Data availability, was just plucking a house to check. Pluck another house from Jul 2000 to Jul 2017. Assuming one can get the same low mortgage as of today, Remember just a basic comparison, no fancy stuff because that would complicate the computation, infinite possibilities anyway.
Bought $450k house for rental in 2000 with 20% downpayment = $90k, 30 year fixed mortgage 3.86%, property tax = $450/month, home insurance = $83/ month, PITI = $2223/ month. Total cash outflow = $543k. Today house is worth $1.5 mil, ownerâs equity = $1.34 mil. Rents & its associated cost are not included yet. Also, the mortgage rate is not that low then. Also, not sure what kind of remodeling is done during the 17 years. So actual ownerâs equity could be quite different.
Instead of buying the house, invested in an S&P index fund (use SPY to compute since there is a calculator available), todayâs worth = $1.23 mil, full amount is ownerâs equity.
Instead of index fund, invest in AAPL , ownerâs equity = $18.8 mil
Google = $2.84 mil (started trading in 2004, so should be higher), netflix = $1.86 mil (started trading in 2002, so should be higher), csco = $833k, hpq = $840k, intc = $896k, Amd = $986k, oracle = $488k.
Only AAPL, GOOGL and NFLX beats S&P index, what a shame.
So unless you happened to invest in FAANG, the best choice is to invest in rental RE, then S&P. Good to know. But would the future be the same if invest today?
If TSLA turns out to be what you expect, could be much higher after 17 years after purchase.
From those computations, it means should try a few bets, bulk in RE and S&P.
Yes, I think my only 2 chances are with TSLA and BIDU. The rest of the stocks I own are either (1) already mega market capped or (2) I donât own sufficient amount to make a difference.
So, Iâm banking on a 10x increase in TSLA or BIDU within the next 10 years!!!
Since IPO on Jun 29, 2010, TSLA appreciatesâŚ
25% higher than NFLX
50% higher than AMZN
3x higher than AAPL/ FB/ Google (already mega market, speed of climb is no longer stratospheric)
5.5x higher than S&P index
FAANGT return higher than S&P index.
But there is one stock that beat FAANGT. NVDA appreciates 16% higher than TSLA since Jun 29, 2010. Yay!
Market cap of NVDA is about twice of TSLA. Potential ?
I think thereâs definitely something to investing in stocks below a certain market cap. At least if you want a chance at a 10x return. 50B is probably as big as you should go but under 10B is even better.
Haha you read my mind, yes looking for 10x. AAPL/ FB/ Google is stable and better than S&P but not much excitement.
What do you think of AMBA, CRUS, SWKS and IRBT? My other bets are not good, SPWR and FSLR disappoint. Make lots of money in LQMT, still holding quite a lot of them. Made a lot in CRUS too but sold too early.
I need to do more research for sure. The smaller caps I own are UBNT, SQ, and TSLA. Iâve been following NTNX, DATA, WDAY, NOW, and SMG. I think itâs time to make a new stock screen.
Iâve been using options to increase leverage on the big names. I went out to Janâ18 and bought ITM calls deep enough that the time value is near zero. Then I sell 2-week out OOM calls against it to generate some yield. I realized I can create a 10%+ return selling the OOM calls. The only downside is I get called away early, but Iâm at a strike price thereâs no time value on the call. I keep an eye on it and roll up to higher strike prices as I can without paying a time premium. That way Iâm gradually taking money off the table.
By last year, it was already generating $8 billion in global revenues. By 2020, itâs predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce âthe worldâs first trillionaires,â but that should still leave plenty of money for those who make the right trades early.
I thought they had peaked awhile ago and didnât buy any. I definitely missed that boat. How big is the market for braces? Do they have other products yet?
Usually, companies can only get so big on their initial product. The ones that end up dominating create other products to keep the growth growing. The stock market is full of companies that failed to grow beyond a product and turn into a company.
IRBT is fine to hold, SWKS is good to review (not bought anything yet). AMBA I would stay away. CRUS I have heard first time, need to look at it.
I have actually moved many of my picks towards dividend payers. I bought more BA, then added T & VZ. I have been holding BA since Trump won. Both BA and T are great today.
[quote=âmarcus335, post:34, topic:2757, full:trueâ]
I thought they had peaked awhile ago and didnât buy any. I definitely missed that boat. How big is the market for braces? Do they have other products yet?
Usually, companies can only get so big on their initial product. The ones that end up dominating create other products to keep the growth growing. The stock market is full of companies that failed to grow beyond a product and turn into a company.
I havent done the research myself, looks like there are some other medical devices.
[quote=âJil, post:35, topic:2757â]
I have actually moved many of my picks towards dividend payers. I bought more BA, then added T & VZ.
[/quote]Main dividend payer is AAPL. Small amount in utilities, consumer staples and healthcare. So have a little of T, VZ and OHI. Picking stocks for this portfolio is no brainer. No need to discuss this at all, cake.
Allocated some money looking for AAPL kind of bets. This is what I am talking about now. The lucrative but very hard to pick winners portfolio. So far, loss big, win big, overall win a little , no AAPL like found There are still juice in NVDA and TSLA but as pointed out by Marcus is not where the real big gain is. Want to buy stocks with preferably market cap less than $10B such as iRBT, AMBA, CRUS, UBNT, NTNX, DATA, and LQMT.
If you have the risk tolerance, buy freddie/fannie. They are still traded. One of the items in the budget proposal is to turn them back into true public companies. One of the billionaire hedge fund guys bought a bunch of both. He says theyâll be worth at least 10x more as a true public companies.
They will never be as big as AAPL, AMZN, FB and GOOGL.
AMBA and CRUS have hope to be as big as Intel once was.
UBNT has hope to be as big as Cisco once was.
DATA and NTNX have hope to be as big as AMZN (AWS), MSFT (Azure) and Google cloud.
LQMT has hope to be as big as AMAT once was.
iRBT is new and promising.
, ownerâs equity = $18.8 mil 
, no AAPL like found 
There are still juice in NVDA and TSLA but as pointed out by Marcus is not where the real big gain is. Want to buy stocks with preferably market cap less than $10B such as iRBT, AMBA, CRUS, UBNT, NTNX, DATA, and LQMT.