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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1 vote
2 answers
38 views

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 ...
5 votes
2 answers
707 views

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 ...
13 votes
4 answers
3k views

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 ...
-1 votes
2 answers
135 views

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 ...
0 votes
1 answer
126 views

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 ...
4 votes
2 answers
1k views

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 ...
-3 votes
2 answers
292 views

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 ...
1 vote
3 answers
98 views

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 ...
0 votes
1 answer
53 views

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, ...
0 votes
3 answers
111 views

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 ...
2 votes
2 answers
474 views

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 ...
1 vote
1 answer
118 views

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 ...
1 vote
1 answer
78 views

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.
2 votes
1 answer
115 views

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 ...
2 votes
3 answers
332 views

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 ...
0 votes
1 answer
73 views

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 ...
0 votes
1 answer
129 views

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.
3 votes
2 answers
869 views

How are various types of income taxed differently in the USA?

From Dilip's reply when you make a withdrawal from your Traditional IRA, no matter which of your various IRA accounts you take the money from, part of the money is deemed to be taken from the ...
5 votes
2 answers
48k views

Is it a pattern day trade if you close position in after hours?

Say I am buying stock XYZ, is it possible to close my position, in this case sell, as soon as open market hours close and not have it count as a day trade or do I have to wait until the next market ...
1 vote
1 answer
143 views

NPS contribution charges and eNPS

What are the benefits of eNPS? How can we avoid (a) POP trail commission & (b) Payment Gateway Charge while making a contribution in NPS Tier-1 account? 3.What is the recommended/generalized % ...
0 votes
1 answer
199 views

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 ...
1 vote
1 answer
262 views

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 ...
4 votes
1 answer
307 views

Fixed deposits in 10 banks vs Mutual Funds

This question is to be answered in terms of security of the money as well as how profitable the investment is. Let's say a person is in India under 30% tax slab. In India, FDs are more secure than ...
1 vote
1 answer
66 views

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 ...
6 votes
2 answers
167 views

Investment Accounts For People That Regularly Change Country

I would like to invest ~$20,000 a year, ideally mainly in funds. I am a British Citizen however I regularly move country, roughly once every 2 years. I have been in the UK for the past 2 years and ...
0 votes
1 answer
56 views

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 ...
1 vote
2 answers
185 views

Do I need to, and how do I, pay tax on income from investing? (UK)

I live in the UK and have recently started doing some small investing (using eToro), buying stocks and such, and I was wondering the following. For important context, I am employed at a company where ...
5 votes
9 answers
13k views

How do you take profit from stock trading while keeping capital invested?

Suppose you buy stocks from company FOOBAR at price X. After a while, the price is Y = X * 1.25, so you decide you want to collect that 25% profit. You sell the stocks, cashing out your original X ...
0 votes
1 answer
274 views

Position size calculator which includes fees in the risk

Problem: I have a position calculator for scalping, but currently it does not include entry/exit fees in my risk calculation. Since scalping, in most scenarios, requires leverage, those fees really ...
1 vote
2 answers
80 views

For mutual funds, does average annual return mean compounded annually or continually or daily?

Vanguard's Portfolio Allocations page (1926-2019) shows 9.21% Average annual return for 70% Equity and 30% Fixed income. Does this mean 9.21% compounded annually? GOAL... If at age full retirement age ...
0 votes
1 answer
118 views

As an investor of a business, how do you prevent the founder from holding back growth? [closed]

If you are an investor who owns 30% of a business and the founder owns 70%, how do you prevent a situation where the founder decides to always take profits and not reinvest them to grow the business? ...
27 votes
6 answers
9k views

What does "not touching the principal" actually mean?

When talking about "trust fund children" or large savings it's common to hear the phrase "not touching the principal", which means that only the "earnings" from the money ...
0 votes
0 answers
32 views

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 ...
0 votes
2 answers
143 views

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 ...
0 votes
2 answers
167 views

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 ...
1 vote
1 answer
90 views

When to use different valuation multiples

My basic question is this: I know that investors can use several different multiples when thinking about valuing companies (P/E, EV/EBITDA, EV/Sales, etc.) but how do you know when to use each one? E....
1 vote
2 answers
122 views

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 ...
0 votes
0 answers
24 views

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 ...
1 vote
0 answers
57 views

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, ...
0 votes
1 answer
30 views

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 ...
0 votes
1 answer
142 views

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 ...
0 votes
1 answer
192 views

Invest in both PPF and VPF

Is one allowed to invest in both VPF (Voluntary Provident Fund) and PPF (Public Provident Fund) in the same financial year and is there a limit on the same?
2 votes
2 answers
86 views

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 ...
0 votes
1 answer
215 views

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 ...
7 votes
4 answers
9k views

Is there a sell-side version of dollar-cost averaging?

I understand the theory behind dollar-cost averaging on the buy-side, and there are many articles about why it does (or doesn't work). But I can't find much, if anything, about its value when selling. ...
0 votes
2 answers
146 views

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.
4 votes
4 answers
2k views

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?...
1 vote
1 answer
120 views

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 ...
0 votes
1 answer
137 views

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 ...
2 votes
1 answer
59 views

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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