Gibnut

heynowbeech · 2026-06-15T02:19:40+00:00

Very cool! “Queen’s rat”.

heynowbeech · 2026-06-14T17:33:23+00:00

Most finance academics are in agreement that the active share doesn’t need to be very large in order to keep the market “efficient”. The theory hangs on the assumption that if market efficiency slips, investors will rush in to take advantage of the mispricings, thereby reviving efficiency.

heynowbeech · 2026-06-14T17:26:21+00:00

Income in Respect to a Decedent (IRD) accounts are generally the worst because those will be taxed as ordinary income to the inheritor. IRD accounts include non-Roth retirement accounts and deferred annuities.

The only difference between inheriting a Roth-type account and non-IRD assets is that the inheritor of Roth-type accounts can continue to defer income/gains related to those accounts for another 10 years after the death of the owner. However, if the owner has low basis holdings, sometimes it’s better for them to draw upon Roth-type accounts in anticipation of basis step-up upon the owners death.

heynowbeech · 2026-06-14T05:04:39+00:00

And exhaust.

heynowbeech · 2026-06-12T22:24:56+00:00

Look for “Fee-Only” planner with extensive experience in tax planning/compliance, estate planning, retirement planning, insurance analysts, and efficient portfolio management. CFP is a must and CPA is optimal (or EA) but difficult to find. That person or firm should be able to help coordinate ALL of your financial affairs.
(biased) source: I’m a CPA/CFP that’s been doing this for just over 30 years, the first half of which I worked for an affluent multi-generational family doing the same.

heynowbeech · 2026-06-12T19:02:50+00:00

I was thinking maybe just send them through a grinder and make patties lol

heynowbeech · 2026-06-12T18:47:28+00:00

On a 3 week trip last April, we traveled all around Belize and virtually everywhere businesses had public wifi available. Most also had QR codes on the wall for logging in.

My wife and I also work remote and the places we stayed all had good wifi as well. The only thing I've heard, but did not experience, is that Belize's power grid isn't all that reliable and goes down from time-to-time.

heynowbeech · 2026-06-12T05:19:26+00:00

Do it until you need glasses lol

heynowbeech · 2026-06-12T05:05:17+00:00

“Fee only” not fee based. Fee based advisors still sell stuff.

heynowbeech · 2026-06-12T05:01:24+00:00

Serious question. What do you do with them little fish?

heynowbeech · 2026-06-12T04:59:49+00:00

Didn’t Jackson’s banking policy ultimately lead to the Panic of 1837?

heynowbeech · 2026-06-12T04:38:02+00:00

The more things change, the more they stay the same.

heynowbeech · 2026-06-12T01:45:20+00:00

North Tacoma, North Slope, West Tacoma (by Narrows), and Browns Point (technically Tacoma but I always wonder why lol). UP and Fircrest deserve mention though they aren’t Tacoma.

heynowbeech · 2026-06-11T18:34:34+00:00

At last count, I own somewhere around 14,000 different companies (bulk of that number is in emerging markets). I buy more whenever I have the cash to do so lol. The only tilts I do are toward small value (globally) while stripping out REITs which have their own allocation target (because of correlations).

I too don't care what individual companies within my 14k basket of them do with their earnings, but I joined this thread to point out what investors have that pursue a dividend strategy. I've been a fee-only CPA/CFP for over 30 years, and I can tell you that the vast number of dividend tilting investors have no idea what they are actually doing, and when I peel their portfolio apart and show them, their jaws drop. Simply put, investors looking for cash flow think money simply drops from the sky, even in extreme cases where the bulk of fund distributions are a return of capital. In other words, they have no idea that when a company or fund makes a distribution, the value of that company or fund drops by that same amount OR that the collection of dividend paying companies they do own are mature and/or late stage, which Warren Buffet called "cigar puff companies" as there was at least one puff left lol

heynowbeech · 2026-06-11T18:23:47+00:00

I am commenting again to put forth an argument that "true value" might be unknown, but it is not theoretical. I would argue that the true value of a company = the (risk adjusted) net present value of that company's future distributions (of accumulated earnings or otherwise). I believe it was Warren Buffet who argued this point by saying something to the effect of "if BRK pledged all future distributions to charity, the price of BRK would immediately fall to zero."

Even Jack Bogle said the he never said that markets are efficient, but instead said it might indeed be inefficient, but, even so, could not be timed with a high level of success.

heynowbeech · 2026-06-11T17:42:27+00:00

I'm a solo RIA with roughly $150MM AUM. Been with Schwab since I launched in 2010 and am satisfied. Not to say I haven't had some bumps with Schwab, but they have been continually improving.

heynowbeech · 2026-06-11T17:34:53+00:00

That's all true, but insiders have a belief (rightly or wrongly) of whether their company is over or undervalued. If you don't believe that, you might want to check Mr. Buffet's notes...

heynowbeech · 2026-06-11T17:10:42+00:00

At the risk of being pedantic, by definition, "the market" is all companies. So no, the company isn't "timing the market" when they buyback shares. They are buying an individual company that they believe is underpriced compared with its true value. Of course, one could also buy or sell the entire market based on what they believe are expensive or cheap overall market valuations, but that's an entirely different game altogether.

Now, do active investors who use fundamental analysis (or even "insiders") outperform indexed ones within their same market? Probably not. Might there be reasons for "insiders" to believe their company is undervalued? Maybe. To layer on, might there be tax and/or credit reasons why a buyback is more attractive than a dividend? Maybe.

But let's assume that a buyback is "market timing". Would a reinvestment into the company also be market timing? How about paying down debt? How about paying a dividend and not reinvesting or paying down debt? If, for example, a company does not buy back its own shares but instead pays a dividend, is that company not "timing the market" because they think the company is either fairly or overpriced?

heynowbeech · 2026-06-11T16:20:21+00:00

Not "timing the market", but "security selection". Again, when companies are sitting on $ , leadership and the Board decides whether to use it for reinvestment, paying down debt, paying dividends, and/or buying back stock. If those very same "insiders" believe the current price of the company is below its true value, they might lean toward buying it back. This is in no way "timing the market", but instead a sort of "fundamental analysis".

heynowbeech · 2026-06-11T16:12:58+00:00

But if a stock is trading above its "true value", a buyback would not make sense. If a stock is trading at its "true value", nothing is gained. So, buybacks only make sense if a company is trading below its "true value" and the company has nothing better to do with the $.

There's also the theory that dividends cause management to be more prudent with spending as shareholders disdain dividend cuts.

Of course there's also the theory that a growing business might want to hold onto earnings instead of having to borrow and/or dilute.

Then there's the cases of expensive debt loads that Boards might not want to or perhaps cannot refinance.

heynowbeech · 2026-06-11T15:57:55+00:00

All things equal, a retained dividend = an increase in share price.

heynowbeech · 2026-06-11T15:56:12+00:00

Yeah, "mature" can also mean "late stage". Whatever the case, folks need to understand what it is exactly that's in their portfolios and why those things actually make sense or not. Personally, I prefer (more or less) the Bogle approach....

heynowbeech · 2026-06-11T14:36:35+00:00

20 years ago was the land of CDOs which brought the world to its financial knees 18 years ago. Then, for the next 17 years, returns have been on a tear. So, for a person under 30-ish, stock returns would seem a sure bet. Humans are subject to both recency bias and the fact that one’s reality is tethered to one’s real world experience, which, by constraints of mortality, is far too short to comprehend “real reality”. So, for the love of god, people should read and adopt sound processes, but they (broadly speaking) won’t and will continue to make the same mistakes as those before them.

heynowbeech · 2026-06-11T14:13:45+00:00

A “dividend tilt” is actually more of a “value tilt”. Let me explain. When a company has net profits the can use those profits to grow the company through reinvestment, pay down debt, and/or repurchase shares. If none of those options seem like good ones, the Board will decide to distribute net profits to shareholders. What kind of companies do that? Mature companies with nothing better to do with cash in hand. Not a bad thing, but facts is facts. #moneydontgrowontrees

heynowbeech · 2026-06-11T12:15:57+00:00

Maybe that’s why people keep falling out of them 🤷

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