Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • Janet Yellen supposedly Biden's pick for Treasury Secretary
    Well wxman123, if DOW 30K is what makes life worth living for you then I guess we have vastly different priorities. Tell me, how has that made life any better for the average Joe on the street. How is the world in general any better at all because the of that milestone? The rich got even richer. Whoopie!
    I'm also more willing to put Mr. Kerry up in fancy European hotels than any member of the current administration in Trump properties anywhere but that's just me.
    I never said nor implied that any level of the DOW made life worth living. What I did imply and stand by is that the country would not be doing any better now had Hilary won...and won't be doing better with Biden's hacks. Does anyone really like John Kerry? I mean, really.
  • Janet Yellen supposedly Biden's pick for Treasury Secretary
    An army of political hatchetmen qualified in nothing other than a nihilistic agenda of Trumpism brought four years of chaos and administrative subversion.
    I prefer "hacks" who are well-qualified administrators with experience in their jobs.
    A preference for the wealth of the Dow over the health of the United States is, unfortunately, not unique to wxman123. There are plenty more just like him out there.
    I would think it rather foolish to be posting regularly on MFO if YOU weren't concerned about making money. And, how exactly is the level of the DOW at odds with the health of the U.S? Capitalism and wealth creation is a big part of what has made America great. When the DOW suffers there's a good chance the country is suffering too. Thank god this elitist crap is on the wane and the GOP is becoming the party of the working man. Even this time Trump would have won by a wide margin had it note been for "mail it in voting." I strongly suspect that many had no idea what Biden's policies would be nor cared.
  • Janet Yellen supposedly Biden's pick for Treasury Secretary
    Thanks David. Munchin wants to handicap the next administration and the unemployed. The day after Christmas the unemployment insurance will end for 12 millions Americans. Nice guy!
    https://forbes.com/sites/jenniferbarrett/2020/11/23/unemployment-benefits-may-run-out-for-12-million-americans-right-after-christmas/?sh=36fd7d7d1130
  • Is Berkshire more like a Mutual Fund than a stock?
    Maybe the following 1 and 3 years performance charts of SPY,AAPL,QQQ,BRK/A,JPM will convince you that Apple IS NOT another "blend—a blue chip stock ". If they don't I give up.
    image image
  • Is Berkshire more like a Mutual Fund than a stock?
    Strange but true. Figures (as I noted a few posts ago) are from Fidelity's "Key Statistics" page for the respective companies. The number represents "EPS Growth (Last 5 Years)".
    AAPL is no slouch, but everything is relative. Quite a period indeed.
    AAPL: 7.31%
    PG: 10.14%
    JPM: 15.17%
    UNH: 20.25%
    VZ: 13.95%
    DIS: 8.04%
    PFE: 15.27%
    CMCSA: 12.08%
    and the subject of this thread, BRK.A tops this collection at 32.74%.
    (I post this as much to check my previous post as to make the figures concrete. It's always possible I could have made a mistake.)
  • Is Berkshire more like a Mutual Fund than a stock?
    >> ... based on 5-year EPS growth rates, it is growing more slowly than ... Procter & Gamble (PG), JPMorgan Chase (JPM), UnitedHealth (UNH), Verizon (VZ), Disney (DIS), Pfizer (PFE), and Comcast (CMCSA).
    Hmm, a remarkable fact given my more recent analyses: '... compare Apple w/ say SP500, or w/ IVW, or indeed w/ QQQ, whether from two summers ago, from spring '17, from fall '16, from last Thanksgiving, or ytd, ... It still looks like all rock 'n' roll all the time.'
    What a period this is, huh.
  • Are Small Caps Breaking Out? IWM
    IJR and VTMSX should track pretty closely, because they're both based on the S&P 600. The former is a pure index fund that is designed to track the index. The latter "purchases stocks included in the S&P SmallCap 600 Index—an index that is made up of stocks of smaller U.S. companies—in approximately the same proportions as in the Index" but is managed for greater tax efficiency. (Quote is from summary prospectus.)
    You are correct that these two funds will track closely.
    One can click the link below and then add the IJR ticker to compare the funds' pretax / tax-adjusted returns.
    Link
  • Are Small Caps Breaking Out? IWM
    IJR and VTMSX should track pretty closely, because they're both based on the S&P 600. The former is a pure index fund that is designed to track the index. The latter "purchases stocks included in the S&P SmallCap 600 Index—an index that is made up of stocks of smaller U.S. companies—in approximately the same proportions as in the Index" but is managed for greater tax efficiency. (Quote is from summary prospectus.)
  • Is Berkshire more like a Mutual Fund than a stock?
    I wouldn't compare BRK.A to anything else.
    I don't see any reason to own BRK.A
    SPY beat it easily for 1-3-5-10 years and with lower voltility.
    Okay.
    Apple P/E = 35.6 (link)
    You must have a reason in mind, some point you're trying to make, by presenting this figure in isolation. Whatever it is, the point isn't clear.
    If it is to show that AAPL's P/E on Nov 25 is higher than the 33.19 P/E it had on Oct 30th, well, sure. It goes without saying that over a short period when the earnings denominator (a quarterly datum) doesn't change, P/E will move in proportion to price movements. And this month, most stock prices have been going up, so most P/E's have been going up. Nothing special here.
    If the point is to hint that AAPL's P/E is high, whatever "high" means, context matters. Certainly 35+ is high relative to historical stock market averages. But relative to the current (Nov. 25) TTM S&P 500 P/E of 41.34, it is low. Not bargain basement low, but notably lower than the typical large cap stock.
    https://www.wsj.com/market-data/stocks/peyields
    https://www.wsj.com/market-data/quotes/AAPL
    Apple earning are so huge and why it has so much cash and it's harder to show growth but it still shows it
    Certainly Apple's earnings are growing year by year. Though based on 5 year EPS growth rates, it is growing more slowly than not only the other top 10 stocks in VUG (your choice of growth index), but more slowly than eight of the top 10 stocks in VTV, including BRK.A (okay, you don't like that one), Procter & Gamble (PG), JPMorgan Chase (JPM), UnitedHealth (UNH), Verizon (VZ), Disney (DIS), Pfizer (PFE), and Comcast (CMCSA).
    Moderate, steady growth. Some people call that a blue chip. You choose to call it growth. Whatever.
  • Are Small Caps Breaking Out? IWM
    I just checked Vanguard Tax-Managed Small Cap Fund (VTMSX).
    Returns for the past month and three months are 14.35% and 17.57% respectively.
    VTMSX was clobbered earlier this year (-32.24%, Q1 2020) but is now up 6.07% YTD.
  • Are Small Caps Breaking Out? IWM
    Food for thought:
    The Russell 2000 Index of small cap stocks is currently on pace for its best month ever. As of Tuesday afternoon, it’s now up more than 20% for the month of November. I looked at every double-digit return month for the Russell 2000 going back to 1979 and then calculated the total returns for the ensuing 1, 3 and 5 year periods to see how they performed after those wonderful months:
    what-happens-to-small-caps-after-a-huge-monthly-gain/
  • Janet Yellen supposedly Biden's pick for Treasury Secretary
    An army of political hatchetmen qualified in nothing other than a nihilistic agenda of Trumpism brought four years of chaos and administrative subversion.
    I prefer "hacks" who are well-qualified administrators with experience in their jobs.
    A preference for the wealth of the Dow over the health of the United States is, unfortunately, not unique to wxman123. There are plenty more just like him out there.
  • Janet Yellen supposedly Biden's pick for Treasury Secretary
    Well wxman123, if DOW 30K is what makes life worth living for you then I guess we have vastly different priorities. Tell me, how has that made life any better for the average Joe on the street. How is the world in general any better at all because the of that milestone? The rich got even richer. Whoopie!
    I'm also more willing to put Mr. Kerry up in fancy European hotels than any member of the current administration in Trump properties anywhere but that's just me.
  • shareholder value paramount
    "And one could argue the planet’s environment itself though without human agency is a stakeholder. "
    One has ...
    Stone, Christopher D., Should Trees Have Standing - Towards Legal Rights for Natural Objects, Southern California Law Review 45 (1972): 450-501.
    https://iseethics.files.wordpress.com/2013/02/stone-christopher-d-should-trees-have-standing.pdf
    4 page book review (Fla. St. Law Review article):
    https://ir.law.fsu.edu/cgi/viewcontent.cgi?article=1753&context=lr
  • A Housing Boom During A Pandemic
    RE(real estate) is crazy right now but just like any other ones will get back to earth in 1 (maybe 2 years). Rates may go higher, RE prices already moved a lot, many people have saved more during 2020, the pandemic will be over and most things will get more normal. It will definitely not last 10 years.
  • shareholder value paramount
    All true, but I think it misses at least two points:
    Yet in recent decades, Boeing — like so many American corporations — began shoveling money to investors and executives, while shortchanging its employees and cutting costs.
    Schools teach, or at least they used to, that there are three sets of stakeholders in a company. The two mentioned here - the owners and the employees - and a third, the customers. Boeing shortchanged its customers by compromising safety, by hiding information, by marketing the MAX as something it was not.
    The other missing point is that what Boeing and nearly all other companies have been doing is not maximizing shareholder value, but maximizing short term profits and share price at the expense of long term growth. The piece talks of being profit obsessed, but doesn't delve into how focusing on stock price often leads to lower profits in the long term.
    Almost 80 percent of chief financial officers at 400 of America’s largest public companies say they would sacrifice a firm’s economic value to meet the quarter’s earnings expectations. ... (This dynamic backfired at Wells Fargo, where employees pressured to meet quarterly targets opened accounts without customers’ permission.)
    https://www.theatlantic.com/business/archive/2016/12/short-term-thinking/511874/
    https://hbr.org/2015/10/yes-short-termism-really-is-a-problem
  • Janet Yellen supposedly Biden's pick for Treasury Secretary
    the current administration had no transition plan and was not ready to take power in January, 2017. Grifters and inhabitants of the swamp saw the opportunity and cashed in.

    So true and it gets worse towards the end. In addition, the incompetence from top down in so many aspects is unreal. So much for a successful businessman trying to run a country.
    Dow 30K in the face of the worst worldwide natural disaster of our lifetime. Yeah, thank god this is coming to an end. Biden and his Merrymen of hacks will do so much better. As a commentator so perfectly put it yesterday....Kerry finally got his dream job, hanging out in fancy central European hotels making deals that are terrible for America. IMHO nothing about this administration is likely to make day-to-day living better for anyone posting here...or for most of America for that matter. Peace to all, and happy T-Day!
  • Janet Yellen supposedly Biden's pick for Treasury Secretary
    the current administration had no transition plan and was not ready to take power in January, 2017. Grifters and inhabitants of the swamp saw the opportunity and cashed in.
    So true and it gets worse towards the end. In addition, the incompetence from top down in so many aspects is unreal. So much for a successful businessman trying to run a country.