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Questions tagged [investing]

Investing is growing money over a longer time frame. When appropriate a specific tag like stocks, mutual funds etc should additionally be used.

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79 views

Can debt increase ROE?

I have the following statement which can be true or false. A company with operational rentability (EBIT/Assets) of 11% (after income tax of 30%) analyses taking debt. If the credit consists of 16% ...
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0answers
56 views

What advice do you have for a non-US resident with savings in the US?

I don't live in the US anymore and I'm not a US citizen, but have formerly worked in US and thus have savings in the US. I wanted to invest in a simple index fund, but can't find an option for non-US ...
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82 views

Does investing global mutual funds with 15.4% foreign income tax worth it?

I'm living in Korea and already investing in global mutual funds with foreign income tax reduction benefits. But there is no investment with such benefit anymore. So I'm considering normal global ...
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1answer
44 views

AIG Single Premium Deferred Fixed Annuity

I would very much appreciate if someone could explain the "investment" benefits of a Single Premium Deferred Fixed Annuity. I know NOTHING about this type of investment plan, which my financial ...
0
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1answer
88 views

Is it a good idea to invest in buy-to-let if rent does not cover mortgage payment?

Background: To benefit from current favourable interest rates in my region (France: ca. 1.5%pa fixed over 20 years), I am considering investing in a buy-to-let property. I consider that interest ...
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1answer
30 views

Calculating approximate returns based on IRR

Given an investment opportunity, which quotes an IRR of 10% (for example), is it possible to calculate an approximate return on investment? Let's say the project life is 5 years and money invested is $...
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1answer
31 views

Is it likely for large buy to open orders to be filled on thinly traded options?

Suppose you are very bullish or bearish on a stock but its options are thinly traded. Some stocks have an options market that doesn't exceed $200,000 even around earnings time. Say you want to ...
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1answer
62 views

Please help me to calculate IRR in Excel using following numbers? [closed]

9/15/18 -1,000 investment 10/1/18 -2,000 investment 11/1/18 -1,500 investment 12/15/18 -1,200 investment 1/1/19 -1,000 investment 2/3/19 10,000 payoff
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1answer
80 views

Best Roth IRA stock brokerage account? [closed]

I'm planning on mainly trading stocks and a few mutual funds in my Roth IRA. I hate paying commission on trades, but I also realize the brokerage has to be reputable/reliable before I invest in it. ...
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0answers
49 views

P/E & P/B of stocks purchased by Warren Buffett

I am looking for data about Warren Buffett's famous purchases. For e.g. when Warren Buffett purchased stock of Coke, American Express, Moody's & other of his long term purchases what was the P/...
6
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1answer
207 views

Why is investment income generated in a corporation taxed at a higher rate than when it is generated for an individual?

I often have a hard time understanding my accountant so I ask others to interpret what he said. I welcome insight from experience gained in any country with similar tax laws (doesn't have to exactly ...
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2answers
150 views

Pros and Cons investing in domestic currency

As a Swedish citizen and investor, what would be the pros and cons of investing in instruments in "kronor" instead of say dollars or euros, in the long and short run? One pro would be the fee to ...
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2answers
107 views

Tax optimization when moving to the US

I am moving to California from New Zealand. Most likely in December this year. I have some US ETFs in my brokerage account, so the questions is if it's better to sell them before I move and then re-...
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2answers
203 views

What is the difference between “trading in stock” and "investing?

I have no finance background and most people are saying trading in stock is not investing. I would like to know what actual investing is and if trading in stock is not investing. Then what are ...
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1answer
39 views

Canopy Growth Corporation (CGC) Valuation

I was looking at the financials of a Pot company and saw that over the past years, their total assets as well as their equity increased while at the same time, they were losing money and their net ...
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3answers
187 views

Why do the balance sheets of some large firms not balance?

I'm working my way through some accounting textbook and struggling to understand why some balance sheets on Yahoo Finance don't balance, as in: total assets - total liabilities != total shareholders ...
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2answers
42 views

How do I equally disburse appreciating assets over a fixed timeframe?

First, I apologize if the title is confusing or if there is a better wording. I am unfamiliar with many finance terms, so there may be something accurately describes my problem. I am trying to ...
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2answers
189 views

As a teenager, what's the best way to learn about investing? [closed]

I'm a 16 year old from India who wants to learn the basic principles of investing in order to secure a better future for myself. I've been reading quite a bit on various websites but those that I ...
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1answer
43 views

Short duration corp bond ETF

I am considering a short duration corp bond ETF to get some interest on my money which is starting pile on on my zero interest account. I am however concerned about the fact that we have had low ...
0
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1answer
28 views

Vanguard CRSP total index versus a value and growth combination of the same index?

I am currently researching Vanguard Mid-Cap and Vanguard Small-Cap indexes. The methodology for inclusion in these indexes is outlined in the CRSP Methodology Guide. According to the guide, inclusion ...
2
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1answer
69 views

Where do Master Limited Partnerships (MLP) lie on the risk/yield spectrum?

MLPs are required to pay profits to their limited partners. Dividend stocks can choose to stop paying dividends. Corporate bonds payments are fixed interest (a set number) but MLP payments are usually ...
2
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1answer
50 views

How to estimate the profitability and risk of investing in rental properties?

There was a recent question, Is it a good idea, to buy a flat with a loan, whilst using the rent to pay it off?, which was closed due to asking opinion-based advice. However, the question can be ...
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1answer
42 views

Characterising risks of an corporate/goverment bond ETF's

I have been looking at different conservative investment strategies such as 50/50 "interest fund", "global stock fund" and "the permanent portfolio". As an alternative, I was looking for corporate ...
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1answer
38 views

Effect of FED/ECB interest rate on EUR/USD exchange ratio

In 2016, the ECB has lowered interest rate to 0%. Some people assume that within the next few years, the ECB will increase the interest rate. How would that most probably affect the EUR/USD exchange ...
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3answers
154 views

How can a UK resident make small investments in non-pound assets?

I'm a UK resident and citizen, who, to provide a little security in terms of potential future currency fluctuations, would like to hold some assets that are not valued and traded in GBP. Ideally they ...
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1answer
55 views

Formula for calculating future value of my investments

I'm new to investing and want to know, how to calculate a future value of my investments. Let's see an example: I can buy every year SPY ETFs for 10k for 10 years from now What will be the FV of my ...
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2answers
70 views

Are there situations where asset appreciation is not desirable?

I'm trying to think of situations where an investor would not want an asset to appreciate significantly. Instead, the investor would want the asset to retain its original value without significant ...
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2answers
138 views

How to calculate how long my money would last

I want to calculate how much money I'll need in retirement. For that I want to calculate how long my money will last. I'm not sure if there is a formula for that. Lets say we have this simple ...
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1answer
86 views

What is the difference between SWK, SWJ, and SWP (Stanley Black & Decker)

Stanley Black & Decker seems to have three symbols on the NYSE. SWK: Stanley Black & Decker, Inc. SWP: Stanley Black & Decker, Inc. CORP UNIT 2017 SWJ: Stanley Black & Decker, Inc. JR ...
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1answer
30 views

Implied volatility for options

To predict where a stock might trade at a year from now, you use a formula based on HV, stock price x IV, and that provides an assumption of where the stock might trade at a year from now. When ...
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8answers
230 views

Does ROE project future returns?

Let's say I have $10,000 to invest and I want to invest all of that money in Apple Inc. (AAPL). Just for the sake of argument, looking at Apple's ROE for as far as 2008, I realize it almost never ...
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1answer
132 views

Stock market investment books written by scientists, mathematicians, or statisticians?

People from these backgrounds are more likely to have valid ideas rather than the speculative humbug of many other writers. Books I have found so far: Burton P. Fabricand, The Science Of Winning, ...
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1answer
112 views

Should I become a landlord (effort required for positive cash flow) or keep the money in ETFs until I settle down? [closed]

Serious answers only. I'm 22 years old, I started working full-time 5 months ago, and I'm trying to decide if it's better to spend the time, effort and money to invest in a townhouse and become a ...
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2answers
35 views

Is the limiting factor in the volume of the options market options sellers or option buyers?

For example, options trade volume is less than that of equities, and most option trading is concentrated amongst a small group of top companies. However, that doesn't mean that there are profitable ...
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1answer
131 views

Who are the holders of stocks on the market?

Is there a source that documents who are the holders of stocks on the market? I am especially interested in the distribution of big players such as BlackRock, Vanguard and private investors. I.e. 70% ...
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3answers
96 views

Investments with constant change of residence around the world

Let's suppose I have a given amount of money that I desire to invest for a long-term goal, e.g. 15-20 years, and that my job makes me change residency in several parts of the world, i.e. during this ...
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1answer
183 views

When a stock is replaced in an index, does the ETF incur a net loss?

Suppose I have invested in ETF VOO. This Vanguard ETF tracks the S&P 500. If a stock such as Goodyear (GT) that is contained in the S&P500 gets removed and replaced with another stock such ...
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1answer
44 views

A question about CAPEX when Calculating Free Cash Flow (FCF)

When performing the following to determine free cash flow: Free Cash Flow = Operating Cash Flow - Capital Expenditures Do I include only Capital Expenditures (13,732 in the example below), or do I ...
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2answers
142 views

how to find out if a company has stock/shares to invest in?

Scenario: Lets say I'm walking down main street and a company or two catch my eye as possible investment opportunities. How do I go about finding if they have stock/shares to invest in? Some may ...
0
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1answer
52 views

Extension risk with IO bonds

I'm trying to understand the extension risk associated with interest only bonds in a CMO. When rates rise, prepayments drop, and so the life of the IO bonds is extended. This causes the value of the ...
0
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1answer
43 views

ETF annual expense ratio: how to calculate on a portfolio?

I'm building a portfolio on Excel that includes the following data: price at purchase number of shares commission/fees current price How should I calculate the impact of the Annual Expense Ratio to ...
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0answers
90 views

Regulations regarding investing in a private business

There have been a couple of years where, after maxing out contributions to retirement accounts, I've had some disposable money left over that I'd like to invest in something other than publicly traded ...
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3answers
154 views

What prevents leveraged ETFs from exceeding their underlying value in times of high demand?

For example, today SPY decreased -3.17% and therefore the 3x Bear SPY ETF, SPXS, increased 9.85% - roughly equivalent to 300% inverse (310%). What if you somehow foresaw the decrease early in the ...
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1answer
102 views

How can I find out about shareholder perks?

I recently read an answer to a question here that talked about holding certain investments to reap perks for shareholders (I don't recall the question offhand). I'm interested in finding out more ...
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3answers
405 views

Keep or sell my index funds?

I am a newbie investor in general and I bought index funds a few months ago and I contribute regularly. I've read that many advise keeping index funds even during depression or bear markets and ...
2
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2answers
196 views

Am I confused about how to diversify into bonds?

I held several Vanguard equity ETFs (VFIAX, etc.) I wanted to diversify into bonds (as discussed in "A Random Walk Down Wall Street"), so I sold some of them and bought BLV. As stocks have declined, ...
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2answers
197 views

Is it possible to run a successful investment company by hiring employees and a CEO, and not be actively involved in the day to day work? [closed]

I was wondering if it was possible to successfully run a hedge fund, venture capital firm, mutual fund, or private equity firm as an owner by financing it entirely with your own money, hiring ...
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2answers
103 views

Does option demand influence option price?

Option prices are largely influenced by their intrinsic value: the underlying price, and the strike price. However, what effect do other factors have, including option demand? Is this ever reflected ...
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2answers
151 views

When should one book profit in investing? [closed]

I would like to know if there is any theory/strategy behind booking profits when it comes to investing? Many times I have observed the stocks rallied 20-40% in the span of 2-4 months. Since I am ...
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0answers
43 views

When should non-resident alien investors file IRS taxes?

I am a non-resident alien with a tax residency in my country of origin. I have opened an investment account with a broker in the United States. What (if at all) do I have to file with the IRS?