Stocks - The Best Buys 2

[Slava]

Originally Posted by Enoch Root

That brings me to an important issue with respect to advisors - if you are paying them fees to build you a portfolio, you are wasting your money. They are not going to be able to consistently outperform a simple, well-constructed portfolio consisting of well-diversified whole-market funds.

Where advisors can and do add value is with what I call wealth management: financial planning, tax planning, estate planning, etc. I don't know how many times I have seen someone say "I have this huge tax bill, what can I do about it?" The answer is 'pay it' because once you owe the taxes, you owe them. The planning and management has to happen in advance. These types of things can become hugely important as your wealth grows, and their value (or cost , if done incorrectly) can vastly outweigh the differences were are talking about with respect to portfolio management.

I don’t agree. The studies that show this underperformance are almost all based on mutual funds, and to me that’s questionable. We know the fees are higher there and as a result the hurdle rate is higher, but this gets continually trotted out as gospel.

The other and perhaps far more important point is that the point of asset management isn’t just outperformance. It’s about a risk adjusted after-tax return that satisfies the objectives of the investor. If you only need say 3% a year to make everything work, why in the world would you care about beating the market? I know you’re well aware that using a goals based system is becoming increasingly prevalent and I think there’s good reason for that. Building portfolios and managing assets in that context is definitely worthwhile in my view.

I obviously agree that the other aspects of planning and implementation are critical and perhaps more impactful. But I do think it all works together and appropriate asset management is a significant piece.

[Cecil Terwilliger]

Originally Posted by Slava

I'm also speaking generally, but thanks for the shot. The banks offer a lot of proprietary funds and frankly its unrealistic to assume that one bank is going to invest you in the other banks mandate or vice-versa. It's ridiculous to even think that they would. I'm sure that is because they're not biased at all and it's in the clients best interest? There's no impartiality at all, and yet the truth is some financial institutions are good for some things and not as good as others. When you walk into a bank branch though, you get what you get; they're not looking at the other guys investment funds.



Patently false.

So, whats the advantage of the bank again? Their lineup of funds? Their GICs? Hardly anything to get excited about.

Uhh might want to look below Slavs because it looks like someone agrees with me.

In fact, it’s weird how often you guys are posting stuff that is in line with what I said because it applies to the banks too. You just won’t admit it and keep beating down that personal banker low level bank employee straw man.

Everything you guys have posted applies to planners with the big five. Fee structure, wealth management, tax and estate planning, no pressure to sell any products etc.

It’s almost like people have different experiences with different advisors and trying to make blanket claims, like you’re doing, and trying to vilify your competition, which you have a massive conflict of interest in personally, represents a massive leap.

There’s no right answer here and there are advantages and disadvantages to every scenario. You should know better than to make claims you can’t possibly prove.

Originally Posted by Enoch Root

Some advisors have minimums, some don't. However, it is simple math. If you have $10,000, 1% of that is $100 (which doesn't even cover their administration costs), so it is simply impossible for them to take you as a client. (The reason that the banks will deal with you, and not charge you a direct fee, is that the products will make more than 1% for them, and require little to no human input. They simply sell you a mutual fund and you go on your way. That isn't advice.

Until you have more assets, the best thing to do is buy inexpensive, whole-market ETFs. For example, Vanguard has a series of funds that give you broad access like VCN (Canadian equity), VUN (US equities) and VIU (international equities), that cost basis points (0.1 - 0.2%). Just keep buying products like these until your portfolio is large enough that it is worth your time and the advisor's time for you to work together.

[Enoch Root]

Originally Posted by Slava

I don’t agree. The studies that show this underperformance are almost all based on mutual funds, and to me that’s questionable. We know the fees are higher there and as a result the hurdle rate is higher, but this gets continually trotted out as gospel.

Two things: first, the data is consistent across the board, not just higher fee funds. Second, what are you proposing instead?

The other and perhaps far more important point is that the point of asset management isn’t just outperformance. It’s about a risk adjusted after-tax return that satisfies the objectives of the investor. If you only need say 3% a year to make everything work, why in the world would you care about beating the market? I know you’re well aware that using a goals based system is becoming increasingly prevalent and I think there’s good reason for that. Building portfolios and managing assets in that context is definitely worthwhile in my view.

I obviously agree that the other aspects of planning and implementation are critical and perhaps more impactful. But I do think it all works together and appropriate asset management is a significant piece.

Completely agree, which was my point regarding bundling of services. The value that professional help will provide isn't as one-dimensional as outperform the market. Portfolio management should be directed towards the goals of the investor, and the overall wealth management strategy. We are in full agreement here.

[flamesfever]

Originally Posted by Slava

Well if you want the benefits of the profits from the products, you should just hold bank stock. The funds themselves don’t necessarily hold that, and it will depend on the mandate, so it doesn’t end up in the untiholders hands.

But yeah, the mutual fund is professionally managed and there are analysts that work on those funds and in the investment teams for sure. That’s not specific to the banks though, and there are a lot of options for managed money.

The funds, that I have seen, list the percentage of financials held in the portfolio, and it seems to be in the order of +/- 20%. If one wishes to purchase the actual stock, you can deal with a subsidiary of the bank that has managers that can purchase and hold the stock for you.

The benefit I see in dealing with a bank and its subs, is that your money and investments are all in one spot, and using internet banking you can see, at a glance, the data regarding your various bank accounts, your credit card, your investments, and your loans.

I have always liked to use the KISS principal with regards to money i.e. Keep It Simple Stupid.

[Enoch Root]

Originally Posted by Cecil Terwilliger

Uhh might want to look below Slavs because it looks like someone agrees with me.

In fact, it’s weird how often you guys are posting stuff that is in line with what I said because it applies to the banks too. You just won’t admit it and keep beating down that personal banker low level bank employee straw man.

Everything you guys have posted applies to planners with the big five. Fee structure, wealth management, tax and estate planning, no pressure to sell any products etc.

It’s almost like people have different experiences with different advisors and trying to make blanket claims, like you’re doing, and trying to vilify your competition, which you have a massive conflict of interest in personally, represents a massive leap.

There’s no right answer here and there are advantages and disadvantages to every scenario. You should know better than to make claims you can’t possibly prove.

Actually, it is you that keeps throwing out the strawmen.

I never once said that there aren't good advisors at the banks (that would just be foolish). What I said, and I think it is pretty undisputable, is that the banks are not the best platform.

If you are an awesome advisor, I am suggesting that you could be even better under a better platform. One that is completely free of conflicts of interest and corporately-motivated products and decisions.

[Enoch Root]

Originally Posted by flamesfever

The funds, that I have seen, list the percentage of financials held in the portfolio, and it seems to be in the order of +/- 20%. If one wishes to purchase the actual stock, you can deal with a subsidiary of the bank that has managers that can purchase and hold the stock for you.

The benefit I see in dealing with a bank and its subs, is that your money and investments are all in one spot, and using internet banking you can see, at a glance, the data regarding your various bank accounts, your credit card, your investments, and your loans.

I have always liked to use the KISS principal with regards to money i.e. Keep It Simple Stupid.

Well admittedly, if you deal with a non-bank, you will have to click on two pages instead of one, in order to see all of your assets and accounts. One has to ask, what is that tiny inconvenience worth? Because for me, I would rather have the best and most efficient advice possible. That seems to be well worth the cost of an extra click, IMO.

As for buying the stock, you can do that anywhere. The banks try to convince you that there is a convenience to their services, but other than the one-click argument, it is all a mirage.

And what makes it substantially worse, is the constant turnover. Suddenly having a new person as my contact is just annoying as ####.

[Enoch Root]

By the way, if you are looking at funds that are in the neighbourhood of 20% weighted in banks, I would suggest that that is more than enough exposure to them, and you shouldn't be supplementing them by buying more bank stocks.

[flamesfever]

nm

[bizaro86]

Originally Posted by Enoch Root

Are you saying you want those services but not the portfolio management?

I see where you're going, but I don't agree. While it is very difficult to 'cover' the fees from good portfolio management alone, the fact remains that professionals are going to (or should) do a better job of it than a non-professional. They have more tools at their disposal.

But more importantly, it is the combination of all of it together that makes sense. The portfolio should be managed in a way that is complimentary to, and consistent with, the wealth management strategies and goals.

Also, if you separate them, people won't pay for wealth management until they think they need it, which is usually too late.

The best approach is a consistent plan that remains on track over the long term. The best way to achieve that is a fully bundled set of services.

Yes, I'd potentially like a one-stop shop for those services but still manage my own money.

I do an objectively good job managing my own money (significant outperformance over a full cycle, including great Sharpe ratio and even better Sortino ratio). But I do that using strategies that I wouldn't get at basically any portfolio manager.

For example odd lot tenders. I made over $5k on the E-L Financial odd lot tender. But that is the maximum dollar amount possible. Funds wouldn't bother because it isn't meaningful, but $5k is still meaningful to me. A few low risk deals like that a year adds significant performance but minimal risk.

I also do things that are liquidity constrained. For example I bought Calfrac unsecured debt prior to their recent recapitalization. That worked out to buying the new CFW shares at just over $2, and a couple weeks after the restructuring they are over $4. This was more risky than an odd lot, but the implied valuation was absurd. But there was barely any liquidity. I doubled my money here, but again the time vs money wouldn't have been worth it for a fund or manager.

I do feel like I'm missing some integration though. For example, I do donations every year. I'd almost certainly be better off donating a security with a huge gain, but I tend to have my long term winners in my registered accounts, and my non-reg is full of short term stuff that doesn't work well for that. I'd like to generate offsetting gains and losses so I could donate the winner and claim the capital loss on the loser. I'm thinking narrow option spreads here, or maybe going long inverse funds. But it would be nice to have someone to kick around ideas like that with.

Anyway, maybe that isn't a common set of complaints. I'm sure all the advisors in this thread are adding value through both portfolio management and other advice, I just have a bit of a different perspective.

[Enoch Root]

Some of my clients do some things on their own. They have the bulk of their investments with us, and do their thing on the side. We incorporate what they do into our process, and factor those assets into our portfolio weightings.

[manwiches]

Originally Posted by IGGYRULES

I'm telling you check out amci. Merger date to be announced next week at the latest. There is 2x upside in the short term minimum. Look at the movement in PLUG and FCEL . This isn't moving as much yet due to the fact the merger hasn't happened. From when this merger was valued and share price $10. FCEL is up over 700% and PLUG is 300%. AMCI is "only" up 50%. Huge potential here.

Nice DD bud. I've been in and out of AMCI since December. My biggest winner yet. And I'm in again for my 7th ride.

Lots of eyes, and one of the easiest thingd to trade in recent memory. Respects all fibs and vol nodes.

SPAC plays are absolute money on SPY dips too.

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[bluejays]

Hate to get in between the Questrade discussion, but what are people’s thoughts into the new year assuming the vaccines are effective and life resumes around summer? With less savings as a reality for a chunk of the population, or other intangibles, what are peoples strategies looking at the second half of the year? While I haven’t done it as I’m waiting for a pullback I’m looking at Dollarama with people looking to save more, and likely some blue chip tech like IBM and Nvidia with work from home more and more acceptable even with a vaccine coming.

Ideas?

[manwiches]

Originally Posted by fleury

Hate to get in between the Questrade discussion, but what are people’s thoughts into the new year assuming the vaccines are effective and life resumes around summer? With less savings as a reality for a chunk of the population, or other intangibles, what are peoples strategies looking at the second half of the year? While I haven’t done it as I’m waiting for a pullback I’m looking at Dollarama with people looking to save more, and likely some blue chip tech like IBM and Nvidia with work from home more and more acceptable even with a vaccine coming.

Ideas?

Market is looking overextended. SPY just hit the 127.2% fib extension, and 161.8% is incoming in the next couple weeks. 161.8% is a magnet for bullish momentum, but will also be resistance. This coincides with the anticipating of a correction, albeit a seasonal small one soon, likely inside the next month. US stimulus though, and market sentiment is still very hot. I think 2021 is very bullish in general still.

I'm sitting on 75% cash, and playing small position short term swings. Long term, sitting on small positions on some blue chips, sold most.
Currently my cores I'm holding at AMC/CGC/SPCE/PLTR/MASS/ESSC. All are pretty much at prices i got them for 2 weeks ago, and will hold through pullback. I have positions in AMCI/GHIV/FUBO/TEDU/DGLY and SNDL that i'll be looking to get out full by end of week.

Once dips come, will be cycling back into weed and EV in about 50% of my portfolio, all pennies and play the spread. They should all consolidate soon, and both are a big push by Biden being in. Popular SPACs the remaining 25%, and leave 25% to day trade and play 24/48 hr swings

Weed - CGC/MJ as Bellweathers and core, IGC/TLRY/SNDL/ACB as cult and will rotate and scale pops into laggards. KERN/CRON/APHA are popular too and I'll spread into there too

EV - TLSA as bellweather and core, AYRO/KNDI/SOLO/NETE/WKHS as cult and will rotate and scale pops into laggards

SPACs - AMCI/HCAC/FIII/ESSC/GHIV all popular as hell and easy to trade. TTCF/CLOV/FSR are post merger, but very culty still.

2021 is going to be a fun year.

[manwiches]

Want a good stock to look at now for short term swing (this week), watch DGLY. Body cams etc. It is one of, if not the most popular penny when riots happen. I am in on an average of 1.57 from last week, and the last spike was to almost 4.

I bought as soon as the riots started in the US on Capitol Hill. I would not marry this stock (or any penny for that matter). Play the pop, whatever that may be, as it's a crummy penny (they all are...) that will leave you bag holding if you don't have an exit plan. I anticipate at least high 3s, and will scale accordingly. Wait for a dip buy though, as it's getting pumped this morning.

**edit** i revise my original PT on this. 4.4s easy. 7s were hit because of George Floyd, and now this is country wide in the US. Will scale at 4s, let rest ride.

[bluejays]

Originally Posted by manwiches

Want a good stock to look at now for short term swing (this week), watch DGLY. Body cams etc. It is one of, if not the most popular penny when riots happen. I am in on an average of 1.57 from last week, and the last spike was to almost 4.

I bought as soon as the riots started in the US on Capitol Hill. I would not marry this stock (or any penny for that matter). Play the pop, whatever that may be, as it's a crummy penny (they all are...) that will leave you bag holding if you don't have an exit plan. I anticipate at least high 3s, and will scale accordingly. Wait for a dip buy though, as it's getting pumped this morning.

**edit** i revise my original PT on this. 4.4s easy. 7s were hit because of George Floyd, and now this is country wide in the US. Will scale at 4s, let rest ride.

What the heck? Did you pump and dump this? Right after posting this the stock rocketed. Lol. Crazy.

[agulati]

�� I bought this stock just before it’s jump. Thanks for the recommendation bud. I bought a small volume but good to see some jump. Hopefully it gets a bit higher and I can sell it off for a tidy profit this week.

[IGGYRULES]

Originally Posted by manwiches

Market is looking overextended. SPY just hit the 127.2% fib extension, and 161.8% is incoming in the next couple weeks. 161.8% is a magnet for bullish momentum, but will also be resistance. This coincides with the anticipating of a correction, albeit a seasonal small one soon, likely inside the next month. US stimulus though, and market sentiment is still very hot. I think 2021 is very bullish in general still.

I'm sitting on 75% cash, and playing small position short term swings. Long term, sitting on small positions on some blue chips, sold most.
Currently my cores I'm holding at AMC/CGC/SPCE/PLTR/MASS/ESSC. All are pretty much at prices i got them for 2 weeks ago, and will hold through pullback. I have positions in AMCI/GHIV/FUBO/TEDU/DGLY and SNDL that i'll be looking to get out full by end of week.

Once dips come, will be cycling back into weed and EV in about 50% of my portfolio, all pennies and play the spread. They should all consolidate soon, and both are a big push by Biden being in. Popular SPACs the remaining 25%, and leave 25% to day trade and play 24/48 hr swings

Weed - CGC/MJ as Bellweathers and core, IGC/TLRY/SNDL/ACB as cult and will rotate and scale pops into laggards. KERN/CRON/APHA are popular too and I'll spread into there too

EV - TLSA as bellweather and core, AYRO/KNDI/SOLO/NETE/WKHS as cult and will rotate and scale pops into laggards

SPACs - AMCI/HCAC/FIII/ESSC/GHIV all popular as hell and easy to trade. TTCF/CLOV/FSR are post merger, but very culty still.

2021 is going to be a fun year.

CCIV. Lucid motors rumor (Bloomberg, and Reuters). Still early @ $14. Be $20 before you know it.

[Leondros]

Originally Posted by IGGYRULES

CCIV. Lucid motors rumor (Bloomberg, and Reuters). Still early @ $14. Be $20 before you know it.

What happened to your AMCI pump? Any news?

[IGGYRULES]

Originally Posted by Leondros

What happened to your AMCI pump? Any news?

No news yet. When CCIV rumor hit I moved 75% of my AMCIW over there for the ride. I'm hoping CCIV hits high teens this week and the AMCI vote date doesn't drop until next week so I can move out of CCIV back in. Still very bullish on AMCI and want back in after the initial CCIV pump. It's a calculated bet and I could be kicking myself. We'll see. Warrants for CCIV @ $4.70 and commons at $14 so warrants are overvalued IMO. Warrants ib AMCI undervalued @ $3.27 compared to commons @ $15.25 or so. Hoping they stay that way til I get back in....

[manwiches]

Originally Posted by fleury

What the heck? Did you pump and dump this? Right after posting this the stock rocketed. Lol. Crazy.

If I could have the capital to manipulate a penny... glad to hear someone else took it with me!

I am holding full, still swinging for 4s, and maybe 7s. The leader in the Riot Sector penny world. I had taken a position right during the march to Capitol Hill last week.

That being said if you are holding, they pulled some shady shyte a last week during their last spike, dropping an S-3, then pulled it. I imagine they wanted it to spike more so insiders could sell their shares higher.

I also picked up SPCB right before market close on this news.

FBI warns 'armed protests' being planned at all 50 state capitols and in Washington DC

https://www.cnn.com/2021/01/11/polit...tol/index.html

My intention is to hold both into end of week and sell the fomo and news.

Also picked up a bunch of post IPO and SPAC plays today on the support/dips. I will be out of all of these inside the next week, selling into pumps and fomo.

IGAC - SPAC with betting angle
MASS - bottomed out chart
FIII - cult SPAC with EV angle
THMO - bio Penny that's bottomed out and primed for pop and PR
IKT - post IPO midcap bio that's way oversold and has some furu eyes
ESSC - SPAC w lots of eyes and interesting concept
FUBO - way oversold and should see quick upside

Only trade I didnt get today was JUPW. I wanted, but forgot.

Gotta DD some positions for tmw later tonight.

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