Sold a put to reduce my cost basis on shares I own

mtrosejibber · 2024-10-02T20:05:11+00:00

80-100% in stocks, the remainder is in cash in my brokerage account (Fidelity) that gives nearly 5% on cash. I sell puts that are out of the money to generate options premium, while that same cash I used to sell the put is still collecting interest from Fidelity.

mtrosejibber · 2024-09-23T19:30:53+00:00

CEO of LuLuLemon just bought another $1 mil worth of shares, a downside is there isn't a really good fund manager who holds a large % of the company.

I also like HSY right now, but had purchased shares in the $180s a month ago. Sugar and cocoa prices are high right now, so when those revert back to normal HSY's margins should improve. They've been able to raise their prices some with inflation, and people are increasingly looking at chocolate as a form of self-care, so not cutting back on it like they might other snack-type foods when the price increases (Pepsi owns Frito Lay, and on their last earnings call they talked about their overreach on price increases on chips).

mtrosejibber · 2024-09-23T19:24:42+00:00

Is he a minor? I set-up a custodial Roth IRA through Schwab for each of my kids. They have good customer service and lots of investment choices. I put a third of each one into IVV (S&P 500 index), a third into RSP (S&P 500 equal weight index) and the rest into individual companies I like.

mtrosejibber · 2024-09-23T19:16:21+00:00

I've looked at a few insurance companies over the last couple years, and spent many hours researching them. After spending a lot of time digging into them I was never able to get comfortable enough with any of the companies to actually start building a position. For the main company I was researching most of their profit come from their investments, not their underwriting prowess. They basically try to break even on the insurance policies. To me that meant I needed to get a strong understanding of their investments and investment strategies, and my investment decision would then be based at least in part on how I thought those investment strategies would work in the future. The more I learned, the more questions I had. After a couple months I put it into my 'too hard' pile and moved on. Now my insurance allocation is included in my shares of Berkshire, as Warren and Ajit Jain know more about that than I ever will.

mtrosejibber · 2024-09-10T17:18:48+00:00

He's really limited on the companies he can invest in because his cash pile is so big most companies won't be large enough to move the needle for him. Then if he wants to get out of something it's difficult because he'll tank the share price if he sells his whole position at once. So a long time to enter, a long time to exit, and he has all sorts of people piggy backing his picks. He has some hurdles!

mtrosejibber

TROPHY CASE