Investing (2 Viewers)

[scaryshark09]

What are some good investments in 2024?
Are there better options for my money instead of a savings account?
What are some steps I can take now to ensure I can afford to buy a house in Sydney?

Feel free to discuss

 

[carrotsss]

index fund

 

[mmmmmmmmaaaaaaa]

it's better to do your own research and base your options off that

 

[HazzRat]

What are some good investments in 2024?
Are there better options for my money instead of a savings account?
What are some steps I can take now to ensure I can afford to buy a house in Sydney?

Feel free to discuss

I'm thinking:

• NASDAQ: PYPL (PayPal). Because: it has a market cap of 65B despite literally getting quarterly net profits of a billion. A p/e ratio of 18.5 also feels low. Also, if u look at it's stock price at the moment it kinda looks like a low point that's just sitting there waiting to go up.
• NYSE: RBLX (Roblox). Because: of these ducking gen alphas. Keep in mind Roblox has been losing around $275 mil since it's IPO and just appears to be losing more every year, but I think it can grow from its market cap of 26B since its original bubble burst and the game (empirically) keeps getting more popular.
• NASDAQ: RIVN (Rivian). Because: the EV play. Also its September 2023 financial statement looked promising. Instead of losing 1.72B with a revenue of 532M (as of September 2022), they were only losing 1.37B with a revenue of 1.34B.

In all seriousness though, if I were to invest in one of these it would be PayPal. As Warren Buffet says it's not about investing in decent companies at great prices, but great companies at fair prices. And I think PayPal best fits this description having such a large market share of the online payment industry (their only competitor I can rly think of is either venmo or individual bank apps like the ANZ app, CBA app, NAB app etc - although idk how Americans pay for things it might be different). They actually make a profit and they make a damn good profit too. Their p/e ratio is also way lower than other tech companies.

Rivian and Roblox are a lot more speculative but I could see them having first mover advantage. Plz don't say u took any financial advice from me when all stocks have their biggest record losses this year.

 

[HazzRat]

index fund

Boring. Losing money is way funner.

 

[Trebla]

Depends on your own risk appetite. Basically, where is your personal comfort zone (financially) in terms of potential losses you’re prepared to accept in pursuit of higher returns?

 

[scaryshark09]

where is your personal comfort zone (financially) in terms of potential losses you’re prepared to accept in pursuit of higher returns?

i hate losing more than i love winning, so i prefer low risk

 

[wollongong warrior]

i hate losing more than i love winning, so i prefer low risk

government bonds

 

[scaryshark09]

government bonds

whats the advantage of a government bond over a savings account?

 

[HazzRat]

i hate losing more than i love winning, so i prefer low risk

I reckon deep OTM calls on NVDA

 

[scaryshark09]

I reckon deep OTM calls on NVDA

sorry i dont understand, ur speaking another language to me

 

[scaryshark09]

this all seems too complex, is gambling a good investment?
ive only gambled once and i 4x my money.

 

[HazzRat]

sorry i dont understand, ur speaking another language to me

A call is basically when u bet with a stock broker that a stock with hit a certain strike price within a given time period (for American options at least). OTM just means out of the money (very risky). So what u do u buy a call for NVDA at say $600 within the next month (atm those calls go for abt $3.90), and every dollar it earns over $600 is urs to keep. If it doesn't hit the strike price u lose all ur money . Still funner than investing.

 

[Aeonium]

sorry i dont understand, ur speaking another language to me

he's a finance bro in the making

 

[Trebla]

i hate losing more than i love winning, so i prefer low risk

Something like ETFs linked to an index (e.g. ASX200) is probably more your thing. It’s an easy to understand “set and forget” type product and generally reliable returns long term. Individual stocks are generally too risky and unpredictable for your appetite.

You can also consider bonds (which are heavily correlated to interest rates) but make sure you do research and understand how they actually work. Ordinarily they are low risk but recent interest rate hikes basically screwed a lot of people who invested in bonds (with Silicon Valley bank being the most high profile example).

There is also nothing wrong with term deposits now that interest rates are at their highest since the past decade (which is basically risk free). In some years (e.g. 2022), they have even outperformed the ASX200.

 

[HazzRat]

asx200 is ass. If u can invest in the s&p.

 

[mmmmmmmmaaaaaaa]

invest in eth

use bloomberg for research

 

[totally_screwed]

stonks

 

[Trebla]

asx200 is ass. If u can invest in the s&p.

View attachment 42084

Should go without saying, but I’ll say it anyway; beware the charts that cherry pick the one time domain and using that to generalise. The chart looks that way only if you start in 2007 so any conclusions should only be about that specific timeframe in the past, not in general.

If you pick a different time domain then you can get drastically different pictures from the same data:

 

[HazzRat]

View attachment 42085

S&p500 is still slightly better.