Author Topic: What are you buying today?  (Read 654899 times)

LC

  • Hero Member
  • *****
  • Posts: 1818
Re: What are you buying today?
« Reply #2340 on: July 10, 2017, 02:08:52 PM »
Bought more Citi today
"Lethargy bordering on sloth remains the cornerstone of our investment style."
------------------------------------------------------------------
brk.b | khc | nke | pm | renx | c | wppgy | dis | cmp


John Hjorth

  • Hero Member
  • *****
  • Posts: 792
Re: What are you buying today?
« Reply #2341 on: July 10, 2017, 02:14:36 PM »
Bought more Citi today

To me, a good deed.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

benchmark

  • Sr. Member
  • ****
  • Posts: 280
Re: What are you buying today?
« Reply #2342 on: July 10, 2017, 05:03:47 PM »
Bought more Citi today

To me, a good deed.

I think that financial still have some upside. However, one thing that keeps bothering me is that I don't know how these big banks will do with a) online/mobile payments and b) cyber currency. Does that mostly eliminate the need to go to a branch, which is a big moat for the big banks? How will that impair their earnings?

LC

  • Hero Member
  • *****
  • Posts: 1818
Re: What are you buying today?
« Reply #2343 on: July 10, 2017, 05:50:53 PM »
I haven't been to a branch in at least 3 years...
"Lethargy bordering on sloth remains the cornerstone of our investment style."
------------------------------------------------------------------
brk.b | khc | nke | pm | renx | c | wppgy | dis | cmp

chesko182

  • Newbie
  • *
  • Posts: 40
Re: What are you buying today?
« Reply #2344 on: July 10, 2017, 06:55:48 PM »
Bought more Citi today

To me, a good deed.

I think that financial still have some upside. However, one thing that keeps bothering me is that I don't know how these big banks will do with a) online/mobile payments and b) cyber currency. Does that mostly eliminate the need to go to a branch, which is a big moat for the big banks? How will that impair their earnings?

You should look at Ally, the largest online bank and growing deposits at 20% per year, most of it from millenials. Overhead is lower since they don't have any branches (lower efficiency ratio too vs. money centers) and they pass a lot of these savings to customers by offering higher rates. Trading a 9X earnings and 0.7X B/V buying back a lot of shares.. market is concerned with Auto loan exposure but after looking at their loan book which is mostly prime (and they're diversifying through mortgages, credit cards and online brokerage) I'm fine owning it

CorpRaider

  • Hero Member
  • *****
  • Posts: 1766
Re: What are you buying today?
« Reply #2345 on: July 10, 2017, 07:32:22 PM »
I still want a branch or two just in case if i have real money with you.  I also want to be able to change curreny, get a safe deposit box and get stuff notarized.

boilermaker75

  • Hero Member
  • *****
  • Posts: 775
Re: What are you buying today?
« Reply #2346 on: July 14, 2017, 06:35:25 AM »
Wrote some WFC 52.5 strike, Aug 18 expiration date puts for $0.70.

TwoCitiesCapital

  • Hero Member
  • *****
  • Posts: 1798
Re: What are you buying today?
« Reply #2347 on: July 14, 2017, 06:55:51 AM »
Generally over the past few weeks:

1) EM: Significantly increased my stake in PEFIX as re-balancing has led the portfolio of companies to be even cheaper on P/B, P/E, and P/S basis than it had before it's 50+% rally in 2016. Reduced European equity exposure to do so.

2) U.S. retail: Sold puts on LB and SHLD and re-investing dividends into RL and UA. Looking at other names as they get cheaper and may add SRG to the mix. Closed my position in the 25+ year zero coupon bond fund with gains of ~10% to fund put sales. I am not confident that we'll hit new lows outside of a recession, but think there will be other opportunities to re-enter of the next 1-3 years.

3) Resources: Adding to ALS and PDER. Looking to add to Lukoil if prices remain weak.



« Last Edit: July 14, 2017, 08:28:30 AM by TwoCitiesCapital »

CorpRaider

  • Hero Member
  • *****
  • Posts: 1766
Re: What are you buying today?
« Reply #2348 on: July 14, 2017, 12:30:58 PM »
Interesting.  Gundlach scared me about derivatives used in Pimco funds in one of his talks and I switched from PEFIX to FNDE.  But it hasn't quite been hanging with the performance (neither has PXH over 5 years).  But I guess that was to be expected with losing the "plus"/leverage.
« Last Edit: July 14, 2017, 12:34:03 PM by CorpRaider »

TwoCitiesCapital

  • Hero Member
  • *****
  • Posts: 1798
Re: What are you buying today?
« Reply #2349 on: July 16, 2017, 05:49:11 PM »
Interesting.  Gundlach scared me about derivatives used in Pimco funds in one of his talks and I switched from PEFIX to FNDE.  But it hasn't quite been hanging with the performance (neither has PXH over 5 years).  But I guess that was to be expected with losing the "plus"/leverage.

Yea, the PIMCO StocksPlus and StocksPlus Long Duration funds are two of the best performing "active" equity funds in the mutual fund universe since their inceptions. The standard StocksPlus fund goes back to the 80s so it's a LONG track record of implementing the strategy successfully without blowing up in the U.S. markets.

There's definitely increased risk with the use of economic leverage and EM is far more volatile, but I'm relatively confident in their ability to manage it responsibly given their long-term success in the U.S. Plus, they're not swinging for the fences with the collateral - current duration is less than a year it's diversified across U.S. treasuries, mortgages, and corporate exposures. They simply have to beat the funding cost of the swaps used (LIBOR plus a spread) with the fixed income portfolio so it doesn't have to be anything TOO crazy to get the additional 2-3% a year.