22 Burst results for "Jason Moser"

"jason moser" Discussed on MarketFoolery

MarketFoolery

05:08 min | 2 hrs ago

"jason moser" Discussed on MarketFoolery

"It's Tuesday October 26th. Welcome to market foolery. I'm Chris hill with me today. Back in the saddle. It's Jason Moser. Good to see you. Good to see you. Good to see you. We've got an eye on the holidays with two companies that are reporting today, but we're going to start with actual results from the social network. Facebook's third quarter profits came in higher than expected, but revenue was a little light and revenue guidance for the fourth quarter was lower than Wall Street was hoping for. Shares of Facebook down nearly 4% today. Yeah, a little bit of a one two punch there I'd say on the results. They were mixed, but then I think also the guidance going forward, but clearly there are going to be some headwinds that Facebook and other ad based models are going to have to deal with. But I think it's so fascinating to me the tug of war between the media narrative, the public perception of this business and then how the market views it. It's a really good lesson I think for investors to keep in mind because you look at the company and its leadership, they just continue raked over the coals. And I think that's right. They're good reasons for that happening. But for the most part, I mean, you look at the 5 year chart for Facebook shares. This has been a strong investment over the last several years. It's hard to imagine that 5 years from now, investors aren't making money from today's share price. Now obviously there are things that could happen. But I think it really does, it goes to the size of the network that Facebook has built out today. Being so important very, very difficult to disrupt and when you say size, we're talking about daily users at 1.93 billion up 6% monthly actives, 2.91 billion up 6%, the performance. This company is still growing revenue at pretty rapid clips. Revenue was up 34% for the quarter, excluding currency effects. And so all things considered, I mean, I think it was a respectable quarter. I think they painted a fair picture of some challenging challenging times ahead and that's probably what has the market sort of on the fence today, maybe. Yeah, but to your point, you hear the comments from the actual customers of Facebook, the businesses, small and large, who use that platform to market their products and services. And they're the ones who are making this engine go. And they're satisfied with the results that they are getting. Yeah, if that goes to the size of the platform, the size of these networks, it's just instant reach. Regardless how you feel about leadership or just the general privacy issues of what not. Facebook and Zuckerberg, they have built something really meaningful, very powerful in I don't see that changing. Now it could be modified..

Facebook Jason Moser Chris hill Zuckerberg
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

03:12 min | Last week

"jason moser" Discussed on Motley Fool Answers

"Now for the bear case, I'm going to turn to mason Joseph. He's a lesser known analyst here at The Motley Fool, but I'm sure you'll find him just as compelling as Jason Moser. Mason, what's the bear case for Facebook? Yeah, the bear case for Facebook seems to be growing. It has developed a nasty track record when it comes to privacy and a bigger picture social impact that its platforms have on people, particularly young people, and what's worse founder and CEO Mark Zuckerberg just seems totally clueless and utterly tone deaf as to how to respond to such concerns. I don't know that there is a more distrusted CEO on the planet today, and it feels like he's really earned that unfortunately. Regulators appear to have had enough and some sort of action seems inevitable. But how that ultimately plays out is still anyone's guess. Obviously it's historically been an acquisitive company, but I'd imagine that going forward any potential deals will be examined with extreme skepticism by regulators. And I'm also quite certain that costs are going to go up as they must continue to work to shore up these safety problems. So there is a level of uncertainty there, along with a growing ick factor in actually owning these shares of that could be a headwind to the stock here in the coming years..

mason Joseph Jason Moser Facebook Mason Mark Zuckerberg
"jason moser" Discussed on MarketFoolery

MarketFoolery

03:32 min | 3 weeks ago

"jason moser" Discussed on MarketFoolery

"It's monday october fourth. Welcome the market hillary. I'm chris with me today. Jason moser good to see you get to see you. We've got some retail news to discuss. We've we've got a fair amount about the. Let's just call it the business of moving people. I'm we're going to start with delta delta airlines reports third quarter results next week a month ago they cut revenue guidance for the quarter and today they reinstated the original guidance. Ceo at bastion said the ticket. Sales have improved. They also expect bookings in twenty twenty two to be higher than they were in two thousand nineteen and not the the stock is shooting up five ten percent today but it is ahead of the market in terms of being down just is basically flat for the day on a day when the market is down to three percent. So this this is interesting to see in what is a relatively short amount of time delta coming out and saying yeah no. We're we're going back to the original numbers. yeah it does. It does feel like it feels like that happened very quickly. I mean. I certainly give them credit for getting out there and keeping keeping investors up to speed with what's going on because i mean i think that's the one thing we've learned over the past year and a half is is that i mean everything that's been going on. We're dealing with a lot of unknowns. It's new territory for a lot of us and it's a fluid situation. I mean things that are just things. Change very quickly But generally speaking. I think this makes a lot of sense. In the language. Essentially is that they're that they bottomed out in the latter part of august and really the early part of september. And so that that seems to line up with a lot of the language in regard to you hitting peak delta right mean heating pete delta there i mean not the airline but but when you look at when you look at language from from entities like the international air transport association for example. I mean they're they're using language like business. Traffic is is growing back in the us and so they put some numbers around this. They continue to leave. Globally airlines are going to continue to lose money in twenty twenty two but that's going to be significantly lower than than what has been lost in twenty twenty one they think ultimately losses in twenty one twenty twenty one are going total greater than fifty one billion dollars. Not not terribly surprising again given where we were. But if you start looking at what's going on around us if you start taking just kind of a a pragmatic view in start to start to digest people's attitudes. It starts to make a lot more sense. I mean you're seeing. We talked about this poor. I mean just just looking at the world of sports right. I mean football. You watch any football on saturday or sunday college. Nfl stadiums packed people. People are are happy to get out and go to these good of these games. Look at look at events. I mean ceus right the electronic show. That's going to be in person in january. The augmented world. Expo chris in event that prides itself and all of the latest developing technology and and virtual reality is going to be in person chris in november. So listen i mean we're getting to a point where i think people are just becoming a bit more comfortable with the risk reward..

Jason moser delta delta airlines pete delta international air transport as hillary chris football us Nfl
"jason moser" Discussed on Motley Fool Money

Motley Fool Money

05:45 min | Last month

"jason moser" Discussed on Motley Fool Money

"Got a note from danny are who writes longtime listener first-time emailer. Chris has mentioned a few times that he believes having exposure to cybersecurity is essential for most stock portfolios. Would it be possible to hear a breakdown of some different companies in this space primer. Thanks love the show. Thank you for that danny. Thank you for the question. Jason moser what do you think. Well you see. Danny sorry so he can look at this a few ways up for me. I know cyber-security. I agree with you. Chris very important. I also know my scope of knowledge in the space is extremely limited. It unless i become a specialist in this space which. I'm not that that is always going to be the case so for me i mean i look at a company like cloudflare for example as one that fits my style stock. That own of course is talked about on the show before because there is a strong security component to the business but there's also a whole lot more edge computing. It's a content delivery network. There's a lot to it. It's kind of like amazon. In that regard. It's it's a diverse. Business is not necessarily rely on one thing anymore. So i feel like i'm getting that cybersecurity exposure that i want with a company that i believe in but the really all put put all of its eggs in one basket. So that's one way to look at it. Real what about you. Yeah i would say similar. I think a lot of us here are generalists so we look at a lot of different companies. And so i understand that. I am not a software engineer and it probably will not become a software engineer. So i ask myself questions when. I'm looking at these kind of complicated sectors to understand to break down into kind of digestible parts. So what what customers is it serving. What are they doing it. Well so you know what are its retention rates and you can watch a lot of youtube videos of these a lot of these more complicated companies. Cloudflare's a great example. Where you have a big youtube presence where you can see. What does this company to do. What is the edge. And i watch a lot of interviews with people who work there leaders at the company and see if they can speak to people at you know at their level of knowledge and understanding and so getting to a point where i understand it enough and i can understand you know. What is the difference in what it does. And what is the difference between them and some other players and i know some other players in the and the cybersecurity space are crowd strike scaler. those are ones. We've talked about a lot. And so. I think i think looking at all of those different aspects of. It is a good way to make it more more digestible for an average investor are. Let's get to the stocks on our radar behind the glass boy. It's gonna hit you with a question. Jason moser europe. I what are you looking at this week. Sure thing company. I've talked about here before teluk health tickers. Td and they just a need headline across the news this week. They are partnering with a company called proximity proximity the healthcare technology company based in england they enable clinicians to virtually participate in provide support for procedures from anywhere around the world. But the reason why this is so cool among other things. Proximate uses augmented reality. Let surgeon supervise consoling operations remotely so it gives them the ability to show where to make an incision or how to utilize a particular technique actually during surgery. Just a need. I think logical step for virtual healthcare in that regard. But i got a good question on twitter this week. In regard to the pullback intel shares lately house a logical encouraging remember valuation near term is rarely logical. It's very often emotional so to me. This seems like a reset after a really big deal with la mongo some profit-taking from a year of speculation. And just remember. The words have been been graham. He said in the short run. The market is a voting machine in the long run. It is a weighing machine. We're just going to focus on. Tell about getting heavier and heavier year-by-year damn question about telehealth. Chris you know high no that nature's healing out there because jason's back on motley fool money talking about health one of his favorite stocks that into mccormick spices. Of course the and you know me so well. I've always got a seat at the dinner table for you. My man maria gallagher. What are you looking at so on my radar. This week is duo lingo. So if anyone knows anyone who's learning languages. I'm sure they're familiar with duo. Lingo and twenty twenty. There were over five hundred million downloads. It's the top grossing app in the education. Category and on google people actually search duo lingo nine times more than they searched the phrase learn. Spanish it's a revenue increased over one hundred percent in two thousand twenty. I think it's going to be really interesting to understand what will stick as people go back to life more. What was just kind of a phase of playing on your phone game of learning and what will continue to be what people do as life gets more back to normal. But i think it's a pretty interesting company and the ticker symbol d you now. Dan question about duo lingo is dueling goes still doing those really somewhat aggressive notifications on your phone about missing lessons. They try to they. Try to gently encourage you to log on and complete your lessons. Every time i have a friend who's doing dueling go. It's sort of like they show me these these notifications and it's ominous if you miss if you miss a lesson. It's not as ominous as the app. Coast are so if that's your barrier. It's fine what do you want to add to your watch list and well. Doc is a fantastic company. Jason's been talking about it for three hundred years. So i'm actually going to go with dueling. Go because i'm familiar with the service. I'm not familiar with the company. How do you think. I've lived so long day. Jason moser maria gallagher. Thanks so much for being here. That's going to do it for this week's edition of motley fool. Money the show. He's mixed by dan board our producers career. I'm chris hill. Thanks for listening. We'll see you next week..

Jason moser danny Chris youtube la mongo Danny maria gallagher amazon europe intel motley england mccormick graham twitter jason google Dan Jason moser maria gallagher
"jason moser" Discussed on Motley Fool Money

Motley Fool Money

03:14 min | Last month

"jason moser" Discussed on Motley Fool Money

"May have interest in the stocks. They talk about on the motley fool. May of formal recommendations for or against buyer sells stocks based solely. On what you here. Welcome back to motley. Fool money. Chris sale here once again with andy. Cross and jason moser time to get to the stocks on our radar man behind the glass boys going with the question andy across europe. I what are you looking at this week. Yeah digital ocean symbol. Do c. n. Seven billion our company provides cloud architecture that allows developers and startups and small and medium-sized businesses to build deploy software in the cloud in a really simple and cost effective way. Much easier and much more scalable for small companies in something like maybe amazon web services doesn't have a lot of bells and whistles or expanding the market and there's and they're in their client base. They have more than one thousand clients around the world they operate with the little droplet vid virtual servers. That can be spun up very quickly for developers. it's very simple. Transparent cost structure of more than forty million dollars in annual recurring revenue. That's up thirty five percent last quarter revenue per users of twenty-five percent. They are very nice dollar-based retention rate of one hundred and thirteen percent. The ceo was a former c. Chief operating officer send grid before it was acquired by twelve so i liked digital ocean has lots of cash on balance sheet. It's not horribly expensive at seventeen times. Prices sales dan so digital ocean diaz cnn. Dan question about digital ocean digital ocean. Sounds like the failed. Follow up album to a one. Hit wonder band are can they. Can they possibly compete with amazon web services. Yeah they are. They are right now. I thought it sounds like a good band named dan. I liked digital ocean as the actual ban name but yes. They can't compete. They are competing ultimately as a grown grown their market space and they try to add more and more of those services does get more competitive so something to watch but digital ocean the band or the company interesting to put on your radar list. Moser we've got about a minute left. What are you looking at. Yeah yeah taken a look at pay pal ticker p l. The super app is code complete and starting to roll out. I think they may be recognized. Some potential kryptonite in that they didn't have a brokerage offering offering gra. Zoe saw the headline this week. That they are exploring a stock trading platform for us customers. They've actually hired an industry vet to start investigating the opportunities there. And i think unlike something like a robin hood nice thing is pay already has a real and sustainable business. That's not dependent on you. Know that whole order flow issue so this would really be nothing more than a complimentary addition to an already very good business. Dan question about paypal. What am i gonna ask you about paypal. Bape house juggernaut pay house like the biggest war on cash company on the planet. Like what am i gonna ask the. Are they doing okay. I love you dan. i don't think i need does what you're going to add to your watch list. Chris i don't think you do either cross chaser guys. Thanks so much for being here. Thanks chris that's going to do it for this week's edition of motley fool. Money show shows mixed by dan. Boyd our producers matt career. I'm chris thanks for listening. We'll see you next week..

jason moser andy motley amazon dan Chris Cross europe Dan cnn Moser Zoe paypal chris Boyd matt
"jason moser" Discussed on MarketFoolery

MarketFoolery

05:17 min | 3 months ago

"jason moser" Discussed on MarketFoolery

"That's the asset management side and then on their side they have to go with market weighted capitalizations as well so even though we pick according to our conviction that's an aggregate of our analysts. Teams are convictions. On all these stocks once it hits an etf product it also becomes capitalization weighted. And so two georgia's point. You get some big names. That are driving a lot of the change. I would say the other thing investor can do is remember there are mid cap. Ats that you can participate in their international. Etf's there's a whole world of etf's that can give you a little bit of diversification. I know this sounds ironic to say this outside of the s. and p. five hundred index. Which is supposed to be your diversification vehicle. Now that's true but it's it's it is one of those parts of the investing world that that doesn't get as much attention as individual companies and that makes sense to me just from a from a business media standpoint but it's a great point that a good way to diverse if you're looking for like okay i'm looking for not individuals particularly on the international level. If you're just like okay. How can i take a basket approach to a region of the world. But i don't wanna pick individual stocks myself and you can do that by the way i mean you. You can go the jason moser route of. I'm going to find four stocks in this category. And that's going to be my basket but you know you can also go the effort yeah. I think it's a really fun way. In fact to learn about other parts of the world that are emerging in in terms of investment viability and also some mature markets that we often overlook in our own backyard. You could look for a a large cap stock which has an industrial focus so that might leave out a lot of tech stocks so e tips give you that ability to to play around to diversify to learn and i agree with you chris. There overlooked In in some ways they also are a great fund of ideas. One of the best things you can do as an investor who is both diversifying through. Atf's and picking your own stocks is to pour through the list of the holdings of every etf you buy and look at those top ten or top fifty holdings that can generate some very interesting ideas a many of times many. It's been the time that i've looked down. One of these holdings list and third or fourth fifth biggest holding in x. etf is stock. I've never thought about owning for myself when i do. Some research and a light bulb goes off. Why why don't i own the security on the side here. So i think there can be healthy symbiosis between the stocks. Were picking that we just really love and wanna have in our portfolio and those etf's which gives us a little bit more comfort bill to sleep at night and.

jason moser Etf georgia Atf chris
"jason moser" Discussed on MarketFoolery

MarketFoolery

07:28 min | 11 months ago

"jason moser" Discussed on MarketFoolery

"In store sales on black friday where fifty two percent lower than a year ago. That should not surprise anyone online. Sales were up big also not surprise. This actually did surprise me a little bit. Though jason online sales on friday in the united states made it the second biggest day ever for online sales cyber monday last year is the biggest all time black friday this year second-placed that might get bumped down to third place after this year cyber monday. But what did you think of the reports of black friday. Yeah i mean. I think you hit on something there in to today cyber monday. I think you're right. No surprise almond spending on black. Friday grew twenty one point six percent. That was a new record. It was around nine billion dollars worth of purchases that were recorded in the forecast for today for cyber monday this year. It's slated it's it's it's slated to become the largest digital sales day ever spending is forecast to reach somewhere between ten point. Eight billion in twelve point seven billion dollars that would represent growth of fifteen to thirty five percent from last year. You no surprise really there. I think to me what really stood out and again not surprising but still stood out. Because it's just pretty darn impressive was shop by shop by his stock obviously a lot of our listeners. A lot of our members and subscribers are all very familiar with in. It's been a good year for shoplifting. Is stock up around one hundred and seventy five percent. The numbers that day chalked up for black friday really impressive two point. Four billion dollars in black friday sales that was about seventy five percent growth from last year so clearly the investments. They've been making in business all along the way or paying off. And i think the thing the thing there is because we can sit there and criticize shop five for example oh it's overvalued or you know it doesn't make a lot of sense because the business doesn't make that much money yet that that may be true but these are the type of these types of numbers that will i think afford some time i think as long as they continue to record these types of numbers the market is going to continue giving it <hes>. Some wiggle room there. We've seen it with amazon. We've seen it certainly with wayfair. I think i don't think it'll be different but there were some interesting numbers. There within shop of is report that i think are just worth noting average black friday cart price. Globally was just under ninety one dollars. That was up eleven percent from a year ago so people spent a little bit more in need thing here in this mobile world. We always talk about how mobile is really leading. Four mobile sales on black friday this year. If you look at the breakdown between mobile sales and desktop it was sixty seven percent mobile versus thirty three percent desktop in last year that was sixty nine percent mobile and thirty one percent desktop so the differences is marginal but it seems worse shopping on desktop this year for obvious reasons and so the data i think but yeah it all goes back towards this <hes> digital economy that we're witnessing in it. It's it's seems like it has a lot of traction. I don't know that we're necessarily going to be going back anytime soon. I'm glad you mentioned shop five because we have talked a lot about the big retailers like walmart and target in particular the investments that they have made this year for curbside pickup for delivery all of that but worth as you said pointing out the investments shop by his made and this is a stock that i do not own i. I understand both sides of it. It is definitely on my watch. List having pulled the trigger yet. But but i understand the concerns. I understand the around valuation the lack of profitability. And maybe that's why we've seen the rise that we've seen for target and walmart this year because those are just fundamentally. I think a little easier for people to wrap their heads around. But as you said. I mean what what is the future going to be. Is it going. is it going to be well. Wants to all this is behind us. We're just to start going back to the mall now. I don't think so it's going to be more online shopping and to your point more mobile shopping. I think you are. I think you're right there. I just continued to be impressed with wayfair for example the mobile mobile numbers that they continue to record are really impressive. And that's that's furniture. Man i mean like people are shopping for furniture on their phones in regard to shop applied. I think when you when you look at the future. I don't think it's going to be one or the other. I think we've talked about this before really when we talk about target and walmart i mean it really is becoming about omni channel right. It's just meeting. The consumer wherever the consumer wants to be met in the more that companies the more that retailers are able to do this <hes>. They're going to be able to take advantage of the digital economy. They're going to be able to take advantage of people wanting to actually physically go to stores <hes>. In so i. I think the future is going to be a little bit of both but certainly shop. A fi is keying in on their specialty. In and i think more growth is going to be coming in. Obviously bad digital space shop is is absolutely one of the companies dictating the development of that space so even even next year. When i think it's probably safe to assume that that we get a little bit more back to normal in and the the the in person shopping experiences a little bit less risky. We'll see people wanting to get out. We'll see people wanting to go to stores and have fun with that experience <hes>. But but that that. I don't think it's going to really <hes>. Deter people from shopping online. I mean hopefully. I think ultimately what i'd love to see just this whole black friday cyber monday thing. I really like the fact that we're stretching and just this whole month so it's not really about fewer sales. It's just about timing right. We're just stretching over the course of a month as opposed to really isolating on on individual days. I liked to see that. Continue to wear these concepts. These retailers are not just leveraged to a couple of particular days toward the end of the year. Just real quick before we move onto our next story on that point. Are you seeing this in your own personal life. Because i have in. The last week noticed that the promotional emails i get from different retailers are basically saying. Hey our black. Friday sale is gonna last for the next ten days. It's like the subject line in the email is black friday sale. And then you look. It's like oh this is actually going through december ninth. Yeah i feel like. I've seen a lot of that just anecdotally. I do feel like. I've seen a lot more of that. I think that's that's the right thing to do again. It's just it's a bit of a different time but hopefully as we've seen throughout this whole year this year has been an accelerator for change and a lot of good ways. And maybe this'll be one more thing one more change that will witness over the course of the coming years in the i think ultimately they'll be a

chris l Mr jason moser jason united states
"jason moser" Discussed on MarketFoolery

MarketFoolery

02:14 min | 1 year ago

"jason moser" Discussed on MarketFoolery

"We have two of the biggest retailers out with their latest earnings report. That is going to have to take a backseat today. The news from amazon which just announced the launch of amazon pharmacy. Here in the us. You can order prescription drugs. Have them delivered to your home. Prime members get discounts and the reaction from the pharmacy. Stocks is pretty eye-popping. cvs health walgreens rite aid. Good rx they are all getting hit. Jason yeah they are in. I mean i understand why i think. This is likely overreaction to an extent. And i just i hearken back to when amazon announced its acquisition of whole foods. Remember the grocery store stocks at that point took a pretty steep nosedive on that news and and again understandable i mean amazon is extremely competitive in in a threat and a lot of ways. But but i mean you fast forward to today and certainly leaders in the grocery space have recovered. I mean they have been the most compelling investments in the world but it wasn't it wasn't fatal that said this announcement from amazon doesn't make the farmers jobs any easier. I mean when we speak about. Cvs walgreen those are companies that while they have big storefronts and they have that grocery dynamic to them. I mean they really are. They do rely on that pharmacy. Right i mean. Cbs for example pharmacy is more than seventy five percent of their business. And so that really really does matter. And so i understand the selling their particularly when you look at what amazon has done to date. I mean they've done a lot of the heavy lifting and compete in. This is red. Think they're able to participate in this market. Forty five states. Now they accept. Most insurance is a massive massive market. Opportunity writes something like a three hundred billion dollar market. So i think there are reasons for companies like cvs and walgreens to be concerned. I think there's probably a reason for something like a good rx to be more concerned. And and so i understand. The market's reaction to that more so than than perhaps the pessimism on on the bigger companies like cbs. Today

amazon Jason moser Cvs walgreens Cbs us
"jason moser" Discussed on Motley Fool Answers

Motley Fool Answers

44:21 min | 1 year ago

"jason moser" Discussed on Motley Fool Answers

"The. Multiple answers I'm out Southwick and I'm joined, is always by broke camp. Personal Finance expert here at the Motley Fool. Hey, BRO, well! Hello Alison. It's the July mailbag where we answer your questions and this month it's with the help of multiple analyst Jason Moser. Should you buy a house now? What is modern portfolio theory and also here Jason's thoughts on a lot of stocks all that and more on this week's episode of Molly fully answers. Jason thanks coming back. <hes> you know I mean i. told you you invite me. I'M GONNA. Be here every single time. Thanks for having me back. I mean we appreciate it because we know you're a busy man, and so we do appreciate that you carve out time for us in our little show, don't. Always always make time for those important people in my life rule number one make time for allison and Bro I love. It sounds like a good one to me. Everybody wins. All right well, I guess we should just get into it, so the first question comes from Darren I've subscribed to the full for over a year and I'm really pleased with the service. I would like to know your thoughts about my holdings in Shop Affi- I've bought several times over the last three years, and it's now over thirty five percent of my portfolio and I. Don't know if I should continue holding or trimmed down. What would you advise a good problem to have I was gonna say that exact same thing? That's a good problem have? In a very glad, you have subscribed to our services in your really pleased. That's that's what we aim to to do. We aim to please help you make money and so yeah. This is one of those situations that we will find ourselves in from time to time as investors. A nice problem to have but something you do need to address at some point because it is going to be a little bit different for everybody. In so coming from the perspective of I, also own shop, a Fi stock in it's it's a wonderful investment. It certainly is taking up a bigger. Part of my portfolio a not at thirty five percent where you are. I think for me. It really does boil down to. That sleeping at night test in other words, you need to be able to go to sleep at night without worrying about this kind of stuff, and if you feel like shop, a Fi represents too much. Of your portfolio if you feel like you're overly allocated their, then, you may need to consider pulling it back a little, but now I mean it's. It's I think it's always important. Note you know. It's a big difference between building up a position buying a position to make this size to make this type of allocation in your portfolio. It's another thing entirely to have position grow into beat into becoming that size i. mean that that is that is in a little bit of a different dynamic there, so people all the different ways, some sometimes folks will, they will just sort of looking at it from the house money, concept or you. You just sell enough shares to recoup your initial investment, and then you let the rest of it go. Some people are perfectly fine with thirty five percent. Some people are not. They want a pair back so i. do think you need to kind of figure out what helps you sleep at night I do think that shop by a great business. I think the biggest risk in only shop, if I right now is valuation, just because it's dominating, it's space, but it's not making any money yet, and it's probably going to be a little while until they do <hes> so that valuation risk is there, but ultimately yeah I think determine. Where you feel most comfortable with it, and if you feel like you need to put a little bit of that money off the table, and he thirty five percents a lot, certainly very understandable. If they've said something you need to do if you do decide to pair it back a little bit. You've made multiple purchases, so you can identify the shares to sell to manage the tax consequence if this isn't a brokerage account and not an IRA. All right next question comes from Steven. If you are forced into unemployment, you are paying federal income taxes on unemployment payments are not contributing to social security nor to Medicare. How does this affect your future calculation of social security benefits and can one contribute to the social security fund during unemployment to mitigate any adverse effects on benefits, it is a little bit adding insult to injury, but you do owe federal income taxes on your unemployment benefits, and if your state charges has a state income tax, you probably have to pay state tax on that, although there are a handful of states that exempt unemployment benefits, so that's good news. And by the way you, you could have taxes withheld from your unemployment benefits you file. This form called form w four V. if you want, they withhold ten percent, or you can do quarterly estimated payments if you wanNA avoid that big tax bill at the end of the year, but if you're strapped for cash is probably just better to get the money now worried about your taxes later <hes> Eh. Stephen notes out. You do not pay payroll taxes. Those are the things that go into social security and Medicare so. So. It could result in a lower social security benefit, however, keep in mind that social security is based on your thirty five highest earning years, so if you enter the workforce at say twenty two and you work until you're mid to late sixties. That's more than forty years where the working so hopefully. If you miss out, if this year is not so good somewhere among those other forty, five or so years, you've had thirty five really good year so that this year won't be that big of a deal. So it probably will be okay. And then to address the last question. Unfortunately, no, you cannot make voluntary contributions to social security. There is at least one academic working paper out there. That suggested that people could buy into social security by like extra credits as opposed to contributing to your 401k, but so far that has not been passed by Congress I had an ex. Question comes from Sam. I heard to stocks discussed on another full podcast. When I read articles about them, it mentions they are thinly traded. I have two questions one I'm sure my position would still be quite small so I think I'd still be able to get in and out, but are there other things I should think about when it's a thinly traded stock and question number two. Is there a certain amount of? Daily volume you like to look for when considering a stock foreign investment. What volume do you want to see to not be? Quote thinly traded stock. Yes very good question in thinly traded stock just refers to the either the amount of shares or the dollar volume of shares that would trade on any given. Market Day and so. The. Thinly traded stock. The the problem is that you may not necessarily able to buy and or sell at the prices. You necessarily think you might be able to in other words when you look at a stock's price and you're looking through the. What what's going on throughout the day on the market, you'll see that did ask spread, which is essentially the bid. Ask spread is it's what someone's willing to pay for the stock versus what someone is asking to be paid for the stock? Because you know you have a buyer and a seller on on in every transaction they're. Normally most cases, these business business bread is very tiny, the couple of pennies maybe for most stocks because they're. They're heavily traded right there. There are plenty of dollar volume. But there are a lot of smaller companies small caps in particular in in you know a micro cap, specifically that don't necessarily meet these kinds of thresholds, and so you definitely have to be aware of that now I'll go back in time just a little bit, too. When we were running the service here at the fool called million dollar portfolios Roman Romani portfolio that we help manage members, and it was never really a problem, but we did have a condition in there. We were always looking for at least ten million dollars in average. Trading volume total daily volume now understand I'm not saying the number of shares saying the amount of money so basically shares times price, but we're always looking for at least ten million dollars. That wasn't set in stone it. It was an idea for us. It wasn't ever really a problem because we had a very diversified portfolio with a number of different types of companies, but when you're looking for smaller companies, you would've just keep that in mind that did ask. Spread is is something that <hes> just because it says the stock is twenty dollars. That doesn't necessarily mean you'll pay twenty dollars if there is a a big spread there between the bid, and the ask in so I think whenever you're considering stocks that have any lighter trading volume or thinly traded stock. Just be sure to use limit orders. Limit Orders of let us stipulate the price that you are willing to pay for or that you're willing to. To accept a if you're selling a limit, order is just a really good way to protect yourself from any unwanted surprise thinly traded stocks. You might not always necessarily get them when you want them, so you might have to lead that limited are in there for a little while, but but a limit order is a great way to protect you from any unwanted surprises. Next question comes from Randall. I'm in my late thirties now, but earlier in my life. I was very very bad with my money. Collection Calls Welfare and bankruptcy or not strangers to me. I've been at the bottom then I met the love of my life, and she convinced me to turn things around ten, and a half years later and I have done a complete one eighty, I took control of our finances rebuilt my credit and started investing and listening to all you find folks all. I opened it investing account with the goal of saving and building enough a down payment on a home. I'm happy to say we've now reached that goal. I recently sold at a profit because I didn't want that. Money tied up in the market. If we are close to needing it for a house, but now that we're here, I'm not sure what to do. We currently rent a basement apartment and our neighbors general living situation are less than ideal to put it mildly. So, we're champing at the bit to jump into the housing market that being said the experts have been calling for a drop in the housing market for a while, and that was before the pandemic hit now I'm worried that if we buy right away a year or two or three from now, interest rates will spike, and we could be put in a difficult situation. I live near Toronto. Canada or the housing market is already highly inflated in relation to the rest of the country should I be worried? While Randall first of all congrats on turning your financial life around love hearing success stories like that so good job on that. So I'll start with my standard answer with the rent versus buy decision, and that is just pull up spreadsheet and compare the all in cost of renting, including what you could earn on the money that use for down payment versus the all in cost of buying including the opportunity cost of putting down payment as opposed to having invested as well as insurance and taxes and maintenance, and all that stuff and project, where you might be in five to ten years based on various scenarios on what happens to stocks, if you. Rent an invest the down payment versus what happens to? What you'd look like depending on where home prices go. Generally speaking. If mortgage rates go up, that could way down on real estate prices we did see mortgage rates. Go Up for a bit a few years ago, but the housing market did find, but you could certainly envision a scenario where rates went much much higher, making houses, much less affordable and prices would have to adjust. But I don't expect that to happen anytime soon. I think we're. GonNa have low rates for awhile, but beyond that I don't know I've given up trying to predict where interest rates are going or even paying attention to people who try to predict where interest rates are going, so who knows? That said since you live in Canada. I thought I'd check. In where rates are these days and I and I got a brief reminder that things are actually different in Canada so I did a little bit of research. And then realize I had reach out to someone who knows, I reached out to Canadian Motley fool analysts Jim Gillies, and he had some thoughts so first of all just for you non-canadians out there. It is really different so in America. We get this thirty year mortgage than we have the same payment for thirty years. It's fixed. They don't have that in Canada. What's the most common is a twenty five year? But only the first few years or fixed. And then adjusts so in that context you can understand why Randall is worried about interest rates going up because over the next depending on which alone he gets the most popular is a five year fixed, and then you basically have to go get a new loan probably. So that put that in context, a little more, but also Toronto, really is crazy expensive. Vs from the end of last year that put it as the most overvalued real estate market in the world behind Munich. As Jim pointed out in our call here in the US we had our housing peak in two, thousand, six, two, thousand seven, and then we had what he called a reset, which is basically prices came down significantly candidate and have that slight downturn at home prices, but then they just kept on going up, so it really is different there, so when Jim explain all this to me, the difference in mortgages and the difference in home prices. Frankly he was inclined to say to this guy. You Might WanNa rent for while more and see what happens, but he also had the good advice of okay. What if you buy in prices? Come Down Fifteen percent twenty percent. What if they come down to a point where he upside down? You owe more than the home is worth. Are you okay with that? If. You're okay with that. Maybe it's okay to do that. But it certainly sounds like dicey situation than if someone were telling me like I'm thinking of do this in Dubuque Iowa or something like that. <hes> couple of other differences. In case you're curious about Canada in the US. Your mortgage is portable in Canada south. You Buy A. Get the five year mortgage, but then move get to take the mortgage with you for the next house and <hes> interest is not tax deductible. US Look at you, Robert, broke? Camp Can Canadian real estate experts there you go. Next! Question comes from Chris. I was on twitter the other day and saw that one of your contributors Brian Feroldi tweeted that he doesn't believe in a long list of technical trading terms and then modern portfolio theory. Can you help me understand what not believing an MP? T with mean this? He believed that diversification doesn't reduce risk. Also every financial adviser I've ever talked to his preached empty, so I would love to hear the counterargument. Jason you're not Brian for all the. Question I am not Brian for all the do get the talk of Brian Pretty good bit though. I I must admit I. Don't know what he said here in regard to modern portfolio theory and all of these technical trading arms. But I think I can take a guess. Generally speaking I agree with them, and I think you could sit there and look up the portfolio theory in you know read about it as much as you want. Just go to google modern portfolio theory, and you can dig right in there, but in a nutshell ultimately, what modern portfolio theory is the intention behind it? It's meant to reduce risk while maximizing returns. It assumes that investors don't like risk. They prefer less risky portfolios to riskier ones in order to achieve a certain level of return so right there. I kind of kind of lost me right there because I don't believe that every ever investors risk averse I think some investors have a very. Healthy, appetite for risk, and frankly I would say I got a pretty high tolerance for risk when it comes to investing, made it just because of what I do for a living but I. You know to me I like having that trade off least unhappy. Happy to take some risks there. If I feel like that upside, it's going to be potentially worth. So with modern portfolio theory, it introduces a lot of fancy math in the form of variances and correlations in order to come up with this. Quantifiable, investing strategy that ultimately helps reduce risk while allowing the investor to achieve. Certain returns in. Maybe it works for some not I'm not dismissing it personally I. Don't use it, I don't personally subscribe to it I. Don't need it. I think honestly for us. In a really believe it's extends to to most people in our full universe is that is individual investors I think a more meaningful way to reduce risk. is to just extend your timeline like invest longer. So like Tom Gardner said a number of years back when we were. Working on Motley, fool one basically take your take the time line that you think you want to own any individual stocks you buy shares of starbucks and I plan on owning it for you know five years. Okay, we'll just double it. Cloning it for ten in all of a sudden right there. You've given yourself more time. Time is one of the big advantages we have is individual investors. Money managers don't have that advantage, Wall Street done generally handed abandoned, either, but if you can be patient and just invest in good businesses. That risk really starts to come down over time. There are plenty of studies out there. That show that risk comes down the longer you hold onto those stocks, which into me, just renders modern portfolio, theory, more or less not useful mean on things, not useful for everybody, but it's not useful for me and <hes> based on Chris. Question <hes>. It sounds like a agree with what Brian was saying there. We think I'll add to. That is I agree that risk is really not that much of a consideration if you are saving for retirement. But once you are in retirement man, and just say like you know what the market's not I'm going to extend my time highs in ten years. Because you need to spend money in that situation, I think diversification is important. It's important to have assets that don't always move the same direction at the same time. For some fools. That's just as simple as keeping any money need the next five years in cash, so you're right out any ups and downs, and that can be fine. But I. do think it makes sense to have. A mix of investment so that right now, technology stocks are doing very well, and we hope that continues to do well, but we remember was that happened in two thousand from two thousand to two, and there were down for quite a while anyone who retired in one, thousand, nine, hundred nine, or so it was very happy to have some small caps value maybe a. A little international, some reits to ride out the storm Yeah I think we talk about that often like recognizing where you are as an investor in life, are you in the grow your wealth stage, or are you in the protector stage, because they are two very different strategies, and we're all hopefully going to be in both of them at one point or another right? I personally and still on the grow your wealth stage I. Think we all probably are, but you will at some point get to where you need to focus on protecting the wealth that you've made so that you can then have that money to spend, and that definitely will dictate your investment strategy things that you're invested in and whatnot. Generally speaking I do like the idea for people who are just risk averse and have this notion that investing is just too risky. I mean the fact of the matter is not investing as far away greater risk like not investing. You will never grow your money if you don't the best, so if if if risk is a problem, I think generally speaking. Along the lines of diversification idea that that bros. talking about him, he just invest in invest in SNP index fund is something that just follows the progress and p. you know you're going to be participating in and if you look at that over the over the stretch of time, their five ten twenty thirty years, I mean that trend does go one way. It, but clearly the older you get, the more you need to start focusing on protecting your wealth, and that will change the way you view things. Right next question comes from Alex from Alexandria if I buy Muny bonds from another state in my IRA. Is it still taxable and Alexander with who we have a bond on and we do have a bunch. I know Alex up super excited about having a bunch on in Alexandria to I can't believe I haven't been there. It's like two miles from my house, but we still haven't been oh i. know because there's a global pandemic going on and we. saw. Alyx if we buy me bonds from another state in my IRA is still taxable. Bro, help him out or her or so Muny Barnes. People Invest Immunity bonds because they're free of federal taxes and in many cases. If you're buying bonds issued by the place you live, they might be free of state and local taxes, so that can be doubly triply tax free. That's why people buy 'em. There are some times, however that if you own immune, abound outside of an IRA. Pay Taxes and this surprises some people. There's something called the minimum tax. If you buy immunity bond at a discount, and then it matures at par. If you buy a distress, Muny bond for like you put an eight thousand dollars, and you sell it later for ten thousand dollars as a capital gain. You'll be taxed on that. So, there are some times when you would pay taxes on media. Now, Alex is asking what if it's an IRA? Do I have to worry about paying tax interest. If it comes from another state and the answer is no, you won't have to worry about that. The only thing I would say is. Generally speaking immune bond already has built in tax advantages, so you wouldn't keep it in an IRA, unless there's the example of the stuff I was saying previously like for. It's one of those exceptions when him UNIBOND would result in taxes than you might WanNa keep it an IRA, but generally speaking. If you're going to buy Muny Bond, keep it out of an IRA. Next question comes from Boone. I just did my first. Roth conversion and looked at that old account for the first time in. There was the expected dividend producing fund I remembered, but there was a stock chesapeake energy that I had completely forgotten about since I purchased the stock in two thousand, six fifteen. It's down way down like eight point five percent off the purchase price. What should I do with it now? It's in a tax deferred accounts so I. Don't think the loss is realized until I. Start to pull money out of the account and that might not. Not Be for fifteen years current value of all my shares will be about one percent of the value of the account after the conversion. Do I sell in the very little value? I had left and depend on E. Trade to keep up with lost for me or should I hold on based on the slim chance. The stock will be worth more in the next ten years. Oil Stocks do act unusually on occasion, only oil stocks. Stock everything else makes that usually. Chesapeake has been really. Interesting Story to follow and frankly. I don't I. Don't know that I would look at it today. As a business that I'd WANNA own so typically if I. You know I think it was yet idea. Didn't sound like a position are actively building united investment didn't work out. I mean that that happens to all of us. We don't get them all right. We have a philosophy here at the full. A lot of do we like to? Water flowers and pull the weeds, and that's just a nice way of saying. Add to our winners in to get rid of losers in. This I think is more than likely slated to continue being a loser I mean. Chesapeake has lost a lot of value. In it does sound like based on when you purchased this, these is absolutely busted I mean. There there are all sorts of reasons to sell one of them is if you thesis busted and the reason why you invest in the company is is no longer the case, and I would he probably is the case with Chesapeake so to me like you know, you could sit there and let it go, but but what's the goal trying to get back to even, or are you trying to get back a couple of bucks for me a lot of times? I'll I'll take a little opportunity here and there to just go ahead and pull those weeds sell it. Be Done with it. In even though it's just unique out a little bit value there, you can still take that money and do something more productive with it. So. Yeah T to me. I can't tell you to buy or sell obviously, but I can certainly understand. Selling in this case, but I you know. As as oil and natural gas energy can can turn around. This is going to be one that has a lot of headwinds in in. You might be waiting a very long time <hes> to to get any of this money back. I point out here that I it seems that maybe boone has a slight misunderstanding of how taxes in aries work because he talked about realizing the loss when he takes the money out and trade keeping track of the loss for him, it sounds to me that he thinks that he can write the loss off whence he takes the money out. That may not be the case, but just to be clear. One of the great benefits of an IRA is you don't pay taxes on the gains, interest and dividends from year to year. But. One of the drawbacks is. You can't take a capital loss on that as well so there's really no no way to benefit on your tax return from this loss. Next question comes from Benjamin. You recommend seeing a fee. Only financial adviser for check in every so often I know there is the Garrett planning network and others to help find an advisor. But what questions do you ask? And what answers do you listen for when trying to find one that is worth his or her one hundred fifty to two hundred fifty per hour. So I would say start first with asking yourself some questions. What are you looking for? You could go for the whole launch. Lada where someone is managing your money analyzing retirement plan helping new save and a five twenty nine. Maybe even doing your taxes with some financial planners do help with the state planning, or are you looking for something more targeted? You just want advice about am I saving enough for retirement, or are you close to retirement? You're like I just WanNa make sure that I'm doing right when terms like choosing my Medicare plan and claiming social security at the right time, so first of all just be very clear of what you're looking for. Then if it involves investments in any way, you WanNa, make sure that you find someone who is at least in the general same area philosophically and I say this, because many financial planners are hardcore index. And if you come to them as a motley fool, listener member with a lot of individual stocks. They may say okay. I'll give you some general asset allocation guidance, or they'll say I don't care if you like to pick. Stocks are not my advises, sell the stocks and go to index funds, so you want to make sure that if you're gonNA, ask for any sort of investment. Advice that you wanna find someone who's someone somewhat at least aligned for what you're looking for. Once, you've got that then. Just asked some of the typical stuff. You might expect so credentials certified financial planner. Are they a CPA either their personal financial specialist. How long they've been in the business. There are lots of people who. <hes> have not been in the business very long. Even though they're not young people, a lot of people choose financial planning as a second career, which I think is great, but just because someone may be look like they're in their forties or fifties. Sixties doesn't mean they've been in the business that long, and you WANNA. See if they've worked with someone like you right so if you have. Maybe. You have a large amount of wealth large income huge portfolio. You WanNa make sure that they have experienced with dealing with those issues, but on the flip side to if if you have, are you know middle income, decent size portfolio, but nothing too complicated. You don't WanNa. Go to someone who's used to dealing with someone who's wealthier partially because those people charge a lot more. You want to find someone who's kind of a little more lined up with what you're doing. Then make appointments with three folks. All of them will do get do free. Get acquainted means, and you're just looking for someone who you feel comfortable with. Since, you mentioned Garrett Big Fan of the Gary Planning Network and other is is not for the National Association of Personal Financial Advisers. But Garrett on their website has a how to choose an adviser section. Just Google attitude visor Garrett Planet Network has a great chapter from a dummies book that they wrote about how to choose adviser, and they have a good questionnaire that you can print out in US asking lots of good questions of financial planner. It's tough. Choosing a financial planner like my mom just went through that Bro! Is You know and she didn't really have a lot of options in Boise Idaho. Maybe two and one of them, she I never called her back, and never got back her, and the other one was just so busy just so busy, and just she just never. It's it can be rough. Finding a financial planner can be I. Think what we'll see is one of the consequences of this. Of the coronavirus pandemic. Just, like we are all used to working from home, many financial advisors and financial planners an now working from home. So in what they're doing is they're becoming licensed in more states. So, if you are more comfortable, working with someone over zoom remotely I think you don't have to stick with someone in your area. You can go beyond your locations, but you know some people don't feel comfortable that if if they're going to have someone managing their life savings, they want to be able to meet them in person. That's just a personal choice. All right next question comes from twitter. Is that right from sully what I hear? Okay? I just listened to the episode mentioning Your Weakness Two. Shopping carts and Tj, Maxx that me or you Jason. Accused me. Thoughts on the stock. If I had a war on Amazon, basket would be Costco TJ maxx Home Depot tractor supply. What would be your basket against online retail? That's funny. Well okay, listen I wouldn't have basket against online retail, because online retails where it's at. The whole idea. The whole idea behind the basket approaches to find a long term trend that you feel like the world is headed toward and so the war on cash basket, for example that was always one about people using cash war, <hes> traffic payments now with that said I get the spirit of the question some going to answer it because I do like some of these ideas. And I I would definitely include Costco in their <hes> in Home Depot's well. Home Depot gets a lot of my money. Doesn't, but they have a very loyal fan base of customers that just are happy to renew year in year out. So I love those membership models there, so costco and a Home Depot for sure <hes> you know I'm going to give a little shout at my wife Robin I. Know that she would approve of my adding target to the mixer. She hasn't been raving about targets APP and ordering on the APP the able to go to the store. Just pick it up right there <hes>. I've talked with Ron Gross on more than one occasion about target and how this really has. Become a twenty first century resale right they're doing. They're doing everything online and in physical stores. What they call Alma Channel and then my fourth and I'm GONNA. Take this. You probably aren't expecting this when Alison. I'm GonNa Shock and all you. I'm ready. I'm ready Alta. We're going. Make up my I know my daughter's love. It ugly ugly Mug like this. What do I know about makeup? Tell you what. Get! A House with two daughters and a wife. That's what I know about make. There's a lot of it in an Ulta is a really really good business. They actually have a very nice diversified revenue stream. They've got the salon a`dynamic of the business which encourages people to go there <hes> they do have an online business. They have an augmented reality function there at where you can actually like. Try things on makeup to see how it looks. Mary Dillon just a phenomenal other adults of that's my fourth, their Ulta but they I appreciate the spirit of the question I like the idea I'm not saying this is the basket. I'm not tracking this basket in a not a not backing this basket, but in the spirit of the question if I had to develop. A basket, such as this one I think it'd go with those four. Yeah, I mean I guess you just have to think about what retail out there is something that you would still physically go to. Because the actual retail experience is being in the space is the experience and what you're there for? And I know I mean before Corona virus we I would go to target and just just couldn't believe how much money I had spent from walking through a few of the aisles. TJ Max is just a phenomenal business I mean what they've done through the years. Is really capitalized on the nature of the business, the advantage they have in that treasure hunt kind of nature like you go to TJ Max, maybe not necessarily looking for something, and then you end up finding a lot of things, and it can be a little bit lumping at times, but but generally speaking like management's a very good job of running that business, and they know how to exploit the advantage of experience. I think they're online game. Though I think they could probably get something going with online, and they just have not have not yet and so I. Haven't since Corona Virus for example. I haven't spent a single dollar there, but I continue to still shop at. Home Depot I. Think Yeah! We still shopping at home depot because we're doing. You know you gotta buy lumber somewhere. And I know my grandparents out in my my inlaws out in rural Virginia. They love tractor supply store, but that's not. That's not in <hes> where we live, but. Still New deck at the house there allison. I mean you, can you see? A big exposed beam behind me and some drywall work that needs to happen. Have lots of drywall work that needs to happen now though. Yeah Anyway get to that. All right next question comes from Matthew. I got married to my amazing wife nine days ago in a small Kobe nineteen wedding in our front yard after we postponed it from its original date in April all. It was definitely different, but still very special. My question is in relation to this wonderful event. My salary has been at a level that has allowed me to fund a roth. Ira I love the optionality of it, but after marrying my bad ass, wife are combined. Salaries are now over the limit that would allow me to fund the Roth. IRA does this affect occur immediately? Do I need to now open up a traditional. IRA and begin funding it or do I have until the end of the year. Matthew wants a Roth Bachelor party one last. Well Matthew I have bad news. When it comes to most things in taxes, your status and your age and things like that depends on where you are on the last day of the year, said if you're married on the last day of the year, you were considered married for the whole year. So that means if you contributed started contributing to a Roth IRA for twenty twenty. You need to call up your brokerage. Firm and re characterize that as a traditional. Now don't have any other traditional IRA, as it's very easy to do the back door, Ross which we've talked about before you can just google it or even when you call the brokerage, just say I want to do the backdoor. Roth and they'll tell you what to do. If, you have other traditional IRA as you can still do. It just becomes more complicated and you'll probably pay more taxes. So you, but you may not be totally out of luck and I should say that's only if you have a traditional IRA doesn't matter if your wife has traditional areas. One exception by the way <hes> of of what I just said. In terms of tax status and last day of the year is distributions from retirement accounts before it's age fifty nine and a half, you actually have to be age fifty nine and a half to avoid that ten percent early distribution penalty, unless some of the many exceptions that are out there exist. Right next question comes from Warren Warren Buffett. Maybe I don't know that's why I was thinking. He's asking about coq, so maybe maybe. Once James Opinion on coke. By? Or hold? Wants to now. I'd give buffet night give. Kiesel Warren of the same advice and I would say. For some I'm not buying it. Not Buying it I'm not holding it if I own it. I guess that means sell it. Even Atlanta Georgia person like you i. feel like it's almost sacrilege. I am pretty close to probably not being ever even invited back. But the facts are the facts. Okay, I mean you do have to look at the stock itself has been ain't bad stockton for the last five years. I mean I do understand why when you look at it what they do, I mean they have. Four hundred master brands, and less than fifty percent of them are the big global brands that are actually responsible for almost all of their revenue when I say almost only ninety eight percent, so it's a business. It's very reliant on on. You know a small portfolio of really successful grants. The problem is now. We've always talked about cocoa beans such a great distribution story and that's true. They've got a distribution network. It's just phenomenal, but the problem is now. They're what they're distributing is is being seen as not so good for you in so you're seeing them. Have it into to essentially pivot away from what you know brought them all of the success for all these years. Years in soda and that that's not going to change I. Mean you're always GonNa have people to drink soda? People are not to drinking as much soda going forward in the numbers of just kind of the kind of shown that through that through the quarters in the years of Coca, Cola and Pepsi Pepsi. Has the salty snacks division, which I've always been very. Impressed by I, mean I love a good Cheeto, and so I mean anytime you can throw a bag of those cheetos in my Patriot Amok GonNa, turn it their coq. Interrupting, but I think this is also very important point. You tried the Jalapeno White Cheddar crunchy cheetos. The White Shit or so. I've tried to Jalapeno ones but I've not seen the white Cheddar White Cheddar Jalapeno crunchy cheetos. Don't get the puffy. The poofy ones are not as good, but the crunchy white Cheddar Jalapeno Cheetahs. them by them. They're amazing. I have to back. Pain you. I'll get those next time. I promise I, mean Eh. One. crunchy wants the puffy ones, so that people won't you're not? You're not seeing poopie. Who using poofy Joe Copy? We'll be <hes>. Coca doesn't have that dynamic of their business. They don't have that dynamic to their business, and they've suffered from that Pepsi's Pepsi's outperform coca-cola over the last several years. It's not safe. Pepsi or coke get it back. I'm sure they probably can. But what I am saying is I think there are a lot of better ideas out there, and so I wouldn't be putting new money into Coca Cola and frankly if I did own it. I probably would look at selling it and you know if you've got a beverage company, maybe own starbucks. It seems like the science coming out in support of coffee, right? It's coming and telling you that these sodas. They're gonNA. Make you fat. Coffee, it could extend your life. It could help you live longer. SMART Mexican looking this a starbucks as well is. That sounds like study from the copy roasters of America. Do! Something that Chris Hill sent me the other day. that. We sleep at night. I'm glad I've been drinking coffee as long as I have God knows what I would look like otherwise. You're a good looking man. Rick. good-looking next question comes from. A. I'm trying to save money for my kid's College. Fund while the five nine is a great option. I'm limited to investing in mutual funds, which means at best I'm going to get what the market gets assuming I do some sort of low cost index fund and I be a capital F. Fool investor have been doing much better than the market in the last three years of being a member of. Of Stock Advisor Enroll breakers, even during this pandemic mess by listening to every full podcast and following David and Tom's and yours and every one else's in the full universe. My portfolio of about one hundred stocks is up here today. Thirty percent to the market's down five percent as of day as of today weighed down by three sluggish five to nine plants that are also down five percent each. I feel like throwing away money by using the five to nine, and not being allowed to select my own great companies in which to invest. What's more, my understanding is that the five to nine does not count as an asset for the kid when applying for student aid, but the coverdale does. So I come to you with a simple question. Can I have my cake and eat it, too? What if I wanted to use the coverdell to buy individual stocks? Until the child is nearing college? At which point I then converted to a five to nine. This allows me to get better returns and avoid it being an asset for financial aid and get the favorable tax benefit. So, chose this question, because first of all Dune does a good job explaining the benefits of the coverdell over the five twenty nine, you can buy individual stocks. You can buy and sell them all day long. We recommend that, but you can. Whereas with the five twenty nine, you can only make two changes to the investments a year, and it's all mutual funds. So. That's you did a good job of explaining that. I will point out with the coverdell. It's gotta low contribution limit of only two thousand dollars a year, so for some people save more for college, but they can max out to cover it out, but then put the rest in a five twenty nine. One thing that doomed does not have quite right. Is The financial aid treatment the financial aid treatment? Coverdale's and five twenty nine is identical. They're treated as assets of the parent, not the kid that is favourable from a financial aid perspective. It's not negligible doesn't mean it doesn't have any effect on financial aid, but it's better than an asset that is owned. By the kid. He can. Transfer money from the Coverdell to the five twenty nine. If for some reason, he decides to do that, but you can't transfer it. The other way around so were convinced to try out the covered. You have money in a five twenty nine. You can't move it from the five twenty nine. To the coverdale. What other interesting thing that he pointed out is that he is doing very well with his investments, and he owns about one hundred stocks. We get this question a lot. Either on the show, or on the full live that we run every day for members of full services, and that is how many stocks should I own, and if I owned too many are not just owning index fund watering down my returns, but here's an example if someone owns a one hundred stocks is still crushing the market. Idol last question comes from Cameron thoughts on the valuation of Stone Co in light of the corona virus for a fragile country like Brazil. This could be the tipping point after so many other headwinds. But how does that affect stone? coz Business Jason I. Don't even know what Stone Co is. What is still business? Yes, don't Coz a payments company that's focused on Latin American markets in Brazil and particular in so <hes>. I guess it could be. Draw you can draw a parallel to to a with square through pay pal at, but generally speaking I mean it's payments. Company focused on Latin America. Primarily Brazil. Is the big money making market kind of like Marco Libra, they're. In I, I, it's a it's. A NEAT opportunity, <unk> gained a lot of headline recently, when and it was, it was seen that Berkshire hathaway. Warren Buffett's company Berkshire hathaway taken a five percent position in the company, which is pretty considerable <hes> i. Think in the near term. You have to acknowledge the fact that. They're gonNA, be some real headwinds in in Brazil particularly because of the pandemic I mean. The flip side of that is role in same boat kind of in that regard. The entire world is dealing with it, so it's not specifically you know it's. It's not particular to one economy or one country some. To get hit harder than others I, do feel like Brazil. Be at a place where they can recover from this given <hes>. You know some of the other businesses in the area. I mean that that that I think is. Who knows ultimately how? That's GONNA shake, but generally speaking. I think the move away from cash towards cashless. Transactions in and financial software that's not stopping if anything, this hastens that which which is what I think, Cameron's talking about there and <hes> for a company like stone. Co, neither are other companies in the space pags bureau in roquetas libra to <hes>, but you know moving money around is a big big market opportunity, and there's nothing that says they won't be able to expand well beyond the Latin American markets, too, so I I'd say cautiously optimistic I mean I

Molly Jason allison Darren
July Mailbag with Jason Moser

Motley Fool Answers

44:21 min | 1 year ago

July Mailbag with Jason Moser

"The. Multiple answers I'm out Southwick and I'm joined, is always by broke camp. Personal Finance expert here at the Motley Fool. Hey, BRO, well! Hello Alison. It's the July mailbag where we answer your questions and this month it's with the help of multiple analyst Jason Moser. Should you buy a house now? What is modern portfolio theory and also here Jason's thoughts on a lot of stocks all that and more on this week's episode of Molly fully answers. Jason thanks coming back. you know I mean i. told you you invite me. I'M GONNA. Be here every single time. Thanks for having me back. I mean we appreciate it because we know you're a busy man, and so we do appreciate that you carve out time for us in our little show, don't. Always always make time for those important people in my life rule number one make time for allison and Bro I love. It sounds like a good one to me. Everybody wins. All right well, I guess we should just get into it, so the first question comes from Darren I've subscribed to the full for over a year and I'm really pleased with the service. I would like to know your thoughts about my holdings in Shop Affi- I've bought several times over the last three years, and it's now over thirty five percent of my portfolio and I. Don't know if I should continue holding or trimmed down. What would you advise a good problem to have I was gonna say that exact same thing? That's a good problem have? In a very glad, you have subscribed to our services in your really pleased. That's that's what we aim to to do. We aim to please help you make money and so yeah. This is one of those situations that we will find ourselves in from time to time as investors. A nice problem to have but something you do need to address at some point because it is going to be a little bit different for everybody. In so coming from the perspective of I, also own shop, a Fi stock in it's it's a wonderful investment. It certainly is taking up a bigger. Part of my portfolio a not at thirty five percent where you are. I think for me. It really does boil down to. That sleeping at night test in other words, you need to be able to go to sleep at night without worrying about this kind of stuff, and if you feel like shop, a Fi represents too much. Of your portfolio if you feel like you're overly allocated their, then, you may need to consider pulling it back a little, but now I mean it's. It's I think it's always important. Note you know. It's a big difference between building up a position buying a position to make this size to make this type of allocation in your portfolio. It's another thing entirely to have position grow into beat into becoming that size i. mean that that is that is in a little bit of a different dynamic there, so people all the different ways, some sometimes folks will, they will just sort of looking at it from the house money, concept or you. You just sell enough shares to recoup your initial investment, and then you let the rest of it go. Some people are perfectly fine with thirty five percent. Some people are not. They want a pair back so i. do think you need to kind of figure out what helps you sleep at night I do think that shop by a great business. I think the biggest risk in only shop, if I right now is valuation, just because it's dominating, it's space, but it's not making any money yet, and it's probably going to be a little while until they do so that valuation risk is there, but ultimately yeah I think determine. Where you feel most comfortable with it, and if you feel like you need to put a little bit of that money off the table, and he thirty five percents a lot, certainly very understandable. If they've said something you need to do if you do decide to pair it back a little bit. You've made multiple purchases, so you can identify the shares to sell to manage the tax consequence if this isn't a brokerage account and not an IRA. All right next question comes from Steven. If you are forced into unemployment, you are paying federal income taxes on unemployment payments are not contributing to social security nor to Medicare. How does this affect your future calculation of social security benefits and can one contribute to the social security fund during unemployment to mitigate any adverse effects on benefits, it is a little bit adding insult to injury, but you do owe federal income taxes on your unemployment benefits, and if your state charges has a state income tax, you probably have to pay state tax on that, although there are a handful of states that exempt unemployment benefits, so that's good news. And by the way you, you could have taxes withheld from your unemployment benefits you file. This form called form w four V. if you want, they withhold ten percent, or you can do quarterly estimated payments if you wanNA avoid that big tax bill at the end of the year, but if you're strapped for cash is probably just better to get the money now worried about your taxes later Eh. Stephen notes out. You do not pay payroll taxes. Those are the things that go into social security and Medicare so. So. It could result in a lower social security benefit, however, keep in mind that social security is based on your thirty five highest earning years, so if you enter the workforce at say twenty two and you work until you're mid to late sixties. That's more than forty years where the working so hopefully. If you miss out, if this year is not so good somewhere among those other forty, five or so years, you've had thirty five really good year so that this year won't be that big of a deal. So it probably will be okay. And then to address the last question. Unfortunately, no, you cannot make voluntary contributions to social security. There is at least one academic working paper out there. That suggested that people could buy into social security by like extra credits as opposed to contributing to your 401k, but so far that has not been passed by Congress I had an ex. Question comes from Sam. I heard to stocks discussed on another full podcast. When I read articles about them, it mentions they are thinly traded. I have two questions one I'm sure my position would still be quite small so I think I'd still be able to get in and out, but are there other things I should think about when it's a thinly traded stock and question number two. Is there a certain amount of? Daily volume you like to look for when considering a stock foreign investment. What volume do you want to see to not be? Quote thinly traded stock. Yes very good question in thinly traded stock just refers to the either the amount of shares or the dollar volume of shares that would trade on any given. Market Day and so. The. Thinly traded stock. The the problem is that you may not necessarily able to buy and or sell at the prices. You necessarily think you might be able to in other words when you look at a stock's price and you're looking through the. What what's going on throughout the day on the market, you'll see that did ask spread, which is essentially the bid. Ask spread is it's what someone's willing to pay for the stock versus what someone is asking to be paid for the stock? Because you know you have a buyer and a seller on on in every transaction they're. Normally most cases, these business business bread is very tiny, the couple of pennies maybe for most stocks because they're. They're heavily traded right there. There are plenty of dollar volume. But there are a lot of smaller companies small caps in particular in in you know a micro cap, specifically that don't necessarily meet these kinds of thresholds, and so you definitely have to be aware of that now I'll go back in time just a little bit, too. When we were running the service here at the fool called million dollar portfolios Roman Romani portfolio that we help manage members, and it was never really a problem, but we did have a condition in there. We were always looking for at least ten million dollars in average. Trading volume total daily volume now understand I'm not saying the number of shares saying the amount of money so basically shares times price, but we're always looking for at least ten million dollars. That wasn't set in stone it. It was an idea for us. It wasn't ever really a problem because we had a very diversified portfolio with a number of different types of companies, but when you're looking for smaller companies, you would've just keep that in mind that did ask. Spread is is something that just because it says the stock is twenty dollars. That doesn't necessarily mean you'll pay twenty dollars if there is a a big spread there between the bid, and the ask in so I think whenever you're considering stocks that have any lighter trading volume or thinly traded stock. Just be sure to use limit orders. Limit Orders of let us stipulate the price that you are willing to pay for or that you're willing to. To accept a if you're selling a limit, order is just a really good way to protect yourself from any unwanted surprise thinly traded stocks. You might not always necessarily get them when you want them, so you might have to lead that limited are in there for a little while, but but a limit order is a great way to protect you from any unwanted surprises. Next question comes from Randall. I'm in my late thirties now, but earlier in my life. I was very very bad with my money. Collection Calls Welfare and bankruptcy or not strangers to me. I've been at the bottom then I met the love of my life, and she convinced me to turn things around ten, and a half years later and I have done a complete one eighty, I took control of our finances rebuilt my credit and started investing and listening to all you find folks all. I opened it investing account with the goal of saving and building enough a down payment on a home. I'm happy to say we've now reached that goal. I recently sold at a profit because I didn't want that. Money tied up in the market. If we are close to needing it for a house, but now that we're here, I'm not sure what to do. We currently rent a basement apartment and our neighbors general living situation are less than ideal to put it mildly. So, we're champing at the bit to jump into the housing market that being said the experts have been calling for a drop in the housing market for a while, and that was before the pandemic hit now I'm worried that if we buy right away a year or two or three from now, interest rates will spike, and we could be put in a difficult situation. I live near Toronto. Canada or the housing market is already highly inflated in relation to the rest of the country should I be worried? While Randall first of all congrats on turning your financial life around love hearing success stories like that so good job on that. So I'll start with my standard answer with the rent versus buy decision, and that is just pull up spreadsheet and compare the all in cost of renting, including what you could earn on the money that use for down payment versus the all in cost of buying including the opportunity cost of putting down payment as opposed to having invested as well as insurance and taxes and maintenance, and all that stuff and project, where you might be in five to ten years based on various scenarios on what happens to stocks, if you. Rent an invest the down payment versus what happens to? What you'd look like depending on where home prices go. Generally speaking. If mortgage rates go up, that could way down on real estate prices we did see mortgage rates. Go Up for a bit a few years ago, but the housing market did find, but you could certainly envision a scenario where rates went much much higher, making houses, much less affordable and prices would have to adjust. But I don't expect that to happen anytime soon. I think we're. GonNa have low rates for awhile, but beyond that I don't know I've given up trying to predict where interest rates are going or even paying attention to people who try to predict where interest rates are going, so who knows? That said since you live in Canada. I thought I'd check. In where rates are these days and I and I got a brief reminder that things are actually different in Canada so I did a little bit of research. And then realize I had reach out to someone who knows, I reached out to Canadian Motley fool analysts Jim Gillies, and he had some thoughts so first of all just for you non-canadians out there. It is really different so in America. We get this thirty year mortgage than we have the same payment for thirty years. It's fixed. They don't have that in Canada. What's the most common is a twenty five year? But only the first few years or fixed. And then adjusts so in that context you can understand why Randall is worried about interest rates going up because over the next depending on which alone he gets the most popular is a five year fixed, and then you basically have to go get a new loan probably. So that put that in context, a little more, but also Toronto, really is crazy expensive. Vs from the end of last year that put it as the most overvalued real estate market in the world behind Munich. As Jim pointed out in our call here in the US we had our housing peak in two, thousand, six, two, thousand seven, and then we had what he called a reset, which is basically prices came down significantly candidate and have that slight downturn at home prices, but then they just kept on going up, so it really is different there, so when Jim explain all this to me, the difference in mortgages and the difference in home prices. Frankly he was inclined to say to this guy. You Might WanNa rent for while more and see what happens, but he also had the good advice of okay. What if you buy in prices? Come Down Fifteen percent twenty percent. What if they come down to a point where he upside down? You owe more than the home is worth. Are you okay with that? If. You're okay with that. Maybe it's okay to do that. But it certainly sounds like dicey situation than if someone were telling me like I'm thinking of do this in Dubuque Iowa or something like that. couple of other differences. In case you're curious about Canada in the US. Your mortgage is portable in Canada south. You Buy A. Get the five year mortgage, but then move get to take the mortgage with you for the next house and interest is not tax deductible. US Look at you, Robert, broke? Camp Can Canadian real estate experts there you go. Next! Question comes from Chris. I was on twitter the other day and saw that one of your contributors Brian Feroldi tweeted that he doesn't believe in a long list of technical trading terms and then modern portfolio theory. Can you help me understand what not believing an MP? T with mean this? He believed that diversification doesn't reduce risk. Also every financial adviser I've ever talked to his preached empty, so I would love to hear the counterargument. Jason you're not Brian for all the. Question I am not Brian for all the do get the talk of Brian Pretty good bit though. I I must admit I. Don't know what he said here in regard to modern portfolio theory and all of these technical trading arms. But I think I can take a guess. Generally speaking I agree with them, and I think you could sit there and look up the portfolio theory in you know read about it as much as you want. Just go to google modern portfolio theory, and you can dig right in there, but in a nutshell ultimately, what modern portfolio theory is the intention behind it? It's meant to reduce risk while maximizing returns. It assumes that investors don't like risk. They prefer less risky portfolios to riskier ones in order to achieve a certain level of return so right there. I kind of kind of lost me right there because I don't believe that every ever investors risk averse I think some investors have a very. Healthy, appetite for risk, and frankly I would say I got a pretty high tolerance for risk when it comes to investing, made it just because of what I do for a living but I. You know to me I like having that trade off least unhappy. Happy to take some risks there. If I feel like that upside, it's going to be potentially worth. So with modern portfolio theory, it introduces a lot of fancy math in the form of variances and correlations in order to come up with this. Quantifiable, investing strategy that ultimately helps reduce risk while allowing the investor to achieve. Certain returns in. Maybe it works for some not I'm not dismissing it personally I. Don't use it, I don't personally subscribe to it I. Don't need it. I think honestly for us. In a really believe it's extends to to most people in our full universe is that is individual investors I think a more meaningful way to reduce risk. is to just extend your timeline like invest longer. So like Tom Gardner said a number of years back when we were. Working on Motley, fool one basically take your take the time line that you think you want to own any individual stocks you buy shares of starbucks and I plan on owning it for you know five years. Okay, we'll just double it. Cloning it for ten in all of a sudden right there. You've given yourself more time. Time is one of the big advantages we have is individual investors. Money managers don't have that advantage, Wall Street done generally handed abandoned, either, but if you can be patient and just invest in good businesses. That risk really starts to come down over time. There are plenty of studies out there. That show that risk comes down the longer you hold onto those stocks, which into me, just renders modern portfolio, theory, more or less not useful mean on things, not useful for everybody, but it's not useful for me and based on Chris. Question It sounds like a agree with what Brian was saying there. We think I'll add to. That is I agree that risk is really not that much of a consideration if you are saving for retirement. But once you are in retirement man, and just say like you know what the market's not I'm going to extend my time highs in ten years. Because you need to spend money in that situation, I think diversification is important. It's important to have assets that don't always move the same direction at the same time. For some fools. That's just as simple as keeping any money need the next five years in cash, so you're right out any ups and downs, and that can be fine. But I. do think it makes sense to have. A mix of investment so that right now, technology stocks are doing very well, and we hope that continues to do well, but we remember was that happened in two thousand from two thousand to two, and there were down for quite a while anyone who retired in one, thousand, nine, hundred nine, or so it was very happy to have some small caps value maybe a. A little international, some reits to ride out the storm Yeah I think we talk about that often like recognizing where you are as an investor in life, are you in the grow your wealth stage, or are you in the protector stage, because they are two very different strategies, and we're all hopefully going to be in both of them at one point or another right? I personally and still on the grow your wealth stage I. Think we all probably are, but you will at some point get to where you need to focus on protecting the wealth that you've made so that you can then have that money to spend, and that definitely will dictate your investment strategy things that you're invested in and whatnot. Generally speaking I do like the idea for people who are just risk averse and have this notion that investing is just too risky. I mean the fact of the matter is not investing as far away greater risk like not investing. You will never grow your money if you don't the best, so if if if risk is a problem, I think generally speaking. Along the lines of diversification idea that that bros. talking about him, he just invest in invest in SNP index fund is something that just follows the progress and p. you know you're going to be participating in and if you look at that over the over the stretch of time, their five ten twenty thirty years, I mean that trend does go one way. It, but clearly the older you get, the more you need to start focusing on protecting your wealth, and that will change the way you view things. Right next question comes from Alex from Alexandria if I buy Muny bonds from another state in my IRA. Is it still taxable and Alexander with who we have a bond on and we do have a bunch. I know Alex up super excited about having a bunch on in Alexandria to I can't believe I haven't been there. It's like two miles from my house, but we still haven't been oh i. know because there's a global pandemic going on and we. saw. Alyx if we buy me bonds from another state in my IRA is still taxable. Bro, help him out or her or so Muny Barnes. People Invest Immunity bonds because they're free of federal taxes and in many cases. If you're buying bonds issued by the place you live, they might be free of state and local taxes, so that can be doubly triply tax free. That's why people buy 'em. There are some times, however that if you own immune, abound outside of an IRA. Pay Taxes and this surprises some people. There's something called the minimum tax. If you buy immunity bond at a discount, and then it matures at par. If you buy a distress, Muny bond for like you put an eight thousand dollars, and you sell it later for ten thousand dollars as a capital gain. You'll be taxed on that. So, there are some times when you would pay taxes on media. Now, Alex is asking what if it's an IRA? Do I have to worry about paying tax interest. If it comes from another state and the answer is no, you won't have to worry about that. The only thing I would say is. Generally speaking immune bond already has built in tax advantages, so you wouldn't keep it in an IRA, unless there's the example of the stuff I was saying previously like for. It's one of those exceptions when him UNIBOND would result in taxes than you might WanNa keep it an IRA, but generally speaking. If you're going to buy Muny Bond, keep it out of an IRA. Next question comes from Boone. I just did my first. Roth conversion and looked at that old account for the first time in. There was the expected dividend producing fund I remembered, but there was a stock chesapeake energy that I had completely forgotten about since I purchased the stock in two thousand, six fifteen. It's down way down like eight point five percent off the purchase price. What should I do with it now? It's in a tax deferred accounts so I. Don't think the loss is realized until I. Start to pull money out of the account and that might not. Not Be for fifteen years current value of all my shares will be about one percent of the value of the account after the conversion. Do I sell in the very little value? I had left and depend on E. Trade to keep up with lost for me or should I hold on based on the slim chance. The stock will be worth more in the next ten years. Oil Stocks do act unusually on occasion, only oil stocks. Stock everything else makes that usually. Chesapeake has been really. Interesting Story to follow and frankly. I don't I. Don't know that I would look at it today. As a business that I'd WANNA own so typically if I. You know I think it was yet idea. Didn't sound like a position are actively building united investment didn't work out. I mean that that happens to all of us. We don't get them all right. We have a philosophy here at the full. A lot of do we like to? Water flowers and pull the weeds, and that's just a nice way of saying. Add to our winners in to get rid of losers in. This I think is more than likely slated to continue being a loser I mean. Chesapeake has lost a lot of value. In it does sound like based on when you purchased this, these is absolutely busted I mean. There there are all sorts of reasons to sell one of them is if you thesis busted and the reason why you invest in the company is is no longer the case, and I would he probably is the case with Chesapeake so to me like you know, you could sit there and let it go, but but what's the goal trying to get back to even, or are you trying to get back a couple of bucks for me a lot of times? I'll I'll take a little opportunity here and there to just go ahead and pull those weeds sell it. Be Done with it. In even though it's just unique out a little bit value there, you can still take that money and do something more productive with it. So. Yeah T to me. I can't tell you to buy or sell obviously, but I can certainly understand. Selling in this case, but I you know. As as oil and natural gas energy can can turn around. This is going to be one that has a lot of headwinds in in. You might be waiting a very long time to to get any of this money back. I point out here that I it seems that maybe boone has a slight misunderstanding of how taxes in aries work because he talked about realizing the loss when he takes the money out and trade keeping track of the loss for him, it sounds to me that he thinks that he can write the loss off whence he takes the money out. That may not be the case, but just to be clear. One of the great benefits of an IRA is you don't pay taxes on the gains, interest and dividends from year to year. But. One of the drawbacks is. You can't take a capital loss on that as well so there's really no no way to benefit on your tax return from this loss. Next question comes from Benjamin. You recommend seeing a fee. Only financial adviser for check in every so often I know there is the Garrett planning network and others to help find an advisor. But what questions do you ask? And what answers do you listen for when trying to find one that is worth his or her one hundred fifty to two hundred fifty per hour. So I would say start first with asking yourself some questions. What are you looking for? You could go for the whole launch. Lada where someone is managing your money analyzing retirement plan helping new save and a five twenty nine. Maybe even doing your taxes with some financial planners do help with the state planning, or are you looking for something more targeted? You just want advice about am I saving enough for retirement, or are you close to retirement? You're like I just WanNa make sure that I'm doing right when terms like choosing my Medicare plan and claiming social security at the right time, so first of all just be very clear of what you're looking for. Then if it involves investments in any way, you WanNa, make sure that you find someone who is at least in the general same area philosophically and I say this, because many financial planners are hardcore index. And if you come to them as a motley fool, listener member with a lot of individual stocks. They may say okay. I'll give you some general asset allocation guidance, or they'll say I don't care if you like to pick. Stocks are not my advises, sell the stocks and go to index funds, so you want to make sure that if you're gonNA, ask for any sort of investment. Advice that you wanna find someone who's someone somewhat at least aligned for what you're looking for. Once, you've got that then. Just asked some of the typical stuff. You might expect so credentials certified financial planner. Are they a CPA either their personal financial specialist. How long they've been in the business. There are lots of people who. have not been in the business very long. Even though they're not young people, a lot of people choose financial planning as a second career, which I think is great, but just because someone may be look like they're in their forties or fifties. Sixties doesn't mean they've been in the business that long, and you WANNA. See if they've worked with someone like you right so if you have. Maybe. You have a large amount of wealth large income huge portfolio. You WanNa make sure that they have experienced with dealing with those issues, but on the flip side to if if you have, are you know middle income, decent size portfolio, but nothing too complicated. You don't WanNa. Go to someone who's used to dealing with someone who's wealthier partially because those people charge a lot more. You want to find someone who's kind of a little more lined up with what you're doing. Then make appointments with three folks. All of them will do get do free. Get acquainted means, and you're just looking for someone who you feel comfortable with. Since, you mentioned Garrett Big Fan of the Gary Planning Network and other is is not for the National Association of Personal Financial Advisers. But Garrett on their website has a how to choose an adviser section. Just Google attitude visor Garrett Planet Network has a great chapter from a dummies book that they wrote about how to choose adviser, and they have a good questionnaire that you can print out in US asking lots of good questions of financial planner. It's tough. Choosing a financial planner like my mom just went through that Bro! Is You know and she didn't really have a lot of options in Boise Idaho. Maybe two and one of them, she I never called her back, and never got back her, and the other one was just so busy just so busy, and just she just never. It's it can be rough. Finding a financial planner can be I. Think what we'll see is one of the consequences of this. Of the coronavirus pandemic. Just, like we are all used to working from home, many financial advisors and financial planners an now working from home. So in what they're doing is they're becoming licensed in more states. So, if you are more comfortable, working with someone over zoom remotely I think you don't have to stick with someone in your area. You can go beyond your locations, but you know some people don't feel comfortable that if if they're going to have someone managing their life savings, they want to be able to meet them in person. That's just a personal choice. All right next question comes from twitter. Is that right from sully what I hear? Okay? I just listened to the episode mentioning Your Weakness Two. Shopping carts and Tj, Maxx that me or you Jason. Accused me. Thoughts on the stock. If I had a war on Amazon, basket would be Costco TJ maxx Home Depot tractor supply. What would be your basket against online retail? That's funny. Well okay, listen I wouldn't have basket against online retail, because online retails where it's at. The whole idea. The whole idea behind the basket approaches to find a long term trend that you feel like the world is headed toward and so the war on cash basket, for example that was always one about people using cash war, traffic payments now with that said I get the spirit of the question some going to answer it because I do like some of these ideas. And I I would definitely include Costco in their in Home Depot's well. Home Depot gets a lot of my money. Doesn't, but they have a very loyal fan base of customers that just are happy to renew year in year out. So I love those membership models there, so costco and a Home Depot for sure you know I'm going to give a little shout at my wife Robin I. Know that she would approve of my adding target to the mixer. She hasn't been raving about targets APP and ordering on the APP the able to go to the store. Just pick it up right there I've talked with Ron Gross on more than one occasion about target and how this really has. Become a twenty first century resale right they're doing. They're doing everything online and in physical stores. What they call Alma Channel and then my fourth and I'm GONNA. Take this. You probably aren't expecting this when Alison. I'm GonNa Shock and all you. I'm ready. I'm ready Alta. We're going. Make up my I know my daughter's love. It ugly ugly Mug like this. What do I know about makeup? Tell you what. Get! A House with two daughters and a wife. That's what I know about make. There's a lot of it in an Ulta is a really really good business. They actually have a very nice diversified revenue stream. They've got the salon a`dynamic of the business which encourages people to go there they do have an online business. They have an augmented reality function there at where you can actually like. Try things on makeup to see how it looks. Mary Dillon just a phenomenal other adults of that's my fourth, their Ulta but they I appreciate the spirit of the question I like the idea I'm not saying this is the basket. I'm not tracking this basket in a not a not backing this basket, but in the spirit of the question if I had to develop. A basket, such as this one I think it'd go with those four. Yeah, I mean I guess you just have to think about what retail out there is something that you would still physically go to. Because the actual retail experience is being in the space is the experience and what you're there for? And I know I mean before Corona virus we I would go to target and just just couldn't believe how much money I had spent from walking through a few of the aisles. TJ Max is just a phenomenal business I mean what they've done through the years. Is really capitalized on the nature of the business, the advantage they have in that treasure hunt kind of nature like you go to TJ Max, maybe not necessarily looking for something, and then you end up finding a lot of things, and it can be a little bit lumping at times, but but generally speaking like management's a very good job of running that business, and they know how to exploit the advantage of experience. I think they're online game. Though I think they could probably get something going with online, and they just have not have not yet and so I. Haven't since Corona Virus for example. I haven't spent a single dollar there, but I continue to still shop at. Home Depot I. Think Yeah! We still shopping at home depot because we're doing. You know you gotta buy lumber somewhere. And I know my grandparents out in my my inlaws out in rural Virginia. They love tractor supply store, but that's not. That's not in where we live, but. Still New deck at the house there allison. I mean you, can you see? A big exposed beam behind me and some drywall work that needs to happen. Have lots of drywall work that needs to happen now though. Yeah Anyway get to that. All right next question comes from Matthew. I got married to my amazing wife nine days ago in a small Kobe nineteen wedding in our front yard after we postponed it from its original date in April all. It was definitely different, but still very special. My question is in relation to this wonderful event. My salary has been at a level that has allowed me to fund a roth. Ira I love the optionality of it, but after marrying my bad ass, wife are combined. Salaries are now over the limit that would allow me to fund the Roth. IRA does this affect occur immediately? Do I need to now open up a traditional. IRA and begin funding it or do I have until the end of the year. Matthew wants a Roth Bachelor party one last. Well Matthew I have bad news. When it comes to most things in taxes, your status and your age and things like that depends on where you are on the last day of the year, said if you're married on the last day of the year, you were considered married for the whole year. So that means if you contributed started contributing to a Roth IRA for twenty twenty. You need to call up your brokerage. Firm and re characterize that as a traditional. Now don't have any other traditional IRA, as it's very easy to do the back door, Ross which we've talked about before you can just google it or even when you call the brokerage, just say I want to do the backdoor. Roth and they'll tell you what to do. If, you have other traditional IRA as you can still do. It just becomes more complicated and you'll probably pay more taxes. So you, but you may not be totally out of luck and I should say that's only if you have a traditional IRA doesn't matter if your wife has traditional areas. One exception by the way of of what I just said. In terms of tax status and last day of the year is distributions from retirement accounts before it's age fifty nine and a half, you actually have to be age fifty nine and a half to avoid that ten percent early distribution penalty, unless some of the many exceptions that are out there exist. Right next question comes from Warren Warren Buffett. Maybe I don't know that's why I was thinking. He's asking about coq, so maybe maybe. Once James Opinion on coke. By? Or hold? Wants to now. I'd give buffet night give. Kiesel Warren of the same advice and I would say. For some I'm not buying it. Not Buying it I'm not holding it if I own it. I guess that means sell it. Even Atlanta Georgia person like you i. feel like it's almost sacrilege. I am pretty close to probably not being ever even invited back. But the facts are the facts. Okay, I mean you do have to look at the stock itself has been ain't bad stockton for the last five years. I mean I do understand why when you look at it what they do, I mean they have. Four hundred master brands, and less than fifty percent of them are the big global brands that are actually responsible for almost all of their revenue when I say almost only ninety eight percent, so it's a business. It's very reliant on on. You know a small portfolio of really successful grants. The problem is now. We've always talked about cocoa beans such a great distribution story and that's true. They've got a distribution network. It's just phenomenal, but the problem is now. They're what they're distributing is is being seen as not so good for you in so you're seeing them. Have it into to essentially pivot away from what you know brought them all of the success for all these years. Years in soda and that that's not going to change I. Mean you're always GonNa have people to drink soda? People are not to drinking as much soda going forward in the numbers of just kind of the kind of shown that through that through the quarters in the years of Coca, Cola and Pepsi Pepsi. Has the salty snacks division, which I've always been very. Impressed by I, mean I love a good Cheeto, and so I mean anytime you can throw a bag of those cheetos in my Patriot Amok GonNa, turn it their coq. Interrupting, but I think this is also very important point. You tried the Jalapeno White Cheddar crunchy cheetos. The White Shit or so. I've tried to Jalapeno ones but I've not seen the white Cheddar White Cheddar Jalapeno crunchy cheetos. Don't get the puffy. The poofy ones are not as good, but the crunchy white Cheddar Jalapeno Cheetahs. them by them. They're amazing. I have to back. Pain you. I'll get those next time. I promise I, mean Eh. One. crunchy wants the puffy ones, so that people won't you're not? You're not seeing poopie. Who using poofy Joe Copy? We'll be Coca doesn't have that dynamic of their business. They don't have that dynamic to their business, and they've suffered from that Pepsi's Pepsi's outperform coca-cola over the last several years. It's not safe. Pepsi or coke get it back. I'm sure they probably can. But what I am saying is I think there are a lot of better ideas out there, and so I wouldn't be putting new money into Coca Cola and frankly if I did own it. I probably would look at selling it and you know if you've got a beverage company, maybe own starbucks. It seems like the science coming out in support of coffee, right? It's coming and telling you that these sodas. They're gonNA. Make you fat. Coffee, it could extend your life. It could help you live longer. SMART Mexican looking this a starbucks as well is. That sounds like study from the copy roasters of America. Do! Something that Chris Hill sent me the other day. that. We sleep at night. I'm glad I've been drinking coffee as long as I have God knows what I would look like otherwise. You're a good looking man. Rick. good-looking next question comes from. A. I'm trying to save money for my kid's College. Fund while the five nine is a great option. I'm limited to investing in mutual funds, which means at best I'm going to get what the market gets assuming I do some sort of low cost index fund and I be a capital F. Fool investor have been doing much better than the market in the last three years of being a member of. Of Stock Advisor Enroll breakers, even during this pandemic mess by listening to every full podcast and following David and Tom's and yours and every one else's in the full universe. My portfolio of about one hundred stocks is up here today. Thirty percent to the market's down five percent as of day as of today weighed down by three sluggish five to nine plants that are also down five percent each. I feel like throwing away money by using the five to nine, and not being allowed to select my own great companies in which to invest. What's more, my understanding is that the five to nine does not count as an asset for the kid when applying for student aid, but the coverdale does. So I come to you with a simple question. Can I have my cake and eat it, too? What if I wanted to use the coverdell to buy individual stocks? Until the child is nearing college? At which point I then converted to a five to nine. This allows me to get better returns and avoid it being an asset for financial aid and get the favorable tax benefit. So, chose this question, because first of all Dune does a good job explaining the benefits of the coverdell over the five twenty nine, you can buy individual stocks. You can buy and sell them all day long. We recommend that, but you can. Whereas with the five twenty nine, you can only make two changes to the investments a year, and it's all mutual funds. So. That's you did a good job of explaining that. I will point out with the coverdell. It's gotta low contribution limit of only two thousand dollars a year, so for some people save more for college, but they can max out to cover it out, but then put the rest in a five twenty nine. One thing that doomed does not have quite right. Is The financial aid treatment the financial aid treatment? Coverdale's and five twenty nine is identical. They're treated as assets of the parent, not the kid that is favourable from a financial aid perspective. It's not negligible doesn't mean it doesn't have any effect on financial aid, but it's better than an asset that is owned. By the kid. He can. Transfer money from the Coverdell to the five twenty nine. If for some reason, he decides to do that, but you can't transfer it. The other way around so were convinced to try out the covered. You have money in a five twenty nine. You can't move it from the five twenty nine. To the coverdale. What other interesting thing that he pointed out is that he is doing very well with his investments, and he owns about one hundred stocks. We get this question a lot. Either on the show, or on the full live that we run every day for members of full services, and that is how many stocks should I own, and if I owned too many are not just owning index fund watering down my returns, but here's an example if someone owns a one hundred stocks is still crushing the market. Idol last question comes from Cameron thoughts on the valuation of Stone Co in light of the corona virus for a fragile country like Brazil. This could be the tipping point after so many other headwinds. But how does that affect stone? coz Business Jason I. Don't even know what Stone Co is. What is still business? Yes, don't Coz a payments company that's focused on Latin American markets in Brazil and particular in so I guess it could be. Draw you can draw a parallel to to a with square through pay pal at, but generally speaking I mean it's payments. Company focused on Latin America. Primarily Brazil. Is the big money making market kind of like Marco Libra, they're. In I, I, it's a it's. A NEAT opportunity, gained a lot of headline recently, when and it was, it was seen that Berkshire hathaway. Warren Buffett's company Berkshire hathaway taken a five percent position in the company, which is pretty considerable i. Think in the near term. You have to acknowledge the fact that. They're gonNA, be some real headwinds in in Brazil particularly because of the pandemic I mean. The flip side of that is role in same boat kind of in that regard. The entire world is dealing with it, so it's not specifically you know it's. It's not particular to one economy or one country some. To get hit harder than others I, do feel like Brazil. Be at a place where they can recover from this given You know some of the other businesses in the area. I mean that that that I think is. Who knows ultimately how? That's GONNA shake, but generally speaking. I think the move away from cash towards cashless. Transactions in and financial software that's not stopping if anything, this hastens that which which is what I think, Cameron's talking about there and for a company like stone. Co, neither are other companies in the space pags bureau in roquetas libra to but you know moving money around is a big big market opportunity, and there's nothing that says they won't be able to expand well beyond the Latin American markets, too, so I I'd say cautiously optimistic I mean I

IRA Jason Moser Google Chris Hill Brian Feroldi Canada Starbucks Warren Warren Buffett Twitter Toronto Alison United States Muny Bond Brazil Alex
"jason moser" Discussed on MarketFoolery

MarketFoolery

02:29 min | 1 year ago

"jason moser" Discussed on MarketFoolery

"Quarter results for Coca Cola Kate volume down profits down thirty three percent, the biggest drop in quarterly revenue. In, twenty five years and yet. Shares of Coca. Cola op couple of percent this morning. Jason Because CEO James Quincy says basically, the worst is over and so I guess optimism carries the day. I mean yeah, hopefully that is, that is the case you're right. They did note in the called that they felt like the second quarter of the quarter. This is reported was going to be the most impacted quarter. Further year in. You know it's interesting to think about the impact of this business because you would kind of think. Maybe it shouldn't be that bad, but that's only if you. Are Thinking about grocery store aspect right I mean. There's a tremendous F. and B.. Restaurant <hes> dynamic to this business in when you look at it from a global perspective that obviously. is going to make a big deal given all of all of the shutdowns in the restaurant sector over the past several months, and it does feel like. I! Say this only partly tongue-in-cheek. It really does kind of feel like coca-cola needs to do something. Different they need to change and I think that you know. We've always been really high on Coca Cola as distribution playwright. We've always talked about that. It's real competitive advantage so let's take that. Let's go one step further because clearly I mean if you determine that you are a SAS business if you call yourself as SAS business, no matter whether you're a SAS Iran. The market is going to give you a little love for that. A COCA COLA'S BEEN A. A very very bad stock known for the last five years. It just has the returns aren't there Pepsi's been a little bit better, but really cocoa has been falling short on a number of fronts, but soda as a service Chris Sas I. Mean Maybe we've had this discussion on the show before. I can't remember old confused but soda as a service. Maybe that's something that could at least helped light a fire, some optimism under the stock because you're right. Even with. The performance today I mean it seems it seems to us to be material, but when you look at the performance over the last five years it actually it is kind of meaningful, because this is not a, it's not not a company that's performing A. Liking it once used to, and I think that has to do with lot just the fact that they're selling. Drink. That is becoming. More and more obviously not good for us.

Jason Moser Chris Sas Georgia G. Stock coca-cola CEO Iran Dow James Quincy Pepsi
"jason moser" Discussed on MarketFoolery

MarketFoolery

03:34 min | 1 year ago

"jason moser" Discussed on MarketFoolery

"It's Wednesday June twenty four. Th Welcome to market I'm Chris L. With me today. Mr Jason Moser good to see you get to see you as everything going. It's going all awry. We've got some retail news today. We've got consumer goods. We're going to start with Dell technologies which. Every time I see news. Rondell reminded that's right. The hot, literally the best performing stock of the Nineteen Ninety S. Then went away into the private market and is now back as a public company. Dell shares rising, because it is looking into a spin off of the very large stake. The Dell currently has in software company VM ware. I believe the steak. The Dell has is somewhere north of eighty percent of. Both stocks are up on this report in The Wall Street Journal. Chasing, what what should investors be either watching four or rooting for in this case? I can't tell if because there are a couple of different angles to this one report, says del was looking into essentially acquiring the rest of vm ware that it doesn't own now. We get this report that is looking to just spin it off altogether, which would obviously be? Tens of billions of dollars potentially in terms of a windfall for Dell. What should we be watching well? I mean I think we can agree that dude, you're getting A. Dell works way better than dude. You're getting a vm ware, so you know that may be the strongest point del play at this at this point because I mean it's. It's not you know it's not that great of business when I see del today the first thing that comes to mind. After that marketing campaign is unfortunately for them. IBM and what I mean by that it's a legacy name in an industry that feels like it's just completely flown. Right by I mean it's just completely passed. Right by it in I'm I may be doing somewhat of a disservice to IBM. They're just given given their investments in. Cloud and red hat acquisition and whatnot, but I mean it is what it is really I mean it does feel like. The numbers are are really odd here. I mean it makes it makes you do a little bit of a double take. Dell's market cap is thirty six billion dollars around thirty six thirty six billion dollars vm-ware's market cap is sixty two billion in so del trying to figure out what to do with. It's fifty billion stake fifty billion dollar stake in Vm ware now, Jason You may ask if Dell has. has a fifty billion dollar stake in vm-ware wise. It's market CAP. When we thirty six billion dollars while Chris there's the RUB in. That's the big question that investors probably need to figure out how to answer before they decide to show on these waters I would recommend probably not because I guarantee. There are a lot of folks in here the new a lot more than we do in you do. But it really does go to show what the markets thinking when it comes to Dallas, Dallas. Is that legacy hardware business I mean they are dabbling in software one up. The future of this company is is more or less based in its VM ware. Investment and so they're trying to figure out exactly how to deal with that. How to unlock value for shareholders, and it could be in the form of buying somewhere because they own so much, but already it could be in the form of spinning. Something off in I. Think they wanted to do that A. BELIEVE THERE'S A. Maybe a year that they would have to wait in order to get a preferential tax treatment there. But it really does kind of all boil back down to this legacy opera operator in Del..

A. Dell Dell Mr Jason Moser del Chris L. IBM Nineteen Ninety Chris there Rondell Dallas Jason You RUB vm-ware The Wall Street Journal
Zoom Communications stock climbs as analysts cheer earnings and predict coronavirus boost

MarketFoolery

03:29 min | 1 year ago

Zoom Communications stock climbs as analysts cheer earnings and predict coronavirus boost

"Start with zoom video fourth quarter revenue for zoom video grew seventy eight percent one of those interesting stock moves because initially the reaction on Wall Street was well. That was good. Wasn't we're looking for a little more? And I realized the stock has had a run up but Zoom video was down at the open. It's bounced back up. It's up about seven percent so far it is at the moment. Yeah but Wait wait a little bit. You'RE NOT. You're not closing the books on that. Are you right now? We still have several hours to the trading. Yeah that was a great quarter and it's not only been Another great quarter resume which is in what now more likely appears to be the early part or the middle part of a great growth story But it has. It's it's doing well At this very moment in time Which distinguishes it from a number of other companies and is not going to be one of the companies Reporting Hey you know this. We did last quarter but we need to temper expectations for the future. Just the opposite for zoom just the opposite and Similar to what Jason Moser and I were talking about the other day with Tele. Doc you know this is Eric Von. Ceo At zoom video being very very measured and not saying something like boy this corona virus holy cow. This good for our business. He would never say that you would not want him to say that but holy cow is this. Is this whole situation like he wouldn't say that. But your Sierra putting those words into his head you don't you don't think he's had those one I'm just I'm just saying that he's a smart guy. You're absolutely had those words in his head. He's also smart enough not to say them out loud on a conference call if we got him on on online right now say hey. Have you been thinking that? Then he would. He would be smart enough. Say No of course not we're measuring or we're managing our business for the long term and so I think what they are getting a lot of people signing up for free trials right now which ultimately have good chance of being upgraded into part of the more expensive parts of the system the paying and Subscription part and. I think that a lot of businesses are being forced to try either zoom or products like zoom the the competition and systems Cisco SYSTEMS has a competing video platform. Right yeah did we used to use that. Yeah and well. Then we switch to And and so I think a number of places are gonNA find Just is one of the dangers for airlines. Right now is not just that. They're losing current Current trips but as businesses find. Oh we can do many things just as well Over Zoom is sending people around and in fact It's a lot cheaper That is what I think. People buying zoom stock today are thinking. Because it's it's certainly not cheap on almost any metric that you would come up with

Jason Moser Eric Von CEO
Teladoc Health Stock Rises on Earnings and Possible Coronavirus Boost

MarketFoolery

01:25 min | 1 year ago

Teladoc Health Stock Rises on Earnings and Possible Coronavirus Boost

"But we're going to start with the stock of the day and then as tele doc somewhere Jason Moser smiling because shares have tele doc up about twenty percent after fourth quarter. Revenue came in higher than expected. The loss was smaller than expected. And it's hard for all of the enthusiasm around the business of Tele Doc. It's hard for me to look at this and not think at least a little bit of the rise that we're seeing today with a telemedicine business is tied to current. Oh virus possibly It's hard to ask the market. What percent of the enthusiasm is About the results just reported in and what part is about Things to do with the headlines. Although the guidance is good and Really the company kind of avoided on the Call giving any any specific numbers about how current virus might affect the business but In a world where more people are staying indoors staying home looking for medical advice and prescriptions and help but not wanting to be out in public not wanting to spend time in hospital and a doctor's office the Tele Doc model becomes that much more attractive.

Jason Moser
"jason moser" Discussed on News Radio 1190 KEX

News Radio 1190 KEX

11:30 min | 2 years ago

"jason moser" Discussed on News Radio 1190 KEX

"Not live from studio scene. It is being aired live not even fresh Armstrong and Getty show. Here's so enjoy it. If you will until we come back next week, it's the best of Armstrong and Getty. Mason, Moser is the senior analyst for the motley fool my like this line. He finds stocks that make money and tells the world about them. That's a good one right there. I appreciate it. And appreciate Jason Moser from the motley fool joining us. Now, Jason how are you, sir? Doing well guys how good it's always fun to talk a stupid way to invest. I realized and you probably don't run into the situation. But if a person said, I'm going to invest in one stock. I'm just going to put my money in one stock long horizon. Manatt retired for decades. What should I put my money? Wow. Just one stock, and he never really recommend that. So I can get you one vehicle though, one, you want to invest in, in one asset you can invest in the index fund, an ETF that represents the entire s e five hundred index fund one that's essentially getting exposure to all five hundred companies in the index in the form of one so so-called share. So you could buy, here's A D index fund really throughout the rest of your life in be investing in. Does that make the easiest way to do that? Does it make you want to drive your car into a bridge when you hear TV and radio people talking about the Dow and Leslie? I don't know that I want to take it that far. But I think you raise a good point in that, historically, the Dow has been used as benchmark but as times of change certainly it's a little bit less of our overall economy, at least at least as pertains to the S, and P, five hundred the S and P five hundred is typically, the benchmark we use when we measure the investments that we make because it's such a much better cross section of the overall economy today. The Dow is very limited only thirty in that index and how about how about hourly updates on that. Even the Washington Post this past weekend, had a do away with the daily hourly Dowa reports. I mean what, what is that? Well, those are those are news entities that, I think are just trying to fill time in order to help their advertisement. Businesses flourished, but yeah, we certainly don't invest that way. We, we encourage our investors who are members of Scribner's to focus on taking those longer time, three to five years, even longer for in when you can take that approach. Patience is really one of our biggest advantages time is our biggest friend when it comes to investing. So you don't pay attention to those day to day movements go up and down focus more on the business. And as long as the business is performing well that can help you sleep at night. Somebody help me. Remember to get back to index funds in a moment or two. But now seems like a perfect chance to ask the following Jason what do you think of quarterly, or, or worse? Monthly reports that companies have to put out and the way that, that turned in my mind stocks into mostly speculation game, as opposed to investing in solid forcing all companies to think short term more importantly, yeah. That's a great observation. That's something that we talked about a lot here. The fool is, you know, these companies they're required to file April work, every quarter on the state of the business. They that ten Hugh report, which tells us what's going on in the business over that over that three months stretch, and then most companies will then release a press release, and also have an earnings call in a lot of times. You're right. That, that sort of short time line forces these teams to think a little bit more along those lines as opposed to focusing on making decisions that are better for the business a little bit more long-term focus. I think a really good example, recently run the guy who founded of an era bread, and he was the CEO for quite some time. It eventually Pinero was made an offer to get bought out. They were bought out by private private entities that are no longer public, but Ron shake listed. That is one of the biggest challenges with having to deal with that Korean and around madness of just meeting these the. Wall Street benchmarks that hamstrung than a little bit in, in making better long-term focus decision. So, yeah, I think companies generally speaking would rather be able to just go about their business and maybe report every year, but some companies definitely they'll release a ten or something, but then they won't really have a call in order to go further into the state of the business. Berkshire-hathaway being a very good example, there, of course, Warren Buffett is a very much in line with that long term thinking, but there's no question about it. When you see these companies that are reporting every quarter Wall Street lays down, these arbitrate, benchmark, it make it difficult for these businesses to make those long term. And then you get stupid reporting, you get the same sort of stupid reporting from the same stupid people that are giving you hourly Dow updates telling you boy, apple way off this quarter with their projections of Pnn people's minds. They're hearing apples struggling when they may not be at all. That's exactly right. And we tell everybody got past the headline in enemy whenever we're doing our research into these companies in their quarterly reports. I mean, we're not going to these articles that are written on financial websites. We're going to the actual source the SEC documents that the companies publish and then we're able to make our own assumptions and decisions based on what we're reading there. But typically, those, those media sites. I mean we we obviously have a financial site here at full dot com. Oftentimes will throw a headline up there. That is not necessarily a good indicator of the state of the business and really kind of internet age clicks, or what dictates a lot of a lot of business. And so of the more clicks, the veteran in what better way to get clicks and those crazy headline voice. So true. And so many areas these days, we're talking to Jason Moser the senior analyst for the motley fool about how to see through the smokescreen, most financial reporting and more. Getting close to the moment where mega investor positive. Sean gets to add one question then he is allowed so quickly. We're talking about index funds. If you could only do one thing, an index fund more or less reflects the panoply of Stockton companies on the entire index. That's the idea you don't you don't go heavy oil and farm. You just gotta bid of everything. Is it still true that index funds almost uniformly outperform the more specialized ones? Would you describe generally speaking, I think generally speaking, when we talk about funds, because there are a number of different types of funds, or mutual funds, which I think, is always been sort of the traditional traditionally understood investment vehicle in oftentimes index funds exchange traded funds, will outperform mutual funds, because the management fees are typically lower in the turnover is lower as well, that those funds aren't buying and selling stocks as much as, as your traditional mutual fund. But when you talk about an index fund or you talk about an exchange traded funds exchange traded fund, where that fund will actually be based on a particular market like energy, or financial or tech, or you can buy the broader type of index funds that it's going to focus on something like the entire it, and p five hundred. So it really does depend on on what exactly you're looking to invest in, if you want something to focus on a particular market versus something that focuses on the market in general. It would make sense to, to think of it this way. If you're going to invest in the NBA S and P five hundred index fund then that fund essentially is going to match the performance of the S and P five hundred over time you're gonna follow that line. So instead of having to pick individuals thought you're just getting that whole basket in automatically over time, it's going to it's going to match over time how that how that hasn't performance, which means always up maybe more modestly than speculating on oil or whatever. I just a quick stretch that graph out there. Look, five ten fifteen twenty years. I mean, the trend is clear. The SNP goes up now there are some bumps along the way. But that's why we subscribe to that longer term view, because the facts are the facts and over the longer term view that market does go up. I remember when oil was one hundred bucks a barrel. I was heavily into oil stocks and thought I was a genius. Real funny. The real thing. Completely out of our control the price of oil, you know. Right. Right. Jason Moser motley fool on the line positive, Sean, your penetrating question. Yes. So I'm looking to up my dividend exposure in my portfolio as I'm doing my research, specifically at what point is a dividend high enough to where it should be a warning sign or a red flag and more, generally. How do I tell if a between a dividend trip like, what's a dividend trap something that, that's a good dividend? But a bad stock overall what, what should I be looking at for that? Yeah. Typically, we look at any company that's going to pay you three percent yield or better as kind of something we're looking for, for the longer haul oftentimes, you will see companies where they're yielding seven eight nine percents of higher dividend yields tend to be like master limited partnerships or reits, real estate investment trusts. And the reason why they offer that eight yield is because perhaps, there isn't the same opportunity in the fixed income market, which I think would be very reflective of what's going on today. But when you see those higher dividend yields, I think that you need to approach them with the question of, how can they afford to pay this in can they afford to continue paying that level of the dividend over time versus something like McCormick mccormick's spice company where they've been in business forever? They have a presence in virtually every kitchen in the world. It seems like and they pay an affordable dividend over time that they, they won't ever have any avenue. Trump's going out on you. There is something called the payout ratio, and that essentially is the number the amount they pay dividends versus the net income, but they bring in that payout ratio gives us a good indicator as to whether the company can afford that. Did it end over time payout ratio? Is that your term is that kind of an industry term that I can kind of look into that's an industry term that you can certainly look into Jason. I've got to cut you off because I feel like we're I think we're getting too far into the weeds just in layman's terms. Yes. So if a company's paying too high dividends what's going on there? Well paying too high of a dividend could mean a number of things they're trying to boost that dividend. Get shareholders more interested, or perhaps that share prices come down, which is going to make that yield go up in could mean any number of different things. But it also oftentimes a higher dividend pertains to some of those markets, like master limited partnerships, or even read sometimes energy companies, where they tend to offer a higher dividend. When times are good. But when times get bad, then they had trouble affording that did it end in it's reflected in the share price there as well. Fair enough. Jason Moser senior analysts for the motley fool. He finds stocks to make money tells the world about them Jason, it's always informative. Thanks a bunch. Thanks guys. You got there is a perfect example, right, there so people like to be in cool stocks and you feel like a coup guided mover and sugar. But McCormick spices. I mean how boring a company is that cloves Jack delicious yesterday delicious tomorrow? He's right. Every damn kitchen in the country has got McCord..

Jason Moser Jason Jason Moser motley senior analyst Armstrong Getty Sean Washington Post Dow Warren Buffett SEC Manatt Mason NBA Scribner McCormick McCormick mccormick
Its not an easy business.

MarketFoolery

13:13 min | 2 years ago

Its not an easy business.

"Thanks your to grammar Lee for supporting market. Fully Gramley is a communication tool that helps people improve their writing to be mistake. Free clear effective. You can start writing confidently by going to grammar dot com slash fool and get twenty percents off a grammar Lee premium account today. Monday may six welcome to market fuller. I'm Chris hill. Joining me in studio today, Jason Moser in the house. Thanks for being here. Alot we're going to dip into the full mailbag. Let's start with the Berkshire Hathaway meeting which always gives us a couple of headlines coming out of the meeting have you ever been? I've never made. I have. Yeah. It went. I think he was just once I win in. So of course, when you go with us. I mean, you get to go you have the press badge, and you sit up on the top and you get spoiled with the lunch and everything's easy in. So that was like no way, I'm topping that experience ever. So there's no way I'm going all the way out the Omaha just a wait in line to hear some guy say something I heard him say five years ago. You know, what else you can follow it on Twitter now, it's so robust and in. It's like you're there. I was thinking it's just like I don't watch a lot of baseball anymore. I love the Red Sox. But man, I tell you follow the Red Sox on Twitter, you I mean, they are that that's a. A great baseball Twitter presence right there. So you can do so much. Also, I think Yahoo finance has done. The livestream for people who are looking and watch the video I've talked to other analysts around here. It's like are you going out to along? Like, no, I'm just getting up and watching it in my pajamas really a lot of clips are still floating out there. So it's it's easy go over and over and over again. So let's get to a couple of headlines, and I up his craft Hines which. You know, it's it's impossible to read Warren Buffett's mind. But I'm wondering to what extent if any he's regretting the craft how the participation in the craft highs because Kraft Heinz came out and said that they're going to restate their earnings for twenty sixteen and for 2017 due to misconduct on the part of some employees. They say it's not going to be material. And I'm just going to go ahead. And grant them the benefit of the doubt and say, okay, it's not material. And if you look at the stock it's not falling through the floor. So clearly smarter more invested people literally more invested people than me are taking them at their word. Well, it's not falling through the floor any more. I mean like it's been an awful year date. It's basically been cut in half of horrible, twelve months and has really been a horrible existence ever since the merger in two thousand fifteen. So I mean at some point or another that floor kind of set itself, but you know, I started thinking about this with buffet. And so there was this one point like I dunno years ago where my wife kind of basically called me out on. It's you know, sometimes you as married couples. Do you talk with each other? And sometimes you just sort of the words are just kind of going in one ear and out the other. And and so whenever that would happen with me. And I would say something like, oh how about that? Eventually my wife figured out that how about that meant. Oh, I'm not listening. And so she called me on it. And I so now I can't do that anymore in with buffet. It's starting to feel like whenever he's like, you know, we're just going to give him the benefit of the doubt. It's kind of like he's just those words going in one you're out the because he does the same thing with with Wells Fargo, essentially, he's doing it with craft Hines. He kinda tends to do that. And that's fine. He's got billions doesn't really matter at the end of the day. But I do wonder how much this kind of grinds his gears because it has been obviously an awful existence since the merger. It is a very buffet style investment. I understand his perspective when he was asked about the long term value this company in regard to the brands that's kind of what he fell back on the brands. I don't know that I necessarily. We believe that going forward though, I think those brands are in in a bit of a bind. Red flags. Yes. And having to restate things, perhaps it's nice to see they're actually get out getting out in front of this kind of resolving and all, you know, I I don't know that I'm looking at this as an investment I want to have anything to do with anyway. So let's move away from Kraft Heinz for a second. When you see a company that you own shares of come out and say, hey, we blew the math. We have to go back and restrain like, I is it on a case by case basis because I was I was looking at this and sort of thinking through my own holdings and thinking to myself, you know, what depending on which company I own if they came out and said, oh, we're going to restate two years worth of earnings depending on which stock it is. I'm either rolling with it and saying, okay, you blew it. But it was lower level employees, and you're on topic. Whereas other stocks, I own I would think boy, I don't know this. This is one more check against you. Yeah. I mean, I think it is a case by case basis, but I will say. And we talk about these companies a lot on this show. It feels like for a while. It was Bank of America than it was Wells Fargo. So there are companies that get out there and are really in the spotlight, and they kick get out of their own way. Facebook is another one. I mean, it seems like every week we could just have that one segment of the show where it's like, you know, this week in Facebook screwing up again in so eventually privacy. Right. Eventually you get a little bit tired of it. Right. And so then you have to ask yourself is this really accompany worth owning? I in. I I think that is again, it's a case by case thing when I look at something like a craft Hines. I mean, it just don't see any kind of a competitive advantage there with the business to begin with. So this certainly would not be one of just sort of gloss over. I think it'd be one more reason to probably not want to own a so for this next story that comes out of the annual meeting it's worth remembering that? Last month. Yulon mosque said on Tesla's earnings call that tesla was going to be launching its own insurance product in the month of may and not surprisingly Warren Buffett was asked about that annual meeting and said point blank, it's not an easy business. And you know, there's some people online today said boy, he really called musk out there. I, you know, I don't know that I want to ascribe that to buffet. But she clicked, you know, the most generous interpretation of what Buffett said regarding tesla getting into the insurance business is good luck. But he did go out of his way to say. I'm not worried about them. I'm I'm more, you know, because Berkshire Hathaway owns Geico. I'm not worried about that. I'm worried about progressive. Yeah. Well, I mean, listen, given given EON Musk's track record of behavior. I mean is this really someone you want to be getting your peace of mind from seriously? Like, I mean, you wanna mind sure. From that guy. I don't think so. And I mean, I'm a big fan of you must listen very clear. I support what he's doing. I love is big picture thinking, I'm rooting for the I there are points in time where I feel like maybe he's just you know, that's kind of silly candy. I think that was probably pretty silly. And apparently that candy still coming out insurance pales insurance is hard. That's why we like great reputable insurers that requires a lot of capital. There are a lot of regulations in. It's not easy. I mean, it was it was interesting. I thought when when he was asked about this potential insurance product in he noted that they would be writing these policies based on data. I mean, we'll dumb that's all like all good insurance companies right there policies based on data. Like, there's an entire industry that you know, the actuaries to get out there and figure this risk out based on data. So I mean, I think that when you look at what musk is trying to do with tesla with spa. Sex solar city somewhere in there as well. Yeah. I mean, I is is insurance for this Jews really worth the squeeze. I don't think it is. I love the back and forth. I think you've got yesterday versus tomorrow and in buffet in musk and two guys. I really appreciate in in honestly love as an investor. But there's no question that insurance is a very difficult business to run. I'd have to believe if they were going to be writing insurance product, it would be with another partner that actually dozen sure. And then I would imagine it would be basically just for people who have a tesla. Like if you don't have a tesla. I don't know why you would get insurance from them. But I mean, hey, he says a lot of stuff what about dating app? I feel like you know, owning a tesla. That's a that's a bar to clear socially. And it was like start matching people up. Tesla owners. I think I don't know. I mean. Yeah. And instead of going to be helpful sure instead of swiping left and swiping, right? Like musk. I'm sure would add a dimension. Right. Instead of that. It'd be like swipe diagonally or swipe four D or something of that nature. He's always throwing a bit of a bit of a forward-looking twist on things so Starbucks got a surprising promotional boost this morning Twitter was all a buzz about Sunday night's game of thrones episode that is to be expected because it's the final season of game of thrones. What was not expected is the fact that apparently a Cup of Starbucks Coffee made its way into the episode of game of thrones people were posting video of this and screen caps of this a half to believe there's a production assistant who is in the process of getting fired today for leaving a Cup of Starbucks Coffee on their unless I don't watch game of thrones. Maybe there was a story line about the first Starbucks opening in west rose. I don't know. But but. That's amazing. Because you hear the phrase all the time you can't buy that kind of publicity. And I would say the majority of time someone says you can't buy that kind of publicity if you step back and look at a given situation. No, you really can this is a situation where really Starbucks couldn't have bought this. I yeah, I feel like sometimes there are situations where things like this. Are there not accidents there planned out, but they are made to look like accidents? Now, I'm not I I have HBO. So you think this claimed? Well, no. And that's what I'm saying. I don't think it actually was. I mean thinks in some cases these types of things are it does it does feel like this was genuinely just someone missed this. Now, I don't watch game of thrones. Which is fascinating because I have HBO. And I and I love it for whatever reason just never got into game with bronze. But it strikes me. That of the rabid fan bases out there. Starbucks and game of thrones are two very rabid fan bases to tie these two together. I mean, there is there is some serendipity here that I think is going to work out for both entities. I I don't think there is a downside for either. Now, maybe there is a production assistant out there who's who's out of a job today. I don't know who we just we won't even go there. But I I don't think there's really any downside to something like this happening not for Starbucks product placement has been around for decades. And if they had gone. The idea to go to the producers of gaming throws me. Like, here's ten million dollars. We just want to scar. And of course, the producers would be like, no that doesn't make any sense. But but I mean now all of a sudden, we're thinking, okay. Is there some type of is is there some type of of time-warp here in game of thrones that didn't exist it possibly now. Does is this how they continue to tell that game of thrones story after the end of this. He's who knows. I mean, we as the viewer or potential viewer. And I tell you like I said, I don't watch it. But now I'm feeling like I may want to start because who knows what could develop from this. But I have to believe they're gonna milk it for all. It's worth quick shout out to Gramley for sporting today's episode grammar as a communication tool that helps people improve their writing to be mistake free clear and effective day. Encourage everyone even the best students even the top professionals to use grammer to do their best work and accomplish even more their goals. They help people show their best self through writing. And it's available across platforms, including online. Extension. Desktop editor and mobile keyboard checker, it's available on multiple browsers, chrome, Firefox safari. It's on platforms like I o s Android windows. Mac their free product reviews critical spelling and grammar, but Graham, really premium looks out for spelling grammar, plus structure style within context vocabulary suggestions conciseness readability for different occasions. Whether you're writing a business proposal or an essay for school, whatever it's so easy to use. I've actually been using it and Graham really free is easy to use. But premium just gives you a lot more great suggestions on vocabulary. I have found anyway. So whether you're looking to polish up your resume or just look smarter in your emails at work. Do yourself a favor checkout Gramley, go to grammar Lee dot com slash full and get twenty percents off your grammar Lee premium account today, that's grammar dot com slash fool for twenty percent off

Starbucks Coffee Tesla Twitter Hines Warren Buffett LEE Gramley Musk Kraft Heinz Red Sox Chris Hill Omaha Facebook Baseball Production Assistant Jason Moser Yahoo Eon Musk Graham Berkshire Hathaway
"jason moser" Discussed on 760 KFMB Radio

760 KFMB Radio

12:25 min | 2 years ago

"jason moser" Discussed on 760 KFMB Radio

"Investigating a fatal shooting near Alvarado hospital in the college area at about six twenty this morning. Police got word of shots fired on Alvarado road east of SDS you a fan. A man was found who had been shot no detailed description of the suspects is available. But three black men were seen running from the scene. The county is considering expanding Ramona preserve and north county park. Supervisor said public hearings for June fifth for possible expansion cloudy and sixty one Lindbergh field and the Padres. Visit the Braves this morning at nine ten AM seven sixty talking breaking news now it's Armstrong and Getty. Moser is the senior analyst for the motley fool my like this line. He finds stocks that make money and tells the world about them that's a good one right there. I appreciate it. And I appreciate Jason Moser from the motley fool joining us. Now, Jason how are you, sir? Doing well guys. How are we all good? It's always fun to talk to be a stupid way to invest. I realized and you probably don't run into the situation. But if a person said I'm going to invest in one stock I'm just going to put my money in one stock long horizon Manatt retired for decades. What should I put my money? Wow. Just one stock and we've never really recommend that. So I can give you one eagle though one. Do you want to invest in in one asset you could invest in the index fund ETF that represents the entire S and P five hundred index fund that's essentially getting exposure to all five hundred companies Indian dex in the form of one so so-called share? So you could buy shares of that de index fund really throughout the rest of your life and be investing in does. It make probably be easiest way to do that. Does it make you wanna drive your car into a bridge when you hear TV and radio people talking about the Dow and Leslie? I don't know that I want to take it that far. But I think you raise a good point in that historically, the Dow has been used as benchmark, but as times of change, certainly it's a little bit less of indicative of our overall economy, at least at least as pertains to the five hundred five hundred is typically of the benchmark we use when we measure the investments that we make because it's such a much better cross section of the overall economy today, the Dow is very limited only thirty companies in that index and how about an hour, and how about hourly updates on that even the Washington Post this past weekend at a do away with the daily hourly Dow reports I mean what what is that? Well, those are those are news entities that I think are just trying to fill time in order to help their advertisements businesses flourish. But yeah, we certainly don't event that way. We we incur investors who are members of Scribner's to focus on taking those longer time rises three to five years even longer for. When you can take that approach. Patience is really one of our biggest advantages time is our biggest friend when it comes to investing. So you don't pay attention to those day to day movements. Go up and down focus more on the business. And as long as the business is performing well that that should help you sleep at night. Somebody help me remember to get back to index funds in a moment or two. But now seems like a perfect chance to ask the following. Jason what do you think of quarterly or or worse monthly reports that companies have to put out and the way that that turned in my mind stocks into mostly speculation game as opposed to investing in solid enforcing all companies to think, short term, more importantly. Yeah. You make this a great outsor- vacation. That's something that we talked about a lot here, the fool is, you know, these companies they required to file able work every quarter on the state of the business. They found that ten Hugh report which tells us what's going on in the business over that over that three months stretch in most companies will then release a press release of and also having earnings call in a lot of times, you're right that that sort of short time line forces these management teams to think a little bit more along those lines as opposed to focusing on making decisions that are better for the business a little bit more long term. So I think a really good example recently run shake the guy who founded of an era grid to see opener for quite some time. It eventually Pinero was made an offer to get bought out. They were bought out by private private entity. So they're no longer public, but Ron shake listed that one of the biggest challenges was having to deal with that Corine and cold around madness of just meeting. These are the. Wall Street benchmarks that hamstrung than a little bit in in making better long-term focus decision. So yeah, I think companies generally speaking would rather be able to just go about their business and eighty report every year, but some companies definitely they'll release a ten q or something. But then they won't really have a call in order to go further into the state of the business berkshire-hathaway being a very good example there, of course, Warren Buffett is a very much in line with that long-term Saiki. But there's no question about it. When you see these companies that are reporting every quarter, Wall Street lays down his arbitrary inch. Mercy it make it difficult for these businesses to make long-term term. And then you get stupid reporting. You get the same sort of stupid reporting from the same stupid people that are giving you hourly Dow updates telling you boy apple way off this quarter with their projections of Pnn people's minds during Apple's struggling when they may not be at all. That's exactly right. And we tell everybody got past the headlines in enemy whenever we're doing our research into these companies in their quarterly reports. I mean, we're not going to these articles that are written on financial websites. We'll go into the actual source the documents that the companies published and then we're able to make our own assumptions and decisions based on what we're reading there. But typically, those those those Honey angel media sites, and we a financial media, you're at full dot com. Oftentimes will throw a headline up there that is not necessarily a good indicator of the state of the business and really kind of internet age clicks, or what dictates a lot of a lot of business. And so of the more clicks the veteran in what better way to get clicks than those crazy headline voice, so true. And so many areas these days, we're talking to Jason Moser, the senior analyst for the motley fool about you know, how to see through the smokescreen most financial reporting and work. Getting close to the moment where mega investor positive Sean gets to ask one question than he is allowed. Just quickly. We're talking about index funds. If you could only do one thing an index fund more or less reflects the panoply of Stockton companies on the entire index. That's the ideas. You don't you? Don't go heavy oil and firm, you just got a bit of everything. Is it still true that index funds almost uniformly outperform the more specialized ones? Would you describe generally speaking? I think generally speaking when we talk about funds because there are a number of different types of funds mutual funds, which I think is always been sort of a traditional traditionally understood investment vehicle in oftentimes index funds exchange traded funds will outperform mutual funds because the management fees are typically lower in the turnover is lower as well that those funds are buying and selling stocks as much as as your traditional mutual fund. But when you talk about an index fund or you talk about an exchange traded fund me, they're pretty fun where that's fun will actually be based on a particular market like energy, or financials or tech or you can buy the broader type of index funds that it's going to focus on something like the entire S and P five hundred. So it really does depend on what exactly you're looking to invest in. If you want something to focus on a particular market versus something that focuses on the market in general. It would make sense to to think of it this way if you're going to invest in the Indians and P five hundred index fund, then that's onto centrally is going to match the performance of the S and P five hundred over time, you're gonna follow that line. So instead of having to pick individual stocks. You're just getting that whole basket in alternately over time. It's gonna it's gonna match over time. How that it that hasn t performance, which means always up, maybe more modestly than speculating on oil, or whatever I just a quick stretch that graph out there. Look by ten fifteen twenty years. I mean, the trend is clear the S and P goes up. Now, there are some bumps along the way. But that's why we subscribe to that longer term view because the facts are the facts and over the long term view that market does go up. I remember when oil was one hundred bucks a barrel. I was heavily into stocks and sought I was a genius. That's so funny. The real thing. Completely out of our control the price of oil. You know, right. Jason Moser motley. Fool online positive, Sean your penetrating question. Yes. So I'm looking to up my dividend exposure in my portfolio, as I'm doing my research specifically at what point is a dividend high enough to where it should be a warning sign or a red flag and more. Generally, how do I tell if a between a dividend trip? Like what's a dividend trap something that that's a good dividend. But a bad stock overall. What what should I be looking at for that? Yeah. Typically, we look at any company that's going to pay you three percent yield or better as kind of something we're looking for for the longer haul. Oftentimes, you will see companies where they're yielding seven eight nine percent of higher dividend. Yields tend to be things like master limited partnerships or reits real estate investment trusts. And the reason why they offer that big yield is because perhaps there isn't the same opportunity in the fixed income market, which I think would be very reflective of what's going on today. But when you see those higher dividend yields I think that you need to approach them with the question of how can they afford to pay this dividend in can they afford to continue paying that level of the dividend. Overtime versus something like McCormick mccormick's spice company where they've been in business forever. They have a presence in virtually every kitchen in the world. It seems like and they pay an affordable dividend over time that they they won't ever have any avenue. Trouble out on Sean. There is there is something called the payout ratio. And that essentially is the number of the amount they pay dividends versus the net income that they bring in that payout. Ratio gives us a good indicator as to whether the company can afford that dividend over time payout ratio is that your term is that kind of an industry term that I can kind of look into that's an industry term that you can certainly look into Jason. I got to cut you off because I feel like we're I think we're getting too far into the weeds just in layman's terms, if a company's paying too high def dividends what's going on there. Well, paying too high of a dividend. Could mean an number of different things for they're trying to boost that dividend to get shareholders more interested, or perhaps that share prices come down, which is going to make that yield go up immediate could mean any number of different things. But it also oftentimes a higher dividend pertains to some of those markets like master limited partnerships or even read sometimes energy companies where they tend to offer a higher dividend. When times are good. But when times get bad, you know, then they had trouble affording that did it in and it's reflected in the share price there as well enough. Jason Moser senior analyst for the motley fully find stocks to make money tells the world about them. Jason. It's always informative. Thanks a bunch. Thanks, guys. You got there's a perfect example right there. So people like to be in cool stocks, and you feel like a coup guide and move and sugar, but McCormick spices. I mean, how boring company is that Clovis Jack delicious yesterday delicious tomorrow. He's right. Every damn kitchen. The country has got McCoy. Expires in it. And will for the next fifty years. Probably. Yeah. And it's not an exciting stock, but probably great company interesting. Why tell you what oil exploration companies I'd buy those stocks up up up by thought I was a genius..

Jason Moser Jason Jason Moser motley senior analyst Dow Sean Braves Alvarado hospital Padres Apple north county park Supervisor Warren Buffett Lindbergh field Getty Armstrong Washington Post
"jason moser" Discussed on 760 KFMB Radio

760 KFMB Radio

09:45 min | 2 years ago

"jason moser" Discussed on 760 KFMB Radio

"You follow the come after closely follow her company, you should know? Really? No. I mean, if you if you buy a business, it doesn't grow faster if I go on to stare at it. I can't share for it. No more effort. Buy it knowing there's three hundred sixty five days a year. You're to own it for twenty years. So that's seventy three hundred days. Things are going to be different from day to day. You shouldn't buy it at the day to day stuff who who's that? Does nothing about stocks. Warren, Buffett's amazing. How many old really rich people have that view of stocks, which is opposite of what we're day trading taught on the radio every day. Before we get into our stock conversation. The quick update. Unjustly small. Ed is new story is those Nigerian guys they attacked me. Yeah. They attacked me in Whiteface mega hats. I thought it was white guys. Right. I didn't pay them to stage an attack. They actually just attacked me. Right. I paid them for something else on that check. So I mean this and we will get back to the story, but it's killing white faced Nigerian bodybuilders are roaming, the mid west looking for TV stars to to beat down chilling chilling times. Jack Marshall, we'll have the latest in his news in about a half an hour. But getting back to the question of the markets, and stocks and investing in that sort of thing what a pleasure to welcome back to the Armstrong and Getty show. Jason Moser senior analyst for motley fool. He finds stocks that makes money and tells the world about them. Hello jason. How are you? I'm well dot stocks that make money, I am a native English speaker, and I can conjugate verbs and everything but. I spent I suppose we should we should we should start with do you agree with what Warren Buffett just said. Absolutely. You know warned about that. I would say. It was kind of our north star at the Molly four we like to we like to get in that mindset of investing like he does. And I tell you the way he does it in the way, I've always opposed it the way we teach our members, and I'm teaching my kids. The same perspective relief is what we call this is focused investing. And I mean, his point, you know, Starbucks is a business that you could stare at it every day that stock price, and that's not gonna make business really do better or worse, but we look at instead of investing in stops. And instead of investing trading mentality of buying selling frequently. We just looked for businesses that we want to be owners of because that's what a stock is a stock is a Representative unit of ownership of the underlying business businesses that way, I walk into the business all the time and say, I'm a stockholder clean that up over there. Or you're fired. It's interesting the way that my way we first introduced it to my daughter there now fourteen going on thirteen but they were around six or seven years old. We went into a narrow one day in and at the time I own shares. And I I said to them I said, you know, what do you think about this? We actually own a little bit of business. And that was where they said what in the world. Are you talking about cool start the conversation with us? All do the same thing with my kids. That's a given. But you implied you no longer have Pinera share sell sell parts. Strange river. Remember Pinera got bought out by private equity? So it's no longer a publicly traded, okay? Throughout south stand. The bagel boom. Jason Moser for the motley fool is on the line. Hey, so listen, a bunch of high profile IPO's initial public offerings in recent days, including your your your overs and lifts and Airbnb and all your groovy Monteiro hippie sharing economy stuff. Now, I hear it burned and I years ago. Recommended to corrupt financial institution that everybody knows the name. Oh, boy, they got caught lying to people. Stocks. But anyway, I got burned on an IPO once. So I'm always hesitant when I hear it. I don't even know how to get in on. What's the deal with IPO's Jason? Well, I mean, I, you know, a lot of people get burned all I feel is from the very get go. And that's why we typically don't even more that trying to get in on in for the retail investor just for the everyday investor like you and me it's really difficult to actually be part of that IPO because you you tend to have to have a connection with either the underwriting Bank or some other way to actually be in on that company before it goes public. But ultimately, you know, you look at an IT on a company goes public in order to raise money, right? I mean, that's what they're doing is they're selling part of their business to the public. So they can raise money grow. So for for a company to go public. I mean, obviously, an IPO. It's a good time. Get a deal with the crisis booming. But oftentimes, you know, Wall Street loved IPO's because the underwriting banks that are taking these companies public. They make a lot of money off of that IT. Oh, the Steve's involved with doing it investors. Don't see any of that. That's actually money the companies have to pay. So we typically look at us, and we say, all right? This business is now public we want to get at least a couple of quarters watch them every. Earning season and understand more. How the businesses? This sounds like yet. Another example of how financial reporting is some of the worst reporting that's out there. Because for instance, when lift debuted their IPO, whatever it was this Monday or last Monday, or whatever I've seen all good Morning America today by smiling and talking about everything like that. There's no good reason for me to get excited about that that day. There is you're right. I mean, that's financial media for the most part it. They're focused on that day to day. Sensational headline in order to get the clicks. Because a lot of financial media is supported by advertising. And so certainly we we try to espouse that longer term you. Hey, we're interested in these companies that are going public, but about by their stocks. Now, we have the opportunity to research in the bathroom in exercise a little bit of patients, and if the underlying businesses good, then maybe we can look at getting ownership in the stock at some point down the road. You know, I see positive Sean looking twitchy, and we forget to make clear. Yes. He will get a chance to ask one question of Jason before he leaves, Sean, listen, the fairly limited time. Well, just a very very quickly. Jason let me posit this. Tell me if you agree or disagree. If some broker comes to me in average dope. As as Joe, I got a really great opportunity for you here. There's an IPO next week. And I really think it's gonna explode is that evidence that they're having trouble getting people interested in the stock, and I ought to be. Aware. Chances are. Yes. In most cases, the the IPO's that are that are slated to do very well they'll end up being over subscribed. In other words, there are a lot more people out there demanding shares, and they have shares to actually give. Okay. Kind of goes back to that retail investors. And I don't really have an edge with us inserts, those big Wall Street banks do and so we just don't really play that game from that perspective. Because I'm pretty sure I mean, you guys record, you're okay. Because I am fairly certain that when lit goes public when Uber does public in the next few weeks, we are going to see those prices significantly lower at some point over the course of the next two years. Okay. Your price Fernow me to that. Okay. All right. So listen, this is the sort of thing that made my eyes gloss over as a poor college undergrad with the minor in econ. But the inverted yield curve matters. Can you just give us like a minute ninety seconds on what it is? And why it matters. Sure. So if you think about when you buy government bonds, you hear all about the treasury yield and the yield at the government pays on those bonds that the government issues typically a short term von is gonna pay you a lower interest rate than a longer term bond. They have to give you a little bit more compensation in order to take that longer timeline because there's more uncertainty. So typically, you're going to have a higher interest rate with a longer term Bondi inverted yield curve, ultimately means that that longer term interest rate starts to come down and actually below the short term interest rates in ultimately investors, one really matters is because sometimes that inverted yield curve can be a sign that there are some recessionary conditions. There might be a recession on the horizon. What I would say as an investor is when you seek there may be some type of recession or challenging economic times that can be actually really great time for investors because you're gonna be able to pick up shares of your favorite businesses for less than perhaps you would be seeing him today. So you sometimes get a good fire sale on some really good businesses. When you see those those short term economic conditions and economic challenges coming up, and that's what if an inverted you'll curve would essentially tell you the day there's challenging we're talking with Jason Moser senior analyst for motley fool, Sean, you get one question before we let him go. It's not about game of thrones is no it's not no I need to know about that. Vesting dragons. So as someone like me who is essentially using mutual funds and ETS for for one of two things a getting exposure to companies that I physically can't afford because of their high stock price things like Berkshire Hathaway Amazon for just kind of easy examples and be some kind of simplified diversification. Is there any reason for me treat mutual funds differently from ETF's? So I think mutual funds wanna give. Close look in the reason why that is because typically mutual funds are operating on a higher cost structure. They typically have higher fees. They have higher with they typically are rebalancing those portfolios, which can result in tax implications. ATS? Traditionally those are those are products they came after mutual funds near a bit more efficient from that perspective. So I would lean more towards ETF further away from mutual funds, but was artless at you're if you're looking at neutral on understand the costs involved with owning those mutual funds 'cause the data out there is very clear most mutual funds underperform in they're just not very efficient..

IPO Jason Moser Warren Buffett Sean senior analyst motley Starbucks Airbnb Jack Marshall Ed Pinera Molly Representative unit Armstrong Getty
"jason moser" Discussed on 790 KABC

790 KABC

05:20 min | 2 years ago

"jason moser" Discussed on 790 KABC

"Call number six automatically win. We're speaking with Jason Moser an analyst from the motley fool and Jason we have an interesting call. But before we go to that call you were gonna tell me how to different philosophies and emotional systems around money can unite. That is no easy. Oh, wow. At that old saying that opposites attracted me as I think about me, and my about me, and my wife a lot of cases, we like sort of different things. I'm just I'm just talking about trivial things we didn't have that big of a problem coming together in in determining financial goals because I don't think either one of us is really into money is a status symbol, or, you know, having to spend a lot of money or wanting a lot of material things, but I think that if you have two people who are butting heads when it comes to that. I mean that is where obviously communication is is critical. Because again, it really is all about the goals that you're trying to develop a common common philosophy. Got it about. Oh. Shut off the other partner at the people. People see the other person's perspective. But I was telling the end that I'm such an anxious person. You also don't want somebody to much like yourself because if I had another anxious person in my life, I would explode you don't want somebody spending all their paycheck. All right. We'll take a quick call is excellent. Call for you here. Jason monica. Go right ahead. I wanted to share what recently happened to me. My husband took out. Basically cleaned out his 4._0._1._K over twenty thousand dollars, and I'm assuming he's not a retirement age or close. About thirty thirty seven thirty eight. And he didn't tell me until after the fact. And I'm we've been on the Dave Ramsey plan for about two years, and we've paid off all of our dead. And I'm pretty good with money. I think I'm the smarter of the two, and he does that really stupid thing. And it hurt me really bad because he didn't help me. And she didn't realize what would happen as far as getting taxed and it. It just hurt me because he didn't discuss it with me when he darn well know that he's not the brightest when it comes to money. So it's a break entrust to money. Exactly, what did he buy with the what eighteen thousand dollars? Anything? That's the thing. We're totally out of the shopaholic go by. I don't know why he did it. We don't do that anymore after you know, paying off all our debt. The door the dumb checks just sitting there and. Yeah. Was him. Go ahead. Jason least at least if he bought something like with it. Then you could understand. Well, okay. Maybe there's some type of of forum. Use of the phones there. But yeah, I mean that that's the thing. When you talk about infidelity, you mean, it's not just physical readiness, right? Any breach of trust? And unfortunately, what that does. You're you're gonna pay those those taxes the penalties and whatnot. But withdrawing that money encouraging things that you still have it. If you can't sweet talking into putting it back into an IRA or four one K because you still have that money. You can put it back to work for you on. That really is the biggest challenges you taking that time early in your life to build up that nest egg really our biggest friends the more time that you better. You can you can become in. If you just completely eliminate that. You know, you that money out and you follow essentially, all you work towards. You can't get that time back. Right. Least. If you still have that money, you could get it back to work for us to see if there's an opportunity there to get into a 4._0._1._K or. Working for y'all. Jason. We gotta wrap it up Jason Moser analysts at the motley fool. What's coming up for you? And where we find you. Oh, well, you can always catch me on Twitter. J M O and the day job is just going to work and talking about stocks and researching companies one in the middle of earning season right now. So that's gonna be Twitter earnings in the morning. We got support. Busy. You follow a GE think they're going to pull out of this mess. I tell you what that's been one of the business. Oh, my. Back at the history of management for so long. We lauded them saying that was such strong management team there. And it turns out that all along they were just doing a horrible job in essentially committing marital infidelity would go, but the new new new group is is spring into action. So I think you got the good team in there. You're like they're doing some good things or just thank you so much. You gotta take it easy as Jason closer analysts in the motley fool. We're going to talk to our friend. John Cardillo four-member NYPD officer.

Jason Jason monica Jason Moser analyst Twitter Dave Ramsey NYPD partner John Cardillo GE officer J M O eighteen thousand dollars twenty thousand dollars four one K two years
"jason moser" Discussed on 790 KABC

790 KABC

06:08 min | 2 years ago

"jason moser" Discussed on 790 KABC

"Furnished by live nation as I said, we're going to switch gears and on out to Jason Moser analysts at the motley fool now, we're gonna talk a little bit about marital infidelity, financial infidelity. Jason, right. Boy, man, I tell you. I think that financial infidelity sounds just as bad. We talked about it a couple of weeks. I think ago in regards to perhaps, you know, spouses, not being fully forthright in in what they have as far as assets or money or accounts that are maybe secret or private or whatever and. You know, I guess it really does boil down to what the goals maybe you have is a couple from the very beginning. Or because it sounds to me like the poll that type of secrecy off sounds like how to work. It may not really worth it to be in. Right. We'll sometimes it's simple. Right. It's it's like every other little minor. It's like little every little slippery slope crime just withdrawing cash from the ATM from the, you know, the joint account or it's setting up a new account. Just so I can have my own checking, no big deal. It seems like those sorts of things are how things get going. I I talked to drew last week. 'cause we kind of brought this up the some other things we were talking about. And I said, well, my husband, and I both have our own separate checking accounts. But it's fully. I mean, we both know we have our codes. He knows how much I have. And it's not like we're doing it to have our own money, and it's secret and hidden away. We both have our joint accounts and everything else our house, and our, you know, our our. Our our money marketing stuff and are are all together. Community property, but I don't have like a secret secret account of money put away. No, i've. Jason. She has a secret house just not a secret secret. We feel like on the morning show when I was doing that we talked to women who were like, no, no, Honey, I have a secret account that my husband has no idea. Away from. But what I think I was more surprised about Jason that there were men and women who got married and that there were and it's happened both men and two women. So it's not just like women come into the marriage, but that got married and then found out afterward that likes one of the spouses came together and said, oh, by the way, I have fifty thousand dollars or one hundred thousand dollars worth of credit card debt. Oh, hi, we're married. I mean. Really that that seems to me. The really scary one more that I need going in to marriage obviously going to hopefully, hoping that everybody fully transparent. Yeah. I think one of the great things about being is that my wife, and I we've been married for seventeen years. We both work. We enjoy what we do in in. So we've you that as really an opportunity for us to pull together our resources and do a lot of great things. We can have a house to raise our kids and stuff like that. Just by virtue of getting a homework, for example, particularly up here in northern Virginia. We're housing prices through the roof as they are out there for y'all. I mean. Sisters it that loan underwritten? You really do have to report virtually everything in in. That is when those those nasty secrets really come up to bite you and there's nothing you can do about that. And if you feel so deceived so early on. I mean, I I don't know how I just don't know how you get over that. Because you can't just eliminate that debt either. I mean that is going to be an issue for some time to come. Yeah. It said here on this report. Nearly a third of people which is about thirty one percents of that talking about money made them feel anxious or sure I believe that. I think that's one of the most difficult things to even you know. I'm I'm not saying that my wife, and I had it all figured out. I think that we have a pretty good system that works for us. And it's done. Well, over time a lot of that is just based on open communication and a level of trust that neither one of us is going to go make some big purchase without talking. And we also each have our own little investment accounts, where we can have some discretionary money took Ryan things if we want to be able to do, but we still talk about it. And I think that really is what it all boils down to is that no matter what it's just keeping the lines of communication open any any good marriage. Even the lines of me is gonna have to be. This communication, then there's rigorous honesty different things. Don't you think plan like having a plan for what to do with your money, and how to invest it or how to put it away makes it easier to talk about makes it more comfortable for people to know? Like, this is how we can make our money go farther or how to put it away and invest it. There's no question I think, especially if you're working on most of the you have a job than your employer more than likely has some type of vehicle where you can have money put into a retirement account. Fortunately, for me that was just stuff that I learned early on life really good about making me aware of it in its stock in. That's why I to do what I do for a living today. But I mean that was something that my wife, and I have always talked about that, you know, we don't want to work wherever we wanna be financially independent and the easiest way to do that is to start saving early on. Well, there's converse vice versa that is live. Below your means. Right. Live below your means. And I think a lot of young people aren't taught about money. They don't know. They don't take away maybe twenty percent of their paycheck and put it away Siglo break and talk about when there is a difference in the philosophy of a couple. Very very very common. One person has you know money is a symbol and money is a lot of emotion attached to it, but a cultural heritage and family heritage attack bringing to families together when there's a marriage what if people see money very very differently. What do you do? But that we're talking to Jason Moser analysts at the motley fool. We'll take your calls as well. If you wish it eight hundred two five two two two n tweeden. I've dot drew. And this is media Lavenham seven ninety KABC..

Jason Moser Virginia Ryan one hundred thousand dollars fifty thousand dollars seventeen years twenty percent
"jason moser" Discussed on Motley Fool Money

Motley Fool Money

01:51 min | 2 years ago

"jason moser" Discussed on Motley Fool Money

"Welcome back to motley. Fool money Priscilla here in studio with Jason Moser, Erin. Bush and run grows. Ebays fourth quarter report comes out next Tuesday. But shares were up nearly ten percent this week when activists investors publicly called on EBay to consider selling off its classified business as well as stub hub Aaron their conference. Call just got a lot more interesting. Lots of lots of ways that this could go, but really I'm not surprised to see this happening. I mean, what does we talked about earlier this week? What they does a great job of this buying these companies early on buying pay pal? Fantastic. Buying stubhub fantastic. Spinning up the classifieds business fantastic. But as it turns out EBay the core. Marketplace platform is really bad as a connection point for all of these different things. Like, they don't go together. Very well. And in the case of stubhub in particular. I think it makes a lot of sense that we could see. See logical pressure be put on them. And stubhub does go go standalone on the classifieds business. I'm not assure of though because I feel like that does people buying and selling goods and services, even if it's more international. I think that does still connect NC the the the core EBay business. But yeah, it'll be really interesting to see how open minded the CEO is what what tone. He takes their earnings call to determine how EBay attacks this situation. So in the lead-up to EBay spinning off payback. And there were a lot of people. I think including all four of us who were pretty excited for pay pal to be a standalone company, and to own shares of that if they end up spinning off stubhub is that a business that you're putting on your watch list. I think that it could probably a good business because ticket fees argest exorbitant, no matter, no matter where you go because if you have to buy.

EBay stubhub motley Jason Moser Priscilla Bush CEO Erin NC ten percent
Amazon Announces All New Hardware

Motley Fool Money

00:22 sec | 3 years ago

Amazon Announces All New Hardware

"I'm Chris l. joining me in studio this week, senior analyst, Jason Moser, Matt, arguing her and Ron Bros. He was always gentlemen, hey, we've got the latest headlines from Wall Street. Bestselling author, Ashley Vance is our guest. And as always we'll give you an inside look at the stocks on our radar. But we begin this week with till Ray, be well known Canadian cannabis company. I've never heard of until this

Ron Bros Ashley Vance Jason Moser Senior Analyst Cannabis Chris L. Matt RAY