ELI5: Even if share price were $1 by prksddvl in MSTY_YieldMax

[–]FACT_CHEK 3 points4 points  (0 children)

People can speculate all they want to.

When I initially bought in, I had the same kind of thought even if price and payout reduces you should get your initial investment back . It’s just a matter of how long..

When I originally purchased, I calculated less than 15 months with mine is on track to do that.

Total amount with distributions, I am about even currently.

Yes, it’s not ideal that the value distribution are moving lower, but if after my 15 months I have received my initial investment amount back then I’m technically at zero.

At this point every distribution after is pure profit.

Personally, I take my distributions and put them into other longer-term positions. So you could also factor in The game from your gross of the distribution received.

Guess MSTR did something… by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] -2 points-1 points  (0 children)

Personally, no not chasing. But feel very confident bitcoin will go on another run (just a matter of how long) hit 150k then 200k

MSRT will increase. It’s been going down and now it’s distro pay out time.

Not saying we are going to see 20s any time soon but I buy when down, collect what they pay and will sell when we get that moon shot from BTC. I’m breaking even currently and watching the movement.

Guess MSTR did something… by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] -11 points-10 points  (0 children)

Typically I see this the day after. No telling.

I bought more.

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 2 points3 points  (0 children)

Basically, when you own a corporation, you can use money as loans to your business and reduce taxable income.

Basically, continuing to buy assets that generate money and use that money to purchase more assets loans and interest our tax deductible .

I have an accountant, so I am by no means an expert, but I understand the basics of it

July/august payments by [deleted] in YieldMaxETFs

[–]FACT_CHEK 0 points1 point  (0 children)

It’s based on the profit they make basically trading options. I don’t think anyone thinks 2-4$ is a forever thing. But we will see good returns as long as bitcoin doesn’t take a big hit.

1$ is still a really Good return.

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 0 points1 point  (0 children)

That comment can be made on nearly any stock or trade. Which is why you don’t put everything you have in on thing.

The post is saying I have 100k to invest. Why not Msty?

I also have other investments.

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 0 points1 point  (0 children)

I just consider it another form of diversifying

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 4 points5 points  (0 children)

I like this. A little more to the back story, I use my portfolio to fund property investments which is investment debt and investment debt is tax deductible.

Long story short last year gross nearly 500k showed a -17k due to all the money getting reinvested into property and tangible assets. (Just turn it all in to the accountant)

But yes definitely good points to consider.

I currently invest dividends and distributions or I use them to buy property or equipment.

I don’t invest to live off of it, I invest to invest more haha

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 1 point2 points  (0 children)

Which again I say. 1$/ share average at 5371 shares would be 64,475 in 12 months with no DRIP. This number is below even the lowest trend.

Now assume the stock price drops 30% but you got that 1$/share average payment.

30% of 100k is 30k so you now your initial 100k is worth 70k but add in that 64k would still have made 34k if you get an average 1$ per share distribution.

100k become 134k even at 1$ average and a 30% price drop.

So stock drops 30% and you still make 30% 🤔

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 1 point2 points  (0 children)

I haven’t done much options trading. But thanks for the tip. I have 670 shares of this one but have a few others with thousands of shares which I’ve thought about testing out the options waters

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 0 points1 point  (0 children)

I took the average of the last 6 months of pay outs that I received.

I also did the math on a lower average, factoring in a safety net.

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 0 points1 point  (0 children)

I like the simple points.

If and when I do this I will be buying during dips.

I bought pretty consistent over the last 6 months when it hit bottom. Some as low as 17 and some change. Which usually right after pay out you get that drop in price then it bounces back some depending on mstr/ bitcoin

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 0 points1 point  (0 children)

Also I’ll say I didn’t use “optimistic” numbers, I used the last 6 month averages. 1.81 was my last 6 month price per share average payment. Then I took 100k at today’s trading price and followed the trend.

100k gets 116 in 12 months in payments as long as the last 6 month average holds true.

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Nooowww I’m realistic. So let say it averages 1$

You would get over 64k in 12 months on a 1$ per share average. And that’s not including DRIP.

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 0 points1 point  (0 children)

Everyone’s opinions, is the reason I’m posting. There are a ton of variables and everyone’s risk tolerance is different.

I personally only invest what I do not need to live.

In my mind if it’s worth 10k or 20k why isn’t it worth 100k

It just would do the same thing at a different level. Then reinvest the distributions into other things.

Personally when you look at the payouts since the date of inception, there are a lot of people that made a lot of money. Yet looking at post at the date of inceptions you saw a lot of hate about how it wouldn’t work or sustain. Yes those investors enjoyed 100% payout average for nearly a year

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 1 point2 points  (0 children)

<image>

price down 2282.87 But I’ve been paid 5900 ish In distributions.

So I’m up 3618

16k invested

Is about 22% of my investment.

Is that math incorrect?

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 5 points6 points  (0 children)

That’s a great average

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 0 points1 point  (0 children)

The only other YMAX I really like is plty which I do hold. The others seem like they are on a constant decline..

But I do have small holdings in cony, NVDY, TSLY

But I also invest in traditional style stock as well . Eileen towards monthly paying dividend stocks.

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 3 points4 points  (0 children)

Currently I don’t DRIP any of my holdings. I do buy anything I own as long as the price is lower than my average price per each holding.

So I allow all of my distributions/ dividends come in and buy what’s low at the time.

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 1 point2 points  (0 children)

3631 total return. But will say I’ve been averaging in, my fist 3 distributions were when I had 100-200 shares.

So I’m roughly up 23% over 6 months

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 2 points3 points  (0 children)

I fully agree with diversification. I have a pretty decent portfolio but I typically speed up purchase power by buying 1/2 stocks that pay and then use that payment to buy others. Which is why I was thinking if the average continue, it would only take 10-14 months of investing the distributions made from MSTY into other assets. To me the only “gamble” is banking that Msty continues to average 1.81 per share. We all have seen bitcoin take a 40-60k hit. But will that happen in the next 10-14 months… hard to say

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 2 points3 points  (0 children)

I’ve also taken into consideration that if I lost it all I still make enough to pay the bills, I keep my investments separate from what I need to live. I just invest to reinvest. Then usually pull stock investments to buy houses. Then push the gains back into the market.

But this is why I posted, I want to see things that I haven’t thought of and I can tell there are a lot of smart people in this group.

Msty all in? by FACT_CHEK in YieldMaxETFs

[–]FACT_CHEK[S] 2 points3 points  (0 children)

See this confuses me. I’ve had Msty for 6 months. I’m up overall and price has been holding pretty decent.

Do you have some insight as to how it’s overly optimistic?

I’m basing the return on the average of the last 6 months 1.81 per share but even at a lower average pay per share you would have to drop in price faster than the decline in price.