Stripe and advent partners have abandoned their pursuit of Paypal. Short term, this is not good news for $PYPL holders and the stock is nosediving overnight. But another buyer might come forth. Meanwhile, I will continue accumulating if it drops below $55.
One of the best parts about the Blossom community is how open everyone is sharing knowledge and experiences. To make things easier for anyone just starting their investing journey, here’s a simple glossary to help understand and simplify various terms. Common Terms: Dividend: A share of a company’s profits paid to shareholders, usually quarterly. Ex-Dividend Date: The cutoff date by which you must own a stock to receive its next dividend. ETF (Exchange-Traded Fund): A fund that holds multiple stocks or bonds, traded like a single stock. Covered Call ETF: An ETF that owns stocks and sells call options to generate extra income (higher yield, limited / capped upside). Earnings Report: A company’s quarterly financial performance summary. EPS (Earnings Per Share): A company’s profit divided by its number of shares. Market Cap: A company’s total value (share price × number of shares). ACB: The total amount you’ve paid for an investment, including the purchase price plus any fees or commissions. Book Value: The value of a company according to its financial statements (assets minus liabilities). Yield: Annual dividend as a percentage of the stock/ETF price. Liquidity: How easily an asset can be bought or sold without impacting its price. Volatility: The degree of price fluctuations in a stock or market. Index: A benchmark of stocks (e.g., S&P 500, Nasdaq, TSX). Bull Market: A period of rising stock prices and optimism. Bear Market: A period of declining stock prices and pessimism. False Breakout: When a stock’s price moves above (or below) a key level, making it look like a new trend is starting, but then quickly reverses back. P/E Ratio: Price-to-earnings ratio (stock price ÷ EPS), used to assess valuation. Blue Chip: Well-established, financially strong companies with a track record of stability. Diversification: Spreading investments across assets to reduce risk. Broker: A platform or firm that facilitates buying and selling investments. Limit Order: An order to buy/sell a stock at a specific price or better. Market Order: An order to buy/sell a stock immediately at the current market price. Bid/Ask Spread: The difference between the highest price buyers offer and the lowest price sellers accept. Dollar-Cost Averaging (DCA): Investing a fixed amount regularly to reduce the impact of market swings. Capital Gain/Loss: Profit or loss from selling an investment for more/less than its purchase price. IPO: When a company first sells shares to the public. Index Fund: A fund designed to mirror the performance of a market index. Short Selling: Selling borrowed shares, hoping to buy them back cheaper. Margin: Borrowing money from a broker to buy investments, which amplifies gains and losses. Margin Requirement: The minimum amount of your own money (equity) you must maintain in a margin account to open or keep a leveraged investment position. Margin Call: A demand from your broker to deposit more funds or sell assets because your account equity has fallen below the required margin level. Time Horizon: The length of time you plan to hold an investment before needing the money. Short horizons = more risk-sensitive, long horizons = more room to ride out volatility. Stock Split / Reverse Split: A split increases the number of shares (e.g., 2-for-1) while lowering the price per share. A reverse split reduces the number of shares (e.g., 1-for-10) while raising the price per share. Your overall value doesn’t change just the math. Long (Being Long): Buying a stock or asset because you expect the price to go up. Short (Being Short): Selling a stock you don’t own because you expect the price to go down, so you can buy it back cheaper later. TER: The total yearly cost of owning a fund, including the management fee plus other costs like administration, audits, and legal fees. MER: The annual cost that a fund charges for management (includes any leverage costs if used). Management Fee: A portion of the MER that goes directly to the fund managers for running the fund. Withholding Tax: A tax deducted on dividends/distributions from foreign investments (e.g., U.S. dividends to Canadian investors face a 15% withholding in TFSA/Non-Registered accounts). Total Returns: The full picture of an investment’s performance, including both price gains and dividends/distributions. CAGR: The average yearly growth of an investment over time. NAV: The price of one share of a fund (stock or etf) NAV Depreciation: When the fund’s share price goes down over time. Mutual Fund: A pool of money from many investors used to buy a mix of stocks, bonds, or other assets. Bond: A loan you give to a company or government, and they pay you back with interest. Asset: Anything valuable you own that can generate money. Portfolio: Your collection of investments. Option: A contract that gives you the right (but not the obligation) to buy or sell a stock at a set price. Future: A contract to buy or sell something at a set price on a future date. REIT: A company that owns real estate and pays investors income from rent. Alpha: A measure of how much better (or worse) an investment did compared to the market. Beta: A measure of how much an investment moves compared to the market. Sharpe Ratio: A way to see if returns are worth the risk taken. Hedging: Protecting your investments from risk. Rebalancing: Adjusting your portfolio back to your target mix of assets. FCF: Free Cash Flow Understanding these terms makes investing far less intimidating. If anyone feels other terms should be included, please share in the comments. I’ll update this post so we can build a complete beginner-friendly resource together! *Sorry tagged a few etfs for reach 🫣read more
Monkey checks NVIDIA earnings. NVIDIA made $96.2B in revenue. Wall Street expected about $92B. NVIDIA made more money than expected. Monkey happy. But then NVIDIA says: “Next quarter: $108B revenue expected.” Wall Street expected less. (NVIDIA is still growing faster than investors expected.) Why? AI companies are still spending huge amounts building AI data centers. They need GPUs, NVIDIA sells the GPUs. More AI spending means more NVIDIA sales. Monkey understands this, Monkey buys $NVDA NVDA jumps. 🍌 MONKEY LESSON: Stocks don’t move because earnings are “good.” They move when earnings are better than expected and the company shows investors that growth can continue. 🐒read more
Hey everyone, some of you might have noticed that I haven't been actively posting on Blossom. There are a couple of reasons behind it; 1) I am not a big social media user, I quit social media during my university days. I have no facebook, instagram, tiktok, snapchat etc, I only use youtube for entertainment and that's about it. I don't even have any streaming subscriptions. 2) When I started posting here, I gave Blossom a shot after being away from social media for 14 years, because I was home on parental leave.I had nothing better to do and had too much free time other than changing diapers 😂lol. 3) My parental leave ended and I have since then returned back to the grinding 12hr shifts in healthcare. I can't wait to get to my FIRE 🔥 💰 number and call it quits. 4) I am an introvert by nature and a very private person in general, so this kind of portfolio transparency also made me feel alot vulnerable/ exposed, although my portfolio is nothing to even brag about tbh, but still many of you decided to follow my journey for which I am truly humbled. 5) I personally enjoy being an obscure anoynomous online entity, lurking in the shadows. I don't enjoy the spotlight. If you are really interested in following my journey, based on your feedback in the comments, I may continue to do my monthly MSTE portfolio updates along with other etfs that I might buy in the future. Although I am not very keen on doing them anymore. I am even thinking of unlinking my Wealthsimple accounts, and just keep this account private as an occasional lurker on Blossom. There is a certain level of satisfaction in being anonymous and being private about your financial journey and progress. Here on Blossom, for some I was the guy with balls of steel for going all in on $MSTE and to others I was just seen as a degenerate gambler burning away my hard earned money. Eitherway $MSTE / $MSTR and $BTC have been on a tear lately, I don't think I need to say anything more about it🤫ssssh. Yesterday's shitty investment might be today's gold mine , this bull run will eventually be the decisive factor that rises my portfolio from the ashes and bring it to new all time highs, within the next 3yrs🤞hopefully. I was never a financial guru/expert nor do I ever intend/claim to be one. I enjoy being an Average Joe. I look forward to your comments and feedback and we'll go from there. That's all for the update. Adios amigos 🫡 stay blessed. Cheers read more
$HHIS: 🇺🇸 Top 20 Big/Trending Companies. Have high convictions in U.S. market. $QQCL: 🇺🇸 Nasdaq-100 $SDAY & $CDAY: our 36 & 25 Blue Chip Dividend companies from 🇺🇸 & 🇨🇦. $BANK & $UTES: our 2 Stable Sector play in 🇨🇦. $EASY: 🌍 Top 56 Big/Trending companies Globally.
$ZETA HITS $30 LFGGGG CONGRATS TO EVERYONE WHO HAS BEEN BUYING THIS STOCK - I STILL BELIEVE THIS IS ONLY THE BEGINNING Remember: you can borrow a thesis, but you can’t borrow conviction. DYOR!
Having a quarter of my portfolio dedicated to $NVDA I'm expecting a face-ripping green day today. My conviction on Nvidia has never faltered and remains stronger than ever, that's why (after today) it'll pass $PLTR to become my largest position. Never bet against Jensen. 😎
A yield compares a company’s trailing financials to its current market value. It’s the inverse of a valuation multiple. Earnings yield, FCF yield, dividend yield, buyback yield, and shareholder yield all answer different questions. Save this. Study it. Which yield do you look at most?
My horizon was short. Happy to booked 40% profit in 3-4 month. I invested a big amount of my portfolio in shopify for small goals as goal is completed so don’t wanna leave 10% of my portfolio in one share.
Social media can really mess with your idea of what’s normal. Especially a finance app like Blossom. Spend enough time on Blossom and you start thinking everyone has $300K invested, gets 3k in divdiends every month, maxes their registered accounts every year and knows exactly what they’re buying. I spoke to a 19yr old with 60k invested at Blossomcon in Vancouver...INCREDIBLE! Then you talk to people outside the finance bubble and realize… that’s definitely not the norm 😂 If you’re here learning about money, investing and trying to improve your financial situation, give yourself some credit. You’re already doing more than most people simply by caring about it. Don’t let the people ahead of you make you forget how far you’ve already come. Keep on investing everyone! Oh and speaking of social media if you're not following my wife @jesswang you should! Just made her first post the other day on here! read more
I figured I’d keep adding while the price has dropped down around $256. I’m building this position for the long haul and continue to believe in the company’s future. 🚀 Who else is buying and holding $AMZN for the long term? 👇
Jeff Bezos's Amazon made a massive new $1.2 billion bet on XE, an outsized move that instantly became more than a quarter of the entire portfolio. Visit Bezos's profile to see his full portfolio and recent trades this last quarter from his 13F filing.
I am currently 47 years old. Unfortunately in that time frame I have lost a lot of family members. Some (most) were accidents, some to age, some to cancer, and one to suicide. That’s 11 deaths total. Only 1 person out of 11 had a will. When you are grieving the last thing you want to do is close an estate up. It’s even harder if nothing has been prepared in advance. After the initial shock of the death settles (the phase where everyone is usually nice), greed comes through in a most alarming manner. I’ve watched people turn into monsters. Make sure you have a will!!!! or people will fight.  I know most people hate thinking about their death or their spouses death but honestly it’s just a fact of life. I’ve personally been the executor of 2 estates now. This is my advice: 1. If your young get life insurance. If you’re retired it’s not worth it. 2. Make sure you have a will. 3. Make sure you have a personal directive. 4. Make sure you have a power of attorney set up. 5. If your married make your spouse the beneficiary of your TFSA and RRSP(has to be done through the account not the will), they will roll into the spouses account without taxation. 6. If you’re married, and you own a house, make sure both names are on the title, joint tenant, NOT tenant in common. This activates right of survivorship on property and doesn’t have to go through the estate. 7. If you’re married, both people should have their name on all the vehicles, joint, otherwise it’s a headache after death. 8. Buy a file folding system. I have a plastic one that has a clasp and handle. 9. Put EVERYTHING in this file folder that would be needed if you died tomorrow. a) all land titles B) information on house insurance so it can either be eventually canceled or name changed over. C) your will (or the location of your will),  power of attorney, and personal directive D) the information for your car, car insurance, and registration on vehicles. E) information on life insurance. F) all current year papers needed for filing your taxes. Because the survivor will have to do it and will need that information. G) where your household bills are. ALL OF THEM, electricity, gas, Netflix, magazine, subscriptions everything you can think of that is in their name. Because you are going to have to cancel them. H) their credit card information where to contact to cancel the cards I) birth certificate, SIN numbers, marriage, license, etc. J) information on all your investments accounts, bank accounts, etc. K) anything else you can think of for your situation If you’re married, I’d have one box per person. When you die, the funeral home will issue many death certificates. And your lawyer will give you copies of the will. These will be needed to change over any accounts. Everything else goes through the estate which is taxed and the lawyers take their fees so I’d avoid this as much as possible especially if you’re married. This is why having property in both people‘s names is so important because it doesn’t have to go through probate. I am widowed now and I have my black file folder and my two remaining children know if something happens to me, all they have to do is grab the folder. Everything they need to take care of my estate will be located in this folder. At the beginning of every year, I open this file up and go through everything to make sure it’s up-to-date. If you are young and do not own much or can’t afford a will, you can draft one up but it must be handwritten to be classified as a legal document. You cannot type it out!! If you’re not worth much, everything will most likely be sold to pay your bills and cover your funeral expenses. But you can state who your executor will be in your handwritten will.  Disclaimer I’m not a lawyer or an accountant and this is not legal advice. Talk to a lawyer and talk to an accountant. Make sure everything is set up for you and your situation. These are situations that I personally ran into. Good luck Also I’ll add in. IF you have a lot of assets make an appointment with your accountant first. They will tell you how to properly set things up. Then take that information to your lawyer. read more
🐝 Just broke down Nvidia's earnings in the Weekly Buzz and want to kick off a discussion post to hear your thoughts! 🚀 Overall, pretty wild results with a surprise 70% revenue growth projected for fiscal 2028 (well above the 45% expected), and that's the 'supply constrained' number. ✨ From a valuation standpoint, Nvidia is more attractive than it has been in years with a 28x PE ratio, and over 95% analysts tracking the stock have it rated as a strong buy. 😰 My one concern is what WSJ is calling the '$1.5T question Nvidia can't answer' which is basically that the massive AI spending needs $1.5T in revenue to justify the investments, with WSJ saying: “Ultimately, Nvidia and other AI chip makers are living on borrowed time. At some point, big spenders will reach a breaking point where their cash piles are smaller, and they’re unable or unwilling to raise more money from debt or equity investors. If AI turns out to be worth less than it costs, that is inevitable.” 🤔 Curious what everyone's thoughts are on that question, analysts don't seem too concerned but it's definitely something I've been thinking about a lot (both for Nvidia and Mag 7 in general). It's part of the reason I recently sold $META, as unlike some of the other Mag 7, I find the ROI on their AI spending much less clear. 🏆 In any case, Nvidia showed once again why it deserves it's spot as the most valuable company in the world and proved that AI demand is hotter than ever 🔥 👇 Will link my full breakdown in the comments read more
Harvest doesn't publish up-to-date information showing exactly how many MSTR shares MSTE currently owns, what strikes its covered calls are written at, or exactly what percentage of the portfolio is currently covered. But we can look at the filings, prospectus and portfolio disclosures and start making some reasonable estimates. Harvest describes MSTE as a fund that gives investors exposure to MSTR while writing covered calls on up to 50% of the position to generate high monthly distributions. They also say the fund uses around 25% leverage, although the prospectus allows them to push that leverage higher, up to roughly 33%. The prospectus also says covered calls can be written each month on up to 50% of the portfolio and that they will generally be written at the money, although Harvest can write them out of the money at its discretion. MSTE launched on March 5, 2025. Looking at the annual filing as of December 31, 2025, the fund held 1,711,929 MSTR shares and had written calls covering 671,300 of those shares. That means about 39.2% of the MSTR position was covered by call options at that point. So while Harvest can write calls on as much as 50% of the portfolio, we have at least one actual filing showing them closer to 39% coverage. We don't know if that is what they are doing today, but it gives us a reasonable historical starting point. Looking at the website, the July 31, 2026 portfolio breakdown showed MSTR at 128.1% of the portfolio, written options at -1.6%, and cash and other assets and liabilities at -26.5%. So at that point the fund had roughly 128% exposure to MSTR. The website recently showed AUM of $417.25 million and NAV of $2.29. That works out to roughly 182.2 million MSTE units. The market price has since moved to around $2.53, but the NAV and AUM hadn't updated yet. Assuming the unit count is still roughly the same and NAV ends up around $2.53, estimated AUM would be about $461 million. If the MSTR exposure is still close to the 128.1% reported in July, that would mean roughly $590.5 million CAD of MSTR exposure. At around 1.38 CAD/USD, that is about US$428 million. MSTR is trading around US$137.40, that works out to roughly 3.1 million MSTR shares. If Harvest is still writing calls against roughly the same 39.2% of the position we saw in the annual filing, that would mean around 1.22 million MSTR shares covered, or roughly 12,200 covered call contracts. The latest distribution was announced at $0.075 per unit. With roughly 182.2 million units outstanding, that is around $13.7 million CAD being distributed each month. The entire $13.7 million does not have to come from option premiums. With a large portion of the portfolio still uncovered, a rising MSTR share price can help rebuild NAV and can also create realized gains if the fund sells shares. The fund can therefore support the distribution through a combination of MSTR appreciation, realized gains, option premiums and other portfolio activity. But economically, if the fund is paying out $13.7 million every month, it needs to generate at least that much total return after expenses just to stop the distribution itself from pulling NAV lower. If the goal is to actually rebuild NAV, it needs to earn more than that. MSTR is currently trading around $137.40. If we look at the option chain we can get an idea of what kind of income they could potentially generate. At roughly one month out and using the midpoint between the bid and ask, the $150 call is around $8.55, the $155 around $7.25, the $160 around $6.13, the $170 around $4.53 and the $180 around $3.33. If Harvest was writing calls on roughly 1.22 million shares, they would need about US$8.11 per covered share to generate the full $13.7 million CAD monthly distribution from the calls alone. Based on the current option chain, that would put them somewhere around the $151 to $152 strike. With MSTR trading at $137.40, that is only about 10% out of the money. If they wanted to capture more of the upside and they went further out of the money like 30% out of the money, the strike would be around $179, so basically the $180 call. That option is currently worth around $3.33 at the midpoint. Writing that against roughly 1.22 million shares, it would generate about US$4.1 million, or roughly $5.6 million CAD which is a long ways off the $13.7 million the fund is currently distributing each month so more of the distribution would have to come from selling shares or other portfolio activities. The farther out of the money Harvest writes the calls, the more upside they leave open for MSTR, but the less premium they collect. The closer they write the calls to the current share price, the more income they can generate, but the more upside they potentially give away if MSTR makes a big move higher. At the end of the day the cash distributed to unitholders has to come from the portfolio somewhere, whether that is option premiums, realized gains, selling shares or other available cashread more
$ANET$MU$ASMLF - I began investing in December 2024. a little bit late for my age, if we're being real. I figured I was well behind the AI play when it comes to software & applications. I aimed my sights on picks & shovels. What I saw as the AI backbone that won't care who actually wins at AI up at the top. I had a few individual picks, but generally I decided to selecT $AIGO / $AIQ to do the heavy lifting here. I've noticed it skew further and further towards the big tech players, to the point where I want to trim the position. it's still doing very well, but I don't think it is in line with my thesis anymore. I want to know people's general thoughts on ANET MU & ASML. In my mind, they are companies with stable financials, producing physical infrastructure for AI that won't care who the big winners are. Moreover, they are trading at reasonable PE ratios, at least relative to the rest of AI. SO, thoughts?read more
I was listening to a @moementumfinance podcast where part of the discussion treated the percentage of distributions being reinvested almost like a dial for risk. ⠀ In some ways, it is. Reinvesting more means spending less, which lowers the withdrawal rate and reduces the risk of depleting the portfolio. ⠀ But I think that framing bundles together a few different concepts: the percentage of distributions being reinvested, the actual portfolio withdrawal rate, and the risk of the underlying strategy. They are related, but they are not interchangeable. ⠀ The percentage being reinvested only tells us how much is being spent relative to the distribution. It does not tell us how much is being spent relative to the portfolio. ⠀ If a portfolio yields 10% and you reinvest 60% of the distributions, you are withdrawing 4% of the portfolio. If another portfolio yields 20% and you reinvest the same 60%, you are withdrawing 8%. ⠀ The dial is set to the same place, but the portfolio is being asked to support twice the withdrawal rate. ⠀ The familiar 4% rule provides some useful context here, although I think it is often misunderstood. Bengen was not saying retirees should recalculate 4% of their current portfolio value and withdraw that amount every year. He was looking for a maximum safe initial withdrawal rate that could survive the worst historical 30-year retirement period in his data, with the initial dollar withdrawal adjusted for inflation in subsequent years. ⠀ Roughly 4% was therefore closer to a worst-case historical benchmark and rule of thumb than a claim about what every retiree should spend. Different portfolios, time horizons, spending methods, and assumptions can reasonably produce higher or lower numbers. ⠀ The useful part of the framework is the direction of the question. It starts with the total portfolio and asks how much consumption it could have supported through some very difficult historical conditions. It does not start with the portfolio’s yield and assume that some percentage of the distributions must be safe. ⠀ How much you can sustainably withdraw is ultimately a function of your strategy’s total return and risk, not simply its yield. ⠀ The reinvestment percentage is a real lever, but only after the distribution has been translated into an actual withdrawal rate. Saying that reinvesting 60% is conservative tells us very little without knowing whether the portfolio is distributing 6%, 10%, or 30%. ⠀ It can also encourage the idea that yield itself can be dialled up or down to fit the investor’s needs. If the portfolio is smaller or more income is needed, choose a higher yield. Once the portfolio is larger, move into something yielding less. ⠀ But a smaller portfolio does not need a higher yield. It has a higher required withdrawal rate. ⠀ Choosing an investment that distributes enough cash to cover that requirement may make the mechanics easier, but it does not change the underlying math. If you need $100,000 from a $1 million portfolio, you are consuming 10% whether the portfolio distributes 5% and you sell another 5%, distributes exactly 10%, or distributes 20% and you reinvest half. ⠀ Distribution yield also does not tell us how much return the portfolio has actually generated. A distribution might come from dividends, interest, realized gains, option premiums, return of capital, or some combination of them. Those sources can have very different implications for future returns, taxes, risk, and the value of the remaining portfolio. ⠀ This matters even more with extremely high-yield strategies. A larger distribution does not necessarily mean the portfolio is producing a larger economic return. Reinvesting part of that distribution may help offset a decline in value, but it does not prove that the amount being spent is sustainable. ⠀ The portfolio still has to generate enough total return, with an acceptable path of returns, to support whatever is being consumed. That path matters because two portfolios with the same average return may support very different withdrawals if one experiences deeper losses, greater volatility, or poor returns early in retirement. ⠀ Distributions can still be useful for cash-flow planning. Some investors may prefer strategies that deliver more cash, reduce the need to sell units manually, or provide psychological comfort during volatile markets. Those are all legitimate preferences. ⠀ They are just separate from the sustainability question. ⠀ The percentage of distributions being reinvested can be a useful personal rule, but it is not self-explanatory. Before calling it conservative or aggressive, we have to translate it into an actual portfolio withdrawal rate and ask whether the strategy’s total return and risk can reasonably support it.read more
I got a really good comment on the last post asking for some more fundamental clarification on the terms. I actually think it gets right to the heart of why this stuff is easy to mix together, so it is probably worth slowing down and making the distinction more concrete. ⠀ Yield is how much cash the portfolio distributes relative to its value. If a $100,000 portfolio pays $5,000 in dividends or distributions over a year, that is a 5% yield. ⠀ Total return includes both the distributions and the change in the value of the investments. If that same portfolio pays $5,000 in distributions and also rises $7,000 in value, the total return is 12%. ⠀ Withdrawal rate is how much of the portfolio you actually consume. If you receive $5,000 but spend only $2,000 and reinvest the other $3,000, your withdrawal rate is 2%. ⠀ Those three numbers are related, but they are not interchangeable. ⠀ This is where the percentage of distributions being reinvested can become misleading. Saying “I spend half my dividends and reinvest the other half” might sound conservative, but the reinvestment percentage alone does not tell us the withdrawal rate. We also need to know the yield. ⠀ If a $100,000 portfolio yields 10%, it distributes $10,000. Spend half and reinvest half, and you are withdrawing $5,000, or 5% of the portfolio. ⠀ If another $100,000 portfolio yields 20%, it distributes $20,000. Spend half and reinvest half, and you are withdrawing $10,000, or 10% of the portfolio. ⠀ Same reinvestment rule, but one portfolio has a 5% withdrawal rate and the other has a 10% withdrawal rate. That is why the percentage being reinvested is not really the variable we want to use to judge how conservative the spending is. ⠀ The comment also brought up another intuitive way of thinking about this: reinvesting enough of the dividends to keep buying additional shares, with the idea that continuing to add shares helps keep the portfolio sustainable. ⠀ There is nothing wrong with that as a personal accumulation milestone, but let’s put some numbers around it. ⠀ Suppose you have a $5,000 position that distributes $500 over the year, so the yield is 10%. You spend $300 and reinvest the remaining $200. If the shares happen to cost $200 each, that reinvestment buys exactly one additional share. ⠀ So now we know: Shares purchased from distributions = 1 Withdrawal rate = 6% Total return = ??? ⠀ We have successfully added another share, and we can calculate that $300 of spending from a $5,000 portfolio is a 6% withdrawal rate. But we still do not know whether that 6% withdrawal is sustainable because we have not answered the total return question. ⠀ If the strategy is generating a sufficiently high total return with an acceptable level and path of risk, perhaps that withdrawal can be supported. If its total return is substantially lower, buying another share with part of the distribution does not fix that problem. ⠀ That is the part I think can get lost when we focus on the number of shares or the percentage of distributions being reinvested. Both can be useful ways to organize your cash flow, but neither tells us how much economic return the portfolio actually generated. ⠀ A distribution is not automatically a return. A portfolio can distribute 10%, 15%, or 20% without generating a 10%, 15%, or 20% total return. ⠀ So the cleaner way I think about it is that yield tells you how much cash was distributed, withdrawal rate tells you how much of the portfolio you consumed, and total return tells you how much the investment actually earned. ⠀ Reinvesting more can absolutely reduce your withdrawal rate, and buying additional shares can be a perfectly useful accumulation goal. But neither one answers the sustainability question by itself. ⠀ For that, we still eventually have to ask the same two questions: How much of the portfolio am I withdrawing? What total return and risk is the portfolio producing?read more
XLY continues to be a sector we are ready to accumulate PUT LEAPS in. Last week, Walmart $WMT (Thursday Aug. 20th: -9.15%), announced that the poor are retreating to dollar stores now......and the upper middle class activity at Walmart is growing (😉). Also, Advance Auto Parts $AAP (Thursday Aug. 20th: -24.55%), just announced forward earnings estimates in significant decline. Advance Auto is where the poor goes to buy car parts to fix their own cars. If they quit fixing their cars......what are they going to do? Sit their ass on a couch - that's what. And now this Monday, Dick’s Sporting Goods $DKS closed at -30.68% after reporting lower revenue than expected, an adjusted EPS decline of -19% YoY and cutting FY2026 guidance for revenue and adjusted EPS… who tries to integrate a shoe company at the peak of the cycle!?!??!🤪🫨😳😜💥 People are running out of money. Do you know what comes next? Learn to read and listen to the markets. They are speaking to us loud and clear. See how at: www.beskarcapitalkts.com This is the Way! 🏄♀️🌊🏄♂️🌊🏄🌊 read more
I’m probably going to jinx it by saying this, but I don’t know guys, this could be the week we see $150,000 in the portfolio. It has to happen eventually, right? 😅 What were your best and worst performing stocks today? Let me know in the comments! 👇
Dude there’s no f**** way this stat is real… 25% of people who work at Nvidia $NVDA got $25M in the bank?!?!? And 80% are millionaires!!! Lunch ladies and janitors have to be ROLLING in it. Just a once in a lifetime generational company for stats like that to be true.
I was at Blossom Con this weekend, and one of the panel conversations that really stuck with me was when @brandon talked about how he eventually sold all of his individual stocks and moved into index funds. Even during a chat with @bdinvesting said he was close to 60% index funds now himself That honestly says a lot. Here are two people who spends time around investing, stocks and the markets and even they decided that keeping things simple made more sense to a degree. It reminded me why I invest the way I do. There is no need to find the next 10x stock, or trying to predict the next crash.You don't need to constantly figure out which company is going to outperform. I've been investing for a decade now and i'm not completely against individual stocks either. I still own some myself but roughly 90% of my portfolio is ETFs because building wealth doesn't have to be exciting. The goal isn't to become the best investor in the room. It's to become financially independent. What's your portfolio mostly made up of individual stocks or ETFs?read more
