OT: Shocking stock market information

[voltz99]

So you invest $50,000 over fifty years and end up with $10 million. A payback of 200-1 over a fifty year time span.

Or put in $20,000 and end up with over $65 million. A payback ratio of over 3,200 -1 over a shorter time span…….Nvidia IPO’d in 1999 (25 yrs ago) and had a better ROI than Apple by far,

Do you say a 3,200x payback over an average of 35 yrs is no big deal. 👯‍♀️

Your post is something Cramer would post. If you had had made a prediction BEFORE nvda or apple went up that would be impressive. Posting after the fact is not as impressive. We can all look up the top performers.

Tell us the next stock to go up 10,000% from today.

I even suggested a fantasy league for stock picks. We will use Monopoly money and each invest 10k in one to five stocks. I would like to see some picks.

 

[EdwardoCarrachio]

Your post is something Cramer would post. If you had had made a prediction BEFORE nvda or apple went up that would be impressive. Posting after the fact is irrelevant. We can all look up the top performers.

Tell us the next stock to go up 10,000% from today.

I even suggested a fantasy league for stock picks. We will use Monopoly money and each invest 10k in one to five stocks. I would like to see some picks.

I like the idea for the stock game with one caveat. Is there a game that permits a regular investment? I think one of the most powerful lessons for investors is how regular (perhaps even automatic) investment on a recurring basis combined with compounding over a long time will build a nest egg that you may have not previously imagined was possible.

The game as I see it would allow you to add $1000 play money to your game account each month. So you could dollar-cost-average or build a portfolio with reasonable diversification. Just throwing $10k play money in a game account and picking 1 to 5 stocks would reinforce a trader's mentality. That I believe would be detrimental. We want to develop long term investor's mentality.

This is what I do with my niece and nephews. I started UTMA (Universal Transfer To Minors) accounts for them (in lieu of the more expensive gifts I did when they were really little which progressed to 529 college plans and then eventually to UTMA when their college appeared to be covered sufficiently.

So for the past few years I've been doing UTMA accounts for them which receive a monthly investment that goes into the UTMA money market. Then the kids who have learned how to select ETFs by their 10 year returns and expense ratios (not going any deeper at this stage) buy ETFs. Beyond learning what a brokerage account is, a 529 plan is, a UTMA account is, a Roth IRA is, what they are and how to select ETFs, the kids are learning the invaluable lesson of just how much their account balances grow with a regular, automatic, monthly investment. I wish every kid could learn these things.

The other byproducts of converting gifts into monthly 529 plan contributions and then UTMA investments is that they will leave college with 0 loans and between $25k and $50k in a UTMA account that becomes their brokerage account that they control when they turn 21. Not a bad start to their financial lives. They know to at least contribute up to the matching amount of a 401k and hopefully have learned to invest at least 13% of their income to that 401k to meet retirement goals (more if they have other goals, home ownership, 2nd home, etc.). And even if they just leave $25k to compound from age 21 to 65 they will have $1.65 million (at 10% average return). That won't be enough for them. Today's kids will need at least $10 million for a comfortable retirement (more if inflation remains as elevated as it has been the last few years).

 

[The Spin Meister]

As a side note, Blackrock and Citadel announced they are starting a new stock exchange based in Tx. Said NYSE and NASDAQ are over regulated.

https://www.reuters.com/markets/us/blackrock-citadel-backed-group-start-new-national-stock-exchange-texas-wsj-2024-06-05/

 

[EdwardoCarrachio]

As a side note, Blackrock and Citadel announced they are starting a new stock exchange based in Tx. Said NYSE and NASDAQ are over regulated.

https://www.reuters.com/markets/us/blackrock-citadel-backed-group-start-new-national-stock-exchange-texas-wsj-2024-06-05/

Over-regulated? I guess that they feel that they cannot manipulate prices enough under current rules?

 

[voltz99]

The real question is what is the next NVDA, AAPL, GOOGL, AMZN,

Anyone have any picks?

 

[EdwardoCarrachio]

The real question is what is the next NVDA, AAPL, GOOGL, AMZN,

Anyone have any picks?

This is pretty hard to do. If we knew the next one of those, it would be potentially life changing. The crazy thing is that many may own it and sell it while it still is not seen as the next one of these monster growth stocks. Many small, growth stocks in newer markets or market niches are really beat down right now and give the appearance of potentially going under.

The Russell 2k (small cap stocks) is down well over 30% the last 3 years. Small companies are being killed off at a rate not seen in a very long time. So which ones survive may be the absolute best of the best. But more than in nearly any other period are going under.

 

[voltz99]

This is pretty hard to do. If we knew the next one of those, it would be potentially life changing. The crazy thing is that many may own it and sell it while it still is not seen as the next one of these monster growth stocks. Many small, growth stocks in newer markets or market niches are really beat down right now and give the appearance of potentially going under.

The Russell 2k (small cap stocks) is down well over 30% the last 3 years. Small companies are being killed off at a rate not seen in a very long time. So which ones survive may be the absolute best of the best. But more than in nearly any other period are going under.

You don't have to buy IPOs or small small caps. You can split the difference and invest in a successful established company with market cap over a billion. Apple's market cap increased 3000x when they went from a billion to 3 trillion. The point is there is still plenty of upside after a company becomes a large cap. There is also less risk.

PS. Apple is up another 6% today.

 

[voltz99]

Any insight on SMCI, LLY, PANW, TSM or AVGO(Broadcom)?

 

[The Spin Meister]

Any insight on SMCI, LLY, PANW, TSM or AVGO(Broadcom)?

Every news network the past month or two has had stories about how we will not have near enough electric power in five years. Huge data centers, cloud computing, AI, EVs, automation….. no way that much demand can be met.

People are betting on wind and solar, dome on nat gas, some on nuclear. I hzve no idea which will win out and believe all would be decent investments.

But one thing I do know is that every single electric source will need substations and transformers to move all that power.

So who is the biggest, baddest, bestest transformer/substation supplier? That would be my bet.

Like the guys that sold picks and shovels to California gold miners. They made money while most miners failed.

 

[voltz99]

Every news network the past month or two has had stories about how we will not have near enough electric power in five years. Huge data centers, cloud computing, AI, EVs, automation….. no way that much demand can be met.

People are betting on wind and solar, dome on nat gas, some on nuclear. I hzve no idea which will win out and believe all would be decent investments.

But one thing I do know is that every single electric source will need substations and transformers to move all that power.

So who is the biggest, baddest, bestest transformer/substation supplier? That would be my bet.

Like the guys that sold picks and shovels to California gold miners. They made money while most miners failed.

I'm don't know the biggest but CEG has had the biggest run up. Actually rivals the AI run up.

 

[The Spin Meister]

I'm don't know the biggest but CEG has had the biggest run up. Actually rivals the AI run up.

CEG is a public utility company with three dozen or so power plants. It’s not a company that makes transformers or substations, not even close.

Do you own it? Trying to pump the stock?

 

[Lesgo_Brandon]

CEG is a public utility company with three dozen or so power plants. It’s not a company that makes transformers or substations, not even close.

Do you own it? Trying to pump the stock?

Well, his name is Voltz so maybe.....

 

[voltz99]

CEG is a public utility company with three dozen or so power plants. It’s not a company that makes transformers or substations, not even close.

Do you own it? Trying to pump the stock?

No need to pump it since it is one of the best performers the last 3 years. Were you pumping APPL? CEG out performed apple the last three years. Now get your shine box!

Who cares if they make transformers? They generate electric and AI needs a lot of electric. Those little ceg power plants are called nukes.

 

[voltz99]

Well, his name is Voltz so maybe.....

Like I said, no need to pump a stock that far outperformed apple the last three years. It wasn't by a little either.

Spin meister brought up electric, and the ai need for power. I pointed out ceg is the top performer.

 

[The Spin Meister]

No need to pump it since it is one of the best performers the last 3 years. Were you pumping APPL? CEG out performed apple the last three years. Now get your shine box!

Who cares if they make transformers? They generate electric and AI needs a lot of electric. Those little ceg power plants are called nukes.

I never praised Apple. Didn’t ask who out shined it or what company did great.

Asked what company is the leader in transformers and/or substations….. you posted CEG. As if.

You didn’t answer about ownership…..hmmmnnn.

 

[greatness1987]

Someone mentioned "proprietary trading firm" and that got me thinking. These firms have a unique edge 'cause they trade with their own money, not clients'. So they're super motivated to be right and make a profit.

 

[Lesgo_Brandon]

Like I said, no need to pump a stock that far outperformed apple the last three years. It wasn't by a little either.

Spin meister brought up electric, and the ai need for power. I pointed out ceg is the top performer.

I was making a funny. 😉 Plus, how much stock pumping could one expect on a page with 10s of views!

 

[NittanyLionRoar]

The real question is what is the next NVDA, AAPL, GOOGL, AMZN,

Anyone have any picks?

I bought Palantir when it was mad cheap. It’s my second-highest returning stock behind NVDA. They were doing AI before everyone else and provide high-volume data analysis for both private corporations and the government, which means it not only gets the high growth potential of private industry but also the stability of government funding should tough times hit the stock market.

I don’t know that it would ever hit a market cap of those companies (top 5) but I certainly think it could get close (top 50 or so) as both fiscal, economic, geopolitical, and military tensions rise globally.