Dow Down 666 Points

tomato · February 27, 2018, 6:47pm

lol, i wish.

marcus335 · February 27, 2018, 6:51pm

I think it goes to show once they manage enough money, then it’s near impossible to beat the index. Hedge funds used to kill it when they were mostly <$500M AUM. Now they are billions and can’t beat the index. The bigger you get the less investment choices you have. They are stuck mostly investing in mega caps. They can’t invest a material percent of AUM into a small cap unless they acquire it.

hanera · February 27, 2018, 6:56pm

You’re right that when the sum becomes too large, tends towards index. Some funds close injection i.e. no more add, to maintain performance. In one of WB’s letters, he says that if he is investing only $1M, he can get way more return.

Also can’t really trade as the $ involved becomes larger. When people trade, you know they are not talking much money. I notice day traders’ typical size is about $500-$2k… puny.

Jil · February 27, 2018, 7:11pm

I bought both HD and WMT today. Even though WMT has the challenge with AMZN, the results are good and future growth is good. Both are decent dividend payers.

tomato · February 27, 2018, 7:13pm

how big are your options trades?

Jil · February 27, 2018, 7:13pm

Like hanera said, two VPs are going to head BRK. Watch out, they will lead stronger than buffet.

hanera · February 27, 2018, 7:17pm

Is…

tomato · February 27, 2018, 7:18pm

fixed the glitch.

wuqijun · February 27, 2018, 7:19pm

Ask him how big is his Aapl holding instead.

hanera · February 27, 2018, 7:20pm

Elt1 · February 28, 2018, 4:31pm

Anybody ever invested in oil/gas pipeline partnerships…Good cash flow and tax advantages.

Magellan Midstream partners
Buckeye Partners
DPC midstream

Elt1 · February 28, 2018, 4:38pm

Mid stream stocks like BLP or ETP pay 11-12% dividend

sheriff · February 28, 2018, 4:41pm

I was a small investor in Canadian gas companies before the great recession. I got out in time. They pay good dividends.

Elt1 · February 28, 2018, 4:45pm

https://www.forbes.com/sites/baldwin/2018/02/14/2018-tax-guide-to-mlps/#2589fe3e400b

Elt1 · February 28, 2018, 4:52pm

pimco high yield fund is yielding 13%

Jil · February 28, 2018, 5:41pm

Taxed as income, I stay away from high yield pass throughs.

BAGB · February 28, 2018, 5:43pm

How do I convince myself that 2 VPs are better than the old and proven Buffet?

BAGB · February 28, 2018, 5:44pm

That’s really high. What’s the risk of losing principal?

Elt1 · February 28, 2018, 6:04pm

High

Elt1 · February 28, 2018, 6:06pm

Pipelines get favorable tax treatment like real estate. Once the Democratic machine kicks out Trump no more pipelines will be built. Might be bullish for these stocks that are down at the moment.

My wife has Pimco high yield the value is down 50%
But her return is much higher. Has held for 10 years.