I bought a stock today - Redfin (RDFN)

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

Post by chuckcintron » Mon Feb 12, 2018 10:13 am

Besides giving me a headache, I enjoyed this thread. My wife and I have been looking for a new home in the $800K to $1M range for the last 2 years (we are pretty specific about what we want).

I found it odd that I've never heard of "Redfin". So I just checked them out. Maybe they are really more for seller services than for buyers?

(a) Their website is a cookie-cutter of any other real estate listing site out there.

(b) In my county there are 3500 homes for sale right now. Redfin shows 700.

(c) There have been many attempts in the past by companies who claimed to be a market disruptor in the RE listing market -- but for some reason the MLS oligarchy seems to figure out how to beat them down. Maybe Redfin will finally be the one to win this battle...but the smoke has not yet cleared.

When it comes time to sell our current home I'd probably not use Redfin. I know a couple of real estate brokers here and they generally have clients already in the queue who would be interested in a home coming onto the market, and we've already talked about strategies to encourage above-price offers. Why would I trust a random RE salesperson under some sort of self-service configuration, even if the commission is a couple of points lower?

As of right now, after my full 10 minutes of research, this appears to be a somewhat interesting company propped up by an inrush of IPO cash. Meh.

Just my opinion...

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

Post by tampaite » Mon Feb 12, 2018 12:56 pm

chuckcintron wrote:
Mon Feb 12, 2018 10:13 am
I know a couple of real estate brokers here and they generally have clients already in the queue who would be interested in a home coming onto the market, and we've already talked about strategies to encourage above-price offers.
so you are basically looking to inflate your assest price? Am sure the buyer's realtor is exactly doing the opposite. Hence, why Redfin is so great since they are a neutral player.

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

Post by chuckcintron » Mon Feb 12, 2018 2:33 pm

That makes no sense. As a seller, I'm looking for a sales strategy not a cut-rate broker no matter how "cool" their website is.

As a buyer, I'm looking for choices, which in my market anyway Redfin has less than 1/4 the listings as Zillow or Realtor.

So tell me again, what the value-add is and/or the market disruption play that is so compelling that anyone would stake 20% of their holdings on this company?

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

Post by MrNewEngland » Mon Feb 12, 2018 3:00 pm

I’m not advocating the stock but when I sold my house I used Redfin and the experience was great. I saved money, got more than I expected, it happened quick, and the process was smooth. I’ll absolutely use them for n the future.

a5ehren
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Re: I bought a stock today - Redfin (RDFN)

Post by a5ehren » Mon Feb 12, 2018 3:21 pm

chuckcintron wrote:
Mon Feb 12, 2018 2:33 pm
That makes no sense. As a seller, I'm looking for a sales strategy not a cut-rate broker no matter how "cool" their website is.

As a buyer, I'm looking for choices, which in my market anyway Redfin has less than 1/4 the listings as Zillow or Realtor.

So tell me again, what the value-add is and/or the market disruption play that is so compelling that anyone would stake 20% of their holdings on this company?
It's safe to say that if you're wealthy and well-connected in the local RE community, you have no use for Redfin's services. For normal people, saving 5 digits on a home sale is a big deal.

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

Post by dreamjob9 » Mon Feb 12, 2018 3:24 pm

chuckcintron wrote:
Mon Feb 12, 2018 2:33 pm
That makes no sense. As a seller, I'm looking for a sales strategy not a cut-rate broker no matter how "cool" their website is.

As a buyer, I'm looking for choices, which in my market anyway Redfin has less than 1/4 the listings as Zillow or Realtor.

So tell me again, what the value-add is and/or the market disruption play that is so compelling that anyone would stake 20% of their holdings on this company?
There is one of two scenario's here with your situation.

Most likely: You live an a region of the country that Redfin does not service. They are currently focused in coastal cities with median home sales prices in the $300k - 500k range. They have decreased the lowest listing home they can service down to ~200k while still being profitable. They are able to lower there cost by incorporating a technology platform and automation with EMPLOYEED real estate agents. This is the technology factor of Redfin. Decreasing the servicable home price while reducing commission to 1.0 - 1.5% now allows them to service central and the southwest united states. They are expanding an 82 of 84 markets.

Less likely: You live an a region in which Redfin services, but you are a statistical anomaly. See that "cool" website you refer to is the top growing real estate website 35-40% year over year growth for multiple years running. Because Redfin is a brokerage, they acquire MORE listings NOT LESS than Zillow. Remember, Zillow has a completely different business model than Redfin. As Redfin online customers grow (~30 million unique users a MONTH) they can choose not SYNDICATE to Zillow (This is a big deal). This creates a competitive advantages that a typical broker (ie. Remax, Century 21, Sothebys etc) & online web portal such as Zillow/Trulia and Realtor.com can't compete. Redfin is a HYBRID company of both. It's genious (Glen Kelman is an impressive human being).

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

Post by BuckyBadger » Mon Feb 12, 2018 3:59 pm

Didn't expect to see HOT STOCK PICKS on this board.

Reads like the first few pages of the GTAT stock forums.

Cool cool cool.

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

Post by dreamjob9 » Mon Feb 12, 2018 4:04 pm

BuckyBadger wrote:
Mon Feb 12, 2018 3:59 pm
Didn't expect to see HOT STOCK PICKS on this board.

Reads like the first few pages of the GTAT stock forums.

Cool cool cool.
What's wrong with discussing less expensive consumer driven companies? It's bogleheads.org. Jack Bogle, the guy who created Vanguard? Do you not believe there are similarities? Have you independently reviewed Redfin?

I just don't understand the sentiment. Nobody believes a post on bogleheads.org drives up a stock price do they?

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

Post by HomerJ » Mon Feb 12, 2018 4:08 pm

dreamjob9 wrote:
Mon Feb 12, 2018 4:04 pm
BuckyBadger wrote:
Mon Feb 12, 2018 3:59 pm
Didn't expect to see HOT STOCK PICKS on this board.

Reads like the first few pages of the GTAT stock forums.

Cool cool cool.
What's wrong with discussing less expensive consumer driven companies? It's bogleheads.org. Jack Bogle, the guy who created Vanguard? Do you not believe there are similarities? Have you independently reviewed Redfin?

I just don't understand the sentiment. Nobody believes a post on bogleheads.org drives up a stock price do they?
If everyone did it, it would be a very different board.

You're new here. You're posted about half your posts in this one thread.

We don't normally discuss individual stocks. It happens, but it's rare.

Raabe34
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Re: I bought a stock today - Redfin (RDFN)

Post by Raabe34 » Mon Feb 12, 2018 4:08 pm

MrNewEngland wrote:
Mon Feb 12, 2018 3:00 pm
I’m not advocating the stock but when I sold my house I used Redfin and the experience was great. I saved money, got more than I expected, it happened quick, and the process was smooth. I’ll absolutely use them for n the future.
Received more than expected but the kicker was it what it was worth at that point in time.

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

Post by BuckyBadger » Mon Feb 12, 2018 4:09 pm

dreamjob9 wrote:
Mon Feb 12, 2018 4:04 pm
What's wrong with discussing less expensive consumer driven companies? It's bogleheads.org. Jack Bogle, the guy who created Vanguard? Do you not believe there are similarities? Have you independently reviewed Redfin?

I just don't understand the sentiment. Nobody believes a post on bogleheads.org drives up a stock price do they?

As many have said, 20%+ in an individual stock isn't being "Boglehead."

I believe in index investing. If Redfin is in my total US stock index, then I own it at its market weight - no more and no less. So of course I haven't independent reviewed Redfin. I've never independently reviewed a stock in my life. Because I don't need to. Why would I?

My statement stands. It's weird to see a 6 page thread promoting an individual stock.

That's all I'm saying.

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

Post by FoolMeOnce » Mon Feb 12, 2018 4:22 pm

chuckcintron wrote:
Mon Feb 12, 2018 10:13 am
(b) In my county there are 3500 homes for sale right now. Redfin shows 700.
Aren't the listings all pulled from MLS, so they should be the same? Perhaps you are in an area where Redfin agents only cover a city or certain cities, so listings from the other cities in the county are not included. But if they cover the city you are interested in, the listings should be the same there.

We had a great experience both selling and buying with Redfin. The only downside as a seller is missing out on lining up buyers before the listing goes live, as you mentioned. But it is hard to imagine you get a better price that way than taking a few days to stage an open house. Those early deals limit your customer base to clients of the same real estate agency or of agents who know your agent.

I'm not sure what sales strategy you are referring to, but it is odd to assume Redfin agents don't do the same thing.

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

Post by bottlecap » Mon Feb 12, 2018 5:33 pm

dreamjob9 wrote:
Mon Feb 12, 2018 4:04 pm
BuckyBadger wrote:
Mon Feb 12, 2018 3:59 pm
Didn't expect to see HOT STOCK PICKS on this board.

Reads like the first few pages of the GTAT stock forums.

Cool cool cool.
What's wrong with discussing less expensive consumer driven companies? It's bogleheads.org. Jack Bogle, the guy who created Vanguard? Do you not believe there are similarities? Have you independently reviewed Redfin?

I just don't understand the sentiment.
The poster you responded to did not express disapproval. But because you asked the question...

Jack Bogle does not advocate that the individual investor invest in individual stocks. So I'm not going out on a limb by saying that there are NO similarities between what he advocates and "discussing less expensive consumer driven companies" (whatever that means) and "independently reviewing" Redfin (whatever that means) or any other individual stock.

This forum is dedicated to educating people about how Jack Bogle advises the individual investor to invest and about what Jack Bogle believes is folly.

I don't begrudge anyone from posting "I bought an individual stock today." And, you CAN discuss those things here, but don't expect to be received like a hero or a maverick. Don't expect NOT to be educated about the folly.

There are thousands of stock-picking forums to join. There is this place to discuss investing that does not involve picking individual stocks.

If you treat the forum as your typical stock-picking forum, you are detracting from the mission. If you don't understand and won't ever agree/understand the principles espoused by Jack Bogle, then I think it is appropriate to remind you that is not the right place to make a habit of it.

Because it's bogleheads.org, you see...

JT

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

Post by dreamjob9 » Mon Feb 12, 2018 8:21 pm

bottlecap wrote:
Mon Feb 12, 2018 5:33 pm
dreamjob9 wrote:
Mon Feb 12, 2018 4:04 pm
BuckyBadger wrote:
Mon Feb 12, 2018 3:59 pm
Didn't expect to see HOT STOCK PICKS on this board.

Reads like the first few pages of the GTAT stock forums.

Cool cool cool.
What's wrong with discussing less expensive consumer driven companies? It's bogleheads.org. Jack Bogle, the guy who created Vanguard? Do you not believe there are similarities? Have you independently reviewed Redfin?

I just don't understand the sentiment.
The poster you responded to did not express disapproval. But because you asked the question...

Jack Bogle does not advocate that the individual investor invest in individual stocks. So I'm not going out on a limb by saying that there are NO similarities between what he advocates and "discussing less expensive consumer driven companies" (whatever that means) and "independently reviewing" Redfin (whatever that means) or any other individual stock.

This forum is dedicated to educating people about how Jack Bogle advises the individual investor to invest and about what Jack Bogle believes is folly.

I don't begrudge anyone from posting "I bought an individual stock today." And, you CAN discuss those things here, but don't expect to be received like a hero or a maverick. Don't expect NOT to be educated about the folly.

There are thousands of stock-picking forums to join. There is this place to discuss investing that does not involve picking individual stocks.

If you treat the forum as your typical stock-picking forum, you are detracting from the mission. If you don't understand and won't ever agree/understand the principles espoused by Jack Bogle, then I think it is appropriate to remind you that is not the right place to make a habit of it.

Because it's bogleheads.org, you see...

JT
Vanguard's mission statement:
Vanguard is on a mission to lower the cost of investing while continuously raising standards. ... To take a stand for all investors, To treat them fairly, And to give them the best chance for investment success.

Redfin's mission statement:
Our mission is to redefine real estate in the customer's favor. Our goal is to give customers more value, not just by saving each thousands in fees, but by investing in every home we sell, by measuring our performance and improving constantly.

I may start a Kelmanheads.org website. :D

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

Post by happyisland » Mon Feb 12, 2018 8:29 pm

dreamjob9 wrote:
Mon Feb 12, 2018 8:21 pm

Vanguard's mission statement:
Vanguard is on a mission to lower the cost of investing while continuously raising standards. ... To take a stand for all investors, To treat them fairly, And to give them the best chance for investment success.

Redfin's mission statement:
Our mission is to redefine real estate in the customer's favor. Our goal is to give customers more value, not just by saving each thousands in fees, but by investing in every home we sell, by measuring our performance and improving constantly.

I may start a Kelmanheads.org website. :D
I think you are missing the point here. Do you understand the Boglehead criticisms against owning a large amount of a single stock?

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

Post by MrNewEngland » Mon Feb 12, 2018 8:32 pm

I feel like everyone in this thread is being obtuse.

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

Post by bottlecap » Mon Feb 12, 2018 8:59 pm

dreamjob9 wrote:
Mon Feb 12, 2018 8:21 pm

Vanguard's mission statement:
Vanguard is on a mission to lower the cost of investing while continuously raising standards. ... To take a stand for all investors, To treat them fairly, And to give them the best chance for investment success.

Redfin's mission statement:
Our mission is to redefine real estate in the customer's favor. Our goal is to give customers more value, not just by saving each thousands in fees, but by investing in every home we sell, by measuring our performance and improving constantly.

I may start a Kelmanheads.org website. :D
I don't invest in Vanguard. Bogle doesn't say invest in single stocks so long as their mission statement sounds vaguely reminiscent of Vanguard's.

I'm sure every company has a similar "mission statement." Every single one says they're out to help the customer, provide better service, etc...

It's not a reason to invest in single stocks.

JT

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

Post by BuckyBadger » Mon Feb 12, 2018 9:09 pm

dreamjob9 wrote:
Mon Feb 12, 2018 8:21 pm
I may start a Kelmanheads.org website. :D
By all means. This discussion would be more appropriate there.

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

Post by itstoomuch » Mon Feb 12, 2018 10:03 pm

you made me look :oops: :annoyed
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo

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

Post by itstoomuch » Mon Feb 12, 2018 10:04 pm

I sure like to know where and how some BH can TLH?
What in heck did they buy and sell in their taxables?
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo

LukeHeinz57
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Re: I bought a stock today - Redfin (RDFN)

Post by LukeHeinz57 » Tue Feb 13, 2018 8:10 am

Surely this thread has run its course at this point, so I wanted to get in before the lock...As a service to new forum goers, it would be a real shame if they started seeing threads here on a regular basis about individual stocks. It really does go against the teachings of John Bogle our patron saint here. To Bottlecap's point, this is Bogleheads.org
"Contentment", the only thing you ever truly need more of!

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

Post by rhornback » Tue Feb 13, 2018 8:32 am

Here are my 2 cents.

First of off from what I read you are doing great saving for your age. Like others said, great job.

Second, while I do not have the stomach for individual stocks I recognize that if you want to inject some nitro into your portfolio you have to take a risk. For example, if you have bought google, facebook, amazon, or apple 10 years ago you would be doing great. So recognizing this, and as other said, if you don't need the money or have people relying on you, I say go for it.

Myself as a 50 year old with a kid going to college in the fall, I am a slow and steady investor. I am mostly variations of S&P 500. I tilt in different directions which is different than some on this board. But basically a conservative portfolio.

One thing to reflect upon is ti differentiate between loving the company and its business model and loving the stock. I think redfin is great. I think with the use of technology should decrease the commission rate of home sales. Over the last few years I feel like I have been providing more direction to the sales / buyer's agents then they provide to me. This might be my age and have been around the block. But some of it is the tools I have accessible online allow me to know much of what the agents know.

However, just because redfin is a great company does not make it a great investment. It might be or might now. A great company IMO is earning money and not throwing off cash.

On the other hand I was never that impressed with Google, Facebook, and Amazon for the reasons above. I remember when Google bought youtube, I thought it was a terrible investment. But they have done well. So this is obviously not an area that I know. Without wishing to upset those on this board, I venture that many on this board are more like me and hoping to make a bunch of singles adding up to home runs than to swing for the home runs.

So if you have extra cash and want to swing for a home run, go for it. I hope you succeed.

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

Post by Tamalak » Tue Feb 13, 2018 10:06 am

OP lays out reasons why Redfin is a good company. That is not the same as being a good investment.

Google and Amazon are expected to do very well in the future, but the share price reflects that expectation. Did the OP do any research as to whether Redfin is undervalued by the market?

michaeljc70
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Re: I bought a stock today - Redfin (RDFN)

Post by michaeljc70 » Tue Feb 13, 2018 10:59 am

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...
He sounds like a cheerleader to me. It doesn't all sound entirely rational no matter how much research was done in my opinion.

Agents at traditional brokerages don't like Redfin. The real estate broker lobby is very strong. If Redfin gets too much traction, there may be push back. The realtors essentially own the MLS in many instances and control it.

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

Post by buccimane » Tue Feb 13, 2018 11:55 am

LukeHeinz57 wrote:
Tue Feb 13, 2018 8:10 am
Surely this thread has run its course at this point, so I wanted to get in before the lock...As a service to new forum goers, it would be a real shame if they started seeing threads here on a regular basis about individual stocks. It really does go against the teachings of John Bogle our patron saint here. To Bottlecap's point, this is Bogleheads.org
I don't think this thread should be locked, simply because of all the time and effort posters and OP have put in. Plus, the follow-up in a couple of years should be intriguing. If we can have 200 posts about Bitcoins, we can have a handful of stock picks as well.

I have never used Redfin personally, but I have been aware of their presence in the real estate market for quite some time. Skewed towards sellers, but I have only heard great reviews about the platform.

It would be great to look back on this post as a success for the OP, but there seems to be some contradiction in posts regarding the "Hold forever" strategy, and underlying comments that seem short-sighted. I'll echo the sentiments above by suggesting a clear exit strategy.

Never count your money while you're sittin' at the table. Good luck!
Last edited by buccimane on Tue Feb 13, 2018 1:05 pm, edited 1 time in total.
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michaeljc70
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Re: I bought a stock today - Redfin (RDFN)

Post by michaeljc70 » Tue Feb 13, 2018 12:03 pm

LukeHeinz57 wrote:
Tue Feb 13, 2018 8:10 am
Surely this thread has run its course at this point, so I wanted to get in before the lock...As a service to new forum goers, it would be a real shame if they started seeing threads here on a regular basis about individual stocks. It really does go against the teachings of John Bogle our patron saint here. To Bottlecap's point, this is Bogleheads.org
Why? There are so many threads about things that may not be considered directly "Bogleheadish". There are people talking about buying put options, buying bitcoin, payday loans, exotic cars, etc. I see no problem with it. There is nothing in the rules against talking about an individual stock.

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

Post by LadyGeek » Tue Feb 13, 2018 4:36 pm

A general comment, not to anyone specifically:

To be clear, threads are not locked unless they stray outside the Forum Policies.

Alternative opinions are welcome. Please stay on-topic and state your concerns in a civil, factual manner.
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Broken Man 1999
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Re: I bought a stock today - Redfin (RDFN)

Post by Broken Man 1999 » Tue Feb 13, 2018 5:22 pm

Mr. Bogle did opine in one of his books that a high net worth investor might eliminate fees by "rolling their own" mutual fund. He said to buy the largest (by cap) 20-30 individual stocks and hold them forever.

Now I have been tempted to try that approach, but I was held back by this: What exactly is a high net worth individual? Is it a $2 mil, $20 mil or a $200 mil portfolio? I have never considered myself a high net worth individual.

So I just dabble around the edges, where it isn't going to matter at all whether I am successful or unsuccessful with my handful of stocks.

But, to those who like individual stocks, and are high net worth investors, there is a case according to Mr. Bogle.

I would give book, chapter and verse, but alas I have given his books away, for others to hopefully learn good investing habits.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

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

Post by happyisland » Tue Feb 13, 2018 5:36 pm

Broken Man 1999 wrote:
Tue Feb 13, 2018 5:22 pm
Mr. Bogle did opine in one of his books that a high net worth investor might eliminate fees by "rolling their own" mutual fund. He said to buy the largest (by cap) 20-30 individual stocks and hold them forever.

Now I have been tempted to try that approach, but I was held back by this: What exactly is a high net worth individual? Is it a $2 mil, $20 mil or a $200 mil portfolio? I have never considered myself a high net worth individual.

So I just dabble around the edges, where it isn't going to matter at all whether I am successful or unsuccessful with my handful of stocks.

But, to those who like individual stocks, and are high net worth investors, there is a case according to Mr. Bogle.

I would give book, chapter and verse, but alas I have given his books away, for others to hopefully learn good investing habits.

Broken Man 1999
It still doesn't sound like a case for stock picking, and definitely not a case for owning a large concentration in a single stock, as the OP does.

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

Post by BuckyBadger » Tue Feb 13, 2018 5:40 pm

Broken Man 1999 wrote:
Tue Feb 13, 2018 5:22 pm
Mr. Bogle did opine in one of his books that a high net worth investor might eliminate fees by "rolling their own" mutual fund. He said to buy the largest (by cap) 20-30 individual stocks and hold them forever.

Now I have been tempted to try that approach, but I was held back by this: What exactly is a high net worth individual? Is it a $2 mil, $20 mil or a $200 mil portfolio? I have never considered myself a high net worth individual.

So I just dabble around the edges, where it isn't going to matter at all whether I am successful or unsuccessful with my handful of stocks.

But, to those who like individual stocks, and are high net worth investors, there is a case according to Mr. Bogle.

I would give book, chapter and verse, but alas I have given his books away, for others to hopefully learn good investing habits.

Broken Man 1999
Hard to buy 20% of 30 different stocks, though! 600% portfolio!

It's certainly possible to "roll your own" index fund of sorts. But having 20%+ of one stock isn't how you get there.

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

Post by Broken Man 1999 » Tue Feb 13, 2018 6:06 pm

BuckyBadger wrote:
Tue Feb 13, 2018 5:40 pm
Broken Man 1999 wrote:
Tue Feb 13, 2018 5:22 pm
Mr. Bogle did opine in one of his books that a high net worth investor might eliminate fees by "rolling their own" mutual fund. He said to buy the largest (by cap) 20-30 individual stocks and hold them forever.

Now I have been tempted to try that approach, but I was held back by this: What exactly is a high net worth individual? Is it a $2 mil, $20 mil or a $200 mil portfolio? I have never considered myself a high net worth individual.

So I just dabble around the edges, where it isn't going to matter at all whether I am successful or unsuccessful with my handful of stocks.

But, to those who like individual stocks, and are high net worth investors, there is a case according to Mr. Bogle.

I would give book, chapter and verse, but alas I have given his books away, for others to hopefully learn good investing habits.

Broken Man 1999
Hard to buy 20% of 30 different stocks, though! 600% portfolio!

It's certainly possible to "roll your own" index fund of sorts. But having 20%+ of one stock isn't how you get there.
Nope, not prudent. Maybe 20 stocks @ 5% each, or 30 stocks at 3.33%. Not for me, others might entertain such an idea. After all, would the 20-30 number of stocks be very different that the DJIA? I don't know, but if I recall correctly the DJIA is 30 stocks. But I don't think the DJIA is cap weighted. I believe one adds up the share price in some manner or other.

One day I will have to compare the 30 largest cap stocks to the list of DJIA members.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

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

Post by sunspotzsz » Tue Feb 13, 2018 6:11 pm

with fee free broker like robinhood, you don't have to be rich to make your own index fund.

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

Post by walletless » Tue Feb 13, 2018 6:59 pm

sunspotzsz wrote:
Tue Feb 13, 2018 6:11 pm
with fee free broker like robinhood, you don't have to be rich to make your own index fund.
How do you TLH the individual stocks if you are not owning them inside an index fund. You can easily TLH between Total-Stock Market (VTSAX or similar) and Large-Cap (VLCAX or similar). But, say for instance, AMZN gives you a TLH opportunity, which alternate stock would you purchase?

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

Post by itstoomuch » Tue Feb 13, 2018 7:04 pm

^why, Alibaba (BABA), of course.
One could afford a round lot with BABA. Less so with AMZN.
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Re: I bought a stock today - Redfin (RDFN)

Post by walletless » Tue Feb 13, 2018 7:11 pm

itstoomuch wrote:
Tue Feb 13, 2018 7:04 pm
^why, Alibaba (BABA), of course.
One could afford a round lot with BABA. Less so with AMZN.
But they hardly seem to be moving in similar ways in the short amount of data we have... wheras the index funds have moved similarly for a long period of time.

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

Post by BuckyBadger » Tue Feb 13, 2018 10:18 pm

sunspotzsz wrote:
Tue Feb 13, 2018 6:11 pm
with fee free broker like robinhood, you don't have to be rich to make your own index fund.
But why would you? Why spend time and effort to reinvent the wheel and end up just making a less-good wheel??

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

Post by itstoomuch » Tue Feb 13, 2018 11:51 pm

walletless wrote:
Tue Feb 13, 2018 7:11 pm
itstoomuch wrote:
Tue Feb 13, 2018 7:04 pm
^why, Alibaba (BABA), of course.
One could afford a round lot with BABA. Less so with AMZN.
But they hardly seem to be moving in similar ways in the short amount of data we have... wheras the index funds have moved similarly for a long period of time.
I thought you wanted to keep similar/complementary business not antagonistic businesses :oops:
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Re: I bought a stock today - Redfin (RDFN)

Post by dreamjob9 » Sat Feb 24, 2018 3:26 pm

I am more confident than ever in Redfin. On prior conference call CEO Glenn Kelman gave insight into the final Redfin product. Redfin FREE . That's right, a consumer will get a full service real estate sales agent team (Redfin is not a discount brokerage) for FREE. If you are asking yourself, that doesn't makes sense, how would Redfin make revenue, that means you don't understand the final objective of Redfin. They are making huge growth in markets they offer home sales at 1%. Just imagine the growth, 2-3 years from now, when Redfin goes FREE.

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

Post by LadyGeek » Sat Feb 24, 2018 3:58 pm

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