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Old 02-25-2021, 10:37 PM   #461
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Gamestop just one among many symptoms. Buffet's right hand man thinks things are going to "end badly": https://finance.yahoo.com/news/buffe...233811720.html
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Old 02-26-2021, 06:27 AM   #462
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So it looks like with the market drop yesterday there was a "flee to safety" of GME.
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Old 02-26-2021, 07:28 AM   #463
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So it looks like with the market drop yesterday there was a "flee to safety" of GME.
Soon the Fed will be settling all transactions using GME. /s
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Old 02-26-2021, 12:13 PM   #464
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Gamestop just one among many symptoms. Buffet's right hand man thinks things are going to "end badly": https://finance.yahoo.com/news/buffe...233811720.html
Buffett / Berkshire may be smart, but he's far from being perfect and has made many errors in his investments. He avoided Apple, though he got in very late and then unloaded and stock continued to climb. He got in on JPM late, held it bailed out and stock has been on a major run since then. Many other cases where they zigged when they should have zagged. Just look at 1 year performance of Berkshire against the major indexes, has underperformed over 1 and 5 years. So just shows that they get it wrong more often than the broad markets. Screenshot_20210226-131053_ETRADE.jpg
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Gamestop?
Old 02-26-2021, 01:22 PM   #465
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Gamestop?

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Gamestop just one among many symptoms. Buffet's right hand man thinks things are going to "end badly": https://finance.yahoo.com/news/buffe...233811720.html

Bulls always end badly and he said he has no idea when this one will. OK. I thought his was the (only) intriguing comment among his otherwise obvious comments:

ďThe first rule of a happy life is low expectations. Thatís one that you can easily arrange. If you have unrealistic expectations, youíre going to be miserable all your life,Ē Munger said.
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Old 02-26-2021, 02:03 PM   #466
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Bulls always end badly and he said he has no idea when this one will. OK. I thought his was the (only) intriguing comment among his otherwise obvious comments:

“The first rule of a happy life is low expectations. That’s one that you can easily arrange. If you have unrealistic expectations, you’re going to be miserable all your life,” Munger said.

Speaking of high expectations, I just saw an article on Bloomberg pointing out that the most traded option on the market yesterday, Thursday 2/25, was $800 call option expiring today 2/26. GME was in the $40 earlier in the week, and jumped up to as high as $177 yesterday. Obviously, a lot of traders wanted to gamble that it would get to $800 today, just a day later.

GME is at $119 at this writing. There's only another hour for it to climb to $800. So, it looks highly unlikely, and that's an understatement.

OK, how about next Friday, or the Friday after that? Options at $800 were being bought, despite not being cheap. Buy, buy, buy...
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Old 02-26-2021, 02:16 PM   #467
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The above $800 call option with expiry 2/26 was 1c earlier, jumped up to more than $2 yesterday, and going back down to 1c now before expiring soon.

A lot of people placed the $200 minimum bet (1 contract covers 100 shares) for a pipe dream. Open interest is more than 24,000 contracts.

They are now betting on $800 by next Friday. The premium is currently $3.45/share. More than 25,000 contracts have been opened.

Maybe allow another week for GME to reach $800, Friday 3/12 ? It will cost you $5.6/share.
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Old 02-26-2021, 03:05 PM   #468
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NEWS FLASH: GME to replace Bitcoin!

(YMMV)
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Old 02-26-2021, 06:11 PM   #469
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GME, an idiot avalanche, that's about it.
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Old 02-26-2021, 08:57 PM   #470
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gme, an idiot avalanche, that's about it.
bingo!
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Old 02-26-2021, 09:52 PM   #471
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Another billionaire titan warns of things ending badly:

https://finance.yahoo.com/news/eager...175541872.html
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Old 02-27-2021, 12:10 AM   #472
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Also this ominous indicator, things may end badly:

https://finance.yahoo.com/news/warre...tsrc=fin-notif
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Old 02-27-2021, 10:40 AM   #473
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So it looks like with the market drop yesterday there was a "flee to safety" of GME.
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Old 04-05-2021, 10:38 AM   #474
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So as is the case with the Stock Market, a perceived value can be capitalized on to create real value. Gamestop is going to sell 3.5 million shares and add One Billion dollars in capital to the corporation. Now this is a billion that could not have existed just a couple months ago, and as Elon Musk has shown, it is more important to sell stock to grow a company than sell a product. Just have products people seem to desire and a promise to provide them in the future and you can capitalize on them.

The intersesting is the S&P500 index investors had to buy Gamestop in 2007 @ 49 when it was added to the S&P500 and then sold @ 36 when it was dropped in 2016. Maybe they get to buy it back in a year or so at 150-200>?
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https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
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Old 04-05-2021, 03:53 PM   #475
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The intersesting is the S&P500 index investors had to buy Gamestop in 2007 @ 49 when it was added to the S&P500 and then sold @ 36 when it was dropped in 2016. Maybe they get to buy it back in a year or so at 150-200>?

A good reason to hold Total US Index instead?

I suspect the drag is minimal. I wonder if itís ever been measured?
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Old 04-05-2021, 04:11 PM   #476
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It's just humorous, as there is so much money continually coming in to the S&P500 index stocks relative to the total market (from 2008 the S&P500 has risen from 80% of the total market value to 82%) and VTI, the impact is minimal as flows are net into the index not out of the index. Results from VTI are for all practical purposes identical to the S&P500. If we ever get to a time where the S&P500 where to fall to 70% of VTI then you would see an underperformance, but simple inflows keep them the same.
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ERD 50 says I should post this as a warning in believing anything I would post. I allocated one percent of my portfolio to calls for 2020 and then sold all my stocks on March 5, 2020. Returned back in on June 3, 2020.

https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
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