patrick.net

If AAPL doubles I'm buying a boat for my girlfriend.

Donald says

I have had 5,000 shares of Amazon and Moderna since their IPOs and have never received a single dividend payment. Worst investment ever! Imagine all of the dividend payments I could have had if I bought value stocks instead.

Why the fixation on dividends? You have pay taxes on these while you don't pay taxes when company buys back their stock, thus increasing valuation. BRK haven't paid a single red cent in dividends ever - they funnel money into buybacks, which is much more tax-efficient for shareholders.

Donald says

I was being sarcastic in my remark about dividends. I was mocking value stocks.

I see. Sarcasm rarely works on the interwebs. =))

Eric Holder says

I see. Sarcasm rarely works on the interwebs. =))

Sarcasm is often used to illustrate the absurdity of your opponent's argument. The problem on the internet is your opponent thinks you're agreeing with them.

Donald says

Unlike growth stock investors, value stock investors do not need to worry at all about an increase in capital gains taxes.

Value stocks are usually associated with dividends which are subject to short-term capital gains, i.e. income tax. Both growth and value stocks if held for over a year are subject to the same long-term capital gains which federally are 20% then tac on any state tax. If you're talking about buy and hold forever, then both will not pay any taxes, except on dividends.

My favorite tactic is to wait for a big pull back on a fantastic growth name and buy an atm call option a year out aka a LEAP, that way at expiration it's an automatic long-term capital gain, which ironically is lower than the tax rate you'll pay from withdrawals on your IRA.

TonyKulernus says

Newsletters ..... right now focused on value stocks, as I believe that there will be a rotation out of growth stocks and into value stocks. Value stocks tend to be the ones that the market does care about, which makes them cheap. It makes them a contrarian play. You need to have a timeline of 3 to 5 years though.

Here are some sectors I am invested in

1. Coal
2. Bulk Dry Goods Shipping companies
3. Self Defense
4. Gold / Silver Miners
5. Agriculture / Fertilizer

bizarre I thought I wrote this hahaha. I'm all expect Gold / Silver Miners they will set up but more downside with strong dollar. Tech is overvalued and probably going to see some pain with strong dollar until Oct. I just sold some oil ETFS but hoping to get into some Russian oilers. Partially Lukoil & Tatneft increasing reserves, low debt levels low and in 5-10 year will still be producing oil. Russian oilers have been outperforming Western oil majors for the last two years. Value is working great for me - my Uranium positions are 150-300% up. We're having a correction and plan to add in the upcoming months. I own a lot of foreign stock in my IB account - it's great because I don't check it much. Coal is having a nice breakout :P Check out Goehring & Rozencwajg Associates great research!

Interesting .... I also am up 200% on UUUU, and Lukoil was also a recommended stock. AND many of the recommendations are outside of the US. I'll check out what you recommended. My newsletter is called Capitalist Exploits .... so I guess that makes me literally Hitler?

A strong dollar is a negative for commodities and the exchange rate on foreign stocks...