Ross812

Started buying RTO.

I've been looking at Tencent, PDD, and JD. I decided to take the advice from the China thread and use KWEB. I sold 10 puts expiring next week from $35 down to $30 this morning. I still might add some PDD.

I've seen DFIN pop up on this thread with some decent allocation. I'm at 7%. The investment ideas DFIN thread has almost no engagement!

Bought some ROP at $525.

I moved away from GEICO years ago as and independent broker (AJG) was able to source a much cheaper and better policy for me. For paint, I've switch from Benjamin Moore to Sherwin Williams and now to BEHR at HD. The service is not as good as SW, but the Marquee paint is far superior to SW Super Paint which is about the same price during a SW 40% off sale. Marquee is the only paint I've used that covers in two coats every time and you can really scrub scuffs/marker/crayon out of it and not impact the finish.

I bought a basket of durables/construction related companies JCI, GGG, AOS, CARR, TT, DE, OTIS, CRH, and SSD with proceeds from a sale of JCI. My position in JCI which has appreciated in the past few months and had similar valuation to the others so I practiced a little diversification.

@rogermunibond HSY

29% 31% FFH 12% $ 10% BRK.B 4% 7% DFIN (Adding) 3% 6% NNI 5% 6% NTDOY 5% 6% HQI (Adding) 4% 5% GOOGL 6% 4% LUV 2% 4% HSY 2% 3%TOITF 2% JCI 1% CPNG 6% USB 4% ADSK 4% MSGE ($30 CCs on full position) 3% CASH ($50 CCs on full position) 3% HUM 2% CHDN <1% in tracking positions - CRH, BF.A, GB, SSD, BAC, ASHTY, LHX, META,BABA, BABA calls CPNG calls

More HQI and a nibble on BF.A. I figure the A shares usually sell at a 5-10% premium to the B shares and could be had for a nickel more today if you are happy getting in and out slowly.

Just took a look at my history and I've had 8 buys since 2 May between $57.30 and $60.50 and increased the position by 50%.

Received a few grand in dividends and sold out of ADSK. Added 10% to my already outsized Fairfax position and added another 100 shares of DFIN at $57 which has slowly grown into my #3 position over the last couple years.

So looks to be about ($126M/25M shares) $5 per share pre-tax.

True - not cheap. I guess cheaper than it has been since 2015-16 of a FCF basis. I was looking at the current PE of around 20 where it usually trades in the mid 30s.

Wow. BF is getting cheap. Last time I took a look was in March. Well run company that always has sold at a premium.

Bought a starter in GB after reading the AR last night and doing some scuttlebutt on reddit.

More DFIN.

Bought a little more DFIN at $60.

@Malmqky agreed. Add overhead press and pull ups or pull downs at various grips and you have a very efficient workout.

I'm just trying to throw out some numbers and apply some arithmetic rather than relying on what feels good. And agreed, I'm coming up with a present value of $363k on a 500k loan @ 3% originated 4 years ago with 26 years left and 456k of remaining principle for ~80% of par @ a ROR of 4.7%. I think we are both saying roughly the same thing. The difference in prepaying $456k or sticking $363k in treasuries and treating it as an annuity is 4 years worth of maxing out a 401k which isn't nothing. These are all rich people semantic arguments we are having when the topic is 78% of Americans living paycheck to paycheck.

@mattee2264 I pitched Grupo Mexico which is the cheapest way to buy Southern Copper in the investment ideas section a couple of years ago. The idea didn't get any traction.

I will admit I was just spit balling on the present value of your mortgage earlier. Can't you just use the Annuity Payout Formula to find the present value of your loan given your rate of return? Example: 500k - 30yr mortgage @ 3% - monthly payment is $2108 w = $2018 r = let's use 6% k = 12 months t = 30 years P = $336,585 So you can put $337k in an account earning 6% and pay the loan off over 30 years. I hear the "but taxes" argument, but @Castanza and @TwoCitiesCapital are saying the mortgage is tying them to working so hard. If there was no mortgage, you could take a pay cut so the taxes argument really doesn't apply here because they are making the argument to take a lower stress job and scale back the W2 income so the annuity just becomes supplemental income and is likely taxed at a lesser rate than your wages.

What I mean is treat your mortgage as if it is paid by an annuity. If you have a 500k note @4% and your investments return an average of 7%; 370k will cover the 2400/month payment. Why prepay the extra 130k today?

Im kind of racking my brain here to to see the apeal in paying off the mortgage. I hear the FCF argument, but half a million invested in the market or treasures produces excess FCF when compared to extra payments. you cannot really argue taxes as you are paying taxes either way. The sinking fund needed to cover the mortgage is a lot less than you are anticipating. Think of yourself as a bond issuer. You sold say a 500k bond for 2.8% in 2022. The value of that bond after interest rate increases is 250k ish. Why prepay and give that money back to the bank? let inflation and the higher rate environment ravage the face value of the note...

I don't agree with paying off the mortgage especially if you have a low fixed rate from 2009 to 2022. Math favors 100k in home equity a 400k mortgage at 4% 30yrs fixed and 400k in liquid investments versus a 500k illiquid asset. I can pay my note off 10x over with a wire, but why would I make the bank whole on a note they're underwater on? I even did a cashout refi @2.8% when inflation was running over 4% to buy a vacation home in 2021 because I don't turn down free money. Run your finances like a business.

A little more NTDOY, HQI, and DFIN this week.