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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What to spend money on after getting first good job? [duplicate]
I've finally gotten a good job after several years of searching after I graduated uni. I'm making 80k starting and it's bound to go up (I think) since it's in software/engineering. I'm honestly at a ...
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How to understand this investment portfolio list?
I have a table with the colunmns ISIN, Asset Class, Description, Nominal/Quantity, Market Value CHF. I would like to check how much is invested in a specific company, let's say Boeing. How do I find ...
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Vanguard: Targeted Retirement Mutual Funds vs Targeted Retirement Trusts
I have two different 401(k) accounts and each hold a Vanguard "Targeted Retirement 2040" instrument. I had assumed they were the same, but I just realized that the two accounts actually hold ...
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In the UK, is it more productive to pay wages into a pension than put money into investments?
I am lucky enough to have a sum of money - about £40k - which I have no particular need or pressure to spend. I had been considering investing it in an index fund but one thing that concerns me is ...
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Very basic questions about bond investing
I'm new to bonds and have some very basic questions. Let's say there is a bond distributed by company A. The par value is $100/bond with a coupon rate of 5.35% (semi-annual distribution). The maturity ...
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Do you recommend personal investing (flatex) or investing in stocks through a financial advice company?
I am specifically looking for mid-term investing. I am quite young and want to save some money for the next 5-10 years that will help me build a house or buy an appartment.
My first idea was, as ...
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Margin of safety quote from Graham's Security Analysis
The following is from Benjamin Graham's classic Security Analysis:
Examples of Analytical Judgments. In 1928 the public was offered a large issue of 6% noncumulative preferred stock of St. Louis-San ...
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What does the term backlog mean
Imagine an investor is thinking about buying shares in the XYZ company which is publicly traded. He reads that the company has a backlog of $10 billion dollars in orders. Can he conclude that all ...
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how do robo advisors make cross asset selections?
I want to understand how robo advisor make cross asset selection. We have a history of asset returns and it's standard deviation so we know sharpe ratios for most asset classes or even individual ...
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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....
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Does eToro's Dividend Growth smart portfolio really pay dividends?
Four months ago I started an investment in Dividend Growth on eToro.
I once read that dividends are not automatically reinvested but actually go straight into one's balance. However, I haven't seen ...
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Do I need a green card if I want to find an investor for my startup? [closed]
Should I either wait until I get my Green Card( maybe 6 months) or can I reach to investors with my EAD card if I have a complete mobile application ready to launch + a business plan for that?
PS: I ...
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What kinds of investments are available in Canada to offset inflation impact?
I would sincerely appreciate your advice on the following topic: what kinds of investments are available in Canada to offset (at least, partially!) the impact of inflation?
I am not a financial expert,...
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How does SIPC insurance help a small investor with a fixed portfolio that is currently down below original value?
If your original portfolio was worth $500k started a year ago but the same amount of shares holdings is currently only worth $350k, does it mean you are insured at most $350k? Or all of the stock ...
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When is it worth taking out a loan for something I could pay in cash?
I'm trying to better understand the time-value of money and how to compare interest rates vs. investment returns.
In general, if I can pay for something in cash or short-term credit (paid off monthly),...
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Is it possible to hold stock certificates directly without any counterparty risk whatsoever?
I would like to invest in stocks of various companies, however I am deeply concerned with the counter-party risk that the institution which holds the assets on my behalf carries (e.g., a bank or a ...
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What does "investing in credit" mean?
I have seen saying such as "invest in credit/be long credit", what does it actually mean? For example, I can buy high yield etf which is essentially a basket of low rated corporate bonds. ...
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Are assets held under brokerage at risk of a bank's bankruptcy proceedings?
I know that the FDIC guarantees cash deposits up to a maximum of 250K, but what happens to assets held in a bank's brokerage arm?
For instance, if someone has 10,000 shares of MSFT deposited in a bank ...
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Why is YTW (Yield-to-Worst) not available for some callable bonds?
E.g., I am looking at 67765QDG8 ("Oh St Wtr Dev Auth REV 5% 06/01/2023") on Schwab. It is callable but the yield to worse isn't indicated:
Bond details: https://i.stack.imgur.com/GNt20.jpg (...
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Invest on etf when you are young
I started to work a year ago and I'm putting all my savings in one ETF (SCHD), to have a lot of dividends when I'll turn 60 and then retire.
Is that a good solution, given the fact that I'm still ...
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Is it financially preferable to purchase Treasury bonds on the primary market or on the secondary market? [duplicate]
Assume a retail investor who:
can purchase Treasury bonds on the secondary market through their broker without any fees or markups (e.g., via Charles Schwab).
can only submit non-competitive bids ...
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Why does buying Treasury bonds on the secondary market make it easier to sell Treasury bonds at a later date?
I read:
Buying on the secondary market also makes it easier to sell Treasury bonds at a later date.
Why does buying Treasury bonds on the secondary market make it easier to sell Treasury bonds at a ...
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How can one compare the yield of a municipal money fund with the yield of a municipal bond?
Let's consider the following municipal money fund and the following municipal bond:
The Schwab Municipal Money Fund (Investor Shares) (SWTXX) discloses a 7-day yield (with waivers) as of 02/28/2023 ...
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Are there any downside in investing in a municipal money fund instead of purchasing municipal bonds assuming the money fund's yield > muni bond yield?
I wonder whether there exists any downsides in investing in a municipal money fund instead of purchasing municipal bond, assuming the money fund's yield (tax-free) is higher than the muni bond yield (...
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How should I invest if I have much disposable income and cash on hand?
I'm a 29-year-old living in Europe and I'm looking for some investment advice.
I’m fortunate enough to be earning roughly $28k per month after tax, and I currently have about $400k in cash sitting in ...
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What are the downsides, if any, of purchasing bonds on the secondary market instead of the primary market?
Let's ignore the transaction fees from my broker, which tend to be higher for the secondary market. Are there any other downsides of purchasing bonds on the secondary market instead of the primary ...
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How shall one take into account the accrued interest when purchasing a bond on the secondary market?
For example, I'm looking at the following US Treasury bonds ordered by decreasing yield to maturity (YTM) on Charles Schwab:
If I simply want to maximize the returns, assuming no default risk, should ...
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How to pick an initial investment mix
Assume I have a task at hand to construct an investment portfolio. At first I need to allocate the main parts and choose small/large caps, emerging markets, fixed income etc. I would think there are ...
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What is the way to get money managed without hiring a personal financial advisor?
What is the way to get money managed without hiring a personal financial advisor? I do not think I need any personalized approach, I'd rather have a target retirement date and I would like to get ...
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How to structure a company/entity that accepts money from friends/family to invest and gain interest/dividends/gains?
I have a few interested friends and family that are looking to invest money. They come with various backgrounds/experiences in investing but given a connection they are willing to try a different ...
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Investing in basket of stocks in the style of ETF but without re-balancing
Is there any product that offers you to at once buy baskets of stocks according to the market at that moment (or some time in the past) like ETF's do but without any re-balancing after?
I think a ...
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Empirical evidence on active vs passive investing
Many people believe that passive investment (say buying into an ETF) typically outperforms actively managed funds because the latter induce more fees.
Are there any (solid) empirical studies ...
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Using a trust vs stocks to purchase land
I plan to purchase land to build a new home within the next year. I am receiving an inheritance in the form of a trust account; the account is in my name and I am also the trustee. I had planned to ...
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Can chinese investor buy stocks in indian stock market?
I have seen some material on the web such as "New Foreign Investment Restrictions Imposed by India",New Foreign Investment Restrictions Imposed by India.
In the article:Historically, ...
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Best way to invest emergency fund
Asking from the EU. I have emergency fund in a savings account yielding almost nothing. What is the best way to growth this emergency fund without taking too much risks, ie. not investing in stocks. I ...
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What is the easiest and cheapest way to invest to HY corp bonds?
I would like to invest in high yield US debt. Picking companies with that rating sounds very involved and I don't have the knowledge for it. Do I buy index or ETF instead? Or what is the easiest and ...
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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 ...
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Trying to understand stock share dilution
Say I pay $100,000 for 10% of a new company founded by a entrepreneur, and then the entrepreneur decides to give 20% of the business to person X, for free, as they feel person X can add tremendous ...
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Cross Brokerage Wash Sale Help Needed
The following trades happened in a month:
Day 4: Bought 83 Shares of Company A using Fidelity
Day 5: Bought 118 Shares of Company A using E-Trade
Day 7: Sold 118 Shares of Company A bought in E-Trade ...
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Why is EPS looked at much more than FCF/S (Free Cash Flow Per Share)
I understand that eps is an important metric to look at when analyzing a company. (And I wont go into all the details of eps) But at the end of the day, the amount "you" have in "your&...
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Formula to calculate time needed for an investment to meet a goal
Given the following.
Target (t): 100000
Initial Capital (c): 2000
Monthly Contribution (pmt): 1000
Yearly contribution Growth Rate (k): 3
Rate (r): 5
C/Y (y): 1 (Compounded annually), 12 (Compounded ...
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Starting a family fund, owned by a parent company?
first post here.
I have been doing some research, but I am still not 100% sure on this. A little background: I live in NY state, have a Bachelors Degree in finance and data analytics.
My situation: I ...
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Selling covered calls when the contract is over 5x the cost of the stock share
I just discovered that a stock I've held onto a few hundred shares of for a while, which is currently trading for about half what I paid (under a dollar a share) has an options contract for a covered ...
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Curious observations about efficient frontier calculations
I was using Portfolio Visualizer to try out a few efficient frontier calculations. You can run the same calculation using this link. I find it quite curious: 1) What causes Portfolio 2 to stop at σ ~ ...
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Cashing out of mutual funds for a large purchase
It's currently January, and I am looking to make a large purchase some time between April and July.
About 60% of the money I want to use for the purchase is currently held in mutual funds in a ...
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What is the best way to manage my savings and possibly increase my cash flow despite inflation in Egypt?
With the very quickly rising prices in Egypt, What is the best way to manage my savings and possibly increase my cash flow?
I’ve also got some ideas, Are they good or not?
Ideas that I have:
Work as ...
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If I can continuously get short-term interest free personal loans with no fee, is there a way that I can use this money to generate more money?
I can get a $120 interest-free loan each day, but I need to return the money in 30 days (when my credit card bill is due). There is no fee I need to pay; instead, I can get small cashback from this ...
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Second opinion on investments
I'm working with a finance professional to receive guidance on investing and retirement planning for down the road. We like the individual that we are working with but he/she is compensated via sales/...
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safe investment for maintaining purchasing power
I have $100,000. I am going to need the money over the next year.
I want to protect its purchasing power relative to inflation and also have some reasonable low risk return.
What would be a good ...
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Calculating XIRR from XIRR of multiple portfolios
I have two portfolios of mutual funds, each showing its respective XIRR. I would wish to know the XIRR of my all portfolios to evaluate how every portfolio or investment strategy is working. Is it ...
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