Investing General Discussion

Foler said:

VUSE and IEMG

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I made a lot of money off IEMG a few years ago. For now I am not touching emerging markets or non-US equities.

As for VUSE it appears to be midcap growth, and I still look to the large/mega caps to lead the way.

Foler said:

What kind of investors are most of you guys? Interested in doing more long term investing, not sure I have a place here.

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I buy Tiffany lamps high and sell them low to buy Ikea furniture for my apartment

Araysar said:

I buy Tiffany lamps high and sell them low to buy Ikea furniture for my apartment

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Do you still turn a profit having to pay IKEA to put it together for you?

PFE - think I am going to dump the PFE in my Mom's account tomorrow...

Sanrith Descartes said:

Do you still turn a profit having to pay IKEA to put it together for you?

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Foler i dont know the answer to this. How do you do it?

Oh, this just made my day. Fuck you Jack. I can't believe the Canadians are doing something good.

Foler said:

What kind of investors are most of you guys? Interested in doing more long term investing, not sure I have a place here.

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Why not both?

I have a long-standing Fidelity account with long term investments and my company’s 401k.

Then for fun I have a Robinhood account with “play” money in it. Mind you I’m not YOLOing any of it or making wild and dangerous plays like the tards on WSB, but rather making relatively smart and informed short term flips. I call it “play” money but I don’t want to just lose it mind you.

I could just as well have that in Fidelity, but RH is kinda fun for what it is.

Futures in the red (25 - 30 basis points). Monday holidays always annoy me because the futures open Sunday and then simmer until Tuesday morning.

Fogel said:

You know shits getting real when Big Phoenix starts talking about selling his AMD. By the way, if you don't mind me asking, what date and price did you get in it? That return has to be massive.

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$3 and $55.

Sanrith Descartes said:

Futures in the red (25 - 30 basis points). Monday holidays always annoy me because the futures open Sunday and then simmer until Tuesday morning.

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Yeah. I kinda wish GHIV wasn't dealing with their merger this week, of all weeks.

Fogel said:

People are comparing the recent BurgerFi IPO to Shake shack who also IPO'd earlier. When I get some money free'd up I'll buy some BFI assuming it doesn't go parabolic before than

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I have eaten at Burge-Fi. Its no Shake Shack. While yes numbers are important, you also have to look beyond the numbers. Its the same reason I will invest in Chick-Fil-A if/when they go public. I have eaten at Chick-Fil-A.

Fogel said:

Also, not to go against your guys experience, but if the revenue growth is there, that's what truly matters. Domino's is garbage and they still make money.

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I will be the last one to ever discount financials. But, for companies that lack a moat I want to find a solid fan base who support the brand. For example, CMG. I can take or leave CMG but they have a very solid and dedicated fanbase. Same with SBUX. Same with Chick-Fil-A. If a company exceeds a certain size and scale then that will overcome the lack of a moat (in the case of MCD). When I examine the sector BurgerFi might pop and do well, but my dollars would go to MCD because of their dominant position in the space. I would do Chick-Fil-A for their loyal and dedicated fanbase in addition to how strongly they control expansion plus their position in malls/airports. I like ShakeShack, but its still too "nichy" of a player for me to invest in. Their burgers are good though.

This brings up the price point discussion. There is a segment of the "fast food/fast casual" space that price themselves too high for mass appeal on a grand scale. I put places like Boston Market, CMG, Shake Shack and Five Guys in this group. I like Five Guys, but its like $13+ for me to have lunch. Its not that I can't afford it regularly, its that I won't afford it regularly. I think you hit a point where pricing eliminates too much of the potential customer base for regular visits. Combo meals need to be out of pocket less than $9.99 with tax. You are competing with the big boys (MCD, BK, Subway) who are all running specials/coupons etc for a combo in the 5-6 range plus tax. So under $7 max. Psychologically, $5.25 - $6.26 is infinitely cheaper than $10.01 for a meal. Is the food as good? No, probably not. But you want that giant working poor population to be able to hit it 5 days a week if possible.

This is the brilliance of Chick-Fil-A as a business model. Its food is light years better than MCD/BK but doesn't push the CMG/Shake Shack/Five Guys price points. Someone will pay an extra buck for CFA over MCD many times before they will pay an extra $5 for Five Guys over MCD. Or at least that is how I see the market segment.