Share Picks 2020

voluntary

gledge wrote: »

Berkshire have been buying back significant % of their stock which would indicate they were undervalued. This was back in January when over $200 but still.

Warren Buffet has been asked about that, he stated the reality was different and the valuation was good in that reality, but the reality has changed since. They sit on cash and aren't buying back or buying at all it seems.

ShareShare

AmberGold wrote: »

Anyone have any thoughts on Berkshire Hathaway Inc B, thinking of taking a significant plunge.

Took a plunge last week. Pleased with it. Berkshire has a great diverse allocation in many wonderful companies that are part of every household consumption.
These are the companies that bounce back very well after a recession. People will drink the exact same within the year, or whenever places open. Nobody is stopping the use of medical products or any bathroom products etc.

Their insurance business will take a hit because they will exposed somewhat to claim over the next 2 years. They are experts at that so the huge cash pile they have will cover it.

The opportunities they will gather during this crash will be exploited and their gains over the next 2-3 years will reflect that. Some might be offset by longer term recessionary behavior.

Overall im quite bullish about it.

smurgen

Did anyone here take a punt on oil storage companies? The negative oil prices made for opportunities. I made a bit off Nordic American tankers and Scorpio tankers. Extreme volatility in prices mind and not as straight forward a trade as expected.
Anyone looking at Cisco either?I'm thinking there's a good bit of potential in the stock over the next year.

Jim2007

gledge wrote: »

Berkshire have been buying back significant % of their stock which would indicate they were undervalued. This was back in January when over $200 but still.

You need to be careful about attaching motives to Buffet’s actions because he is very restricted in what he can do given the size of his portfolio and the business he is in.

He has on a few occasions commented on this problem. And has advocated for companies to return capital to the shareholders in such situations.

Might just have been applying his own philosophy back then, as anything else.

voluntary

Stock buybacks are a great way to return capital to stakeholders as, unlike dividends, buybacks don't force on stakeholders any tax liability events.

On the other hand, buybacks have been often used by management/large investors to dump the nonperforming stock. So small investors need to be careful when companies announce buybacks.

Jim2007

ShareShare wrote: »

Their insurance business will take a hit because they will exposed somewhat to claim over the next 2 years.

‘Somewhat’? They are the number one player in big cat... with so many events being cancelled around the world somewhat may be a very big under statement....

ShareShare

Jim2007 wrote: »

‘Somewhat’? They are the number one player in big cat... with so many events being cancelled around the world somewhat may be a very big under statement....

True. Too reducing a choice of word. Merely an attempt to show i'm vague on how quantifying their loss.

Shedite27

voluntary wrote: »

Just thinking aloud, if we have a second wave/crash, then it will be much more painful for regular people. So many average Joes loaded savings in stocks in the last 4 weeks. If/when the stock market crashes again, the people's perception of their wealth may change dramatically which in result will further fuel the selloff.

You could have said that anytime over the past 2 months at this stage. "Catching Falling Knives" and "Bull Trap" were the phrases of the day for a long time, since then the market has climbed 30-40%.

Shedite27

AmberGold wrote: »

Anyone have any thoughts on Berkshire Hathaway Inc B, thinking of taking a significant plunge.

I'm not too sure on them, I love Buffet, but what's the succession plan.

codrulz

smurgen wrote: »

Did anyone here take a punt on oil storage companies? The negative oil prices made for opportunities. I made a bit off Nordic American tankers and Scorpio tankers. Extreme volatility in prices mind and not as straight forward a trade as expected.
Anyone looking at Cisco either?I'm thinking there's a good bit of potential in the stock over the next year.

Yeah, shorted Jun the day after May contract dropped, in at 22.5 got out 12.30, used some of that to go into tankers last week pre-earnings.
In Euronav @9.01 and Scorpio @19.40, was in NAT but closed it out, went long Norwegian CLH instead at 11.

iAcesHigh

Was looking to buy few shares and when choosing couldn't decide which stock exchange should I use. Outside of liquidity parameter the most important bit seems to be fees payed per share where DeGiro states (HERE):

1. London Stock Exchange £1.75 + 0.014%
2. United States €0.50 + USD 0.004 per share
3. Germany – XETRA €4.00 + 0.05%
4. Germany – Zertifikate-Börse Frankfurt €2.00 + 0.11%
5. Germany – Frankfurt (Stocks) €7.50 + 0.09%
6. Austria, Belgium, Denmark, Finland, France, Ireland, Italy, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland €4.00 + 0.05%
7. Canada €2.00 + CAD 0.01 per share
8. Australia, Hong Kong, Japan, Singapore €10.00 + 0.06%
9. Poland €5.00 + 0.16%
10. Czech Republic, Greece, Hungary, Turkey €10.00 + 0.16%

Am I right in thinking that it's best to buy shares in US and/or London (depending on the amount of shares) followed by Canada, Xetra and those under 6 or is there some extra tax to be paid for likes of US/Canada etc? (I suppose)

Bob24

iAcesHigh wrote: »

Was looking to buy few shares and when choosing couldn't decide which stock exchange should I use. Outside of liquidity parameter the most important bit seems to be fees payed per share where DeGiro states (HERE):

1. London Stock Exchange £1.75 + 0.014%
2. United States €0.50 + USD 0.004 per share
3. Germany – XETRA €4.00 + 0.05%
4. Germany – Zertifikate-Börse Frankfurt €2.00 + 0.11%
5. Germany – Frankfurt (Stocks) €7.50 + 0.09%
6. Austria, Belgium, Denmark, Finland, France, Ireland, Italy, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland €4.00 + 0.05%
7. Canada €2.00 + CAD 0.01 per share
8. Australia, Hong Kong, Japan, Singapore €10.00 + 0.06%
9. Poland €5.00 + 0.16%
10. Czech Republic, Greece, Hungary, Turkey €10.00 + 0.16%

Am I right in thinking that it's best to buy shares in US and/or London (depending on the amount of shares) followed by Canada, Xetra and those under 6 or is there some extra tax to be paid for likes of US/Canada etc? (I suppose)

Unless you are planning on putting in very small amounts or on doing day trading, DEGIRO’s fees are reasonable on all exchanges.

I.e. if you have an investing approach you should chose shares because you think they are for a good companies which will grow over time and/or pay good dividends, not because you are saving 2 euros on the transaction fee for buying that particular share.

If you are looking at day trading then yes fees more important, but then Saxobank probably has a bette platform and fee structure for this (or Interactive Brokers).

If you are just getting started and aren’t sure what shares to buy while being cost conscious about the fees, you could also look at Degiro’s list of commission free ETFs. You can make one purchase of shares in an MSCI world ETF for free each month and this will give you a diversified exposure across developed markets (with a majority of US shares).

Shedite27

iAcesHigh wrote: »

Was looking to buy few shares and when choosing couldn't decide which stock exchange should I use. Outside of liquidity parameter the most important bit seems to be fees payed per share where DeGiro states (HERE):

1. London Stock Exchange £1.75 + 0.014%
2. United States €0.50 + USD 0.004 per share
3. Germany – XETRA €4.00 + 0.05%
4. Germany – Zertifikate-Börse Frankfurt €2.00 + 0.11%
5. Germany – Frankfurt (Stocks) €7.50 + 0.09%
6. Austria, Belgium, Denmark, Finland, France, Ireland, Italy, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland €4.00 + 0.05%
7. Canada €2.00 + CAD 0.01 per share
8. Australia, Hong Kong, Japan, Singapore €10.00 + 0.06%
9. Poland €5.00 + 0.16%
10. Czech Republic, Greece, Hungary, Turkey €10.00 + 0.16%

Am I right in thinking that it's best to buy shares in US and/or London (depending on the amount of shares) followed by Canada, Xetra and those under 6 or is there some extra tax to be paid for likes of US/Canada etc? (I suppose)

Just to be pedantic, the US, London etc should be calculated as....

• United States €0.50 + (USD 0.004 per share)

It's the cheapest by a good distance.

Bob Harris

Shedite27 wrote: »

I'm not too sure on them, I love Buffet, but what's the succession plan.

Be grand - Munger is only 96.

iAcesHigh

Bob24 wrote: »

Unless you are planning on putting in very small amounts or on doing day trading, DEGIRO’s fees are reasonable on all exchanges.

I.e. if you have an investing approach you should chose shares because you think they are a good companies which will grow over time and/or pay good dividends, not because you are saving 2 euros on the transaction fee for buying that particular share.

If you are looking at day trading then yes fees more important, but then Saxobank probably has a bette platform and fee structure for this (or Interactive Brokers).

If you are just getting started and aren’t sure what shares to buy while being cost conscious about the fees, you could also look at Degiro’s list of commission free ETFs. You can one purchase of shares in an MSCI world ETF for free each month and this will give you a diversified exposure across developed markets (with a majority of US shares).

Think you misunderstood, the question is more related to situations where same company has shares available on multiple exchanges. For example, Atlassian has both in US and Borse Frankfurt (where liq is extremely low) so I was wondering, from fee perspective, am I better of buying shares in US or in Europe (same goes for many shares, like Coca-Cola etc.)

voluntary

iAcesHigh wrote: »

Think you misunderstood, the question is more related to situations where same company has shares available on multiple exchanges. For example, Atlassian has both in US and Borse Frankfurt (where liq is extremely low) so I was wondering, from fee perspective, am I better of buying shares in US or in Europe (same goes for many shares, like Coca-Cola etc.)

Pick one with higher volumes / lower spread. Low fee will likely ynot compensate for higher spreads between bid and ask.

Re. Irish Stock Market - add Irish Stock Extortion (Duty) to transaction costs.

Bob24

iAcesHigh wrote: »

Think you misunderstood, the question is more related to situations where same company has shares available on multiple exchanges. For example, Atlassian has both in US and Borse Frankfurt (where liq is extremely low) so I was wondering, from fee perspective, am I better of buying shares in US or in Europe (same goes for many shares, like Coca-Cola etc.)

Oops yes I got you wrong.

Yes for companies whose primary listing is in the US I'd definitely go for the US exchange, as you said better liquidity and also DEGIRO happens to have lower fees vs most European exchanges. Besides liquidity and fees, to my knowledge the only other difference is that trading hours won't be the same if you go for a secondary listing (which might be a problem or an advantage in case an event makes you want to react quickly).

Just make sure the shares are for the exact same company and there aren't other implications (one example: Carnival Cruise Lines has a 2-companies structure so while they are part of the same corporate structure and their prices are linked, the the US and UK listings for thicker symbol CCL aren't actually for shares in the same company meaning you will have different legal and fiscal implications depending one which one you buy - in that case I'd go for the UK listing as because the company is registered in the UK there is no withholding tax on dividends while the US registered arm will pay you the same gross dividend but a lower net amount as US withholding tax will be deduced).

For European companies I'd get them on their primary exchange for liquidity and to be able to trade them anytime their main stock exchange is open.

iAcesHigh

Thanks, that makes sense. So if certain company has div's and offer on UK that's best as there is no withholding tax there, but otherwise stick to "local" exchange...

A bit different than what I would do in ETF world, so I'm glad I asked... Thanks all

voluntary

Irish banks being hammered today.

liamjames1

voluntary wrote: »

Irish banks being hammered today.

What's changed between today and Friday? Wasn't overly surprised by BOIs commentary and financials today. Whether you believe the positive spin on downside and liquidity risk is another thing.

codrulz

voluntary wrote: »

Irish banks being hammered today.

Yes, was in at 1.50 and TP'd last week thankfully. shorted this morn and have reversed at the low. No material change IMO after Q1 report, a lot was priced in before.

retalivity

The bank CEOs were in with the Dept of Finance today about prolonging mortgage breaks, loan forgiveness etc..

Thargor

Loan forgiveness???

retalivity

^ Give defaulters some leeway, enter into a more lenient payment schedule in light of covid-19 job losses etc....all that stuff.
Read a brief news article on it this morning.

Scottie99

iAcesHigh wrote: »

Think you misunderstood, the question is more related to situations where same company has shares available on multiple exchanges. For example, Atlassian has both in US and Borse Frankfurt (where liq is extremely low) so I was wondering, from fee perspective, am I better of buying shares in US or in Europe (same goes for many shares, like Coca-Cola etc.)

Atlassian is a fantastic stock for the long term. It’s definitely on my radar.

Mad_maxx

codrulz wrote: »

Yes, was in at 1.50 and TP'd last week thankfully. shorted this morn and have reversed at the low. No material change IMO after Q1 report, a lot was priced in before.

next quarter will be so much worse , nothing to build on right now

Harpon

codrulz wrote: »

Yes, was in at 1.50 and TP'd last week thankfully. shorted this morn and have reversed at the low. No material change IMO after Q1 report, a lot was priced in before.

Why did you short it if you thought there was no material change?

BillyBiggs

Has anybody taken a punt on Hertz Global? Relatively cheap. I know there is a chance it will go bust, but then many companies are flirting with bankruptcy and taking loans from various sources.

Shedite27

BillyBiggs wrote: »

Has anybody taken a punt on Hertz Global? Relatively cheap. I know there is a chance it will go bust, but then many companies are flirting with bankruptcy and taking loans from various sources.

I reckon they'll be bankrupt by the end of the year unfortunately.

codrulz

Harpon wrote: »

Why did you short it if you thought there was no material change?

flow was down and thought it would retest 1.30 handle, was just an opportunistic intraday trade against my broader thesis