Re: October [censored] thread
 

[ QUOTE ]
ah, ok. I didnt realize they treated trading earnings are regular income, I thought it fell under cap gains. I realized there was a difference between st. term and long term cap gains but I thought it was based on fixed rates, no short term = your regular tax bracket. That makes sense

[/ QUOTE ]
Actually, they only do so when you have a small regular income and large capital gains. If you make like 200k and has a 10k capital gains, I doubt they give you the AMT treatment.

Re: October [censored] thread
 

I've been lurking in the BFI forum every day for a few weeks & appreciate this [censored] so much. Even got myself a (small passive all ETF) portfolio now. Just fyi... thxthxthx

Re: October [censored] thread
 

I'm mostly a lurker too. Slated to graduate next year with a Bachelor of Commerce Business Management degree, finance major, economics minor. I too am going to set up a small portfolio likely all ETF's.

Question: I'm Canadian and wondering which broker I should use, I'm going to invest in maybe 3 ETF's and some t-bills. The ETF's are the start of my portfolio (think very long time horizon, and high risk tolerance) and I don't see myself making any more investment in the portfolio until at the least mid '08 barring some lucky event (no more funds basically). The t-bills are for a student debt I have to pay in ~13 months... Who do I sign up with: Etrade, TD, something else?

Re: October [censored] thread
 

Hey guys,

I'm new to investing and have been blindly investing in some Vanguard ETF's with good success. I am young and want to invest wisely. I have read some beginner's books and been trading on and off for a couple months, so I know the basics.

I now want a book and/or place that teaches me how to evaluate stocks(companies) and etf's. Like what to look for in a good company, how to look through their credentials, etc.


Any good books and/or other things to help me with this?

Re: October [censored] thread
 

security analysis by graham

Re: October [censored] thread
 

[ QUOTE ]
security analysis by graham

[/ QUOTE ]
Ewwwwwwwwwwwwww

Re: October [censored] thread
 

[ QUOTE ]
[ QUOTE ]
security analysis by graham

[/ QUOTE ]
Ewwwwwwwwwwwwww

[/ QUOTE ]

what? Sure its boring but its worth a read.

Re: October [censored] thread
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
security analysis by graham

[/ QUOTE ]
Ewwwwwwwwwwwwww

[/ QUOTE ]

what? Sure its boring but its worth a read.

[/ QUOTE ]
Haha. It was a joke. Kind of.

I have it sitting in my book case. I still can't believe my first investment book was "The Intelligent Investor." That's like the worst decision ever because it turned me off and delayed my stock market learning for a few years.

Luckily, Warren Buffett exists [img]/images/graemlins/cool.gif[/img]

Re: October [censored] thread
 

I've been getting my subscription to the economist for the last month and i've really been liking that. It's much better then picking it up on an occasional basis cause you really get a feel whats going on and how things are changing week to week.

Are there any other good magazines you guys could suggest that might be worth reading? I'm in Canada if that makes any difference.

Re: October [censored] thread
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
security analysis by graham

[/ QUOTE ]
Ewwwwwwwwwwwwww

[/ QUOTE ]

what? Sure its boring but its worth a read.

[/ QUOTE ]
Haha. It was a joke. Kind of.

I have it sitting in my book case. I still can't believe my first investment book was "The Intelligent Investor." That's like the worst decision ever because it turned me off and delayed my stock market learning for a few years.

Luckily, Warren Buffett exists [img]/images/graemlins/cool.gif[/img]

[/ QUOTE ]

I find the newer versions are easier to read because they mix up grahams original writing which can be dense with new incepts that make it a much quicker read despite doubling the length

Re: October [censored] thread
 

A canoeist is traveling upstream. 2 miles later he comes across a log going the opposite way.He travels for another 1 hour then turns around. He gets to his starting point the same time the log does. What is the speed of the stream?


This word problem has me stumped. Any ideas?

Re: October [censored] thread
 

The problem doesn't make any sense. He shouldn't catch up to the log at all, assuming they are just floating along without paddling.

James

Re: October [censored] thread
 

[ QUOTE ]
The problem doesn't make any sense. He shouldn't catch up to the log at all, assuming they are just floating along without paddling.

James

[/ QUOTE ]

2 miles in 2 hours.

Re: October [censored] thread
 

We need to figure out the speed that the paddler needs to travel to go 1 hour north and then turn around and cover his previous distance + 2 miles in the time that the stream carries the log 2 miles. You figure that if the canoeist is using the same force in both directions, his speed would obviously differ depending on which way he was travelling. If we assume he'd travel a certain speed in still water, he'd theoretically travel that speed - the stream's speed when heading upstream, and that speed + the stream's speed heading downstream.

So if the stream's speed is 1 mph - the paddler's speed would need to be 3 mph...he would go 2 miles upstream in the first hour(3mph - 1mph), and then in the next hour he would come back 4 miles to catch the log - having traveled 2 miles upstream and 4 miles downstream over the course of these 2 hours. The log would travel the 2 miles over the course of 2 hours(at 1mph)

James

Re: October [censored] thread
 

ha, looks like you snuck the answer in as i was typing mine. your answer is correct, i presume you figured out the course to solve it as well!

Re: October [censored] thread
 

[ QUOTE ]
ha, looks like you snuck the answer in as i was typing mine. your answer is correct, i presume you figured out the course to solve it as well!

[/ QUOTE ]

I cant take credit one of the guys in the math forum came up with it. I was over thinking the problem when taking into consideration the effect of the stream speed on the canoe. Nice explanation though.

Re: October [censored] thread
 

[ QUOTE ]
We need to figure out the speed that the paddler needs to travel to go 1 hour north and then turn around and cover his previous distance + 2 miles in the time that the stream carries the log 2 miles. You figure that if the canoeist is using the same force in both directions, his speed would obviously differ depending on which way he was travelling. If we assume he'd travel a certain speed in still water, he'd theoretically travel that speed - the stream's speed when heading upstream, and that speed + the stream's speed heading downstream.

So if the stream's speed is 1 mph - the paddler's speed would need to be 3 mph...he would go 2 miles upstream in the first hour(3mph - 1mph), and then in the next hour he would come back 4 miles to catch the log - having traveled 2 miles upstream and 4 miles downstream over the course of these 2 hours. The log would travel the 2 miles over the course of 2 hours(at 1mph)

James

[/ QUOTE ]

I don't follow - as far as I can see, the paddler's speed is an indeterminate (assuming that the problem doesn't specify how long it took him to go the first three miles - the wording is unclear - if it does, it's a bad question).

Let paddler's speed be p and stream speed be s. After 2 miles *and* one hour, paddler's position is at 2 + p - s from the starting position. The log is at 2 - s from the paddler's starting position. The paddler's going at the speed of p + s and the log at the speed of s. The ratio of their speeds must be equal to the ratio of their distance away from the starting position.

(2 + p - s) / (2 - s) = (p + s) / s

which is same as

(p + (2 - s)) / (2 - s) = (p + s) / s

which, assuming p > 0 and s > 0, implies 2 - s = s, thus s = 1, leaving p an indeterminate.

Another way to look at it is that, if s = 1, the log takes two hours to cover two miles. It doesn't matter what the paddler's speed is, if he goes upstream for 1 hour and downstream for one hour, he will end up where the stream takes him, because he's cancelled out his own paddling.

Re: October [censored] thread
 

Right, I was just using a hypothetical speed to make it easier to understand for the poster who asked the question. Of course, speed is relative and if he paddles away from the log for an hour, he will paddle for an hour in the other direction to catch it(the stream's speed will cancel itself out) - so all we need to determine is a speed over which the log will travel 2 miles in 2 hours....which is 1 mph obv.

James

Re: October [censored] thread
 

nice work james. Yeah the answer is going to be a multiple of the speed of the current, it doesnt really matter what speed it flows. Now some brags:

Brag: got 95% on my investment portfolio midterm, I could teach this [censored] class.

Brag: got my fake Patrick Bateman business cards to finalize my halloween costume.

Re: October [censored] thread
 

Only question I got wrong is this, could someone explain it to me?

Q: The global minimum variance portfolio formed from two risky securities will be riskless when the correlation coeffcient between the two securities is..

A) 0
B) 1.0
C) .5
D) -1
E) negative

I answered E, the correct answer is d? I assumed if you balance the weights and can go over 100% in one security and short the other as long as there is a neg correlation we can reduce variance to zero.

Re: October [censored] thread
 

[ QUOTE ]
Only question I got wrong is this, could someone explain it to me?

Q: The global minimum variance portfolio formed from two risky securities will be riskless when the correlation coeffcient between the two securities is..

A) 0
B) 1.0
C) .5
D) -1
E) negative

I answered E, the correct answer is d? I assumed if you balance the weights and can go over 100% in one security and short the other as long as there is a neg correlation we can reduce variance to zero.

[/ QUOTE ]

D is the correct answer, of course. You need to balance the weights even with the correlation of -1. Without perfect correlation, you can't reduce variance to zero. To see this, take, say SPY and some sort of ETF that has negative beta and see if you can combine them to produce zero variance. You can't, if either has any variance.

Re: October [censored] thread
 

[ QUOTE ]
got my fake Patrick Bateman business cards to finalize my halloween costume.

[/ QUOTE ]

bateman is such a legend.

i just got back from 2 days at work at the new job. basically i don't mind (too much) the working aspect, but what i do mind is the concept of networking.

i don't mind being friendly to colleagues, but what i really hate is the concept that i should try to get to know people, or get known by people, in the firm (big 4 fwiw).

i want to treat my job as something which is a part of my life, not completely my life, and i feel by putting the emphasis on networking so it becomes a bigger part of my life.

if i plan to stay for only 3 years i assume so long as i do enough to stay in the firm for that length of time, then networking isn't really that important?

Re: October [censored] thread
 

anyone know if absolute poker is publicly traded? i did some googling and tried a ticker lookup and couldnt find anything.

Re: October [censored] thread
 

[ QUOTE ]
anyone know if absolute poker is publicly traded? i did some googling and tried a ticker lookup and couldnt find anything.

[/ QUOTE ]
It's privately owned.

Re: October [censored] thread
 

[ QUOTE ]
leaving p an indeterminate.

[/ QUOTE ]

Yes this is correct and was actually my original error. The question was for the speed of the stream and all you needed to know was two miles were traveled in two hours. This is an example of "over thinking a problem". Probably would have been easier for someone without a math background. [img]/images/graemlins/grin.gif[/img]

Missing link was stream speed is relative.

Re: October [censored] thread
 

Anyone have any thoughts on shorting oil at $90? Most likely through an Short Energy ETF.

Re: October [censored] thread
 

I'm looking for trends in real estate prices for different geographies. In particular anything on florida would be useful. Anyone have anything?

Krishan

Re: October [censored] thread
 

[ QUOTE ]
I'm looking for trends in real estate prices for different geographies. In particular anything on florida would be useful. Anyone have anything?

Krishan

[/ QUOTE ]

I know I have been saying the L/V real estate market(as well as "some" other highly depressed markets)have some AWESOME bargains/steals IMO.... as far as Florida is concerned,I think you are dealing with a diff. animal that I am not that familiar with,just based on diff. economic conditions,huge diversity in locations throughout the state,bigtime speculative investing from locals/snowbirds,etc.

I would strongly suggest consulting a professional that specializes in the specific Fla. market you are looking into that you TRUST...before you jumping in.

Is this a first time or primary residence, vacation/secondary home...or investment property?

I do assume there are PLENTY of bargains though as well there!

~stephen [img]/images/graemlins/smile.gif[/img]

Re: October [censored] thread
 

[ QUOTE ]
[ QUOTE ]
I'm looking for trends in real estate prices for different geographies. In particular anything on florida would be useful. Anyone have anything?

Krishan

[/ QUOTE ]

I know I have been saying the L/V real estate market(as well as "some" other highly depressed markets)have some AWESOME bargains/steals IMO.... as far as Florida is concerned,I think you are dealing with a diff. animal that I am not that familiar with,just based on diff. economic conditions,huge diversity in locations throughout the state,bigtime speculative investing from locals/snowbirds,etc.

I would strongly suggest consulting a professional that specializes in the specific Fla. market you are looking into that you TRUST...before you jumping in.

Is this a first time or primary residence, vacation/secondary home...or investment property?

I do assume there are PLENTY of bargains though as well there!

~stephen [img]/images/graemlins/smile.gif[/img]

[/ QUOTE ]

I'm not buying. I'm researching a company trading below book value. But a lot of the real estate is in the SE with 15% of property in FL. Before I send something to my boss I'd like to have some info on real estate price drops by region or in FL. I haven't had any luck with google so came here.

Krishan

Re: October [censored] thread
 

Krishan,

Are you talking about investing in particular REIT?

Or home builder?

IMO ...some of the home building stocks are getting,quite attractive at these levels....and the more NEGATIVE press/stats......makes them even MORE attractive!

SF

Re: October [censored] thread
 

S&P GRA CREX Index

Re: October [censored] thread
 

[ QUOTE ]
Krishan,

Are you talking about investing in particular REIT?

Or home builder?

IMO ...some of the home building stocks are getting,quite attractive at these levels....and the more NEGATIVE press/stats......makes them even MORE attractive!

SF

[/ QUOTE ]

It's a retailer of home furnishings. [img]/images/graemlins/tongue.gif[/img] So it's gotten killed along with the real estate downturn. But at some point the price has to be right as it has minimal leverage and is trading at .7 * book. My assignment is to figure out the potential values of the real estate (tough to do).

Krishan

Re: October [censored] thread
 

[ QUOTE ]
[ QUOTE ]
Krishan,

Are you talking about investing in particular REIT?

Or home builder?

IMO ...some of the home building stocks are getting,quite attractive at these levels....and the more NEGATIVE press/stats......makes them even MORE attractive!

SF

[/ QUOTE ]

It's a retailer of home furnishings. [img]/images/graemlins/tongue.gif[/img] So it's gotten killed along with the real estate downturn. But at some point the price has to be right as it has minimal leverage and is trading at .7 * book. My assignment is to figure out the potential values of the real estate (tough to do).

Krishan

[/ QUOTE ]

Whats the symbol...i will look into it,and give you MHO

SF

Re: October [censored] thread
 

Quick concept check..

Im running a regression of individual returns vs SP500 returns. SP returns are not adjusted for dividends so to get the actual returns each period ill need to add them in. So the info I was told to use was a 2.01% div yield for each year in the period. I then figured out the monthly div yield (2.01% ^ 1/12) and added that to the capital gains of the SP500 every month to get my total SP500 return.

Re: October [censored] thread
 

It probably wouldn't be very hard to get actual div yields for the various years, rather than using 2.01% throughout.

You should be dividing by 12 to get a monthly yield, not raising to 1/12.

Re: October [censored] thread
 

Hi. I work for an investment management firm in Boston, MA. We're hiring now. We're looking for very smart people, a year or two out of college, not necessarily with a lot of finance experience. If you might be interested, PM me for more info. Here's the description:

Research Associate

<XXXX> provides global and international investment strategies to institutional investors. <XXXX>’s investment process is quantitative, exploiting behavioral and informational pricing anomalies as they propagate within the networks of related companies. We are currently looking for a Research Associate to join our research team and to help us further develop our investment process.

An ideal candidate has an undergraduate degree from a top educational institution in a field that requires problem solving skills, such as applied mathematics, economics, engineering, or computer science. We pay a lot of attention to your grades, your undergraduate thesis and/or other research projects, and recommendations by your professors. Experience with and interest in financial markets is a plus.

We offer interesting projects, a competitive compensation, intense and long (but not sweatshop) hours, colleagues with a sense of humor, and a growing firm with many further opportunities.

Re: October [censored] thread
 

i wanna get involved in investing. i dont really have an much of an idea about which route to go.

What sorta line is best?
college or uni?
and how long are most courses.
can i pick up any good books, and im not really intrested in working for anyone, would be my money id use.
obv talking over a few years or whatever.
any advice appreciated.
and im 18 fwiw
looking to invest in anything really, ideas about whats best etc

Re: October [censored] thread
 

Internet (Search) Wars:

http://www.techcrunch.com/2007/10/18...-search-sites/

Re: October [censored] thread
 

ahnuld,

when you go pro what kind of hours do you plan on putting in? do you have some extra motivation since you were considering doing IB and probably working 80 hrs/week?

Re: October [censored] thread
 

I figure ill probably put in about 3-4 poker hours a day and 3-4 hours a day either reading or doing investment research. I play 8-10 tables so ill get in at least 2000 hands a day and hopefully 50k hands a month. That should be about $40k a month from poker.