171–180 of 426 posts
Earlier quoted context omitted.
It should still take a year until it's added to the indices, no? At least that's how I understood the SpaceX case: Elon wanted to rush it and get it done in 6 months. So there's still hope that the bubble pops before the funds are poisoned.
lol, they reduced the wait time drastically last year I think it's a few weeks now.
How does a company even consider this while the CFO is privately saying the books / revenue accounting are not ready for public scrutiny? Edit: Or has so much somehow changed in two weeks that it’s no longer necessary to wait until next year?
Earlier quoted context omitted.
Destroy is a strong word. Rather, it will make the pension funds and passive investors the bag holders for the oligarchs.
> Rather, it will make the pension funds and passive investors the bag holders for the oligarchs. Care to explain the mechanics? I’m an investor (both in passive and more active vehicles) and don’t understand what you mean.
They own more of bigger companies than small.
There's the option of "equal weight" or other strategies but the overwhelming majority is market cap weighted.
Index funds are also really, really big now and contain a lot of money earmarked for retirement/pensions.
In theory if you had a temporarily very frothy market into which you could sell a part of your unprofitable company to some people at a very high valuation, index funds would then mechanically move in and need to purchase and add significant support for insiders to sell into.
How does a company even consider this while the CFO is privately saying the books / revenue accounting are not ready for public scrutiny? Edit: Or has so much somehow changed in two weeks that it’s no longer necessary to wait until next year?
Earlier quoted context omitted.
I would retire. If you have two million euros lying around, that would be life-changing money for me. I'd put everything into VWCE and then live off interest. I think I'd spend a year in Japan just to see what it's like, then travel around a few other countries, and finally settle somewhere back in Europe - buy a small house in the middle of nowhere, renovate it, and then smoke weed and play video games until the end…
That's such a cynical take. If everyone does what you're describing, we will never make progress as a society.
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> * big banks are trying to get out of their data center loan commitments, even selling that debt at a discount. From the article: This isn't necessarily a sign that they don't believe in the data centre loans, it's more than banks are basically required to avoid concentrated risk, because of the regulations we (mostly correctly) imposed upon them post GFC. Now, personally I'm not convinced there's enough demand for…
This just isn't true. Banks never offload commercial debt to non-bank entities at a discount unless they're under financial duress or they believe the loss is worth more than keeping the debt on the books.
Let me dig up the FT article I read about this.
Here's the article: https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5ba...
And this quote:
> Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://help.ft.com/faq/gifting-and-sharing-an-article/what-.... https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5ba...
> Investors expect more such moves as banks come up against risk limits that restrict their exposure to individual borrowers or sectors, and seek to free up balance sheet for more lending.
Earlier quoted context omitted.
> Rather, it will make the pension funds and passive investors the bag holders for the oligarchs. Care to explain the mechanics? I’m an investor (both in passive and more active vehicles) and don’t understand what you mean.
Index funds buy companies, for the most part, according to their market capitalisation. They own more of bigger companies than small. There's the option of "equal weight" or other strategies but the overwhelming majority is market cap weighted. Index funds are also really, really big now and contain a lot of money earmarked for retirement/pensions. In theory if you had a temporarily very frothy market into which you…
Due to the high valuation, index funds are required to buy SpaceX stock, which Elon will presumably slowly sell them in order not to crash the stock. The funds will be left holding the stock, while eventually the price will crash, because the company will simply not make enough money to justify the valuation.
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If that were true, then one would expect a competitive fund that does just that and that give higher ROI than an S&P 500 index fund (or index ETF) when you consider expense ratio. What is a such a fund? Or, alternatively, can you point us to a comprehensive list of those companies you would exclude from the index to get superior returns?
My returns are around 20 percent per year for years. I lack will and energy to list everything I owned but it’s basically a method of value investing + momentum trading so two opposites. You could say it’s a diversification of investing philosophies. Honestly it’s a free for all game so no one has any interest to share their secrets and methods. When you lose money I make money. Better player wins.
That's unbelievable! Even Warren Buffet only makes 19% - 20% compounded every year. That would make you one of the top investors ever.
I was wrong - not investing in FB and Amazon many years ago - thought those businesses will shrivel and die. I believe OpenAI is a bit of a coin flip as the AI space evolves. In fact I feel all AI will be marginal return generators at best. There are a lot of incumbents and a lot more coming as barriers to entry get increasingly lower. Unless a company can build a near monopoly it'll be hard to justify a 100X revenue…
I don't even think I want to take a guess on OpenAI. I just don't think they can deliver a good product that aligns with my own moral compass, while trying to generate profit for shareholders.