ERICOPOLY

Yes, for what I bought yesterday. However.... when I sell common stock to raise cash, my Roth IRA rules at IB won't allow me to trade until the following day. So I HAD to wait until this morning to purchase the rest of the call options.

Yes but in a sense it's risk-free because in a parallel universe where leverage doesn't exist neither does a parallel version of me in possession of said 5%.

Anyways, it isn't risky because I'm ticking the bottom on an Alibaba lifetime PE basis. This is the first time it has gone to 17x. This is the only year out of the past 5 where the stock hasn't traded up to a 40x PE for at least a small while. LOL.

I might do that yet. This is my first purchase of a Chinese stock ever.

Yes. Potential for 5% of capital vaporized. Strikes are $70, $110. $140.

5% position. June 2022.

BABA calls.

ATCO calls

Anyway, you're already 1/2 way there with APTS and their 6% preferreds. And already priced in.

Delta wave is going to be over like clockwork by February.

In 1970 the median rent was $108; in 1983 it was $315.

MSGE calls

Straight from the supplemental page 24 2Q/2021: "Certain option purchase prices may be negotiated at the time of the loan closing and are to be calculated based upon market cap rates at the time of exercise of the purchase option, with discounts up to 15 basis points (if any), depending on the loan." Two of the 3 recent properties came with the discount of up to 15 basis points.

More items at Dollar Tree will cost more than $1 as retailer grows selection, combats inflation https://www.usatoday.com/story/money/shopping/2021/09/29/dollar-tree-prices-rising-family-dollar-stores/5914780001/

Unless people are renting more than 1 housing unit at a time I cannot see how there could be a glut at present with rents increasing as they have been doing. With covid and working from home, perhaps adult kids moved out and their parents divorced. That's pressure on rental demand. Otherwise, I don't get it... we have higher unemployment and rents skyrocket.

Greg, what I'm not understanding is why there isn't already today a glut of MF on the market given how the cap rates have been historically low for so long. I mean, if it's not building costs relative to rent, then what gives? Why hasn't this stuff been oversupplied on spec by this point in time?

Take APTS for example. Over the past 2 or 3 weeks they have announced 3 new MF properties. They are getting these at closer to the cost of building, no?

I was simply asking what the issue is: is it a historically high cost of building/operating that is the problem, relative to market rents? Or are investors paying way higher than the cost of building these things? Which is it?

At what cap rate does a new construction MF work out to in the sunbelt markets? How does the market price for MF stack up against new construction costs? It's hard to argue against economics, so what are the economics?

I believe Peter Theil can always take the after-tax $3,000,000,000 in cash and loan it long term to his kids so that they can grow it in their names. Or they can in turn turn around and lend it to their own kids so that it's invested under the names of Peter Thiel's grandchildren. If Theil lives another 30 or 40 years inflation will have eroded the value of the $3 billion he lent out. At the moment, the IRS makes you charge a minimum of 1.74% interest for such loans if they are of long term duration (longer than 9 years).

And Peter Theil would be paying capital gains tax, not income tax rates, if he had just held it in a taxable account instead of the Roth. Applying an income tax to this is completely unjust because he is being forced to withdraw the money.

you can put assets into the trust up to your lifetime gift tax exemption which is 11.7m this year or 23.4m per married couple. That will likely decline to 5m/10m on January 1st, 2022. Peter Thiel was limited to contributing $2,000 a year to his Roth IRA so gift size to a trust would not have been an issue. he made the mistake of not putting it in a trust. So now treasury will likely swipe 40% of it in income tax by forcing him down to $20m before he reaches age 59.5. so crazy… after estate taxes, Treasury will be getting about 2/3 of his account. The Thiel family: 1/3 Had he put it in a Trust it would all belong to the trust and none would go to Treasury. 3/3, or 1/3? You tell me, is a Roth IRA the way to go? So crazy.

The Treasury may be better off with billionaires like Peter Thiel being trapped in the Roth IRAs because 40% estate taxes will apply to almost the entire thing when he dies. He could have instead put those assets into trusts where the Treasury would see nothing when he dies.

Roth IRAs do have the rather HUGE disadvantage in that they grow INSIDE of your estate. You cannot move your Roth IRA assets into a trust without first withdrawing the assets from the Roth. So, trapping billions into a Roth IRA means that the money WILL be in the taxable estate. Not allowing more money in the Roth IRA will put it back into trusts where they'll avoid estate taxes.

I was thinking of the case where it matters what account value you report to them annually because of these new $10m and $20m account thresholds. They may accuse you of self-dealing or whatever if you don't have them independently valued annually. They want you to withdraw half of your gains above $10m, or all of the account value above $20m. So if they argue that you're misreporting those values, heaven help you when they strip away your IRA status and tax the entire account.