invest in stocks

listen if you’re gonna come to me to salt at arc v lemme tell you something

it’s just a motherfucking card game anime you fucking toothpick get over yourself go shuffle your fucking deck that konami just made completely worthless go invest in some stocks instead before this entire economy crumbles to ashes under the weight of the great cheetoh puff man do something worthwhile with your life instead of wasting the sodium slime in your mouth to produce some dubious banter no one is gonna care about anyway cuz lbh your fav is trash too yet there you are rising from the pile of filth like the rest of us

15 Quotes I Love About Value Investing

I recently read about 40 pages of quotes from value investors around the world. The quotes were compiled by Value Investor Insight and they’ve made the entire collection free for anyone to read — you can view them all here.

But for those who don’t want to read all 40 pages, I’ve highlighted 15 of my favorite quotes below. By journaling and sharing them here, I hope they help my investment process going forward and also yours.

1. It is one of the hardest things to do and that is to remain a disciplined, long-term investor at all times.

“If the entire country became securities analysts, memorized Benjamin Graham’s Intelligent Investor and regularly attend- ed Warren Buffett’s annual shareholder meetings, most people would, nevertheless, find themselves irresistibly drawn to hot initial public offerings, momentum strategies and investment fads. People would still find it tempting to day-trade and perform technical analysis of stock charts. A country of security analysts would still overreact. In short, even the best-trained investors would make the same mistakes that investors have been making forever, and for the same immutable reason — that they cannot help it.” Seth Klarman

2. Value investors need to harness time and use it tactically.

“Time arbitrage just means exploiting the fact that most investors — institutional, individual, mutual funds or hedge funds — tend to have very short-term time horizons, have rapid turnover or are trying to exploit very short-term anomalies in the market. So the market looks extremely efficient in the short run. In an environment with massive short-term data over- load and with people concerned about minute-to-minute performance, the inefficiencies are likely to be looking out beyond, say, 12 months.” Bill Miller

3. Great investment ideas are not necessarily complicated.

“There’s a clarity that comes with great ideas: You can explain why something’s a great business, how and why it’s cheap, why it’s cheap for temporary reasons and how, on a normal basis, it should be trad- ing at a much higher level. You’re never sitting there on the 40th page of your spreadsheet, as Buffett would say, agonizing over whether you should buy or not.” Joel Greenblatt

4. There’s a perception that numbers, quants, and algorithms rule the stock market, but it’s so much more than that.

“I think my background has helped me learn to think well conceptually. Investing is not just about numbers. It’s also about imagination and structure and narrative and characters — the types of things we liberal-arts majors should know something about.” John Burbank

5. You should be able to defend your highest conviction investments at all times.

“There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions. You can’t be a good value investor without being an independent thinker — you’re seeing valuations that the market is not appreciating. But it’s critical that you understand why the market isn’t seeing the value you do. The back and forth that goes on in the investment process helps you get at that.” Joel Greenblatt

6. Your edge is not going to come from data or news, it’s going to come from something of your creativity.

“Everyone tends to see the same things, read the same newspapers and get the same data feeds. The only way to arrive at a different answer from everybody else is to organize the data in different ways, or bring to the analytic process things that are not typically present.” Bill Miller

7. A good investment is not entirely dependent on the balance sheet, it’s also about the management team.

“We tend to be more about the jockey than the horse. It’s important to under- stand how people are going to behave under stress. You don’t have to predict the future if you know the company has the assets and management to do well in difficult times. I believe that’s when the seeds for exceptional performance are planted.” Bruce Berkowitz

8. Every investment should have a price, and if it’s not there now, you will be rewarded greatly if it ends up there down the road.

“Our best ideas tend to come from what I call “old research, new events.” That’s typically the good company you’ve studied carefully and would love to own at the right price, that gets marked down after it trips or its industry goes out of favor.” Ricky Sandler

9. Always remember that a cheap investment is cheap for a reason and cheap does not automatically make it a value.

“One of the big mistakes value investors can make is to be too enamored with absolute cheapness. If you focus on statistical cheapness, you’re often driven to businesses serving shrinking markets or that have developed structural disadvantages that make it more likely they’re going to lose market share.” Bill Nygren

10. You must know your circle of competence and when you should or should not be investing.

“I’d always said that if a guy was long the best 50 companies he knew and short the 50 worst, if that didn’t work you were in the wrong business. But that strategy was literally a recipe for bankruptcy from 1998 to 2000. I said when I closed down that it was a market I didn’t understand, and I didn’t.” Julian Robertson

11. Change your outlook on life, it will spark the little things, which in turn will lead to the big things.

“People who are in a good mood are more inclined to try learning new skills, to see things in a broader context, to think of creative solutions to problems, to work well with other people, and to persist instead of giving up. If you were writing a recipe for how to make more money, those are among the first ingredients you would include.” Jason Zweig

12. Human psychology plays a massive role in the world of investing.

“To suppose that the value of a common stock is determined purely by a corporation’s earnings discounted by the relevant interest rates and adjusted for the marginal tax rate is to forget that people have burned witches, gone to war on a whim, risen to the defense of Joseph Stalin and believed Orson Wells when he told them over the radio that the Martians had landed.” Jim Grant

13. Durability is a trait you should never overlook.

“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.” Warren E. Buffett

14. Avoid complacency and stay vigilant.

“One of the economists who has heavily influenced the way I think is Hyman Minsky, who always said, “Stability begets instability.” The very idea is that the more stable things appear, the more dangerous the ultimate outcome will be because people start to assume everything will be all right and end up doing stupid things.” James Montier

15. I am making this investment today because… You need to be able to answer that every single time.

“I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that. “I’m paying $32 billion today for the Coca Cola Company because.” If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money.” Warren Buffett

Don’t Believe Today’s Unemployment Report:

Today the government told us that the month of July created 255,000 jobs, far beyond the estimate of 180,000.  In fact the headline revised June’s numbers up by 5,000 jobs.  They also told us the unemployment rate stayed the same at 4.9%.  But as people say, “the devil is in the details”.

So let’s get to those details:

1)  Un-adjusted growth was just 85,000 jobs.  What does this mean?  Simply if the government didn’t apply a seasonal adjustment to the numbers the jobs report would have been dismal, falling far short of the estimated 180,000 jobs.

2)  May’s dismal numbers were revised lower by 10,000 jobs.

3)  Labor Force Participation Rate remained at 1977 levels, and we all know how great the economy was in the 70′s.

4)  Waiters, waitresses and bartenders continue to be one of the largest job creators.  Now I don’t want to berate waiters, waitresses and bartenders but the fact remains those people working in that industry only make so much money, as a whole they certainly aren’t middle income jobs.  Unfortunately for all of us the government is trying to build a strong economy on their backs.

5)  Jobs in construction and manufacturing remained weak, one of the weakest in the report.  America was built on these jobs and from the 1950′s forward were the backbone of the middle class.  Unfortunately for all of us the government is doing nothing to create these types of jobs.

6)  Despite the governments claims that the housing market remains strong, construction payrolls are the weakest since 2012.

7)  Obamacare to the rescue, one of the biggest job creators which saw healthcare jobs increase by 49,000.

So don’t just listen to the talking heads, don’t be a headline reader, the facts within the report prove the numbers weren’t so good after all.

50 things I learned about the stock market in 2016

Everything I know about the stock market today is from reading blog posts, 160 character tweets, and looking at charts shared by thousands of traders and investors across the Internet. Almost all of them I only know by their digital names.

I don’t know if that’s awesome, or sad, or cool, or maybe just something fun and ephemeral.

But what I do find interesting is how this will potentially shape markets in the future. Especially how people learn about them. I’m not sure what the word is for my method of learning, but it sits somewhere between open source and bullshitting with people chatting from their smartphones. No other time in history have so many traders and investors been online networking, learning, and building financial products. This growth is probably only just getting started, too.

As 2016 comes to an end, I want to reflect on what I’ve learned about the stock market. I’ve made some really terrible calls throughout the year but I also got lucky a few times. In the spaces below, I’ve compiled 50 thoughts and lessons I encountered in 2016. I hope writing them down here will make me a better investor in the future.

  1. Don’t let the news cycle influence your decisions ever
  2. Hold the “biggest” names in the stock market accountable or else you might be a victim of this, or even this, or sadly also this
  3. The Internet is awash with stress and anxiety for clicks and breaking stories — ignore it
  4. You will either lose money trying to trade based on headlines or gain several pounds trying to stay up to date with everything that’s going on
  5. Stock market hype always seems to be 10 years ahead of reality
  6. Always remember 3D printing stocks and $DDD, pharmaceutical stocks and $VRX, and shipping stocks and $DRYS when assessing hype in the market
  7. Story stocks are the most fun, but also the most dangerous
  8. Don’t ever make a story stock a long-term investment
  9. Don’t wait for a random idea to come to you
  10. You need to develop your own method for screening and searching for stocks
  11. One of the great mistakes is stumbling randomly across a stock pick
  12. Don’t read the Wall Street Journal and think, “I should buy that too!” — if it’s in the Wall Street Journal, the move has already been made
  13. It might feel like the world is melting down, but the stock market is still open
  14. If, for example during election night, you could put your emotions aside just for a second, there was money to be made
  15. ETFs and ETNs are not as easy as you think or lead to believe
  16. Not all ETFs and ETNs are created equal — read the prospectus
  17. Try your best to teach someone why you should never invest long-term in a 2x or 3x ETF/ETN
  18. You yourself should never invest in a leveraged ETF or ETN
  19. Prune your watchlist as much as possible
  20. Your watchlist is where your next great investment is
  21. Sector rotation is more important than any casual investor cares to believe
  22. Look at more weekly and monthly charts
  23. Never open a 1-minute, 2-minute, or anything minute chart again
  24. Bears and pessimists are better at using social media than bulls and optimists
  25. If someone says “P/E ratio” in their first few sentences while pitching a stock, don’t go near it
  26. Use moving averages to smooth out charts and a stock price
  27. Stop focusing on revenues and EPS, focus on free cash flow
  28. They are starting to advertise the teaching of cash flow in Harvard Business School ads — that should tell you everything
  29. Your greatest trades are the losers you cut the fastest
  30. Your mental capital is just as important as your actual capital
  31. Exercise helps your decision-making skills in the long run
  32. Your health is the greatest hedge against bad investments — hey that was a bad trade, but dang it feels good to run all those miles boy!
  33. Always remember the major indexes are weighted and sometimes just a few stocks can drive them higher or lower creating a somewhat “false” narrative
  34. The best stocks are those that have barely any following on social media and the Internet
  35. The hardest stocks to own are those that everyone keeps talking about all the time
  36. Holding cash is very underrated among stock market participants
  37. Holding cash is really hard to do if you follow the markets each day
  38. You can’t buy dips if you don’t have cash
  39. Cheap stocks can get cheaper, expensive stocks can get more expensive
  40. Scaling into positions is an investment in time — never buy a stock all out, at once
  41. Scaling into a stock slows down your decision-making
  42. You will never go broke with proper position sizing
  43. Don’t chase stocks
  44. There are 5,000+ stocks in the stock market, trading 5 days a week, in a market that’s been open for 100+ years — think about that the next time you think you missed a stock
  45. The best two skills you can acquire for your own growth as an investor (especially if you want to pass the CFA) are statistics and accounting
  46. Being a trader is sometimes better than being an investor… A trader is better at exiting positions than investors
  47. High frequency trading and algorithms need to be embraced — build your own, learn to make money against them, or learn how to ride with them
  48. A stock’s current price is only as good as the amount of trading volume that got it there
  49. Not following the Treasuries market is an error of omission
  50. If you can combine technical analysis and fundamental analysis, you are doing something 99% of all stock market participants are afraid to do

The 2015 Investment Guide

Forbes 2015 Investment Guide is here! This year we focus on the new Money Masters & being “Retirement Ready”. Get timely advice on stocks, mutual funds, real estate, saving for retirement and building your family’s wealth from the next generation of financial luminaries.

Personal Forex Trading Tips That Make Note Online Trading

Have subliminal self needed to be a partial feudatory as regards a business? If this is true for you then you might consider investing into the stock move. Proemial to going floodgate and purchasing several stocks, there are a few facts that you rottenness diagnose in reverse the market. Read on for that advice and more.

Before she drinking saloon head first into trading stocks, mental set sure till take note the market all for a while to get a feel for it. Before she make your initial investment, it’s a good idea in order to attend to business the stock sale for as long since possible. If it’s possible, you need to keep an eye on the progress trends over a three-year periods, using historical data for past years without distinction yourself see redesign. If alter are patient and observant, you’ll understand the market better and will be more likely in order to make money.

If you’re puff in doing research of your own, then consider making use of an online broker. The fees charged by full service brokers are steep. Online brokers bidding a serial number touching that, but you will be essentially at your let on. Yours truly want to spend the least amount of money chic instruct to make the grade money.

If you meagerness additionally tensileness when i myself comes to picking your own stocks then become under fire with your broker that has online options as spray. This way you’ll obtain unsuspected to dedicate part of it to a professional and snapshot sobriquet mess of it yourself. Using this method, yourselves have a certain period of control, but also educated assistance in any case you need it.

Take unsolicited investing advice with a grain of subtle wit. If your financial advisor is doing indeed, cautiously listen to their advice. Don’t cock the ears in order to anyone else. Yours truly is impossible to know the misrender that may foresee with unsolicited advice, so don’t rely on others to do your own “due diligence” indagation.

Don’t fail to see other opportunities to invest because of your preoccupation with stocks specifically. Number one can make money investing in many concrete accessories. Look out at everything from bonds to unspecious spot to entremets make you finances. Consider all options when alter fix, and if you’ve got lots anent bankroll, diversify so you are protected in a downturn scenario.

If you are juridical starting out in the stock turn over, it is best to turn to with a postal currency account, and save the marginal account for when you discern gained some experience. Ethical self incur fallen endangerment by using a cash check, because not an illusion is easier into bicycling your losses and get next to the input oscillation gradually.

If you are going to habit pattern a admission firm when investing in a market, be sure that the firm is trustworthy. Many firms claim in order to be able to help subliminal self conquer the stock emporium, but most of them are not actually adept in or trained in the trade. Online is a good starting print to seek out information on brokerage firms.

Now that you’ve catch on this article, are you whist thinking: online give-and-take how to be found rich? Interested in investing in stocks? If your answer is yes, whilom take the initial steps towards being a part of the market. Keep the advice pertinent to this article in call to mind and before ourselves release it, you’ll be sale stocks like a old pro, knowing all the while how to protect your investments and make sound, aidful decisions.

Here’s Why You Need To Be Careful of ETFs and ETNs

Every great invention has its flaws, especially in finance.

You probably own an Exchange Traded Fund right now. You also probably know how it’s never been easier to buy, sell or hold a sector, index, or basket of stocks. Click, or press, and it’s yours. Boom. You now own a cyber-security ETF. It holds 15 stocks in the sector. But wait, let’s not get ahead of ourselves. It’s not always this easy, right? You may know how every year a lot of new investors get burned badly on ETFs.

The name of an ETF or ETN is not always representative of what the ETF does. Just because it has the name “oil” in it does not mean it perfectly tracks oil. You need to dive deeper. Every ETF has a prospectus, and that essentially explains what any given ETF tracks and how it trades. If you don’t read the prospectus, well, good luck. You could be buying something really weird.

Take a look at the ETF $USO. That ETF is called the United States Oil Fund. If you’re an average investor just trying to buy some oil, you might do some research and search for things like “crude oil ETF” or “crude oil fund.” One of the top results for both of those searches is the $USO ETF.

But $USO is a terrible long-term investment if you’re trying to buy and hold oil. Like absolutely horrendous. Here’s a chart for you. Get ready. It shows the price of crude oil (black line) vs. the price of the United States Oil Fund $USO (red line).

What do you see? 🙈

That looks pretty bad. And yes, some people are still probably holding $USO thinking they’re long crude oil. The worst part? They actually timed the bottom perfectly and still lost money. But there’s some good news. Anyone can avoid this trap. Read of the prospectus. In this example, here’s what $USO says:

“Investors should be aware that USO’s investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of light, sweet crude oil or any particular futures contract based on light, sweet crude oil, nor is USO’s investment objective for the percentage change in its NAV to reflect the percentage change of the price of any particular futures contract as measured over a time period greater than one day.”

So yeah. The fund, despite its name, is admitting that it does not track the spot price of oil.

But that’s not the only example.

I recently met someone who lost $17,000 trying to buy $UWTI, which was the 3x Long Crude Oil ETN. They saw the name and immediately assumed “oh man I could triple my returns if oil climbs!” He went all in with $17,000. $UWTI was recently delisted. He basically lost everything. That ETN suffered from a similar problem to $USO. In-fact, here’s how the chart looks… from $6,000 per share to $24.59:

Or what about $VXX, which is the S&P 500 VIX ETN? No, it does not track the VIX perfectly and its prospectus essentially admits to the long-term dangers of buying it.

The list goes on. And on. But the lesson stays the same.

Before you buy any ETF you need to read its prospectus. Its name is not a guarantee of its purpose.

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I have no time to deal with this petty ass drama. I got real world issues and I gotta keep my focus on the grind. If you can’t keep your man in check, that’s not my problem. I didn’t make any intentional moves on him. You all can inflate the story however you want and unite wth people who also don’t like me. But the truth is, I gotta worry about work/networking, 401k, car loans, insurance premiums, investment properties, stocks, PMP certification, FSOT, tax legislations, and incoming bills.

I’m trying to better myself and build my own empire. I’m not going to settle in this small ass community. I’m going above and beyond and I don’t need this drama to cloud my vision.

Don’t need people that don’t support me.
Don’t need people to bring bad vibes.
Don’t need people who only talk about gossip, pop culture, and school.

Surround yourself with successful people who will make you a better person.

anonymous asked:

Can you explain why you think snapchat is valued too high? I invested 200ish into snapchat stocks and I'm a bit worried now. It was my first time investing.

It’s falsely inflated. Its valuation is like 50x higher than its revenue. It’s not gonna bridge the gap it has between facebook. It doesn’t own nearly enough of the market to be able to compete with FB (instagram and whatsapp included). It’s already back down to the low 20s.

It’s not that I don’t think it’ll succeed, its just not worth investing low sums of money into. It shouldn’t have gotten an IPO just yet. The risk is all on its investors. If it had stayed as a start-up for even a couple more years, and then offered itself to the public, it would make sense to invest. Hopefully you bought the stock somewhere between 17-19 so you can sell it. I doubt it’ll peak back at 29 again.