Search found 20 matches

by Goldwater85
Fri Oct 16, 2020 9:15 pm
Forum: Investing - Theory, News & General
Topic: Has the growing trend of blindly buying index funds caused market inefficiency?
Replies: 44
Views: 4416

Re: Has the growing trend of blindly buying index funds caused market inefficiency?

Prices are set at the margin, but the best argument here is that heavy use of indexing may cause corporate governance issues. Arguably much of the story behind the bull run of the past 40 years was attributable to the increasing concentration of public shares in the hands of professional investors w...
by Goldwater85
Mon Oct 12, 2020 3:58 pm
Forum: Personal Consumer Issues
Topic: 6.7" Phone too big?
Replies: 26
Views: 2658

Re: 6.7" Phone too big?

Nobody mainstream is moving materially ahead of Apple on photography (integrated hardware/software) anytime soon. It’s amazing how fast you get used to a bigger phone. People keep flagging tablets and laptops, but your iPhone is the device you always have with you. And a 6.8” iPhone Max is much less...
by Goldwater85
Thu Oct 08, 2020 12:50 pm
Forum: Personal Consumer Issues
Topic: Relocation - DFW considerations
Replies: 51
Views: 3730

Re: Relocation - DFW considerations

Unless the program feeds into primarily DFW for long term careers, 100% take it. Except natives, we are all here due to financial trade offs. You may love it, it may be just ok, it is definitely not be unbearable. Take the 6 months and $30,000 you save and install yourself in a villa on the Riviera ...
by Goldwater85
Wed Oct 07, 2020 10:00 pm
Forum: Personal Consumer Issues
Topic: Relocation - DFW considerations
Replies: 51
Views: 3730

Re: Relocation - DFW considerations

Not originally from Dallas but been here a decade. People I know who have lived in both cities tend to prefer Ft. Worth. It’s unpretentious, more colorful and friendlier (objectively, all of DFW is very friendly); sort of a smaller, more Western-themed Austin but not exactly. Metroplex has great res...
by Goldwater85
Mon Sep 07, 2020 8:55 am
Forum: Personal Investments
Topic: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)
Replies: 82
Views: 5105

Re: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)

I always thought of my V-10 stint as a highly paid residency—great training from top-of-their-field lawyers with lots and lots of flight hours. But, like a residency, 3-5 years from now you’ll have to look up and decide what you want to do. While I was an associate, I focused on building up a chunk ...
by Goldwater85
Sun Aug 16, 2020 8:12 am
Forum: Personal Consumer Issues
Topic: Apple users - iMac and iPad vs MacbookPro?
Replies: 56
Views: 3166

Re: Apple users - iMac and iPad vs MacbookPro?

I’m in a similar boat. I have a 12”, 2 lb MacBook that I love for the portability. Post-Covid, I also have a beautiful 27” 4K monitor ($325), webcam, and wireless Apple keyboard/mouse. All wires—HDMI, USB-A for webcam and USB-C for power—plug into a small $20 dongle, which plugs/unplugs from one por...
by Goldwater85
Mon Jul 20, 2020 11:15 am
Forum: Investing - Theory, News & General
Topic: CLOs vs bond fund
Replies: 13
Views: 713

Re: CLOs vs bond fund

CLOs are not complex in theory. A CLO buys portions syndicated bank loans from ordinary companies (e.g., Ford) into a holding entity. The weighted average ratings of the individual loans in the pool are generally the bottom of investment grade (BBB). To pay for the loans, the holding entity issues s...
by Goldwater85
Sat Jun 13, 2020 9:40 am
Forum: Personal Consumer Issues
Topic: iPhone Trade Ins
Replies: 4
Views: 325

Re: iPhone Trade Ins

Because of the way Apple services iPhones (if your issue can’t be fixed immediately, they swap it out for a refurbished replacement), a substantial percentage of users are walking around with second hand phones. Shouldn’t be an issue.

Would make sure BBY wipes it after verifying it works.
by Goldwater85
Wed Mar 18, 2020 7:51 pm
Forum: Personal Investments
Topic: VUSXX vs FDIC Bank Accounts
Replies: 29
Views: 2374

Re: VUSXX vs FDIC Bank Accounts

Up to $250,000 for an individual, bank accounts or CDs are as safe as T-Bills.

Would suggest moving to bank accounts from VUSXX not because of safety but because high yield savings accounts and no penalty CDs still yield 1.5%+ while T-Bills are at 0%.
by Goldwater85
Mon Jan 27, 2020 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: How much money can I spend on a car?
Replies: 59
Views: 5408

Re: How much money can I spend on a car?

Reasonably optioned out G Wagen is a cool vehicle.

Based on wages and liquid net worth, buy used. If you also have a $6 million trust, hell with it.
by Goldwater85
Tue Jan 21, 2020 6:45 pm
Forum: Personal Consumer Issues
Topic: Best non-OLED, non-QLED TV?
Replies: 10
Views: 1323

Re: Best non-OLED, non-QLED TV?

I just want to second what a good resource www.rtings.com is. They are thorough and as far as I can tell impartial.

Well organized with recommendations by budget and size. Their suggested tweaks to picture settings are also helpful for a new set.
by Goldwater85
Sun Jan 05, 2020 10:50 am
Forum: Non-US Investing
Topic: Is 25% Gold too much?
Replies: 50
Views: 4258

Re: Is 25% Gold too much?

Measured over long time frames, the purchasing power of gold has tended to hold roughly constant (granted with a lot of volatility during shorter time frames). So, given that the principal of this bond is indexed to the price of gold in local currency, you are in effect acquiring (very roughly) infl...
by Goldwater85
Thu Dec 26, 2019 12:56 pm
Forum: Investing - Theory, News & General
Topic: Keeping Cash in High Yield savings or Banking Preferred shares
Replies: 7
Views: 607

Re: Keeping Cash in High Yield savings or Banking Preferred shares

Banks have been issuing more preferred equity as a result of regulatory incentives put in place post-Crisis. Regulators encourage preferred equity over traditional debt as a capital source because banks are not contractually obligated to make dividend payments in times of stress and preferred shares...
by Goldwater85
Sun Dec 15, 2019 2:28 pm
Forum: Investing - Theory, News & General
Topic: How to use limit orders / do I need limit orders?
Replies: 61
Views: 3879

Re: How to use limit orders / do I need limit orders?

You should always use limit orders. For liquid ETFs or equities, it’s just a matter of eliminating tail risk (those couple of times market makers have suddenly disappeared and spreads have blown out). Place the limit order comfortably above or below the current spread, and it will act just like a ma...
by Goldwater85
Thu Nov 28, 2019 9:57 pm
Forum: Personal Investments
Topic: Amazing Job Security and Implications for Asset Allocation
Replies: 17
Views: 2029

Re: Amazing Job Security and Implications for Asset Allocation

Granting your premises and trying to read your tone, it sounds like the $500,000 at issue (i) isn’t needed and (ii) isn’t meaningful. If that’s the case, I would absolutely put it at risk and keep it there. There is something of a quantum element to wealth. $500k +/- $150k may not change your circum...
by Goldwater85
Sat Nov 23, 2019 2:31 pm
Forum: Investing - Theory, News & General
Topic: The Fred Flinstone model portfolio
Replies: 35
Views: 4164

Re: The Fred Flinstone model portfolio

Why allocate to any broad U.S. beta in this context? Your U.S. micro cap value probably carries U.S. beta of 1.2x or so. International SCV and/or Emerging Value will get you more diversification with less long run correlation. Why hold long bonds steady while increasing gold exposure? They tend to s...
by Goldwater85
Sat Nov 23, 2019 12:43 pm
Forum: Investing - Theory, News & General
Topic: Why isn't enterprise value/earnings more important than market cap/earnings (P/E)?
Replies: 18
Views: 1555

Re: Why isn't enterprise value/earnings more important than market cap/earnings (P/E)?

(ii) interest payments will lower a company’s tax burden because they are an expense. Thanks I hadn’t thought of that. No wonder I sometimes see EBIT but never EBI. I probably should have at least read some of Graham & Dodd before making my own “index”. I did stick to megacap and largecap stocks, p...
by Goldwater85
Sat Nov 23, 2019 10:29 am
Forum: Investing - Theory, News & General
Topic: Why isn't enterprise value/earnings more important than market cap/earnings (P/E)?
Replies: 18
Views: 1555

Re: Why isn't enterprise value/earnings more important than market cap/earnings (P/E)?

Company A may be operationally similar to Company B but carry 3x leverage. That's my problem with PE. Imagine that I use PE to buy value stocks in Europe, since I don't like any of the Europe Value funds. ABC has a PE of 20. That's not value. ABC has no debt. But since interest rates are so low, it...
by Goldwater85
Sat Nov 23, 2019 12:19 am
Forum: Investing - Theory, News & General
Topic: [WSJ Article (later refuted) - Ray Dalio bets on a bear market]
Replies: 54
Views: 5984

Re: Ray Dalio puts his money where his mouth is - bets on a bear market

Doesn’t take a rocket scientist to infer that Dalio is most likely just putting in a floor to lock in gains past year end (when incentive fees are allocated). Put premiums may be cheaper than sales when you have $150 billion in play. Embarrassing that the WSJ, of all publications, wrote this mislead...
by Goldwater85
Fri Nov 22, 2019 7:12 pm
Forum: Investing - Theory, News & General
Topic: Why isn't enterprise value/earnings more important than market cap/earnings (P/E)?
Replies: 18
Views: 1555

Re: Why isn't enterprise value/earnings more important than market cap/earnings (P/E)?

Measures keyed to enterprise value can be extremely helpful as they allow comparisons of similar companies with different capital structures. Company A may be operationally similar to Company B but carry 3x leverage. As a result, Company A may trade at a lower P/E than Company B, reflective of the r...