Investing Thread

[Hards Alumni]

*sad trombone noises*

[jficke13]

*sad trombone noises*

I'm guessing this bounces around *a lot*. That being said, I picked up a very small position at $330. If Heisy is right about the revolution that is coming to finance, then this is an okay way to take a stab at riding some of those coattails.

[Hards Alumni]

I'm guessing this bounces around *a lot*. That being said, I picked up a very small position at $330. If Heisy is right about the revolution that is coming to finance, then this is an okay way to take a stab at riding some of those coattails.

Oh, and I've said as much for years as well.  I got in at a number I am comfortable with, but I could have gotten in where you did.

I haven't lost anything, since I haven't sold anything.  I have a very high belief in the product and the company.   

[jesmu84]

Wouldn't it cut out the middle man to just buy bitcoin if you believe in cryto enough to buy coinbase?

[Skatastrophy]

What's the bull thesis here? Coinbase seems to be a middle-of-the-road exchange with no moat. Just banking on first-mover advantage?

[Hards Alumni]

What's the bull thesis here? Coinbase seems to be a middle-of-the-road exchange with no moat. Just banking on first-mover advantage?

They've jumped through the SEC hoops, and yes first mover has a huge advantage.

Wouldn't it cut out the middle man to just buy bitcoin if you believe in cryto enough to buy coinbase?

True, but if I believe coinbase will outperform BTC (at least in the short term) then I should invest in coinbase.  The news surrounding the IPO plus their marketing blitz will likely introduce more people to crypto and both prices should rise as a result.  I think the main thing holding people back on crypto is education of what it is, what it does, and what that means for humanity.

[MU82]

Anybody buying any interesting stocks that have nothing to do with crypto?

I doubled my BABA position last week, did the same with COST a week or two before that.

[Skatastrophy]

Anybody buying any interesting stocks that have nothing to do with crypto?

I doubled my BABA position last week, did the same with COST a week or two before that.

I've been expanding my IPOE position pre-merger.

[MU82]

I've been expanding my IPOE position pre-merger.

Haven't heard of that, Ska. What is it?

[jficke13]

Haven't heard of that, Ska. What is it?

That's the Sofi SPAC right? I'll confess the being very SPAC ignorant though, does a share of IPOE convert into a share of Sofi whenever the SPAC merger thing closes?

[TSmith34, Inc.]

Anybody buying any interesting stocks that have nothing to do with crypto?

I doubled my BABA position last week, did the same with COST a week or two before that.

I have a full position in BABA, but added previously in the 220's. I've actually been buying a fairly arcane security known as the S&P 500 index.

Also considering reinstituting a buy-write strategy on bank stocks again. Had some nice success with it previously, and fortunately I had everything called away from me just prior to COVID breaking out.

[MU82]

I have a full position in BABA, but added previously in the 220's. I've actually been buying a fairly arcane security known as the S&P 500 index.

Also considering reinstituting a buy-write strategy on bank stocks again. Had some nice success with it previously, and fortunately I had everything called away from me just prior to COVID breaking out.

Can't go too wrong with a long-term keep-on-building-with-SPY strategy.

I don't do options. I'm such a boring investor.

[Skatastrophy]

That's the Sofi SPAC right? I'll confess the being very SPAC ignorant though, does a share of IPOE convert into a share of Sofi whenever the SPAC merger thing closes?

Yep, spot on.

SPACs are holding companies that are publically listed. Their only purpose is to acquire a private company to take them public without the IPO rigmarole.

So if it's 10$ pre merger and 10 post merger. It changes market cap from 10M to 100M because now there are more shares,

SoFi is a retail banking fintech company. I'm long and a customer, so take my statement with a grain of salt.

Bull thesis: They have successfully targeted recent college grads (hello social capital) selling them banking + lending. That has led to high rates because these people tend to be younger with more debt, but surprisingly less risk because SoFi gets to capture all of that college grad revenue. They've recently expanded their offerings to include investing, credit cards, a crypto exchange, insurance, and pre-IPO investing. Their customer acquisition is well targeted, and their upselling of products to existing customers is excellent. SoFi also recently acquired a brick and mortar bank, which allowed them to obtain a bank charter. Being chartered allows them to avoid state usury laws and any other state laws that may interfere with operations.

Bear statement:
0. The merger deal isn't technically finalized. This whole thing has a non 0% chance of going tits-up.
1. We haven't seen their financials, and without going through a real IPO there's risk that their financials aren't going to be audited that hard
2. There's chatter that SPACs are going to be regulated, which is adding some downward pressure pre-merger
3. Customer acquisition & marketing may not be king in the retail finance space, and crypto-bulls may be right that going long any non-crypto finance company is a foolish investment right now
4. Their valuation is higher than Ally, who has more customers and more revenue (though fewer offerings and their app is myopic).

Edit: To specifically answer a part of your question about SPACs I glossed over - Say IPOE buys 30% of SoFi. And the company is valued at 100M. After ticker change the 80M shares of IPOE outstanding turns into 260M units. IPOE keeps 30% but the rest of the capital goes to whoever owns the rest of SoFi (pre-IPO investors, Founders, PIPE, employee perks, CEO, board/advisors, etc).

[MU82]

Thanks for telling us about IPOE, Ska. Interesting company, and useful information.

I have dabbled a tiny bit in a couple of SPACs in the gambling space (DKNG, DMYD).

With crypto, SPACs, etc, it's a wild time to be an investor. The vast, vast, vast majority of my portfolio is in boring, blue-chip companies because that's where my comfort level is. My largest positions are MSFT and JNJ, followed by PEP, MCD, WEC and AAPL.

[Skatastrophy]

Thanks for telling us about IPOE, Ska. Interesting company, and useful information.

I have dabbled a tiny bit in a couple of SPACs in the gambling space (DKNG, DMYD).

With crypto, SPACs, etc, it's a wild time to be an investor. The vast, vast, vast majority of my portfolio is in boring, blue-chip companies because that's where my comfort level is. My largest positions are MSFT and JNJ, followed by PEP, MCD, WEC and AAPL.

+1. 95% of my portfolio is lazy indexing: ITOT, IXUS, AGG. Not fun to think about or chat about, but that's the real way to wealth.

[StillAWarrior]

I know it's a silly joke of a crypto, but my daughter and I are enjoying Doge. She bought $3.00 worth when it was at 0.003. At her urging I bought a little bit - like $25 - when it was at 0.04 just for something for us to discuss and bond over.  $0.18...lol

Edited to add:  make that $0.19 (it was $0.16 when I started my initial post) 

[Hards Alumni]

I know it's a silly joke of a crypto, but my daughter and I are enjoying Doge. She bought $3.00 worth when it was at 0.003. At her urging I bought a little bit - like $25 - when it was at 0.04 just for something for us to discuss and bond over.  $0.18...lol

Edited to add:  make that $0.19 (it was $0.16 when I started my initial post) 

sell sell sell sell

Doge is a meme coin, has no use other than gamba, and inflationary as hell (5 billion are added every year!).  Buy something that has use.

Or, its your money, do what you want!

[StillAWarrior]

sell sell sell sell

Doge is a meme coin, has no use other than gamba, and inflationary as hell (5 billion are added every year!).  Buy something that has use.

Or, its your money, do what you want!

It has use. My daughter and I text back and forth about it.  From my perspective, that's $25 well spent. I'd like to think she views it as $3.00 well spent.

[TSmith34, Inc.]

It has use. My daughter and I text back and forth about it.  From my perspective, that's $25 well spent. I'd like to think she views it as $3.00 well spent.

Ha, that is an excellent point. Indeed, money well spent.

[Hards Alumni]

It has use. My daughter and I text back and forth about it.  From my perspective, that's $25 well spent. I'd like to think she views it as $3.00 well spent.

That's very fair, and it is a good way to introduce crypto to people!

[StillAWarrior]

Ha, that is an excellent point. Indeed, money well spent.

For the record, my other daughter also bought Doge when it was somewhere in the neighborhood of $0.03 and sold it the first time it hit something like $0.06 because she got too nervous. Part of me thinks she might not have the stomach for investing. Part of me thinks she may be the smartest of the group.

[Goose]

I tripled down on doge at 0.09 and might triple down again. It is fantasy world and I am going to roll the dice. I want courtside tickets for FF when MU returns.

[Goose]

Doge at .27

[StillAWarrior]

Doge at .27

I’m dying here. Lots of texts with my daughters today. My daughter is currently sitting on something like a 9,000% gain.

[Goose]

Love it and hope your daughter makes another 9000%