Questions tagged [investing]
Investing is the process of buying assets such as securities, real estate and other items of value that will hopefully increase in value over time, providing a return in the form of income payments or capital gains.
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NPV in trade projects
The question must be very simple but I'm still struggling.
Let's suppose that I have an import-export business. Then I have a discounted CF which is formed by subtracting all costs & taxes from ...
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How could the percentage exceed 100 here?
I'm reading The Little Book of Common Sense Investing and in chapter 11 it has a prologue,
IN SELECTING MUTUAL FUNDS, too many fund investors seem to rely less on sustained performance over the very ...
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Why doesn't my bond ETF provide a hedge against stock indexes in the way I thought it would?
I own BND in an attempt to hedge my portfolio against my stock ETF declines, based off of the Bogleheads philosophy. I've noticed that with this ETF, over the relative long term, I've made but modest ...
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Is Limit Order classified as Trading rather than Investing?
I had a question, and a Scholar has commented below.
Sounds like you're trading rather than investing. Good luck; you're going to need it
So my questions are below( despite my very long and monetary ...
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Acquisition/Share holding question
I am trying to figure out my share calculations. I have vested 10,000 shares in my company and they are a private tech company that seems to be on track to be acquired in the next six months. Do I get ...
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How do you calculate the proportion of shares required to formulate a minimum risk portfolio?
An investor has decided to invest 1 million in the shares of two companies, company E and company B. the projections of returns from the shares of the two companies along with their probabilities is ...
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Where can I look up total returns of stocks, ETFs, and mutual funds? [closed]
I'm looking for a free way to look up total returns of various stocks, ETFs, and mutual funds. FinanceCharts.com lets me save lists of stocks and ETFs and view total returns for various time periods, ...
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What is the correct Formula for calculating fund growth with fees
I am considering two different options for a roth IRA. A managed fund that has a higher historical growth rate but 1% fee and a self directed vanguard account, which would have a lower growth rate but ...
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Use HSA for medical expenses or save it for investment?
If investment growth using an HSA account is not subjected to taxes, then isn't it better to invest using HSA than investing on stock platforms like Fidelity or Robinhood?
When I use the funds in the ...
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Can I buy stocks on Vanguard SIPP from UK
I currently have a SIPP account with HL. But I want to transfer my account to Vanguard as the annual account fee is much cheaper with Vanguard. However I don’t know and couldn’t find any information ...
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Can you sell REITs any time?
What is the general liquidity of REITs? I got some recommendations from stocks to track but having no experience buying and selling REITs.
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What are the differences between real estate investment trusts (REITs) and Real Estate Index Fund ETF?
I attended a course on Financial Literacy, and it is intriguing to learn about the various investment opportunities available in the market. One particular topic that piqued my interest was Real ...
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Quickbooks: how to keep track of mortgage installments as expenses?
I am new to Quickbooks. Anyone can help answer this quick question? I need some help figure out mortgage installments bookkeeping rules.
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How would investing in fractional real estate affect my tax situation? If I invest in properties in multiple states, do I need to file tax in each?
Based on our personal experience, we've had to file separate state taxes while managing rental properties from out of state. I'm curious whether the same situation applies if we invest in REITs or ...
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Employees buying the company’s stock for lower price
There are three stocks I’m aware of (CHPT, EVGO, LCID), which crashed right after they reported that workers and “big stake” investors are allowed to purchase a big amount of common stocks for a lower ...
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How to calculate min. investment amount to reach certain buy in
I invested in a stock which is now 70% in minus. So now imagine I believe it will come back. I want to use the low to invest more money but I'm not sure how much. How do I calculate the necessary ...
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Par value less than annual dividend for preferred stocks?
Hey I am just skimming through the chapter 18 of the book intelligent investor by benjamin graham with commentary Jason Zweig. Pg:447 It basically compares Real Estate Investment Trust with Realty ...
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Credit Investing - Best Metric To Compare Spread / Yield Per Unit of Risk
Do people investing in credit (leveraged loans / high yield) that want to compare different industries / different valued businesses ever look at spread per turn of LTV (or the inverse, 1/LTV = asset ...
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Why should I use ROIC instead of P/E given that that is the price I'm paying to buy stock?
What are the advantages of using ROIC (Return on Invested Capital) as a key financial metric for analyzing stocks compared to P/E (Price-to-Earnings ratio)? I'm particularly interested in ...
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Can I carry forward investment interest expense even if I take the standard deduction? [duplicate]
On IRS 2022 Form 1040, if I take the standard deduction, I don’t think I’m allowed to deduct investment interest expense on Schedule A, line 9, but can I still file Form 4952 to report any disallowed ...
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Challenges Faced by US Expat in Germany: Seeking FATCA-Compliant Investment Solutions
I have been a US expat in Germany since 2005, aiming to establish an investment portfolio here. Regrettably, I've encountered obstacles preventing me from doing so.
As a US citizen living in Germany, ...
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P/E ratio definition
According to Wikipedia, the Price-to-Earnings ratio has units of years. So a high P/E ratio, for example 80, would imply it would take 80 years to earn back the share price if earnings remained ...
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How to deal with multiple IRR and no IRR situation?
I was doing analysis for a project to be taken which is for a short duration and which has inconsistent discount rates to be applied, thus I cannot use Modified IRR and neither NPV, but I am facing a ...
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Comprehensive Investment Strategies: Does Going Beyond S&P 500 ETFs Pay Off?
I am intrigued by investment strategies beyond S&P 500 ETFs. How significant is the impact of elements such as international stock ETFs, bond ETFs, real estate ETFs, commodity ETFs, or additional ...
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What kind of investment strategies are typically employed when investing at the industry level?
I know economic sectors such as industries represented by SIC codes or GiCS codes are often covered in depth by analysts and some specialize at the industry level rather than stock level. At least ...
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What does the Max annual charge mean on this fund?
I am looking at this fund:
https://markets.ft.com/data/funds/tearsheet/summary?s=LU0067412154:USD
Under the summary tab, in the Profile and Investment Heading, it lists in a table format the Ongoing ...
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Do CFD brokers ban profitable clients from trading on their platform, since these clients make them lose money?
Many CFD brokers make money from trading against their clients and profitable clients make them lose money. This is similar to how casinos operate. Casinos ban profitable customers. Do CFD brokers do ...
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As a young person in Austria, what steps should I take so that I can buy a house someday
As the title states I am a 21 year old living in Austria.
I'm currently working in software engineering and make a decent living (34k/year net)(I also expect that figure to go up by ~30% over the next ...
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Calculating Canadian Capital Gain or Loss After Loan and Investment
Consider the following hypothetical scenario involving trading with margin in Canada w/ made-up exchange rates:
I take out a $100,000 USD loan on Jan/01 - ($150,000 CAD)
I lose all of it immediately ...
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Is a stock ISA simply the account one uses to invest in investment platforms?
No matter what I read/watch, it isn't quite clear to me if a stocks/shares ISA is one of the following two:
an account where I can put some money into, and then invest that same money (by linking it ...
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Investing small portion of assets with financial advisor
I have seen most financial advisors charge a fee on managed assets amount. Instead of having all assets with FA, can I just have 10 percent managed and then scale up the rest myself on another account?...
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betting on rates going down using bonds
There is a strategy that I am thinking of and would love to know about downsides: people buy/sell bonds to have a guaranteed return if held to maturity. But they also buy to take a directional view on ...
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How do I adapt US investing advice to other countries?
The 99% of investing resources on the internet seems to be US centric. How would I adapt the ideas I get from the to do investing in other countries? Say for eg, Germany or India.
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Is there a point in purchase a stock that will never pay dividends? [duplicate]
Let's assume theoretically that a company will never ever pay dividends. Is there any point to owning its stock? Eventually after a thousand years it will either grow to an extremely large size or it ...
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Selling shares of a publicly traded partnership?
I invest in individual stocks and some ETFs through a stockbroker. Last year, I bought less than $200 worth of shares in a company, which I did not realize was a publicly traded partnership until I ...
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Are high yield savings accounts as secure as money market checking accounts?
I do asset allocation: 10% in cash. 40% in equity mutual funds. 60% in bond mut funds.
I've had the cash in Vanguard money market funds.
Wondering about keeping some of the cash in HYS account to ...
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Do you use the trade date or settlement date for CRA reporting capital gains, especially for exchange rates?
Suppose you engage in the following investment transactions while a Canadian resident:
(Buy MSFT) Trade Date: Jan 1st. Settle Date: Jan 3rd.
(Sell MSFT) Trade Date: Jan 10th. Settle Date: Jan 12th.
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How is fundamental analysis done on index funds?
What are the sorts of fundamental analysis done at the index level? What methods & metrics are used for determining the under/overvaluation of something like the S&P 500 index fund?
Do large ...
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confusion about gamma and gamma portfolios
Generally, a long gamma portfolio will make money when the underlying:
(a) out-realizes the historical volatility (measured close to close)
(b) out-realizes the implied volatility (more than making ...
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What is the acronym for investments that only billionaires can make?
Some time ago I read that when a product had high profitability possibilities, investments were opened exclusively to billionaires and any millionaire, no matter how much they met the required amount, ...
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Terminology to describe period of time when return is negative?
These chart show the value of SPY in 1996 and 2009
Please refer to the scenario (screenshots in the link above) where someone purchased 1 share of the market in 1996, and sold at the trough in 2009.
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Investing on someone’s behalf UK
If I wanted to invest on my friends behalf for a percentage commission to them, do I need a license to do this?
Is it as simple as registering with someone if this is the case?
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risks when using diversification with leveraged ETFs
Assume I am constructing a portfolio picking N sectors and investing in them. They, on average, it will generate an average return and I will be diversified well if N is large. The next step I could ...
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What is the point of portfolio diversification?
I am looking for intuition here. I understand that diversification decreases the variance of the portfolio. However, what I am confused is that it also effectively decreases the return.
Assume I have ...
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Why use NOPAT as numerator for ROIC
I have been researching online, and it appears that the prevailing recommendation is to use NOPAT (Net Operating Profit After Taxes) for calculating return on invested capital. The purpose of using ...
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How to calculate the APY of an investment account?
I find it helpful to view every kind of account in terms of its current value and APY rate.
I know it doesn't technically make sense for an investment account that holds unpredictable stocks and thus ...
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Why does a business with an ROIC greater than its NOPAT growth rate means that the business is "generating excess cash"
In Michael Mauboussin's "Capital Allocation" paper (https://www.morganstanley.com/im/publication/insights/articles/article_capitalallocation.pdf) he frequently references the idea that a ...
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Can I hold gold as much as I like at home in the US?
Is it legal to store physical gold at home in the US? If so, what taxes may be applied on the gold held at home, in form of both jewelry or raw gold?
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Student loan repayment strategy - pay little by little or a big chunk at once before interests kick in?
I am a 29-year-old student who was graduated this month and looking for an apartment to rent.
I have a job offer for $109K/year but that won’t start until September.
$145K student loan with the ...
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Buying stocks after a successful but excessively diluting seasoned offering
I regularly see companies offering seasoned equity with a subscription right and whose capital increase is successful but whose stock still dips a few days after below the rate of the subscription ...
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