I bought a stock today - Redfin (RDFN)

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dreamjob9
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I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 7:45 pm

I consider myself a boglehead, but I just couldn't resist. I love Redfin! There business model prides themselves on saving people money. There management including the CEO Glen Kelman seem trustworthy & full of integrity. I feel both good and guilty after buying the stock. 20% of my portfolio. I'm 37 with a stable job.

I strongly believe in Redfin. I have done 100's of hours of research and waited until after the IPO lockup on 1/24/18. Should I feel guilty? Am I crazy for believing with conviction that Redfin will prosper?

Thank you in advance.

mega317
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Re: I bought a stock today - Redfin (RDFN)

Post by mega317 » Fri Jan 26, 2018 7:55 pm

dreamjob9 wrote:
Fri Jan 26, 2018 7:45 pm
There business model prides themselves on saving people money.
I feel like most successful businesses pride themselves on separating people from their money.

livesoft
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Re: I bought a stock today - Redfin (RDFN)

Post by livesoft » Fri Jan 26, 2018 7:56 pm

You're welcome. I did not buy a stock today.
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InvestorNewb
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Re: I bought a stock today - Redfin (RDFN)

Post by InvestorNewb » Fri Jan 26, 2018 7:58 pm

20% on one stock is way too high.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)

anonsdca
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Re: I bought a stock today - Redfin (RDFN)

Post by anonsdca » Fri Jan 26, 2018 8:01 pm

dreamjob9 wrote:
Fri Jan 26, 2018 7:45 pm
I consider myself a boglehead, but I just couldn't resist. I love Redfin! There business model prides themselves on saving people money. There management including the CEO Glen Kelman seem trustworthy & full of integrity. I feel both good and guilty after buying the stock. 20% of my portfolio. I'm 37 with a stable job.

I strongly believe in Redfin. I have done 100's of hours of research and waited until after the IPO lockup on 1/24/18. Should I feel guilty? Am I crazy for believing with conviction that Redfin will prosper?

Thank you in advance.
I did not know that Redfin went IPO. Thanks for the info. I will not be buying it, but I will say it is the BEST RE App out there and I think I have tried them all. Its a great app.

chicagoan23
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Re: I bought a stock today - Redfin (RDFN)

Post by chicagoan23 » Fri Jan 26, 2018 8:11 pm

Honest question: what was so compelling about the price you paid today that made it irresistible for you to devote 20% of your portfolio to RDFN? Do you think people are missing something, or do you think the future prospects are so bright that it is a good deal at almost any price?

You mentioned that they save people money and they have solid management, which are two good things. But considering the amount of research you put into this stock is there anything else you can share (without breaking any laws)?

These are honest questions....I once put 20% of my portfolio into a single stock but that was a mutual bank that was about to go public. I expected a pop on the first day and I got it; about 30% in a single day. Absent a special circumstance like that, I’d be curious to know more about your decision.

MrNewEngland
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Re: I bought a stock today - Redfin (RDFN)

Post by MrNewEngland » Fri Jan 26, 2018 8:13 pm

I’ve toyed with buying RDFN for a while now. I have a friend that works for them and I used Redfin to sell my house last year.

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corn18
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Re: I bought a stock today - Redfin (RDFN)

Post by corn18 » Fri Jan 26, 2018 8:19 pm

Looked up RDFN on Yahoo finance. Can't find a single piece of data that indicates a buy. At least they are flat in a hot market.



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MrNewEngland
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Re: I bought a stock today - Redfin (RDFN)

Post by MrNewEngland » Fri Jan 26, 2018 8:21 pm

MrNewEngland wrote:
Fri Jan 26, 2018 8:13 pm
I’ve toyed with buying RDFN for a while now. I have a friend that works for them and I used Redfin to sell my house last year.
My problem with buying any is that this housing market is scary to me and I have a decent amount of my portfolio (about 6-7%) in VNQ.

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eye.surgeon
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Re: I bought a stock today - Redfin (RDFN)

Post by eye.surgeon » Fri Jan 26, 2018 8:22 pm

"I consider myself a Boglehead but I put 20% of my portfolio in a single hot stock"

:beer
Last edited by eye.surgeon on Fri Jan 26, 2018 8:25 pm, edited 1 time in total.
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OldSport
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Re: I bought a stock today - Redfin (RDFN)

Post by OldSport » Fri Jan 26, 2018 8:23 pm

Why do you think this stock will takeoff? What is their business model?

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 8:34 pm

chicagoan23 wrote:
Fri Jan 26, 2018 8:11 pm
Honest question: what was so compelling about the price you paid today that made it irresistible for you to devote 20% of your portfolio to RDFN? Do you think people are missing something, or do you think the future prospects are so bright that it is a good deal at almost any price?

You mentioned that they save people money and they have solid management, which are two good things. But considering the amount of research you put into this stock is there anything else you can share (without breaking any laws)?

These are honest questions....I once put 20% of my portfolio into a single stock but that was a mutual bank that was about to go public. I expected a pop on the first day and I got it; about 30% in a single day. Absent a special circumstance like that, I’d be curious to know more about your decision.
I could share gobs of information about REDFIN. Their business model is easy to understand. Their website is phenomenal and their customer acquisition is directly linked to their website. They are the fastest growing real estate website several years running. They started at the worst time in modern history for a real estate company and survived. The CEO has already taken another company public successfully (Plumtree Software). I can continue to talk about their growth including their advantages over more established brokerages such as Realogy and new up in comers whom are considered unicorn companies specifically Opendoor. I believe they are perfectly positioned to succeed. Redfin NOW, Redfin concierge, Redfin Mortgage and title company are all in their infancy and should only further grow over the years.

My only advantage over others is that I have spend over a hundred hours calculating their market share growth in all 82 markets for the past 5 years. Redfin does not share this information, but if you use their website and do your own math it can be discovered. 10 year + youtube videos of a young Glen Kelman show you how he calculates conversion of customers. This information shows how far Redfin has come!

The management team is amazing! I have become a believer!
.
Last edited by dreamjob9 on Fri Jan 26, 2018 9:30 pm, edited 1 time in total.

JoeRetire
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Re: I bought a stock today - Redfin (RDFN)

Post by JoeRetire » Fri Jan 26, 2018 8:44 pm

dreamjob9 wrote:
Fri Jan 26, 2018 7:45 pm
Should I feel guilty?
As long as your purchase doesn't deprive someone who depends on you, then you should not feel guilty.
Am I crazy for believing with conviction that Redfin will prosper?
Only time will tell. Speculating with 20% of my portfolio is not something I would do. But I'm a lot older and perhaps more cautious.
Perhaps over my career I worked for too many companies that nosedived after their IPO.

Good luck.
Last edited by JoeRetire on Fri Jan 26, 2018 8:49 pm, edited 1 time in total.

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 8:48 pm

eye.surgeon wrote:
Fri Jan 26, 2018 8:22 pm
"I consider myself a Boglehead but I put 20% of my portfolio in a single hot stock"

:beer
Not a hot stock. They are down ~25% on the year.

TheCudder
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Re: I bought a stock today - Redfin (RDFN)

Post by TheCudder » Fri Jan 26, 2018 8:55 pm

I bought AMZN in mid-December....I'm up 19% in a little over 30 days. Perhaps OP will have the same good? Maybe?

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Re: I bought a stock today - Redfin (RDFN)

Post by LadyGeek » Fri Jan 26, 2018 8:59 pm

I removed an off-topic comment and several replies. As a reminder, see: General Etiquette
We expect this forum to be a place where people can feel comfortable asking questions and where debates and discussions are conducted in civil tones.

...At all times we must conduct ourselves in a respectful manner to other posters. Attacks on individuals, insults, name calling, trolling, baiting or other attempts to sow dissension are not acceptable.
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Re: I bought a stock today - Redfin (RDFN)

Post by Hoosierdom » Fri Jan 26, 2018 9:11 pm

I bought my house through Redfin and I love everything about them. That said, I do not know more about the company than the people that determined that it is worth nearly 2 Billion dollars. Do you, OP, know more than those people? If you do then I think you did the right thing. If you don't, then I think you are taking an undue risk.

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Re: I bought a stock today - Redfin (RDFN)

Post by nisiprius » Fri Jan 26, 2018 9:24 pm

dreamjob9 wrote:
Fri Jan 26, 2018 8:34 pm
...For full disclosure [X%] of my portfolio is [Y] shares.
You've just told us the number of dollars in your portfolio. Y times $23/share / X%.

Are you really sure you wanted to do that? Are you sure you don't want to go back and remove those numbers?

It doesn't bother everyone in this forum to disclose that kind of personal financial information to that level of precision, but it would bother me.

If it's OK with you it's OK.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: I bought a stock today - Redfin (RDFN)

Post by Flashes1 » Fri Jan 26, 2018 9:24 pm

If it means anything to you, I never heard of RDFN before now, so there's some room to grow their brand awareness. I say go for it. I like the one poster who said you shouldn't feel guilty if it doesn't deprive someone who depends on you.

And I can't say too much because I recently sunk approx. 5% of my TNW in a start-up craft beer brewery that won't be done for over a year! But like you, I've done my research and I am confident I am going to make a loooooot of money. :moneybag

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whodidntante
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Re: I bought a stock today - Redfin (RDFN)

Post by whodidntante » Fri Jan 26, 2018 9:29 pm

I'm not sure I should give you advice. You're 37 and closing in on a 2 million dollar portfolio. Well done.

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StevieG72
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Re: I bought a stock today - Redfin (RDFN)

Post by StevieG72 » Fri Jan 26, 2018 9:39 pm

20% of an individual stock is heresy!

Do you also own REITs?

You may want to dial that back a bit.

Did your research include a thorough review of the financials? Do you understand them? I don’t, which is why I stick to TSM.

Good luck, I hope you are successful!
Fools think their own way is right, but the wise listen to others.

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 9:51 pm

StevieG72 wrote:
Fri Jan 26, 2018 9:39 pm
20% of an individual stock is heresy!

Do you also own REITs?

You may want to dial that back a bit.

Did your research include a thorough review of the financials? Do you understand them? I don’t, which is why I stick to TSM.

Good luck, I hope you are successful!
To answer your question, Yes i did. I have read and studied there S-4 IPO filing at nauseam. They have no debt & they have apprx. 240M in cash after their IPO. Their S-4 filing states several times that they believe in frugality. There board and leadership is diversified. They make an effort to hire female engineers. The leadership is so impressive to me. I see so much potential, I had to go for it. This is my once in a lifetime!

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 9:55 pm

whodidntante wrote:
Fri Jan 26, 2018 9:29 pm
I'm not sure I should give you advice. You're 37 and closing in on a 2 million dollar portfolio. Well done.
Thank you.

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 10:00 pm

Hoosierdom wrote:
Fri Jan 26, 2018 9:11 pm
I bought my house through Redfin and I love everything about them. That said, I do not know more about the company than the people that determined that it is worth nearly 2 Billion dollars. Do you, OP, know more than those people? If you do then I think you did the right thing. If you don't, then I think you are taking an undue risk.
Fair point. That's great you had an awesome experience with Redfin!! Many satisfied & soon to be repeat customers. People buy a new home every 7 years on avg.

mega317
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Re: I bought a stock today - Redfin (RDFN)

Post by mega317 » Fri Jan 26, 2018 10:02 pm

dreamjob9 wrote:
Fri Jan 26, 2018 9:51 pm
Their S-4 filing states several times that they believe in frugality. There board and leadership is diversified. They make an effort to hire female engineers. The leadership is so impressive to me.
I'm not trying to be a jerk, really trying to understand your point of view. If their leadership knocked on your door and asked for $300k for a new venture would you hand it over after reading some documents? It seems like the leadership is the main thing you find attractive about this company.

BigMoneyNoWhammies
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Re: I bought a stock today - Redfin (RDFN)

Post by BigMoneyNoWhammies » Fri Jan 26, 2018 10:11 pm

I don't see any problem with your venturing out into individual stock picks with a portion of your portfolio allocated towards "play" money (I do the same with a small portion of mine), but as others have mentioned, 20% of your total investment $ in one stock is very high. Most of the more experienced investors on here tend to recommend no more than 5% of your portfolio on such plays, which seems like sound advice.

ZinCO
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Re: I bought a stock today - Redfin (RDFN)

Post by ZinCO » Fri Jan 26, 2018 10:15 pm

dreamjob9 wrote:
Fri Jan 26, 2018 10:00 pm
Hoosierdom wrote:
Fri Jan 26, 2018 9:11 pm
I bought my house through Redfin and I love everything about them. That said, I do not know more about the company than the people that determined that it is worth nearly 2 Billion dollars. Do you, OP, know more than those people? If you do then I think you did the right thing. If you don't, then I think you are taking an undue risk.
Fair point. That's great you had an awesome experience with Redfin!! Many satisfied & soon to be repeat customers. People buy a new home every 7 years on avg.
For what it's worth, we used Redfin 4 years ago to buy our current home and it was a great experience. But I knew their differentiators at the time, and was not looking forward to going through the usual home-buying process. I sometimes look back at companies that I've had personal experience with that were successful, and wondered why I didn't trust my personal experience and purchase the stock at the time... Apple, Dell, Amazon, Costco all come to mind. (I have actually owned all of them outside of TSM, but in each case purchased years after my first positive encounter with their business, and gave up thousands of potential profits in the process.)

Years ago I read something from Peter Lynch about buying businesses that you could actually experience and observe, or something along those lines... Stores which you could stand in and observe the clientele, that kind of thing. Was never much of an individual stock owner, but always realized I shouldn't be buying businesses that I couldn't explain to others.

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Re: I bought a stock today - Redfin (RDFN)

Post by Dottie57 » Fri Jan 26, 2018 10:21 pm

mega317 wrote:
Fri Jan 26, 2018 7:55 pm
dreamjob9 wrote:
Fri Jan 26, 2018 7:45 pm
There business model prides thevmselves on saving people money.
I feel like most successful businesses pride themselves on separating people from their money.
Vanguard saves people money. And I think vanguard is :D successful

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 10:22 pm

mega317 wrote:
Fri Jan 26, 2018 10:02 pm
dreamjob9 wrote:
Fri Jan 26, 2018 9:51 pm
Their S-4 filing states several times that they believe in frugality. There board and leadership is diversified. They make an effort to hire female engineers. The leadership is so impressive to me.
I'm not trying to be a jerk, really trying to understand your point of view. If their leadership knocked on your door and asked for $300k for a new venture would you hand it over after reading some documents? It seems like the leadership is the main thing you find attractive about this company.
The leadership is only the tip of the iceberg. The reason why I mention it is because for me to invest, I must trust those running the company. Morally, I wouldn't invest in a company that I didn't share their core values. I think this becomes more important to people in the future. Especially growing a technology company. See Uber.

The business model is why I love Redfin. They use technology to improve the entire home buying experience. They EMPLOY real estate agents with an avg annual salary of 95k per year. By employing the real estate agent they are able to streamline processes and cut cost. All the real estate agents work on the same platform. As they grow title forward and Redfin Mortgage they will be able to implement changes and improve margins much more efficiently than a typical brokerage whom contracts out their agents. They are a true end to end technology company with a disruptive business model. The fact that they have gotten to this point is remarkable. Look at their website and judge for yourself. Read about Redfin Concierge and Redfin Now. The days of charging such high fees for a home transactional cost will come to end. I believe, Redfin is well positioned to lead that change.

WhiteMaxima
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Re: I bought a stock today - Redfin (RDFN)

Post by WhiteMaxima » Fri Jan 26, 2018 10:25 pm

I like Redfin. But they are still not showing profit. I would out little money not 20% and see how it goes.

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Re: I bought a stock today - Redfin (RDFN)

Post by F150HD » Fri Jan 26, 2018 10:48 pm

dreamjob9 wrote:
Fri Jan 26, 2018 8:34 pm
chicagoan23 wrote:
Fri Jan 26, 2018 8:11 pm
Honest question: what was so compelling about the price you paid today that made it irresistible for you to devote 20% of your portfolio to RDFN? Do you think people are missing something, or do you think the future prospects are so bright that it is a good deal at almost any price?

You mentioned that they save people money and they have solid management, which are two good things. But considering the amount of research you put into this stock is there anything else you can share (without breaking any laws)?

These are honest questions....I once put 20% of my portfolio into a single stock but that was a mutual bank that was about to go public. I expected a pop on the first day and I got it; about 30% in a single day. Absent a special circumstance like that, I’d be curious to know more about your decision.
I could share gobs of information about REDFIN. Their business model is easy to understand. Their website is phenomenal and their customer acquisition is directly linked to their website. They are the fastest growing real estate website several years running. They started at the worst time in modern history for a real estate company and survived. The CEO has already taken another company public successfully (Plumtree Software). I can continue to talk about their growth including their advantages over more established brokerages such as Realogy and new up in comers whom are considered unicorn companies specifically Opendoor. I believe they are perfectly positioned to succeed. Redfin NOW, Redfin concierge, Redfin Mortgage and title company are all in their infancy and should only further grow over the years.

My only advantage over others is that I have spend over a hundred hours calculating their market share growth in all 82 markets for the past 5 years. Redfin does not share this information, but if you use their website and do your own math it can be discovered. 10 year + youtube videos of a young Glen Kelman show you how he calculates conversion of customers. This information shows how far Redfin has come!

The management team is amazing! I have become a believer!
.
almost sounds like you're trying to 'pump up' the value of the stock on public BBs so you can dump it for a profit. Just the way this comes across...

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 10:56 pm

F150HD wrote:
Fri Jan 26, 2018 10:48 pm
dreamjob9 wrote:
Fri Jan 26, 2018 8:34 pm
chicagoan23 wrote:
Fri Jan 26, 2018 8:11 pm
Honest question: what was so compelling about the price you paid today that made it irresistible for you to devote 20% of your portfolio to RDFN? Do you think people are missing something, or do you think the future prospects are so bright that it is a good deal at almost any price?

You mentioned that they save people money and they have solid management, which are two good things. But considering the amount of research you put into this stock is there anything else you can share (without breaking any laws)?

These are honest questions....I once put 20% of my portfolio into a single stock but that was a mutual bank that was about to go public. I expected a pop on the first day and I got it; about 30% in a single day. Absent a special circumstance like that, I’d be curious to know more about your decision.
I could share gobs of information about REDFIN. Their business model is easy to understand. Their website is phenomenal and their customer acquisition is directly linked to their website. They are the fastest growing real estate website several years running. They started at the worst time in modern history for a real estate company and survived. The CEO has already taken another company public successfully (Plumtree Software). I can continue to talk about their growth including their advantages over more established brokerages such as Realogy and new up in comers whom are considered unicorn companies specifically Opendoor. I believe they are perfectly positioned to succeed. Redfin NOW, Redfin concierge, Redfin Mortgage and title company are all in their infancy and should only further grow over the years.

My only advantage over others is that I have spend over a hundred hours calculating their market share growth in all 82 markets for the past 5 years. Redfin does not share this information, but if you use their website and do your own math it can be discovered. 10 year + youtube videos of a young Glen Kelman show you how he calculates conversion of customers. This information shows how far Redfin has come!

The management team is amazing! I have become a believer!
.
almost sounds like you're trying to 'pump up' the value of the stock on public BBs so you can dump it for a profit. Just the way this comes across...
I don't know how to respond to that. I plan on holding this for many years. I'm sorry my enthusiasm came over as a sales pitch. That was not my intent.

Finridge
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Re: I bought a stock today - Redfin (RDFN)

Post by Finridge » Fri Jan 26, 2018 10:58 pm

livesoft wrote:
Fri Jan 26, 2018 7:56 pm
You're welcome. I did not buy a stock today.
+1 :sharebeer

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 11:06 pm

nisiprius wrote:
Fri Jan 26, 2018 9:24 pm
dreamjob9 wrote:
Fri Jan 26, 2018 8:34 pm
...For full disclosure [X%] of my portfolio is [Y] shares.
You've just told us the number of dollars in your portfolio. Y times $23/share / X%.

Are you really sure you wanted to do that? Are you sure you don't want to go back and remove those numbers?

It doesn't bother everyone in this forum to disclose that kind of personal financial information to that level of precision, but it would bother me.

If it's OK with you it's OK.
Thank you kindly for the advice. I removed.

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 11:15 pm

ZinCO wrote:
Fri Jan 26, 2018 10:15 pm
dreamjob9 wrote:
Fri Jan 26, 2018 10:00 pm
Hoosierdom wrote:
Fri Jan 26, 2018 9:11 pm
I bought my house through Redfin and I love everything about them. That said, I do not know more about the company than the people that determined that it is worth nearly 2 Billion dollars. Do you, OP, know more than those people? If you do then I think you did the right thing. If you don't, then I think you are taking an undue risk.
Fair point. That's great you had an awesome experience with Redfin!! Many satisfied & soon to be repeat customers. People buy a new home every 7 years on avg.
For what it's worth, we used Redfin 4 years ago to buy our current home and it was a great experience. But I knew their differentiators at the time, and was not looking forward to going through the usual home-buying process. I sometimes look back at companies that I've had personal experience with that were successful, and wondered why I didn't trust my personal experience and purchase the stock at the time... Apple, Dell, Amazon, Costco all come to mind. (I have actually owned all of them outside of TSM, but in each case purchased years after my first positive encounter with their business, and gave up thousands of potential profits in the process.)

Years ago I read something from Peter Lynch about buying businesses that you could actually experience and observe, or something along those lines... Stores which you could stand in and observe the clientele, that kind of thing. Was never much of an individual stock owner, but always realized I shouldn't be buying businesses that I couldn't explain to others.
When I discussed the idea of investing in Redfin with my wife she mentioned this very point. The fact that I have learned about Redfin as a user will make it easy for me sleep at night.

simmias
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Re: I bought a stock today - Redfin (RDFN)

Post by simmias » Fri Jan 26, 2018 11:24 pm

I do like Redfin's business model. I think it's the future of the industry, and Kelman is definitely impressive. I'm surprised that the courts have allowed brokerages to maintain their sham of an independent contractor relationship with their agents. It's only a matter of time before some of these cases go before the right judges.

DH0
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Re: I bought a stock today - Redfin (RDFN)

Post by DH0 » Fri Jan 26, 2018 11:38 pm

Could be a very smart move. I'm a big fan of Redfin and had somehow missed that they'd gone public. 20% of your portfolio seems high. I haven't bought an individual stock in a couple of years, but when I did I always kept the initial purchase to < 10% of my portfolio.

Every time I've noticed a company come out with a truly exceptional product the stock has done well. I remember being awed by the first ipod I saw in the early 2000's...should have loaded up on Apple...some friends getting completely hooked on World of Warcraft...loaded up on Activision/Blizzard...early Model S sightings in the Bay Area....picked up ~$10k of Tesla. All worked out well, presumably because other market participants and looking short term and underestimate the potential of a great product.

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Re: I bought a stock today - Redfin (RDFN)

Post by jbuzolich » Fri Jan 26, 2018 11:41 pm

I love the Redfin app and I loved their business model but I feel like they already abandoned what their core message was about early on. At least the core messaging as it was presented to me. They wanted to be the disruptor and change the industry with technology. I feel like they already abandoned that. Instead of service through technology and ultra low fees now they charge perhaps .5 to 1 percent under what other real estate agents will do the work for. I am not a fan of real estate commissions for the work they do. I will continue to use the Redfin app and love it but I feel let down on their commissions.

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Fri Jan 26, 2018 11:48 pm

jbuzolich wrote:
Fri Jan 26, 2018 11:41 pm
I love the Redfin app and I loved their business model but I feel like they already abandoned what their core message was about early on. At least the core messaging as it was presented to me. They wanted to be the disruptor and change the industry with technology. I feel like they already abandoned that. Instead of service through technology and ultra low fees now they charge perhaps .5 to 1 percent under what other real estate agents will do the work for. I am not a fan of real estate commissions for the work they do. I will continue to use the Redfin app and love it but I feel let down on their commissions.
They are at 1% on the sales side it most of their markets. The issue is that there is still the buy side commission of 3%. Kelman talks about using there website as a platform for a buyer and seller to meet. If he figures out a way to unite buyers and sellers and decrease the buyers agent fee and sellers fee on the same sale. Look out!

ccf
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Re: I bought a stock today - Redfin (RDFN)

Post by ccf » Sat Jan 27, 2018 4:18 am

Wow 20% is a lot.

If you want to be talked down a bit, chatting with a few experienced (non Redfin and Redfin) agents about Redfin might do that. I went from being excited about their business to feeling like they are mainly a referral service with a nice website/app that spends all of their referral $ on attracting leads.

You seem very confident and excited about where this could take you and you could have picked a winner but I want to join the other voices and say that 20% of a $2mm portfolio is a big gamble.

Also, if you don't have an IPS, write one and cover your plans for these types of risky investments and your plans for Redfin. What happens if Redfin soars and becomes 30% of your portfolio? What do you do if you are tempted to pick another? What happens if it drops? It really helps to have a plan.

SGM
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Re: I bought a stock today - Redfin (RDFN)

Post by SGM » Sat Jan 27, 2018 5:27 am

My nephew and his wife work for Redfin. We sold a relative's house out of state and had a good experience with the company and the agent. We saved on agent's fees. I am impressed with the company.

A good company does not necessarily mean that the stock is a good buy. Will Redfin benefit from the recent tax changes? What are the prospects for the housing market? Can Redfin's model be duplicated by others if it proves to be successful? How is the stock valued compared to competitors? At what price will you sell the stock?

Although I am impressed with the company I am not tempted to purchase the stock. It is hard to beat the current juggernaut market. Best of luck.

TwstdSista
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Re: I bought a stock today - Redfin (RDFN)

Post by TwstdSista » Sat Jan 27, 2018 5:50 am

I work in real estate and didn't even know what Redfin was until reading this thread. (but I do not work on the home buying side of RE)

Good luck to you!

LaraZP
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Re: I bought a stock today - Redfin (RDFN)

Post by LaraZP » Sat Jan 27, 2018 6:39 am

In Planet Money's indicator they have a short interview with Glenn Kelman.

https://www.npr.org/sections/money/2018 ... onweb-pits

I just finished listening to the podcast and came to the forum to find this. Hearing about Redfin from two sides at the same time makes me suspicious.

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jfn111
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Re: I bought a stock today - Redfin (RDFN)

Post by jfn111 » Sat Jan 27, 2018 7:29 am

simmias wrote:
Fri Jan 26, 2018 11:24 pm
I do like Redfin's business model. I think it's the future of the industry, and Kelman is definitely impressive. I'm surprised that the courts have allowed brokerages to maintain their sham of an independent contractor relationship with their agents. It's only a matter of time before some of these cases go before the right judges.
I think good Brokerages respect and protect the Independent Contractor model. I work out of my home and there are no mandatory meetings or required time I'm at an office. I find my own buyer's and seller's and I do my own advertising. I'm free to buy my supplies from anyone I want. Last year I took Feb. off and went to Florida. There was no one I had to "ask permission" of to shut down for the month.
I think Redfin has an interesting model.They haven't made much of a blip yet in my market but we'll see what the future brings.

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Re: I bought a stock today - Redfin (RDFN)

Post by corn18 » Sat Jan 27, 2018 7:29 am

dreamjob9 wrote:
Fri Jan 26, 2018 7:45 pm
I consider myself a boglehead, but I just couldn't resist. I love Redfin! There business model prides themselves on saving people money. There management including the CEO Glen Kelman seem trustworthy & full of integrity. I feel both good and guilty after buying the stock. 20% of my portfolio. I'm 37 with a stable job.

I strongly believe in Redfin. I have done 100's of hours of research and waited until after the IPO lockup on 1/24/18. Should I feel guilty? Am I crazy for believing with conviction that Redfin will prosper?

Thank you in advance.
DJ9,

You have had quite the ride over the last 5 years. 2013 was about an underwater rental, fellowship and no savings. 2014-2015 was paying off student loans, saving for kid's college and buying a house (and becoming an attending physician). 2016 you started thinking about AA and buying bond sand buying luxury cars. 2017 brought maxed out retirement accounts, college saving and looking for a plan for starting a taxable account (with some very non-boglehead ideas). 2018 now brings on RDFN.

After reading all of this, You are not a boglehead. Not even close. Please take a deep breath and relax. I would not want all of your irrational exuberance to end with another doctor with a negative net worth. Visit the White Coat Investor site. He's actually a regular poster here, so maybe PM him for a prescription to slow down a bit. And please fill out an Investment Policy Statement. You don't have to become a boglehead, but maybe a little stability and less gut reaction could lead you to your goal of being FI in 10 years. If you're not careful, you could be broke in 10 years.

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Sat Jan 27, 2018 7:57 am

corn18 wrote:
Sat Jan 27, 2018 7:29 am
dreamjob9 wrote:
Fri Jan 26, 2018 7:45 pm
I consider myself a boglehead, but I just couldn't resist. I love Redfin! There business model prides themselves on saving people money. There management including the CEO Glen Kelman seem trustworthy & full of integrity. I feel both good and guilty after buying the stock. 20% of my portfolio. I'm 37 with a stable job.

I strongly believe in Redfin. I have done 100's of hours of research and waited until after the IPO lockup on 1/24/18. Should I feel guilty? Am I crazy for believing with conviction that Redfin will prosper?

Thank you in advance.
DJ9,

You have had quite the ride over the last 5 years. 2013 was about an underwater rental, fellowship and no savings. 2014-2015 was paying off student loans, saving for kid's college and buying a house (and becoming an attending physician). 2016 you started thinking about AA and buying bond sand buying luxury cars. 2017 brought maxed out retirement accounts, college saving and looking for a plan for starting a taxable account (with some very non-boglehead ideas). 2018 now brings on RDFN.

After reading all of this, You are not a boglehead. Not even close. Please take a deep breath and relax. I would not want all of your irrational exuberance to end with another doctor with a negative net worth. Visit the White Coat Investor site. He's actually a regular poster here, so maybe PM him for a prescription to slow down a bit. And please fill out an Investment Policy Statement. You don't have to become a boglehead, but maybe a little stability and less gut reaction could lead you to your goal of being FI in 10 years. If you're not careful, you could be broke in 10 years.
I was going to respond with a detailed answer of how pleased and happy we have been with the past 5 years. But after considering the intent of your post - I will just say thanks for your thoughts.
Last edited by dreamjob9 on Sat Jan 27, 2018 9:06 am, edited 2 times in total.

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Sat Jan 27, 2018 8:00 am

ccf wrote:
Sat Jan 27, 2018 4:18 am
Wow 20% is a lot.

If you want to be talked down a bit, chatting with a few experienced (non Redfin and Redfin) agents about Redfin might do that. I went from being excited about their business to feeling like they are mainly a referral service with a nice website/app that spends all of their referral $ on attracting leads.

You seem very confident and excited about where this could take you and you could have picked a winner but I want to join the other voices and say that 20% of a $2mm portfolio is a big gamble.

Also, if you don't have an IPS, write one and cover your plans for these types of risky investments and your plans for Redfin. What happens if Redfin soars and becomes 30% of your portfolio? What do you do if you are tempted to pick another? What happens if it drops? It really helps to have a plan.
This is great advice. Thank you.

F150HD
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Re: I bought a stock today - Redfin (RDFN)

Post by F150HD » Sat Jan 27, 2018 9:29 am

dreamjob9 wrote:
Fri Jan 26, 2018 10:56 pm
F150HD wrote:
Fri Jan 26, 2018 10:48 pm

almost sounds like you're trying to 'pump up' the value of the stock on public BBs so you can dump it for a profit. Just the way this comes across...
I don't know how to respond to that. I plan on holding this for many years. I'm sorry my enthusiasm came over as a sales pitch. That was not my intent.
Good luck. :moneybag

dreamjob9
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Sat Jan 27, 2018 10:21 am

F150HD wrote:
Sat Jan 27, 2018 9:29 am
dreamjob9 wrote:
Fri Jan 26, 2018 10:56 pm
F150HD wrote:
Fri Jan 26, 2018 10:48 pm

almost sounds like you're trying to 'pump up' the value of the stock on public BBs so you can dump it for a profit. Just the way this comes across...
I don't know how to respond to that. I plan on holding this for many years. I'm sorry my enthusiasm came over as a sales pitch. That was not my intent.
Good luck. :moneybag
Thank you :D

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Artsdoctor
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Re: I bought a stock today - Redfin (RDFN)

Post by Artsdoctor » Sat Jan 27, 2018 10:53 am

dreamjob9 wrote:
Fri Jan 26, 2018 7:45 pm
I consider myself a boglehead, but I just couldn't resist. I love Redfin! There business model prides themselves on saving people money. There management including the CEO Glen Kelman seem trustworthy & full of integrity. I feel both good and guilty after buying the stock. 20% of my portfolio. I'm 37 with a stable job.

I strongly believe in Redfin. I have done 100's of hours of research and waited until after the IPO lockup on 1/24/18. Should I feel guilty? Am I crazy for believing with conviction that Redfin will prosper?

Thank you in advance.
I don't think you should feel guilty at all. You're 37 and you hopefully have a very full investment life ahead of you.

I would venture a guess that most Bogleheads believe that diversification is helpful. Having 20% of your entire portfolio in one stock would not be be considered "diversified" by most investors, let alone Bogleheads.

For what it's worth, most bull markets come to an end--or most bear markets start--when investors feel overly confident (or, some would use the word "greed", which is a bit harsh for my tastes). If a Boglehead or anyone else usually invests in diversified mutual funds, suddenly decides to go the individual stock route (or worse, just one stock), it could be construed as a warning sign for the rest of us . . .

https://www.investopedia.com/articles/i ... greedy.asp

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