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Investing Are you buying the too big to fail investment banks?
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rimjobs4life Offline
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Post: #26
RE: Are you buying the too big to fail investment banks?
(02-26-2014 06:55 PM)Steve9 Wrote:  I disagree with No 1. Management teams are very important, but, for example, I do not need to meet with Starbucks management or Howard Schultz to know that this is a good company to invest in.

Check out Shark Tank. Often times, they decide against investing in a business since the person running it seems like a mess.

Even with bigger companies, you see Mark Zuckerberg showing up to important meetings in his hoody and talking more about revolutionizing the world than making money, it gives people concern.
02-26-2014 09:31 PM
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Steve9 Offline
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Post: #27
RE: Are you buying the too big to fail investment banks?
(02-26-2014 09:21 PM)svenski7 Wrote:  IMHO the only TBTF security still worth considering is Wells Fargo Co. (WFC). Their balance sheets look much better than other bloated financials.

Quick Ratios:
P/E: 11.84
Yield: 2.61%
EPS: 3.89

I think you could see them quoted at $80+ within a year.

Svenski, WFC is a well managed bank, but there is no way I can see them at $80 within a year. That would be a massive increase...why are you so optimistic?
02-27-2014 01:23 AM
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Dr. Howard Away
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Post: #28
RE: Are you buying the too big to fail investment banks?
(02-26-2014 09:31 PM)rimjobs4life Wrote:  
(02-26-2014 06:55 PM)Steve9 Wrote:  I disagree with No 1. Management teams are very important, but, for example, I do not need to meet with Starbucks management or Howard Schultz to know that this is a good company to invest in.

Check out Shark Tank. Often times, they decide against investing in a business since the person running it seems like a mess.

Even with bigger companies, you see Mark Zuckerberg showing up to important meetings in his hoody and talking more about revolutionizing the world than making money, it gives people concern.

Don't check out shark tank. Most of those proposals never happen once due dilligence happens or due dilligence is uses as a reason to drop the investment. I know a company that was on it and got an offer, it was great free marketing but that was all.

Why do the heathen rage and the people imagine a vain thing? Psalm 2:1 KJV
02-27-2014 03:10 PM
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svenski7 Offline
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Post: #29
RE: Are you buying the too big to fail investment banks?
@Steve9: Hey Steve, sorry I had my stocks mixed up. I see WFC at $60 -- so a 50% imcrease from its current price.

It's very well-managed and you don't often see a financial with a P/E less than 15x. I personally avoid securities with negative EPS and P/E over 15. P/E 10x or less is ideal. WFC fits this criteria which really amazes me.

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02-27-2014 04:25 PM
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anonymous123 Offline
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Post: #30
RE: Are you buying the too big to fail investment banks?
Hell no. I backed up the truck in a big way buying stock in the investment banks in 2008. I was sure I was buying all of them at discount. That as long as I could ride it out that eventually all these stocks would come back someday. I do understand these institutions well. Brutal lesson.
02-27-2014 07:31 PM
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jamaicabound Offline
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Post: #31
RE: Are you buying the too big to fail investment banks?
I'm an idiot and got hammered on Greek and Irish banks a few years back. Made some money swing trading during the chaos but got greedy and gave up my gains and more. Years ago though you could pick up BAC, C and others for nothing, wish I would have held for a few years and not just flipped for a quick profit.
02-27-2014 07:41 PM
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svenski7
svenski7 Offline
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Post: #32
RE: Are you buying the too big to fail investment banks?
(02-27-2014 07:41 PM)jamaicabound Wrote:  I'm an idiot and got hammered on Greek and Irish banks a few years back. Made some money swing trading during the chaos but got greedy and gave up my gains and more. Years ago though you could pick up BAC, C and others for nothing, wish I would have held for a few years and not just flipped for a quick profit.

I started investing in '07 with almost no knowledge. I was basically throwing darts in the dark.

I got fucked on Allied Irish Banks and Royal Bank of Scotland -- both now only traded OTC and pink slips. Luckily I only got in with a few hundred dollars...
02-27-2014 11:17 PM
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LeBeau Offline
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Post: #33
RE: Are you buying the too big to fail investment banks?
...
(This post was last modified: 02-07-2016 04:01 PM by LeBeau.)
02-27-2014 11:38 PM
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anonymous123 Offline
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Post: #34
RE: Are you buying the too big to fail investment banks?
@LeBeau - what is WSO?
03-03-2014 10:37 PM
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Vicious Offline
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Post: #35
RE: Are you buying the too big to fail investment banks?
People need to realize though that WC's reqs for a stock are likely very different from the average private investor.

A scant few here actually put down five figures in individual stocks. For the rest of us things like charges/courtage will have a far greater impact on our earnings than the tangibles WC brings up.
03-04-2014 03:32 AM
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WestCoast Offline
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Post: #36
RE: Are you buying the too big to fail investment banks?
^ simply put? no.

If you are not buying in lots of about $3K. And by lots I mean you guys should just buy safe indexes, you may as well take the money and light it on fire.

All the wealthy posters on here have alluded to some extent they want control/to know who is running the company

If you pick individual stocks and have a day job you can't afford to lose, yes you are a fool and I can't bother to read your posts as stated in here

Finally, the fees and charges only apply to guys who can't bother to read a simple proxy which says "expense ratio = x%"

Anyway this is a very "blunt" post. But what I have written in here is true. I don't really mind coming off as a dick because I will write the truth and 1/10 will get it and the rest can just trade their way to a lower bank account. Same three points I made apply to everything from institutional investors to retail investors.

Paying $5 in transaction fees on a $500 purchase of index funds... Well you need to save more before you even invest.

If you know the CEO (personally) or have at least met the people driving your car I will say nothing. I can tell from the posts alone that people are just waiting to be skinned like cats though. I don't bother trying to teach a horse how to drink and rarely jump on (see the stock market threads for proof, there is some baffling analysis in there but I hold my tongue), in this case because I saw WIAs name attached. For the other guys... I can't save em.
(This post was last modified: 03-04-2014 08:47 AM by WestCoast.)
03-04-2014 08:28 AM
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Vicious Offline
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Post: #37
RE: Are you buying the too big to fail investment banks?
Well your post is kinda contradicting itself by starting out with no and then in agreement with me in the last part. But I credit that to your exhilaration.

---
Personally I invest in blocks of $2.3k in index funds and private equity funds. Up 5.85% since August (11.1% progressive) not great but in line with the market (beating it this year so far) and completely liquid.
(This post was last modified: 03-04-2014 08:59 AM by Vicious.)
03-04-2014 08:55 AM
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WestCoast Offline
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Post: #38
RE: Are you buying the too big to fail investment banks?
^ if you are just dollar cost averaging into indexes at $2.3K and you have low transaction fees you'll win the game. What you are doing is fine, I assume you chose the right indexes.

Not sure what you mean by exhilaration (I don't get emotional when it comes to money - I get annoyed and talk directly/blunt) but if people can't figure out that $5 of $500 is 1%, then I should give up on mankind.

---

Anon - WSO is wallstreetoasis.com
(This post was last modified: 03-04-2014 09:06 AM by WestCoast.)
03-04-2014 09:00 AM
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Vicious Offline
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Post: #39
RE: Are you buying the too big to fail investment banks?
Look at the old threads on stock investments, there are people there buying shares and retroactively learning about courtage.
03-04-2014 09:10 AM
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WestCoast Offline
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Post: #40
RE: Are you buying the too big to fail investment banks?
^ ha well in that case some people can't be saved.

Similar to a guy who tried to pitch me a stock during an interview based solely on a single muliple "p/e, ev/ebitda" etc.

You can't save everyone. Only bother with what I can control, ie people smart enough to get it.

(Smile and nod, smile and nod) "yeah we'll call you if there is an opening". - delete.
(This post was last modified: 03-04-2014 09:19 AM by WestCoast.)
03-04-2014 09:18 AM
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malc Offline
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Post: #41
RE: Are you buying the too big to fail investment banks?
"Paying $5 in transaction fees on a $500 purchase of index funds... "

I don't understand why people would be paying fees on buying/selling index fund ETFs or mutual funds in the USA. Just get accounts directly with schwab, vanguard, fidelity, etc and use those brokerage accounts to trade their offerings with no fees. Almost nobody beats their %0.05 expense ratios anyway. Plus with schwab you get the sweet ass no currency exchange fee debit card with ATM fee refunds. Great for traveling.
03-04-2014 09:16 PM
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Steve9 Offline
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Post: #42
RE: Are you buying the too big to fail investment banks?
(02-26-2014 07:47 AM)Steve9 Wrote:  
(02-24-2014 11:08 AM)WestIndianArchie Wrote:  Goldman Sachs, JP Morgan, etc?

WIA

You should also look at European banks. I brought shares of Banco Santander in 2012, which I consider "too big to fail" and probably the strongest bank in Europe.

It is not an investment bank, but a huge retail/commercial bank domiciled in Spain, with 50% of its profits coming from Latin America, and 25% coming from Europe outside of Spain. I like the geographically diverse earnings stream.

Santander is paying a juicy 9% dividend, and its American Depositary Receipts are listed on the NYSE as SAN.

Santander (SAN) continues to outperform the general market.

Shares up 18% since my last post verses 6% for the SPY (S&P500)
06-08-2014 09:44 PM
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