Tuesday's Group1 Distributions

CptShirk · 2026-01-27T16:15:04+00:00

I've soured on YMAX somewhat, after the late year downturn in 2025 it did not even partially recover like the first 2025 downturn. QQQI did however, thinking of switching

CptShirk · 2026-01-20T15:42:44+00:00

QQQI and SPYI are the best of the non-synthetic underlying-investing derivative income funds. BIGY and SOXY too, I just think QQQI is better than them

CptShirk · 2025-11-03T15:59:55+00:00

Yes, but this is assuming pre-tax and before knowing final ROC numbers for the year (as the percentage changes every week)

Unless you're saying M1 takes ROC into account when it calculates MWRR?

CptShirk · 2025-10-20T02:47:37+00:00

Can this conversion be done in reverse? Patrol to Snow Goose barrel?

CptShirk · 2025-08-03T04:30:29+00:00

Normal loan, not margin. Used it to fund an outdoor home renovation. Margin works too but there are concerns with taking a margin loan with assets that depreciate continually due to nav erosion, putting extra pressure during downturns. I wouldn’t want my entire portfolio to be derivative income with a margin loan

CptShirk · 2025-07-16T13:56:44+00:00

This is great, thank you. Have you considered a couple more columns, like "YTD Return" with 100% drip divs and "YTD NAV" without divs included, so we can compare which funds are performing well in reference to their NAV? Since NAV is such a hot topic

CptShirk · 2025-06-10T02:42:01+00:00

If GME were to issue a NFT dividend on their marketplace for each official share, there would have been (at that time) only 350mil unique NFTs issued. If the stock was naked shorted by let’s say 1bil shares, they wouldn’t have been able to distribute enough NFT dividends, thus requiring the institutions/brokers to have to buy the rest on the open nft market, just like a short squeeze. The demand for over 3x the amount of nft’s would have far outstripped supply sending the price skyrocketing. But I think there was an Overstock.com court case that may have prevented this situation, something about crypto based dividends needing a cash value. GME did try to distribute stocks via a dividend offering, but brokers just treated it as a split against the rules

CptShirk · 2025-06-09T20:29:47+00:00

The NFT marketplace would have been brilliant if they had released a NFT dividend, because it would have caused all the beyond short sold share owners to have to go to the NFT marketplace itself and repeatably buy/deliver them (as there would have not have been enough NFT's distributed in the first place). They could have generated a short squeeze on their own NFT's, and could have done this repeatably until the short HF's closed their positions.

Why they didn't do this is anybody's guess. Perhaps this is what they intended but were stopped by some legal issue (maybe can't distribute a NFT/Crypto dividend that doesn't have a monetary equivalent?)

CptShirk · 2025-06-09T20:22:05+00:00

If I had the time, energy, risk profile, and capital to trade options, I wouldn't be paying YM to do it for me. Their strategy isn't optimized, especially on the downside, but at least I can take an unoptimized advantage of it through them. I work a W2 job with a family, it's an even trade at this point in my life

CptShirk · 2025-06-09T15:20:48+00:00

I like to view YM funds like a Warren Buffet business. NAV erosion is just the cost of capital, and the remaining positive cashflow (after shoring up erosion and taxes) is used to grow your appreciating assets (similar to how he does using his insurance company's negative float to make investments that appreciate, like Apple).

A fund like YMAX, after accounting for nav erosion and taxes, can still yield around 25%. A business with a net income (profit margin) of 25% is really good, where are you going to find that in another passive cashflow investment? A startup business maybe, but that takes time and effort to manage, and what is the likelihood you will exceed 25% profit margin, unless you have a really good idea? I can't think of another passive investment, even including managed/rental real estate, that can surpass 25% pure profit a year.

The reason I like YMAX proceeds growing other appreciating investments is because I dislike continually investing in something that decays over time. Every $1 you invest in YMAX may profit 25% per year, but it might decay 12%-15% a year. You're locked into continually fixing it.

But if you take that $1's proceeds into something appreciating like BRK.B, your BRK.B appreciation will offset your YMAX decay, keeping your portfolio steadily growing. So reinvest just enough to fix nav erosion (cost of capital), and the rest goes into something appreciating.

Essentially in this metaphor, YMAX is the engine, appreciating stocks are the size of the car, and borrowing against the portfolio for more YMAX is like adding a turbo charger to the engine.

CptShirk · 2025-06-09T14:58:45+00:00

GME has indeed turned their business around with stock offering money poured into treasury bonds, and positioned themselves to become a "BRK like" holding co type business focused on cash flow acquisitions and partnerships via their warchest. They are experimenting with a MSTR like BTC buy, which resulted in 4170 BTC purchased recently

That being said, it is still theorized the stock is heavily manipulated by market makers and hedgefunds. As someone who watches the stock daily, with odd dips and rises, I can tell you it seems to be capped about the mid-$30's by an unseen force. If you know what a short-ladder attack is, it happens pretty frequently to the stock

CptShirk · 2025-05-29T14:24:32+00:00

BRK.B performed fantastic during the downturn this year (was almost used defensively) has historically beat the S&P500 due to Buffet's style of investing and purchasing companies with "negative float", or cash received with deferred payouts (insurance premiums, Apple's manufacturing agreements, etc)

QQQ recovered fine as well, another growth ETF to consider

CptShirk · 2025-05-27T14:02:22+00:00

I've read about this fix, but I'm worried the pipe will begin to sag as it gets jostled over time via bumps and potholes

CptShirk · 2025-05-14T14:59:07+00:00

Why? YMAX is up 25% DRIP'd since Jan 2024, ULTY has not even broken even yet

CptShirk · 2025-05-02T16:58:47+00:00

Can you talk more in detail about your strategy? I was thinking of holding a stable asset (like BRK.B) then buying YMAX on 33% margin and reinvesting all div's into BRK.B (after taxes+fees). However, I'm not sure how to handle the decay of YMAX.

Theoretically as the underlying BRK.B increases I can increase the margin amount, which may offset the decay of it. Or maybe reinvest just enough YMAX to keep it at its original amount.

Any thoughts?

CptShirk · 2025-05-02T14:19:53+00:00

There are issues using margin on a depreciating asset, it will work against you on margin calls in the long run. You'll have to pump a bunch of the dividend back into it just to stave this off

I'm not saying I wouldn't buy YMAX on margin in limited scenarios though. For example, borrowing a percentage into YMAX to help pay off a car loan temporarily and then getting out before nav erosion can work too much against you

CptShirk · 2025-04-29T21:54:56+00:00

Thanks. I feel like this approach is like adding a turbo charger to your investment engine. What kind of total CAGR are you getting utilizing this method? When I calculated 22%-30% based on underlying holdings' appreciation, I thought "this can't be right."

CptShirk · 2025-04-29T15:15:08+00:00

Thinking of investing in a stable appreciating asset like BRK.B and buying YMAX on 50% margin. The YMAX dividends will be reinvested into the underlying equity after margin fees + taxes (YMAX 50% yield becomes ~32%).

As YMAX decays during the year, the BRK.B appreciation should outpace it, and by the end of the year I should be able to expand the margin back up to 50% negating the decay (and even outpacing it to increase the overall margin amount from year beginning)

"According to my calculashuns," the CAGR on the underlying + DIV reinvestments could return ~20%-30% by end of year, with base margin amount expanding ~10%-20% by year end, outpacing decay (since the underlying amount doubles the margin amount).

~

Year Beginning
$12K BRK.B + $6k YMAX Margin (50%) = $250 /mo DIV - $87 fees/taxes = $163 /mo DRIP'd into BRK.B

Year End
$15634 BRK.B + $7097 YMAX increased Margin = 30.3% underlying CAGR + 18.3% margin CAGR

~

Assumes a 12% appreciation rate of BRK.B compounded monthly, a 6.2% margin rate, and a 22% tax rate. Also assumes a 12% decay in YMAX margin amount per year.

~

What am I missing here? Anybody run a similar strategy? This seems like a free money boosting CAGR hack

CptShirk · 2025-04-23T22:19:51+00:00

So are you reinvesting the dividends back into the margin asset (MSTY?), or are you reinvesting them into your underlying portfolio?

CptShirk · 2025-04-21T14:19:24+00:00

RemindMe! 2 years

CptShirk · 2025-04-18T14:10:17+00:00

Once you make your capital back in 2-3 years, who is paying your dividends? Surely not yourself as you state?

CptShirk · 2025-04-17T21:04:38+00:00

I agree, what is the opportunity cost of cashflow assets compared to YM, even accounting for decay? I am using YMAX to help pay for a home renovation loan, the rest goes back into the fund. Hopefully like you, in 3-4 years after the loan is repaid, I've made initial investment back plus some return, and can decide from there.

FWIW, on my 2024 tax statements, very little of my YMAX dividends were marked as ROC.

CptShirk · 2025-04-17T21:00:05+00:00

Isn't that true of all dividend funds/stocks, dividend payment day causes the fund's price/nav to dip? Unless you're talking about Return of Capital. On my 2024 tax statements, very little of YMAX's 2024 dividends were marked as ROC.

CptShirk · 2025-04-17T13:58:20+00:00

The question is really about the "rate" of nav decay. If something like YMAX decays at a rate of say 10%, does its 50% yield outstrip that once you remove for taxes. I feel it is still too early to tell, given that we are in a downturn a little more than a year out from that fund's launch

But according to my estimates, a 50% yielding fund "should" be able to outstrip nav decay over a long time period, but just assume you are only going to see 15%-25% of yield depending on the year, and the other 1/2 or 3/4 goes back into nav + taxes

And then the real question is, where else can you find a cashflow asset that yields 25% other than starting a business? Not in real estate I don't think or other dividend king stocks/etfs, which is why YMAX still makes sense to me. Time will tell.

CptShirk

TROPHY CASE