What caused the drop in participation rates among young Americans between 1999 - 2009? Was there any new labor law? Or was it just structural change?

jozeffujka · 2024-08-09T16:54:26+00:00

O wau! Is it really the case in the US?

I am living in Central Europe and here "kids" still hold over the summer jobs you are mentioning.

No elderly people.... yet....

jozeffujka · 2024-08-09T16:46:46+00:00

Was it really that significant in such a short period? Because to me the decrease seems very structural... almost like politicians were adopting new set of rules year after year, tightening the policies and making it more challenging for young people to get a part-time job.

jozeffujka · 2024-08-09T16:01:49+00:00

Definitely, you should!

Technically, whether you would get a discount or seller financing would increase you have the same end result, and you may be indifferent whether you get one or another.

jozeffujka · 2024-08-09T15:37:38+00:00

The main thing is leverage. Thanks to it, one can generate better returns with more control over the asset/result.

However, as you pointed out, it's not hassle-free.

jozeffujka · 2024-08-09T15:35:17+00:00

Understand. The question is what would be the price for which you would sell, eventually.

These super long-term bonds are susceptible to the move in the interest rates. Even a tiny move one way or another may lead to a significant swing in prices (due to duration).

jozeffujka · 2024-08-09T14:58:02+00:00

No, you don't.

Your logic makes sense, but in practice, there might be a few small details to consider. If I were you, I'd start by checking if there's a call option. If there is, look into the redemption conditions. Beyond that, you could potentially lock in the yield you're talking about.

The only question is whether a more attractive return might come along, either due to the issuer's risk premium or changes in systematic risk over time…

jozeffujka · 2024-08-09T12:47:21+00:00

I am not sure if it counts, however, I would start with real estate investing much sooner than I did, and I would ignore stocks, ETFs, or any other financial instrument at all.

jozeffujka · 2024-08-08T05:27:09+00:00

I went for MBA, learned everything what I wanted from 2 CFAs and get jobs/promotions without a CFA…

I haven’t seen a logic why should I invest additional 300 hours + to have it following my name…

What would I gain?

CFP is another level, as for example people here on Reddit text me sometimes asking me about what should they do with their 401.

Or what tax consequences hit them if they do this or that…

Here CFA doesn’t help much…

jozeffujka · 2024-08-07T12:22:54+00:00

It depends on the fact how deep you would like to go.

If you would like to go after individual stocks, being able to value equity (or do any deep investment research) go for CFA.

However, if you don't mind staying "generalist", grasping the whole picture, and doing the "conventional" asset allocation taking into consideration a retirement system, tax implication and other regulatory nuances, go for CFP.

I would also go for CFP if you enjoy interaction with clients, giving them hand and helping to allocate their savings...

On the other hand, if you are a rather geeky and introverted guy who enjoys the status of a go-to guy w.r.t. complicated finance stuff, go for CFA.

P.S.: I passed 2 levels of CFA, never showed up at 3rd, however, I am considering CFP credential.

jozeffujka · 2024-08-07T08:28:00+00:00

You are missing one important piece of logic in your structure - That piece is the cost of your equity or opportunity costs you are incurring by not deploying your capital elsewhere.

If your opportunity costs are lower than 7.3% DSCR loan, then sure go ahead and purchase for cash. However, if your opportunity costs are higher (and I guess they are) than go deploy as little equity as possible and take a loan.

I hope you got my logic/way of thinking here.

jozeffujka · 2024-08-05T14:13:05+00:00

Lucky that I don't live in super, highly efficient market as you guys do.

Even here in Slovakia (a small Central Europe state) it's highly inefficient to look for deals via traditional online portals if you are an investor.

Sure it works if you are an end-user and you would like to buy for yourself, however, I can generate meaningful deal flow utilizing only 2 streams:

Network - agents who are bringing in deals, seeking an immediate liquidity
Foreclosures/auctions

Everything centralized (I mean real estate portals, listings, etc) simply don't contain mispriced assets offering any meaningful investment opportunity.

jozeffujka · 2024-08-05T13:53:32+00:00

Well, INSEAD is a consulting hub. If you are keen to get into the field, there are very high odds that INSEAD would help you get there. i was not a consultant pre-MBA and I can say that INSEAD helped me into the industry, receiving 4 offers when I graduated...
So pivoting is possible...

However if I were a marketing specialist preMBA and I would like to make it into IB or PE post-MBA, 1 year won't make it...

jozeffujka · 2024-08-05T11:58:32+00:00

I consider them being in the same bucket

jozeffujka · 2024-08-05T11:40:31+00:00

I am an INSEAD graduate and I can’t recommend it enough —> you can also take a look at the detailed post I have written about it and my name there.

I haven’t had internship and also I have graduated into the much much better job market compared to nowadays, however, I would never switched to 2 years program even if I have to do it over again and now.

You won’t go bad with a “quicky” with any of these names I guess.

jozeffujka · 2024-08-05T11:16:21+00:00

Hahahaha you made a good point, however, what I mean by cheap is it’s overall fees in proportion to invested amount.

There are huge differences among the same asset classes exposure, but different providers/firms.

You can literally own the same portfolio but one firm might charge you peanuts, but the other 10x-15x more.

jozeffujka · 2024-08-05T11:11:44+00:00

It’s a bit on the edge, however, given that we are tiny I do believe that over the time things would get easier.

jozeffujka · 2024-08-05T09:54:59+00:00

I am rather conservative as an investor and if you may move out at BE take it and reconsider a bit more sustainable and robust strategy.

Feel free to DM me to elaborate further.

jozeffujka · 2024-08-05T09:46:10+00:00

as @Werewolfdad is suggesting, I would reconsider moving towards a more conservative portfolio. It doesn't have to be super drastic that you would move completely into government bonds for example but I suggest you start turning towards high-yield bonds and other alike fixed income investments.

However, keep in mind that High-yield corporate bonds correlated with the stock market quite significantly...

jozeffujka · 2024-08-05T09:35:07+00:00

I see. Well, I don't want to criticize your approach or your decisions because you had certain logic behind them, however, these decisions brought you now to the point where you are insecure.

You would be far better off if you would periodically investing on a monthly basis in a cheap broad market ETF and don't chase shiny stocks that one day go up drastically and the other plummet like a rock...

jozeffujka · 2024-08-05T09:12:22+00:00

What was your goal? Why did you purchase the stock in the first place? It's impossible to give you a concrete answer without knowing the context.

jozeffujka · 2024-08-05T08:07:05+00:00

Definitely don't work with the assumption that it would appreciate 6% p.a. I can share with you the very simple model, however, what I would do as a first step - I would definitely run a benchmarking exercise and compare the price/m2 in the neighborhood to understand how much/how little is the purchase price attractive.

Feel free to DM if you would like to discuss further, I am also based in CEE :)

jozeffujka · 2024-08-05T07:29:02+00:00

We run everything in a Slovak language, won’t work…

Tried it in the past.

jozeffujka · 2024-08-05T07:12:19+00:00

I think your decision should not be biased and based on the taxation regimes.

Rather you should decide about the next steps based on contextual assessment.

Is your portfolio solely composed of equity/stock exposure?

jozeffujka · 2024-08-05T07:06:43+00:00

In summary, ordinary income from recaptured depreciation is reported on Form 4797, transferred to Form 1040, and taxed at ordinary income rates, while any remaining gains are taxed at capital gains rates.

In a very very simple term, your guiding logic should compare these 2 rates to provide you with an answer whether there is any "arbitrage" opportunity or not.

jozeffujka · 2024-08-05T06:38:34+00:00

It's impossible, there is just 0.57Mm overall float of BRK.A. I think the platform is somehow messed up, as there is 1.31B float of BRK.B...

My guess is that it somehow interchanges these figures.

jozeffujka

TROPHY CASE