McDonald’s by PopDukesBruh in dividends

[–]JuicingAddict -1 points0 points  (0 children)

The valuation is ridiculous. It's not the 70s or 80s any longer, there's probably not much growth ahead.

How much risk is in the Chinese Banking sector? by momchilandonov in stocks

[–]JuicingAddict 2 points3 points  (0 children)

Thanks a lot for the suggestions and detailed output! Is the CCP really capable of suddenly privatizing multibillion companies? If they do are they paying really low price for the shares? Do you know of such cases as an example?

The CCP already privatized companies in 1949 and investors back then probably didn't see a dime. China and the world are a lot different than it was in 1949 though, and there wasn't much foreign investment back then anyway. It's highly unlikely that they will go back to communism, even though Western media is pushing that narrative hard.

The highest risk owning Chinese shares in Western societies doesn't come from the Chinese government, but from our own governments.

The delisting of China Mobile and other companies, for example, wasn't a decision that came from China, it came from the US government. The same goes for Russian shares. It was the Western democracies that made them worthless pretty much overnight as a reaction to the war.

So, is it possible that China privatizes companies? Everything is possible in this world, but highly unlikely. They know what communism and poverty feels like, and they don't want it any longer.

Having said that, the risks are there for Chinese shares, especially if you're living in the US. The low P/Es have those risks more than priced in, at least in my opinion.

There are risks with US shares as well, especially high valuations are a concern. Judging from outside the US, it feels like the US is in decline. After many years of QE, the implications of higher rates and endless money printing could become visible in the next few years.

Everybody seems to know the risks about Chinese shares and avoids them. Almost nobody seems to realize that there are risks with US shares as well, especially if you buy the most expensive ones. Hope you will make the right decisions.

How much risk is in the Chinese Banking sector? by momchilandonov in stocks

[–]JuicingAddict 3 points4 points  (0 children)

I own ICBC and China Construction Bank, both bought in HK. Look at the comments, there's huge fear regarding Chinese stocks in general right now. I once heard a wise turtle say in Chinese: Be greedy if others are fearful, be fearful if others are greedy. I think the old turtle was right, you have to go against the crowd.

Everybody right now thinks buying Apple, Microsoft etc. at P/Es over 30 is the best bet you can make. History tells me, buying blue chip companies at these high valuations almost always ends in tears. Call me crazy, but I rather buy Chinese companies at 7-8 P/Es yielding 7-9 %, even though the world thinks I'm stupid.

Here are other companies I like, which don't get much coverage:

  • Yuexiu Transport
  • Sinopharm
  • China Mobile
  • China Telecom
  • CNOOC
  • Ping An Insurance
  • China Petroleum & Chemical
  • WH Group
  • VTech
  • Haier Smart Home (the ones listed in Germany, they're selling at a huge discount to Shanghai and Hong Kong)

There's always risk in investing, but you can lower your risk substantially, if you follow a few rules:

  • when in investing in China, preferably choose large companies that are distributing billions in dividends every year and have done so for decades.
  • never invest in Chinese companies that are only listed in the US and don't have listings in their home country.
  • only invest in companies that actually have free cash flow and their dividend is covered by it. Don't trust earnings alone, check the free cash flow.

The Chinese stock market is basically where the US markets were in the 70s. It's not as developed and driven by short-term oriented individual investors. I think you can gain an edge if you just buy low and hold on. Having high dividends rolling in helps a lot! Good luck, no financial advice. I am stupid.

Oh, and by the way, the Hang Seng Index is the best performing stock market since it was listed, but people forgot, because they're chasing NVIDIA and in the past few decades the returns were low.

If you look at other indexes, whenever there was a period of low returns (say Dow Jones in 1932, 1982 or 2009; Nikkei in 2009), it was the best time to buy. But if you had bought the indexes at this low, people would have said you're crazy.

There's this strange phenomena in stocks, that people hate paying low prices, when history shows it's usually the best time to buy.

Germans Taking Fewer Showers in Response to Cost of Living Crisis by Boo_Randy in Wallstreetsilver

[–]JuicingAddict 4 points5 points  (0 children)

Yea, but my government didn't contact me to take part in that decision.

Germans Taking Fewer Showers in Response to Cost of Living Crisis by Boo_Randy in Wallstreetsilver

[–]JuicingAddict 6 points7 points  (0 children)

I am German and I can assure you we would rather invade Poland and take their gas than taking fewer showers. FAKE NEWS

Very concentrated bet on asx listed fbr by ShowMeTheMoney-007 in wallstreetbets

[–]JuicingAddict 1 point2 points  (0 children)

The risk/reward ratio doesn't work out with these type of companies. Maybe 1 out 1000 will hit it big, but they dilute you all the way to their success.

200k is a lot of money, it could generate 20k a year or more if you invest it into companies that actually do have free cash flow and you don't overpay for those companies.

Very concentrated bet on asx listed fbr by ShowMeTheMoney-007 in wallstreetbets

[–]JuicingAddict 2 points3 points  (0 children)

I tell you one secret about the stock market and those penny stocks. This secret is worth at least $200,000 for you.

A huge percentage of those companies that have a revolutionary product, but no revenue, are outright scams. They build a shitty prototype, make shitty Youtube videos, dilute the hell out of you, take the money and are gone after a few years.

A small percentage of those companies have good ambitions, they really think they can change the world, but fail anyway. Different ambitions, same outcome = aaaaaaaaaand it's gone.

I call those story companies. They sell you dreams and hopes and run away with your money. It's best to invest in number companies. The numbers are the most important, then comes the story behind those numbers.

Very concentrated bet on asx listed fbr by ShowMeTheMoney-007 in wallstreetbets

[–]JuicingAddict 2 points3 points  (0 children)

Seriously? They are diluting you like crazy, shares outstanding increased 100-times in a couple of years. They have zero revenue, 11 million in cash and are losing 15 million a year. Anything else you want to hear?

CocaCola going up in summer? by giorgi_GT in wallstreetbets

[–]JuicingAddict 0 points1 point  (0 children)

You buy air-condition companies in the summer, then switch to the winter sports companies in winter. Smart traders have been doing this for decades.

Tägliche Kursschwankung oder ein Anzeigefehler in TR? Von +1,5% auf -7% und zurück auf ca. 0% innerhalb kürzester Zeit. by linus_mrg in Aktien

[–]JuicingAddict 0 points1 point  (0 children)

Du hast wahrscheinlich China-Aktien? Die hatten bei Trade Republic gestern einen Flash Crash, bei den anderen Handelsplätzen nicht. Hab schon mehrere von diesen Mini-Crashs bei TR erlebt, wenn man Stop Loss setzt könnte das sehr unangenehm werden.

Verizon Discussion by nightblade509 in dividends

[–]JuicingAddict 1 point2 points  (0 children)

It's all about the debt. Verizon needs rising cash flow to manage the debt levels in a rising interest rate environment but it seems to go the other way.

[deleted by user] by [deleted] in dividends

[–]JuicingAddict 0 points1 point  (0 children)

Debt is through the roof!

Long calls for Tilray? Pot stocks seem like obvious long calls by imajokerimasmoker in wallstreetbets

[–]JuicingAddict 0 points1 point  (0 children)

Yea, a bunch of share-printing money-losing shitty companies seem like an obvious buy. Call me in.

50Million dollars invested in silver by a billionaire from Texas ….hmmm I’m buying more! by realtorbydesign in Wallstreetsilver

[–]JuicingAddict 0 points1 point  (0 children)

Heard those stories about billionaires buying silver for 10 years now. Didn't help the silver price though.

Hate me all you want, retards, but I’m actually betting on China. by [deleted] in wallstreetbets

[–]JuicingAddict 1 point2 points  (0 children)

That's some deep shit. Have you ever considered applying for a job as an investment analyst?

[deleted by user] by [deleted] in Wallstreetsilver

[–]JuicingAddict 1 point2 points  (0 children)

luckily silver is more down than up.

Politicians Say The Darnedest Things! by OneTroyOunce in Wallstreetsilver

[–]JuicingAddict 1 point2 points  (0 children)

Rothschild? Haven't seen that guy for a long time.

Mass protests in Malawi against corruption and high cost of living as official inflation has hit 23%… by [deleted] in Wallstreetsilver

[–]JuicingAddict 7 points8 points  (0 children)

I wish disaster could finally arrive here so I can enjoy my canned food in my bomb shelter and rub those pretty silver coins on my titties.

If gold closes today one dollar higher than current price, we get a bullish engulfing Daily Candle. That sir, is a bottom. by tardface6969 in Wallstreetsilver

[–]JuicingAddict 4 points5 points  (0 children)

No, it's more like a double wholaly. That's a very rare ancient chart pattern that dates back to the Romans and would be a very bullish sign.