diversified Manufacturing, enough said.
PFE: Big Drugs!!!!

You're welcome!
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>>14506484
What a wise man. You goyi- guys should DEFINITELY listen to him
>>
What chart platform does /pol/ use?
I keep switching but they all seem to lack something.
I want all exchanges/commodities/forex/ETF with the ability to draw trendlines etc. Free.
>>
>>14507761
He's jewing you.
>>
>invest everything in IBM
>double your money
>>
APPL, put everything into APPL.
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>>14508105
Wait for $300 then yes
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>>14505949 (OP)
>>
>>14508150
Are you kidding? The time to buy is NOW! APPL will hit $3000 by the end of the year.
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>>14508246
I can get behind this guy. I sold my house, my car, and my daughter to buy APPL stocks. I'm currently holding 3,000 shares.
>>
>>14508246
>>14508309
samefag alert
>>
>>14508343
>>>14508246 (You)
>>>14508309 (You)
>samefag alert
I'm not the same guy you're responding to dude.
>>
>>14507946
Anyone?
>>
>>14508105
>>14508150
Today's off shore tax haven hearings scared me enough to sell all my AAPL for a tiny profit. The long and short of it is the values of the cash they carry on their balance sheet aren't "real" and need to be discounted heavily when valuing the company. Taxes would be a major hit to any attempt to return capital to shareholders.

The Apple cash pile isn't exactly a new story. Einhorn has been calling on Apple to increase the dividend and buy back shares for months. It doesn't take a CFA to see the balance sheet is out of whack and way over capitalized.

This structure has been going on for years; back to Jobs. Wouldn't it be ironic if Jobs cooked the books and died before things were exposed?

If you take the politicians' numbers, the billions that would have otherwise been paid in taxes flow to net income. These padded earnings get projected into the future with over optimistic growth rates. With the real reason for such robust earnings hidden by Apple, analysts can't help but be overly optimistic. That is how the stock gets driven to $700 with target prices of $1,000.

tldr: The offshore tax issue will cause AAPL to crater. I am not calling for a bankruptcy, but Apple's market cap will soon reflect the hollowed out company which it has become
>>
Long term, I like pipelines, high dividend stocks and everything that has nothing to do with US consumers being deep in debt(international and defensive stocks).

Atm im buying miners/streamers with both hands, because everything else feels overvalued for now.
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>>14508617
No idea. I just use the one that shows up on Google when you search a stock name.

>>14508661
Shit, you sound like a pro analyst or something. Where'd you learn all that from?
>>
Microsoft is charging fees for second hand games on its new machine.

Enjoy your crash.
>>
>>14508919
Thanks, but I'm far from a pro analyst. I do however work in finance. As far as learning; 1/4 class room, 1/4 my own research, 1/4 work, and 1/4 my own trading.

>>14508883
I'm buying the miners too, but far from with both hands. A little bit at a time, on days when they get hammered, like today. There is no bottom in sight, and you don't want to blow your load too early.
>>
>>14509172
What kind of finance job? What's the pay? Which school did you learn from?
Which top three stocks would you say you like best for now?
>>
>>14509266
Investor relations. Pay is good now, with good potential for more. Went to a state school for a top 50 MBA program.
As far as stocks to own, buy any 3 large/mega cap cigarette stocks and leverage the fuck out of them. A 5% yield turns into about 8.5% after the margin expense. The cash flow is like having a part time job and the capital appreciation is free.
>>
>>14509632
Do you work for a chain company (Edward Jones, etc.) or a local company? Is the pay over $80k a year? Do you have an opinion on Warren Buffett's strategy (some people say it's outdated)? I have about 10 complex questions I'd like to ask you, if you can provide an email address.
>>
I just buy shares of stock indices like the S&P 500. Buying stocks of particular companies seems like gambling to me.
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>>14509921
ask it here; i know fuck all and wouldn't mind sitting in on a good Q&A.
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>>14509632
Careful with leverage, shit happens and most of the time its not worth it.

The only leverage I would use is options for dumb 1 in a lifetime trades like shorting silver when it breached 26.
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>>14509921
The fuck if I'm giving out my email address. I also don't schlep investments for Edward Jones or any other company. I work for a public company in their administrative (finance) office, dealing with earnings releases, sec filings, and everything else that has to deal with the company's stock. The pay isn't quite 80k, but will be in time.

Buffett's strategy isn't for you, me, or anyone but Buffett. The part everyone leaves out when talking about him is uses massive amounts of capital to acquire controlling stakes in firms and often buying them out. His last big deal was taking Heinz private. I'd love to fucking own Heinz. His investments work because he has effectively taken them off the market. Wanna be like Buffett? Buy BRK.B. It has done well.

Ask away. I'll answer questions.
>>
>>14510031
Let me ask my first four. These are noobish because I'm still learning and exploring different theories:

1. If you put $10,000 in index funds, what return would you expect to get out of it in 5-10 years?

2. If someone had $15,000 do you think the better idea would be for them to put it in BRK.B for 10, 15, or 20 years, or to split that $15,000 into two or three stocks that the person has researched heavily and feels extremely good about?

3. This goes along with question two. I know this sounds retarded but it's for purposes of better understanding: If a person had $100,000, which would be smarter: to put it all in BRK.B or to split it among 5-6 excellent stocks that BRK.B *also* holds? Would you see relatively the same returns or would one be better than the other?

4. If an investor invests half of his $200,000 in BRK.B and then says to himself “well, I also want to buy some nice dividend stocks as well with my other $100,000”, would he be smart or stupid for buying dividend stocks that BRK.B already owns shares in for his dividend stocks? What if the dividend stocks are the best ones he could find and are simply coincidentally also held by BRK?
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>>14510456
This is also meant for >>14510375
>>
>>14510078
That is why you leverage up low beta stocks like cigarettes, not making leveraged bets on precious metals. Buy a few puts, and your yield falls to 7% if you wanna sleep better at night. Sell some calls while you are at it
>>
>>14510375
>Buffett's strategy isn't for you, me, or anyone but Buffett.
Which strategy is for you, me, and anyone but Buffett? Can you shed some light on that? As far as I know, there are really only two strategies "diversify to death" or "do it like Buffett"
>>
>>14510456
Christ those are all terrible questions. Can't help but feel like I'm being trolled. Learn about diversification. Never good to put everything into one investment, even if its brk.b.

For someone as noobish as you, I'd say take a year to average you $10k into an S&P 500 index fund with vanguard and forget about it. If you buy all at once, you could buy at the bottom or top; no way of knowing in advance. Over very long time periods, the market averages 9% per year. Any given 5-10 year period could be +-30%.

Don't go buying individual stocks until you can read a cash flow statement, income statement, and balance sheet. If you can't read financial statements, you are just speculating.

4. is actually an ok question. Its ok to overlap a few holdings, just make sure you are aware of what you actually own. He does own some good dividend stocks he acquired at a good price. Say KO is 10% of BRK.B and you own $10k of BRK.B. Understand you already own $1k of KO, and invest accordingly.
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>>14511022
Thanks, and yes I know they were noobish. No troll here. I only started making an effort to learn about a month ago. Thanks for your info, especially on number four. So, last question: 8. Opinion on this guy's theory (even though you've stated that Buffett's strategy isn't for common folk)? http://www.youtube.com/watch?v=UfEffyyvMBI --Is that equasion remotely useable?
>>
>>14510517
How did this work out for you in 2008?
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>>14511019
Strategies are highly personal, and driven by your own financial goals. Mine is to take my left over student loan money and make enough in dividends to make the monthly payments and keep the capital appreciation for myself. leverage and options help juice the returns.

Growth and value are a good starting point for strategy. Buffett is more the value investor; acquire companies at a good price. The difference with Buffett is he acquires the whole company. Growth is all about identifying the next big thing.
>>
Firearms.
>>
>>14511315
I know this will seem extra stupid but why can't someone with $100,000 invest in most of the stocks that Buffett invests in (like WFC, KO, etc.) and make handsome profit in 5, 10, or 15 years? Can't their returns mimic Buffett's in that they're not in the billions but the tens of thousands or hundreds of thousands?

Also, on a related note, how do you feel about piggyback investing like that off of people like Soros, Buffett, top hedge funds, etc.?
>>
If i were you, i'd invest in nintendo, just look at how sony took +10% in a few hours because of the new xbox revelation.
e3 soon.
>>
>>14511227
While I wasn't using that strategy in 2008, it wouldn't have been worse than holding the broader indexes, and those managed to come back. It is all about how much cash flow you want to give up to buy the protective puts. Buy enough puts and you can profit when the market goes down. Keep a cash reserve and buy more when prices drop and yields go through the roof. In hindsight, the end of last year was the perfect time to buy dividend stocks when people sold over unfounded dividend tax worries. If you were able to buy more in 2008, they were yielding 15+%
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Investment gurus, is this line of thinking acceptable?
"Sony and Microsoft are going to release two new gaming systems next year...hmmm. Let me put $20,000 in each of their stocks and hold it there for the next few years and then cash out. Weeee!"
>>
>>14511716
Its priced in already. Sony might benefit from money printing in Japan tho.
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>>14505949 (OP)
hi varg
>>
>>14511152
That formula will work some of the time. Great answer, right? Different industries have different valuation techniques and figuring out which is the right one to use is the art.

Buffett uses book value again, because he buys out the entire company, and actually gets all the assets on the balance sheet. In the world of stocks for the rest of us, prices are driven by the income statement, not the balances sheet. A high ROE company the performs services or has outsourced most functions is going to trade at a much higher price/book value than a company with a lot of hard assets. It is still a good tool to understand what you are buying; just not a magic secret formula.

Piggybacking is a great place to start gathering ideas, but 99% are mush. Be prepared to gloss over most of what you read. Always operate under the assumption that anyone talking about a specific investment is trying to drive it in their favor, on way or another. From there, form your own opinions.
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>>14511465
Those are some good stocks, but most of what BRK.B owns is private companies like GEICO or Netjets. These companies make bank and he acquired them at a good price. Buffett didn't make his money buying stocks. He just has so much capital he can acquire large stakes in large companies the stock market is the only place to do so
>>
That might just b e the most retarded question of this thread, here it goes anyway:

I inherited 100k, how can i invest this money and make, say 10 million? What is the time frame?

I Know there is no way of giving a correct answer to that, but even if based on other investors performance or something.

I'm starting on this now btw, so forgive my stupidity.
>>
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>>14511972
>>14512125
Thanks for all the info. I'm screencapping your posts to re-read them again anytime I want.

1. What, theory, strategy, and investment philosophy wise, would you say the main differences are between Warren Buffett and the “top hedge fund managers” whose names we repeatedly see making billions every year? Is it true that “the hedge fund managers are smarter and more practical than Buffett with their investments, that's why they do so well in such a shorter time than Buffett”?

2. Do you agree that “Buffett's buy and hold strategy is kind of outdated. You should instead hold a stock for no more than 5 or so years nowadays”?

3. How do I become a huge stock/financial firm manager who makes at least $250k a year guaranteed? Pic related.
>>
>>14512299
At 9% per year, that will take about 54 years. At 12%, 41 years.

9% - 12% are average long term returns for the stock market. The calculations are just present value function on a financial calculator
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>>14512299
Go seek professional advice.

100k to 10 millions will take many many years @ impossible returns (about 40 yrs @ 20% tax free).

The best investment is to start/buy your own business where you know something about.
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>>14512612
Thanks man. Is there any way to speed this up? Higher yields?
>>
Monsanto
>>
>>14512705
oops 1 zero too much lol
>>
just buy a low fee tracker you wangs.


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