What are you buying today?

[throw123]

14 hours ago, frommi said:

MDLZ, i am addicted to the chocolade and the stock is not as expensive as it used to be.

same

[frommi]

Puts on BA,TSLA and DAX. BA/TSLA are the worst large cap stocks in my quant mom/value ranking and the DAX puts are for the seasonals (sell in may and go away actually works in the DAX)

[Saluki]

Bought a little more NTDOY, and a couple of my resting bids for TAYD that I forgot about got filled

[Seoshin]

7 minutes ago, Saluki said:

Bought a little more NTDOY, and a couple of my resting bids for TAYD that I forgot about got filled

You don't seem to run out of cash in buying NTDOY! haha

[Saluki]

7 minutes ago, Seoshin said:

You don't seem to run out of cash in buying NTDOY! haha

 

I am out but I recently added margin to my trading account so I've been able to buy some more without selling.  It's a mixed blessing because I think I've been sloppier buying and my broker charges outrageous fees for margin. 

 

I don't think I would ever do the maximum allowable margin, but I think if I can buy something that outperforms the 12% interest rate, it will be okay.  The way I'm trying to think about it (which probably isn't the mathematically optimal way), is that if I have, say, $12k in dividends coming in 2024, then I would feel comfortable with $100k in margin ($12k interest). That would allow me to buy stocks that look promising, and I would get to keep the appreciation, but the fees from margin interest would offset the taxes I have to pay on the dividends that came in the stocks that are already in my portfolio, but which I don't want to sell.  

[Paarslaars]

What I am trying to understand is why you have been nibbling on it the past months instead of loading up when the stock was below 12$ a few weeks ago

[Saluki]

9 minutes ago, Paarslaars said:

What I am trying to understand is why you have been nibbling on it the past months instead of loading up when the stock was below 12$ a few weeks ago

 

The long answer is that in an economics class I took, the book had a bunch of puzzles to try to figure out such as "why is popcorn so expensive in movie theatres?".  One of the puzzles was that land is so expensive in Manhattan that it's much more profitable to build a tall building than a shorter one.  So why aren't all the buildings in Manhattan the same size?*

 

I was only nibbling before because I hadn't applied for margin, so I was 100% invested and only buying when I trimmed something else. Now that I have margin, I'm about 105% long. So I don't mind buying more at better prices up to a point.  The catalysts (new switch, Nintendo theme parks, new movies) are still in the future it's entirely possible that I might it better at a higher price if things go according to plan.  

 

*the answer to the puzzle is that different owners have different costs of capital, so I might only be able to borrow enough for a 12 story building instead of a 50 story building like my neighbor. So you have to take into account your costs of capital and your opportunity costs (what if I sell the land to a developer) when you make a decision. 

[brobro777]

I didn't believe Disney would ever have a real competitor but Universal with Harry Potter and Super Nintendo World might just do it 

 

If this momentum continues along with more Mario movies then NTDOY could go on a long run baby, long run

[LC]

6 hours ago, Saluki said:

I don't think I would ever do the maximum allowable margin, but I think if I can buy something that outperforms the 12% interest rate, it will be okay

 

Move over to IBKR and enjoy the 1.5% margin rate on JPY. Boom, free 10%. Or free 10 stories to use your building analogy  

 

 

[Eldad]

12%? Market at all time highs and you are trying beat vig of 12? Ouch. Be careful. 

[scorpioncapital]

3 hours ago, LC said:

 

Move over to IBKR and enjoy the 1.5% margin rate on JPY. Boom, free 10%. Or free 10 stories to use your building analogy  

 

 

 

The yen is down 50% vs USD in the last 5 years is the risk with that strategy?

[Luke]

2 hours ago, RedLion said:

At the risk of sounding stupid, can you explain how to put on this trade? Would you do it against Japanese stocks or just in general? 

I am doing the same, I am borrowing yen to buy Japanese stocks that have global revenues. Japan's debt is huge, they have little room to up interest rates, and their society is collapsing because the Japanese arent getting enough kids and don't want poor migrants in their country. Over the longterm, the yen will only go down but Nintendo, Mitsubishi, Mitsui, Sony, etc will all continue to make money and worst case just move headquarters. So going short the yen for 1.5% interest while owning assets that trade at 10-20x earnings is a very good longterm strategy as long as you wont get margin called down the road. 

 

That said, the Yen, Japanese stocks trade was better when buffett loaded up cause lots of stuff has run up but I still see moderate value for a starter position. 

 

In Europe we can not do carry trades with the yen unfortunately, otherwise I would borrow yen, convert it into USD and buy stocks with that no problem, EVEN if the yen appreciates a bit against USD its a good longterm bet. 

 

@Saluki Please don't pay 10%+ margin rates, just move your portfolio to interactive brokers and stop making overpriced brokers rich. Take advantage of IBKR margin rates. I can send you a friend invite. 

 

 

Edited May 29, 2024 by Luca

[Paarslaars]

Bought back some prosus calls yesterday, great timing again. 

[Luke]

1 hour ago, Paarslaars said:

Bought back some prosus calls yesterday, great timing again. 

HODL. 

[throw123]

brk.b

 

buying back gradually shares i sold earlier in the year when the stock got a bit ahead of itself

[cubsfan]

 A little more JOE

[fareastwarriors]

some AIV

[Castanza]

JOE, AIV

[Ross812]

Bought a little more DFIN at $60. 

[coffeecaninvestor]

Moved some of my FDIC insured cash to SGOV. Getting an extra 2-3% yield

[Kizion]

PSH & ULTA 

[Malmqky]

A little Warrior Met Coal.

 

Looking at SBUX, ULTA, LULU. White girl stocks.

Edited May 31, 2024 by Malmqky

[Luke]

4 minutes ago, Malmqky said:

A little Warrior Met Coal.

 

Looking at SBUX, ULTA, LULU. White girl stocks.

Nice one, I bought a SBUX starter share to track the business the last days...

[CorpRaider]

PARA

[Whensthepaintdry?]

I have bought Lulu and Ulta over the week.