People on this board are getting dopamine hits and panic attacks from watching the prices nudge in a particular direction. Let me just say this, if you get scared when you see prices drop, and excited when they go up, you're not a real investor. I am a real investor.
I have a very diversified portfolio. I own silver, I own gold, I store them in vaults. I'm holding CASH, cold hard cash. I have GICs earning me interest every year. I have paid off all my debts, meaning I owe JACK SHIT. With my extra money, I buy high-quality positive cash flow businesses like COSTCO, APPLE, HYDRO ONE, CANADIAN NATIONAL RAILROAD.... I buy MONOPOLIES that generate solid returns, this is how I make cash. I love monopolies.
But for real, to anyone reading this, the smartest thing you can do right now is to pay down your debts. Stop paying 18% a year on credit card debts and start paying it off. When you pay down debt, your return on that is the interest rate you owe.... so you can essentially generate an 18% return by simply paying down debt!
nobody excet for collectivistic weak suckers cares for this platform full of weaker preditors
I faded your text
nice of you thinking about your mom so often
I never once mentioned twitter you imbecile.
I ignored you text, because using a twitter image tells more then 100 pages of text would explain. You are a weak sucker that congrugated in a bubble with suckers
I just saw it on pol I didn't even know it was twitter.
Invest in companies that fit these criteria
There's two types of businesses, monopolies, and companies that don't make any money. If a business has competition, they will be in a perpetual bidding war that will eventually result in squeezed margins. Apple for example, will always be earning profit because they have a total patent on Apple products, which for many reasons stomp the competition.
Similar to point 1), moats are barriers to entry. Apple also has a huge moat because the technological ecosystem they've created (Apple charger, Mac-Iphone links, Airpods) have made it so you have to almost "subscribe" to their products to maintain your lifestyle if you have even one of their products, and everyone has an Iphone.
3) Price lower than Intrinsic value
Apple is trading at a very good Price/Earnings ratio, it's very highly valued, but given the amount of money they make, you're taking home a good hunk of change. If a company is worth 2 trillion, but they earn 200 billion a year... that's a 10% return on your money. Use the Price/Earnings ratio as a start to evaluate companies.
Here are companies I own
>Canadian National Railway
>Bank of Nova Scotia
>META (I'm exciting shortly if the price continues to rise)
>Nordea (Swedish Bank)
>Berkshire Hathaway (massive conglomerate)
Thanks for confirming
There are are only 2 sorts of people left on /misc/, unfortunatelly if one thinks about what that board was during its glory days, suckers, weak predators and barbarian grievers
Based. I will take your advice to heart. Thanks man
>pic unrel confuses the retard
So I make about 3200 a month takehome. Single. Have just paid off all my debts.
I can invest about $2000 a month at this time because my rent is low.
Can you give me some more advice?
What is the value of a share of Apple functionally, i.e. what does it do?
It represents ownership in a company that is currently earns $170 billion a year.
May be, but the question was specifically about what it does.
What Apple does? They produce IOS software, and produce different products.
No, I meant what the share does.
Gives you ownership over that company.
Thank you. What does the ownership do, though?
You are entitled to the portfion of the proceeds the company makes, if you own 5% of Apple, you are entitled to 5% of their aftertax profit.
How is that paid out?
Dividends. Stocks are based on the value of current and future dividends, with stocks that aren't paying a dividend, the value is predicated on the fact that they will pay a dividend in the future, and they are better off using the money they have to invest so they can one day pay a higher dividend.
What if a company never pays a dividend?
Then it's the theoretical power that one day they could. You're asking a very abstract question, it's like saying "what if you never sell your house, is it still making you money?"... the answer is yes, you're getting richer as your house value goes up. The stock will keep going up because as their earnings/share increases, their ability to pay dividends increases
>Then it's the theoretical power that one day they could.
So the expectation that the dividend will be paid out is more important than whether the dividend will actually be paid out (the scenario assumes that the dividend won't actually get paid)?
>People on this board are getting dopamine hits and panic attacks from watching the prices nudge in a particular direction. Let me just say this, if you get scared when you see prices drop, and excited when they go up, you're not a real investor.
I only partly agree with this statement, I still get excited when prices go up and I'm making money, but I stopped panic selling and became apathetic to bear trends a long time ago. The first time I lost $30,000 in unrealized gains I felt sick because at the time that was life changing money... I am now numb to those types of losses and view everything as shifting balances on the ledger that is my wealth portfolio... I now understand that its better to realize all my losses to offset the gains and minimize my tax liability.... any capital paid to the government is a loss of my net worth... I.E. Buy $10,000 worth of ICP early and get rugged.... But have $9,000 in BTC gains... Its worth it to sell the ICP for $1k and realize the loss instead of bagholding solely because the $3,000 I would have paid to the government for my BTC gains now stays in my portfolio
That is absolutely based. You have a good mindset.
I almost entirely agree with your post. The only part I’ll dispute is your absolute resolve to pay debts. If you can get cheap debt (a mortgage at the start of coof) on an appreciation asset, you shouldn’t be striving to pay that off first, IF (and only if) that capital can be making more for you elsewhere. But for high interest debt like credit cards and car loans, yeah, get that shit off your liabilities
I had credit cards in mind when I wrote this point, and I'm looking at business/investment loans right now, they're yielding 12%. I don't think you should be borrowing even at 8% unless you have an absolute guarantee.