Investing Thread

[Goose]

Skatastrophy

The more I read your thoughts, the more I think my family needs to have a discussion sooner than later. It is easy to make bold statement like "I don't us to be a burden to the kids" but that really does not address the topic in a serious manner. Good luck on talking with your parents.

I was lucky my parents were established financially to handle life challenges, but I do not think they had a plan in place in case something crazy would have happened to them. My Mom died quickly at 78 and my Dad had 3-4 bad months and he spent a lot of money for that time and really did not benefit a great deal from it.

Again, good luck with the talk.

[drewm88]

Sultan and Skatastrophy

I am not sure on your age Sultan, but guessing close to mine and making the downsizing decision has become a more serious one for us. We are both healthy and want to own a home and that is my biggest struggle. We have a nice sized home, not crazy, but it is nearly 100 years old and upkeep is expensive and hard work. We definitely neglected some upkeep over the years due to raising four kids and paying private school education for K-4 through college. We are not playing catch up on the house and is causing some stress.

Our kids are a help around the house when needed and would do more if requested. Truthfully, my wife is 57 and I am 60 and hardly in need of any serious help. All four of the kids love the house and they are now seeing their kids enjoy our house and large yard. Economically, I do not see a major advantage for downsizing and that is my biggest issue.

It is funny that I have three older siblings, all in their 70's, and none of really downsized. One sister sold her lake house and replaced it with two condo's and other two are in the same house over 35 years. That said, I did agree to have a serious discussion on downsizing in the spring.

If you’re not ready to downsize your home, I recommend you think about steps you can take to streamline the process in the future. Start going through everything as if you’re ready to move and get rid of stuff. Sold/donated/given to the kids/whatever. Decades in a home leads to so much accumulation, and I’ve seen multiple instances in my family where the need or desire to downsize comes up quickly. Doing some of the work now will save so much stress and time down the road, even if it’s 5 or 10 years.

[Skatastrophy]

Thanks Goose. I have a good relationship with my parents and they've been pretty open about things. I'm just trying to let them know I don't want to take away their agency.

I would have really liked it if my parents initiated these conversations instead of me doing it. Then again, maybe not all adult children care enough about their finances to participate in conversations like this. People are so different.

[Goose]

drew

Great advice. As I noted, we needed some long overdue work done and that led to disposing of a lot of things in our house this summer. Our walkup attic went from a maze to wide open space. Still a done of "stuff" in the joint but nice strides were made this summer. Maybe that will be my pet project this winter.

[reinko]

Some really great tips for folks, thanks everyone for sharing.

[Goose]

Skatastrophy

Very happy to hear that you have done well for yourself. One tip I learned a long time ago from my a very wise man was "if you think you have a lot of money, double it". He was/is a mentor of mine and that advise that stuck with me for 40 years. The older I get, the truer it is.

[TAMU, Knower of Ball]

My in laws are in their late 60s and still living in the home my MIL grew up in. She has never lived anywhere else (my FIL moved in to live with her and her parents when they got married). It is a massive and ancient house and they do not keep up with basic cleaning, let alone the upkeep. MY MIL has MS and is barely mobile at this point. The house is two stories. There is a chair lift to get my MIL up and down, but even using that is difficult. As a result, she will spend weeks on the second floor without ever coming down. Her doctor's appointments are really the only thing that get her to leave the house. My FIL isn't much better. He's obese and struggles getting up and down the stairs and really isn't strong enough anymore to help my MIL on his own.

We have no idea what their financial situation currently is, all we know is that we have to send money home to them every once in a while because they are behind on one payment or another.

Despite all of this, they categorically refuse to even entertain the idea of moving. We've attempted the conversation dozens of times and it is instantly shut down. I fear it will take my MIL getting severely hurt before they will finally take action and if that happens, I don't know if my wife will forgive her dad.

All that being said, please be willing to have these conversations with your children/parents. It is extremely important and puts a lot of pressure on your loved ones. Try to make it as kind as possible.

[Hards Alumni]

My in laws are in their late 60s and still living in the home my MIL grew up in. She has never lived anywhere else (my FIL moved in to live with her and her parents when they got in). It is a massive and ancient house and do not keep up with basic cleaning, let alone the upkeep. MY MIL has MS and is barely mobile at this point. The house is two stories. There is a chair lift to get my MIL up and down, but even using that is difficult. As a result, she will spend weeks on the second floor without ever coming down. Her doctor's appointments are really the only thing that get her to leave the house. My FIL isn't much better. He's obese and struggles getting up and down the stairs and really isn't strong enough anymore to help my MIL on his own.

We have no idea what their financial situation currently is, all we know is that we have to send money home to them every once in a while because they are behind on one payment or another.

Despite all of this, they categorically refuse to even entertain the idea of moving. We've attempted the conversation dozens of times and it is instantly shut down. I fear it will take my MIL getting severely hurt before they will finally take action and if that happens, I don't know if my wife will forgive her dad.


All that being said, please be willing to have these conversations with your children/parents. It is extremely important and puts a lot of pressure on your loved ones. Try to make it as kind as possible.

This feels way past the point of no return, and I'm sorry for the situation man... that's gotta be tough to deal with. 

My parents have been very open and honest about their situation.  They have a full plan, but the only thing they haven't planned for is how much stuff they've accumulated as well.  They're pretty frugal people, and my mom has always loved to find things... that she doesn't need.  I get a text once or twice a month asking me if I need, "X".  Answer is always the same... I'm in my 40s and if I need it, I buy it... and I buy quality so it lasts.  So it ends up in a basement or a garage never to be looked at again... and of course, my brother and I will have to be the ones to sort through it all one day.

Speaking of which, anyone need a one year old gas grill in the FDL area?   

[tower912]

One of the sad things about my old job was responding to 911 calls in the types of homes TAMU describes.   Assuming the conversations with children had happened and had no impact.   Assuming we were going to be back.   Sometimes doing housing reports when the structural integrity was compromised or the living conditions too squalid.   
    Hang in there, TAMU.

[Goose]

TAMU

Hang in there. The more I read or hear stories from others it makes me realize that aside from taking care of finances, it is essential to try and keep yourself in the best health possible. I have been very lazy in regards to getting exercise over the past year and that changes today.

[The Hippie Satan of Hyperbole]

This makes me feel better about investing in all things English.

https://x.com/economics/status/1721858968383828038?s=20

[MU82]

Disney's earnings, announced after yesterday's close:

(From NYT's DealBook)

A lot was at stake for Bob Iger yesterday in Disney’s hotly anticipated quarterly earnings report. Wall Street, and in particular the activist investor Nelson Peltz, wanted to know how much more disruption was in store for the House of Mouse.

So Iger appeared relieved that the company announced results that pleased investors, including strong growth — and the possibility that perhaps Disney didn’t need a huge shake-up after all. Shares in Disney were up 4 percent in premarket trading.

The numbers:

++ Overall profits more than doubled from a year ago, to $694 million. Revenue rose 5 percent, to $21.2 billion, just shy of analyst estimates.

++ ESPN’s operating income surged 16 percent year-on-year, to $987 million, though its revenue rose about 1 percent during that time.

++ Speaking of which, quarterly streaming losses narrowed to $387 million, while Disney+ added seven million subscribers, offsetting losses elsewhere.

Iger professed more optimism about Disney’s traditional TV business. “Linear is better than many people assumed it would be,” he said. “Doesn’t mean it’s great,” he added, but “we’ve seen some improvement.” It was a notable contrast from comments he made over the summer suggesting that linear assets like the ABC broadcast network may “not be core” to the company. Yesterday’s statements suggested that he was now open to keeping at least some of those operations.

Meanwhile, Iger reiterated that the company was in talks to bring in partners for ESPN “that can add either marketing support, technology support or possibly content support.” (That’s most likely one or more sports leagues.)

Iger also said that the company was cutting more costs. It’s seeking to trim $7.5 billion in expenses, up from a projected $5.5 billion at the beginning of the year. Streaming, which has lost nearly $11 billion since late 2019, is expected to turn a profit by late 2024.

The Disney chief briefly discussed Peltz, who is threatening to renew a fight for seats on the company’s board. “I had a call from him,” Iger said. “But I must say, I don’t have specifics about what Nelson is really after, or what he will ask for.” (Peltz had no comment after the earnings report.)

Shortly after market opening this morning, DIS was at $89, up 5.2%. It is up about 13% from the multi-year low it hit in October.

Disclosure: I own a little bit of DIS in my grandkids' college fund. I do not otherwise own it in my personal portfolio.

[TSmith34, Inc.]

>>Disclosure: I own a little bit of DIS in my grandkids' college fund. I do not otherwise own it in my personal portfolio.

Same, I posted here quite some time ago that I picked up a tiny amount in other accounts. Those purchases are under water, but I'm still bullish LT on this one. Streaming expenses, not ESPN, were and are the problem. I think Igor will sort it out, and meanwhile the rest of the business is doing quite well.

[MU82]

>>Disclosure: I own a little bit of DIS in my grandkids' college fund. I do not otherwise own it in my personal portfolio.

Same, I posted here quite some time ago that I picked up a tiny amount in other accounts. Those purchases are under water, but I'm still bullish LT on this one. Streaming expenses, not ESPN, were and are the problem. I think Igor will sort it out, and meanwhile the rest of the business is doing quite well.

Agree. I almost bought some at about $80 a couple weeks ago when Douchey said investing in DIS was like throwing one's money away - figuring a Douchey slam was pretty much a guarantee of long-term success, a la AAPL - but I admit I didn't have quite enough confidence to do so. Could buy some in the future if the company has more positive catalysts, and I do plan to gradually grow the position in the grandkids' account.

[MU82]

So far this quarter, stocks that beat earnings estimates are getting only a bit of a thumbs-up from investors. But stocks that miss estimates are getting creamed far worse than is normally the case.

[rocket surgeon]

I’ve been big on uranium for the past 10-12 years and I’ve finally been able to tell my investment dude…SEE!!!!

Been long on cameco since the low $20’s, DNN since pre $1 and URG

[MU82]

Things are finally looking up for the Foxconn site years after Scott Walker was Foxconned into giving away billions ...

https://www.jsonline.com/story/money/business/2023/11/10/microsoft-to-invest-billions-in-racine-county-including-foxconn-site/71427829007/?utm_source=jsonline-dailybriefing-strada&utm_medium=email&utm_campaign=dailybriefing-greeting&utm_term=Content%20List%20-%20Stacking%20-%20optimized&utm_content=pmjs-milwaukee-nletter65

Less than a year after inking a deal to build a $1 billion data center in Mount Pleasant's sprawling Wisconsin Innovation Park, Microsoft is ready to make an even bigger investment and a significant increase in its Wisconsin footprint.

Regional economic development officials on Friday said Microsoft plans to buy the remainder of the parcel on which it is building the first of two previously announced buildings as well as parcels west and north of the site in what's known as Areas II and III in the tax incremental financing district that was created to fund the business park.

Those parcels were controlled by Foxconn, which is giving up options it held on the land. Microsoft will also acquire about 400 acres of privately-owned farmland in Area II.

In all the company would purchase 1,030 additional acres, pending approval by the village and Racine County.

Foxconn sent shockwaves through the state when it announced Wisconsin was among the places the technology giant was considering expanding to in 2017.

The news prompted lawmakers to draft a multi-billion dollar subsidy package in an effort to lure Foxconn to Wisconsin, which the company ultimately accepted.

Foxconn originally promised to build a Generation 10.5 facility that would manufacture large LCD screens. The project was to be an investment of up to $10 billion that would deliver up to 13,000 jobs. Those plans never came together and today the Foxconn operation is much smaller, employing about 1,000 people.

The agreement calls for Microsoft to guarantee an additional property valuation of $1.4 billion by 2028.

“Wisconsin’s strengths in workforce, infrastructure, and educational opportunities make it a great place for Microsoft to invest and grow our cloud services. We thank the Governor for his leadership and look forward to continuing to bring positive economic impact to the state and its residents,” said Microsoft Vice Chair and President Brad Smith said in a statement.

[Uncle Rico]

Things are finally looking up for the Foxconn site years after Scott Walker was Foxconned into giving away billions ...

https://www.jsonline.com/story/money/business/2023/11/10/microsoft-to-invest-billions-in-racine-county-including-foxconn-site/71427829007/?utm_source=jsonline-dailybriefing-strada&utm_medium=email&utm_campaign=dailybriefing-greeting&utm_term=Content%20List%20-%20Stacking%20-%20optimized&utm_content=pmjs-milwaukee-nletter65

Less than a year after inking a deal to build a $1 billion data center in Mount Pleasant's sprawling Wisconsin Innovation Park, Microsoft is ready to make an even bigger investment and a significant increase in its Wisconsin footprint.

Regional economic development officials on Friday said Microsoft plans to buy the remainder of the parcel on which it is building the first of two previously announced buildings as well as parcels west and north of the site in what's known as Areas II and III in the tax incremental financing district that was created to fund the business park.

Those parcels were controlled by Foxconn, which is giving up options it held on the land. Microsoft will also acquire about 400 acres of privately-owned farmland in Area II.

In all the company would purchase 1,030 additional acres, pending approval by the village and Racine County.

Foxconn sent shockwaves through the state when it announced Wisconsin was among the places the technology giant was considering expanding to in 2017.

The news prompted lawmakers to draft a multi-billion dollar subsidy package in an effort to lure Foxconn to Wisconsin, which the company ultimately accepted.

Foxconn originally promised to build a Generation 10.5 facility that would manufacture large LCD screens. The project was to be an investment of up to $10 billion that would deliver up to 13,000 jobs. Those plans never came together and today the Foxconn operation is much smaller, employing about 1,000 people.

The agreement calls for Microsoft to guarantee an additional property valuation of $1.4 billion by 2028.

“Wisconsin’s strengths in workforce, infrastructure, and educational opportunities make it a great place for Microsoft to invest and grow our cloud services. We thank the Governor for his leadership and look forward to continuing to bring positive economic impact to the state and its residents,” said Microsoft Vice Chair and President Brad Smith said in a statement.

Thank you for helping Wisconsin get something out of this boondoggle, Governor Evers.

[JWags85]

Wonder how much had to do with Wisconsin being Nadella’s first stop in the US and some residual fondness for the area

[The Hippie Satan of Hyperbole]

Wonder how much had to do with Wisconsin being Nadella’s first stop in the US and some residual fondness for the area

Also their President, Brad Smith, grew up in Appleton.

[JWags85]

Also their President, Brad Smith, grew up in Appleton.

Good call, forgot he was the one whose Dad was an exec with Wisconsin Bell, couldn’t remember if that was him or confusing him with one of the other big software guys.

And for those who doubt those elements, it’s not at all uncommon for “tiebreaks” like that for stuff like this.  My cousin’s husband used to be fairly high up at Caterpillar and they chose a location for a factory purchase/expansion in Northern Texas because one of the heads of that particular division liked flying to DFW as an American frequent flier and hated some of the popular restaurants in another major metro they were looking at. 

My former roommate’s uncle-in-law  () was the CEO of a major public traded biotech company.  They selected a new R&D location out of 3 or 4 that were all pretty similar cause his wife grew up in the area and he really liked the people from spending time there years prior

[The Hippie Satan of Hyperbole]

Good call, forgot he was the one whose Dad was an exec with Wisconsin Bell, couldn’t remember if that was him or confusing him with one of the other big software guys.

And for those who doubt those elements, it’s not at all uncommon for “tiebreaks” like that for stuff like this.  My cousin’s husband used to be fairly high up at Caterpillar and they chose a location for a factory purchase/expansion in Northern Texas because one of the heads of that particular division liked flying to DFW as an America frequent flier and hated some of the popular restaurants in another major metro they were looking at. 

My former roommate’s uncle-in-law  () was the CEO of a major public traded biotech company.  They selected a new R&D location out of 3 or 4 that were all pretty similar cause his wife grew up in the area and he really liked the people from spending time there years prior

Yep. Microsoft's involvement in this is entirely because Smith grew up a Packer fan.

https://www.titletowntech.com/

[4everwarriors]

Thank you for helping Wisconsin get something out of this boondoggle, Governor Evers.

Worst governor Evers, aina?

[MU82]

Mr. Market is smiling big-time after a better-than-expected inflation report.

[TSmith34, Inc.]

Mr. Market is smiling big-time after a better-than-expected inflation report.

Those blaming Biden for the high inflation will, I am certain, now give him credit.

Market is already pricing in rate reductions next year.