Share Picks 2021 - Thread banned users post #1

Look like the US Fed will raise rates. Goodbye bubble stocks.

Yeah growth stocks went on a rampage for the last 3 hours yesterday after the announcement. The certainty is good for markets, the uncertainty was bad

Based individual

interesting, i'll look into this!

I have been nibbling away on the various dips... bringing down BEP's where appropriate and opening small starter positions in companies I haved been watching for a while.

Only thing is, I now have about 80 open positions 😳 Any of the investment guides would suggest this is pure madness.

Anybody else in this boat?

I've 31 positions and I personally think there is a good bit of effort required to follow those positions, 80 seems alot to me, I'd suggest looking at trimming that number back, with that many positions it (I imagine) would be hard to outperform the S&P500

*0 you've just got yourself a fund. You're not buying stocks at all at that rate. Sounds like you need more conviction in what you're buying

Added a small amount of Tilray as a long-term hold, the price at pretty much the 52 week low represents a bargain for me.

NFA. DYODD. Etc etc

Yeah like 5 big positions, should be 40-50% of your portfolio, so if there's 70 making up the rest, that's less than 1% each. So if one is a big success and 5x in 2021, you gain 5%. That's underperforming the S&P

Good article summing up the Jack Ma and Alibaba situation:

"Huxiu [A Chinese newspaper which Alibaba has a stake in], which had also published an editorial warning against excessive punishment of China’s tech groups, was ordered to halt its operations for a month." 

"The Communist party reigns supreme and that any private business, no matter how strategically important to the country’s future, will be brought to heel if it is perceived to jeopardise the party".

I wonder if Alibaba started or wanted to start paying dividends would Xi Jinpeng reject it? I don't see how he would like Chinese money leaving the country?

If you own a private Chinese enterprise, do you even own it? Let's face it the state pretty much runs these companies and all they are really interested in is protecting their power and to a lesser extent Chinese citizens.

Leaving aside the fact that the CCP party basically control these companies and can block any acquisitions, tax any dividends (easily) etc. You don't even own any part of the actual underlying Chinese company, rather, a contractual agreement to part of their future profits. This means that as shareholders you've no voting entitlements and no direct ownership in the companies assets. (Now, the average investor not having voting rights isn't a big deal but this would be off-putting for institutional investors, and let's face it, these are the ones that move stocks long term).

It's plausible to suggest that at the CCP could ban VIE's at some point in the future, although not likely, in that scenario it would leave most westerns owning stocks like Baba, JD, Tencent etc. "holding the bags".

I know the argument is that a lot of this is already factored into the current price and that Charlie Munger is an investor etc. but I'd suggest that many on this forum don't actual know what an ADR / VIE structure is, well worth knowing before / if invested in any Chinese companies. The reason that the VIE structure was created in the first place is that under Chinese law, foreign ownership in most Chinese industries is prohibited.

Bottom line is CCP don't / won't give a f**k about western investors. Dyor

Very Good article on the VIE Structure ->

Could anyone suggest some stocks I should buy? I'm new to this (I have about $600)

I know the safest idea would be to throw them into ETFs for now, but I don't think revolut has any at the current moment.

Blackstone

Devon Energy

Ford

Porsche...for exposure to VW on the cheap

Tata Motors

Alibaba (BABA) ownership with the top fund investors. 15 of them own BABA.

DATAROMA Superinvestor Ownership