What investments are you getting in to? Funds? Stocks? Gold? Virtual currency???

[Erehy Dobon]

I'm not sure what you mean by "accredited." You don't need some sort of certification to be a serious investor. Look at Warren Buffett.

However it's not all that difficult to imagine the makeup of this discussion's participants.

There are maybe 2-3 people here who actually pay their bills with their investment earnings.

The vast majority are the 401(k)/pension fund types who added a few shares of AAPL as a fanboy tribute. Call them hobbyist investors if they had other holdings that they picked on their own.

There are a few active traders and the usual representation of dilettantes.

It is not difficult to identify these groups based on their word choice and the investment decisions they have divulged. This is not specific to this particular discussion or forum.

The same could be done on a cooking forum, a discussion for CPU overclocking, et cetera. You can tell who the pros are, who the serious amateur enthusiasts are, the smart novices, the clueless ditwits, the dilettantes, et al.

 

[KaliYoni]

I'm not sure what you mean by "accredited.

It is a SEC definition that is used for compliance purposes. It's relevant here because a recent post asked if anybody made angel or venture capital type investments.

 

[KaliYoni]

Apple board and shareholders just voted to increase shareholder dividends.

That also can be interpreted as Apple saying, "we think shareholders can make better use of this cash than we can." That's not necessarily a bullish signal.

 

[KaliYoni]

Warren B. is right....Mgmt. is almost always one of if not THE key criterial for investing in individual companies.

I view another Buffett rule as equally important: to always have a margin of safety, relative to price and valuation, when making a trade.

 

[Erehy Dobon]

That also can be interpreted as Apple saying, "we think shareholders can make better use of this cash than we can." That's not necessarily a bullish signal.

Apple has been doing this for years. Sure, maybe you will make more ROI investing in NVDA, TSLA, AMD, whatever.

Apple isn't going to start investing in the competition or other equities on a large scale.

In any case, the dividend is a tiny fraction of Apple's profit.

Since the AAPL dividend is a fixed dollar amount per share (rather than a percentage) they pretty much have to increase dividend payout as the stock price increases just to maintain the same yield rate.

 

[svanstrom]

It is a SEC definition that is used for compliance purposes. It's relevant here because a recent post asked if anybody made angel or venture capital type investments.

I actually assumed almost everyone here being amateurs; so it would be a more hands-on involvement rather than a professional level of investing. More like help cofound, help take a business to the next level; things like that.

 

[Erehy Dobon]

It is a SEC definition that is used for compliance purposes. It's relevant here because a recent post asked if anybody made angel or venture capital type investments.

Oh, okay, in the context of angel investing/venture capitalism, that makes sense. Not sure how many of those types frequent MacRumors.

In any case The Jumpstart Our Business Startups Act of 2012 removed some of the regulatory hurdles for small business investment. Non-accredited angel investors can use crowdfunding platforms to invest in small companies (the Kickstarter movement).

Moreover, it's not particularly difficult to meet the SEC's requirements to be an accredited investor as an individual. The $200,000 annual income is more of a stretch than the $1 million total net worth

Accredited Investor: Duties and Requirements

An accredited investor is authorized by the Securities and Exchange Commission to invest in unregistered securities such as pre-IPO shares.

www.investopedia.com

The $1 million net worth covers a very large number of people here in the SF Bay Area.

As the Investopedia entry mentions, there's no specific procedure to become an accredited investor. You are or you aren't based on the current SEC definition.

 

[Erehy Dobon]

I actually assumed almost everyone here being amateurs; so it would be a more hands-on involvement rather than a professional level of investing. More like help cofound, help take a business to the next level; things like that.

Again, there are several people here who appear to be retail investors who are able to make enough to earn a living that way.

They might not be a fund manager, venture capitalist or someone like Warren Buffett but if you make a living being an investor, by definition you are a professional (not an amateur). That doesn't necessarily make you good.

 

[sjsharksfan12]

Does anyone have a good paper trading platform that is not Think or Swim? I already have a Fidelity Account and I don't plan to leave it, but I want to learn how to trade option strategies (Like Verticals) and I have been rejected by TD Ameritrade for an account. They wouldn't say why, but I am looking for another platform, and where I can get some good education on how to utilize different option strategies. Does anyone have any advice?

 

[KaliYoni]

Since the AAPL dividend is a fixed dollar amount per share (rather than a percentage) they pretty much have to increase dividend payout as the stock price increases just to maintain the same yield rate.

Do you think a significant enough number of AAPL holders bought the stock for dividend yield that Apple sees dividend management as strategic?

On the institutional side, a lot of AAPL has been bought by active managers because so much of the price-based gains over the last few years has been driven by AAPL. They can't afford to be left behind. And a lot of index funds have to buy AAPL regardless of yield, of course, because AAPL is in a lot of indices.

For retail holders, my bias is towards thinking most bought AAPL looking for growth, not dividends. There are a lot of other companies with more shareholder friendly cash management, broader product and customer bases, and unbloated valuations that provide an equal or better yield.

Please note I'm not attacking your thinking; I'm just interested in learning more about your perspective.

 

[KaliYoni]

some good education on how to utilize different option strategies.

I don't know anything about your background or experience so this might be way off base. But I have two quick thoughts:

• Treat any broker-provided training with some skepticism. They have a lot of incentives that don't always coincide with your interests.
• Many option trading firms use Option Volatility and Pricing (Sheldon Natenberg) as a textbook in their training programs for employees who are slated to become traders.

My personal opinion is that it is really hard for individuals to do well trading options. A lot of the edge needed to be profitable consistently comes from being on a trading floor (information, market movements, trade execution) and from having access to lots of capital (hedging, withstanding losses, risk management).

 

[sjsharksfan12]

I don't know anything about your background or experience so this might be way off base. But I have two quick thoughts:

• Treat any broker-provided training with some skepticism. They have a lot of incentives that don't always coincide with your interests.
• Many option trading firms use Option Volatility and Pricing (Sheldon Natenberg) as a textbook in their training programs.

My personal opinion is that it is really hard for individuals to do well trading options. A lot of the edge needed to be profitable consistently comes from being on a trading floor (information, market movements, trade execution) and from having access to lots of capital (hedging, withstanding losses, risk management).

I know how to sell covered calls and sell puts. I'm just looking to expand that knowledge, mainly doing Vertical Spreads.

 

[Erehy Dobon]

Do you think a significant enough number of AAPL holders bought the stock for dividend yield that Apple sees dividend management as strategic?

On the institutional side, a lot of AAPL has been bought by active managers because so much of the price-based gains over the last few years has been driven by AAPL. They can't afford to be left behind. And a lot of index funds have to buy AAPL regardless of yield, of course, because AAPL is in a lot of indices.

For retail holders, my bias is towards thinking most bought AAPL looking for growth, not dividends. There are a lot of other companies with more shareholder friendly cash management, broader product and customer bases, and unbloated valuations that provide an equal or better yield.

Please note I'm not attacking your thinking; I'm just interested in learning more about your perspective.

No, I do not think that a significant number of investors buy AAPL for its dividend yield. After all, the stock traded for decades without a dividend.

But the fact of the matter is that if Apple reduces the dividend yield (especially when it is highly profitable), people will complain. Apple is pretty much obligated from a public relations standpoint to incrementally increase their dividend payout so the yield rate doesn't drop.

Their cash pot has steadily grown, it's not like they've figured out a great way to use it all up to grow the business.

Apple still has plenty of cash to grow the business, acquire new companies, buy back stock, etc.

People who want substantial dividend yields should look elsewhere. However big institutional investors also would raise their eyebrows if Apple cut their dividend yield. Do you think a large pension fund like CALPERS would be enthusiastic to see the AAPL dividend yield rate go down?

Remember when IBM cut their dividend? Not the happiest of times for them. Amusingly IBM is still more of a retail stock than AAPL (55% v. 59% institutional ownership).

 

[vipergts2207]

I don't know anything about your background or experience so this might be way off base. But I have two quick thoughts:

• Treat any broker-provided training with some skepticism. They have a lot of incentives that don't always coincide with your interests.
• Many option trading firms use Option Volatility and Pricing (Sheldon Natenberg) as a textbook in their training programs.

My personal opinion is that it is really hard for individuals to do well trading options. A lot of the edge needed to be profitable consistently comes from being on a trading floor (information, market movements, trade execution) and from having access to lots of capital (hedging, withstanding losses, risk management).

I started trading options several weeks ago and have managed to do well on all of my option trades except one. In that one I sold a covered call at a price I really did not think the stock would reach in such a short time period. Ended up buying it back at a higher price so I didn’t have to part with my shares. I’ve really enjoyed being in and out of SNDL puts. If it hits $1.60 tomorrow I’ll be back in them again. Possibly TLRY puts too if it goes meme stock again. Bought some $19 July APHA calls yesterday when it was down something like 12% and they’re ITM already. Just wish I’d bought a few more.

 

[KaliYoni]

vipergts2207: sounds like you can be the one to show sjsharksfan12 the ropes, then!

 

[vipergts2207]

vipergts2207: sounds like you can be the one to show sjsharksfan12 the ropes, then!

While I’ve had some decent success so far, I can’t help but feel that would be the blind leading the blind lol.

 

[vipergts2207]

Looks like GME is going meme stock again in pre. Might buy some March 12th puts, though they're pretty expensive right now. A single $80 contract will run you $3k. Though that was pricing at close yesterday so market open may drastically change that.

Edit: Bought an $85 3/12 put. Will buy another put if it keeps going up. These meme stock runs always end the same way, so it's basically free money.

 

[960design]

I'm mostly just new to investing but am planning to hold on. I got sick (and annoyed) at seeing pennies in interest earned on savings accounts. So I'm just trying to learn now and invest in safe things, or at least I hope they're safe. But I did throw $150 at Dogecoin hoping it rises to bitcoin level and I can be a millionaire haha.

I wish you luck at Dogecoin, just like buy a $150 lottery ticket, sure cannot fault you for that. I imagine it will settle at $0.035US and then rise with inflation. The unlimited cap, joke start, limited use case is selling short. It does have a cute dog and a strong following, that may be enough to keep it around.

I double read you on the bank account savings interest pennies. Banks just don't need our money. Hopefully they will not start negative interest rates: https://www.bankrate.com/banking/federal-reserve/how-negative-interest-rates-work/

 

[960design]

Related question: how many people in this thread seem like accredited investors? Or is it mostly Robinhood and 401(k)/IRA account holders?

Unsure of the "seem like" part of the sentence meaning. It is my understanding that you either are or are not. I would not invest in unregistered securities. Mostly, due to my lack of knowledge and contact with a "community group" that does.

 

[TonyC28]

I wish you luck at Dogecoin, just like buy a $150 lottery ticket, sure cannot fault you for that. I imagine it will settle at $0.035US and then rise with inflation. The unlimited cap, joke start, limited use case is selling short. It does have a cute dog and a strong following, that may be enough to keep it around.

I double read you on the bank account savings interest pennies. Banks just don't need our money. Hopefully they will not start negative interest rates: https://www.bankrate.com/banking/federal-reserve/how-negative-interest-rates-work/

I’m not expecting Dogecoin to do anything worthwhile. Although if you have tons of money to pour in it’s quite easy lately to make quick profits on it. Banks surely don’t need our money but I have to store it somewhere so if there’s something I can that’s better than $0.02 a month on $1,000 then I’ll take a minimal risk.

 

[KaliYoni]

Unsure of the "seem like" part of the sentence meaning

I said "seem" because unless somebody declares their status, we can only make assumptions based on their posts.

 

[KaliYoni]

Banks just don't need our money.

I'd say banks would be happy to take in more deposits if lending was more profitable right now. But a perfect storm of central bank policies, economic crises, regulatory requirements, and reserve requirements–on top of a global pandemic to boot–has made banks very reluctant to make loans.

 

[960design]

Gamestop is hilarious! A younger crazier me would throw some serious money at it.

 

[sjsharksfan12]

vipergts2207: sounds like you can be the one to show sjsharksfan12 the ropes, then!

I really want practice on Spreads. I know Covered Calls and selling puts. I don't buy calls or puts though, as Theta is working against you.

 

[vipergts2207]

It's a good day when major indices are down some 2 and 3% and your portfolio is only down 0.1% (now up about that much after hours). Primarily thanks to some GME puts. Bought one early this morning when it was trading around $140. Bought a second one around lunch when it was at about $180. Sold one during power hour around $130 and sold the second one almost at close around $107. When GME was at its peak today my portfolio was down about $1300. A less experienced me would've been panic selling long before that point. In the end I made a little over $800 today on my GME puts so I'm quite happy with that. Held my SNDL puts through close. Names in my primary sector of interest were down from a few percent to low double digits today. Going to load up on more shares and calls if we have another day like this tomorrow.