Fiddling about with stocks, funds, etc. No conspiracy theories, please.

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I wonder whether a company would be allowed (under US law) to issue as many preferred shares as they want to and if so whether this has the potential to be detrimental to existing holders of preferred stock or whether the position of those would be grandfathered in terms of the seniority hierarchy. Does anybody know?

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45 minutes ago, jeba said:

I wonder whether a company would be allowed (under US law) to issue as many preferred shares as they want to and if so whether this has the potential to be detrimental to existing holders of preferred stock or whether the position of those would be grandfathered in terms of the seniority hierarchy. Does anybody know?

 

Wikipedia says this on the topic of share issuance in general:

 

Quote

Rights offerings offset the dilutive effect of issuing more shares. For this reason, stock-exchange rules don't require that shareholders approve rights offerings if the company offers at least 20% of outstanding shares at a discount. However, some investors see rights offers as an "unwelcome choice between stumping up more cash or seeing their existing holding diluted", as a result of which rumors that a company might undertake an offering can hurt its share price.  Because rights offerings are unpopular, companies typically choose them as a last resort, perhaps due to insufficient investor demand.

 

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Resurrecting the thread:D.

Hi Guys,

I have gone through this thread and others on investments.

I just finally got around to organising my personal finance and would like to open an investment account and would like everyone's opinion on and suggestions on how to start, especially

- the best depot to use

- If it is the right time to start buying

- Maybe ideas on ETF and/Stocks to start with.

 

Profile

I am non-EU and non US.

Don't have tons of funds :D

An absolute beginner

Interested in investing a few 100€ monthly for long term.

 

Thanks in anticipation of your response.

 

Note: I have done  and still doing own research but will like to hear your thoughts based on personal experiences.

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I'm sorry that no one has gotten back to you. I don't know how to advise non EU people about investing in Germany. Maybe someone will read this and help.

 

While I'm here, is anyone invested in Varta? Himself is up 458% after buying some at the beginning of the year. Of course, he shoulda, woulda, coulda bought more.

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I find myself in a similar boat to Alteregouc. I've been dragging my feet for the best part of this 10 year bull run not having enough confidence to actually put my money where my mouth is. But I think I'll be testing waters soon. (And I'm sure when I do, it'll be time for the great financial crisis again!)

I'm slightly flummoxed by the online brokers too. Seems like traderepublic is the only one offering commission-free trades? The online broker industry also appears to be a few steps behind when compared to the offerings from US/UK/Asia?

@fraufruit I had Varta on my monopoly-money trading app. Shoulda, woulda coulda! (Kicking myself!!)

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@Alteregouc @Boggsdollocks

 

I've been posting on this thread since page 1 (complete beginner). I am still a beginner, but nevertheless it's been 2 years now and I am currently €1500 up on about €17k invested.

 

You can follow my "story" on this thread.

 

But, the short version is that I have a 2 Comdirect depots. One is fully controlled and managed by the bank (cominvest) for which you pay a small monthly fee. The other one is for me to play with. At the beginning I did indeed "play". I've now stopped playing and have settled on a sparplan of 5 ETF's (chosen with the help of justETF) and 2 somewhat random stocks. Comdirect offer a large number of commission free ETF's (you can filter these on justETF) and soo all 5 of my ETF's are commission free (Top-Preis ETFs). Just note, these change around at the beginning of each year.

 

So that's it. I recommend an ETF sparplan. I can also recommend comdirect, but beware, I believe there is talk of it being sold off or something. Not sure if that's any problem going forward or not. I've just opened a JuniorDepot with them for my son so I'm sticking with them for now.

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Thanks @theGman 

There's a wealth (no pun intended) of knowledge in this thread. Looks like another long night of reading!

By the way, does anybody think Deutsche Bank will be allowed to go out to pasture as Lehman Brothers did?

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Hi,

 

flatex is going to introduce depot cost of 0,111% of the global value of your depot.

I am looking around to find a decent broker (already checked "broker vergleich").

 

Onvista is not an option because they accept just 5-6 nationality and italian is not among them.

Smartbroker seems interesting but the fee for the USA market are crazy, at least for my orders volume.

It seems the less worse option is my DKB... I don't understand why in Germany brokers are SO expensive.

 

Do you have any other broker to suggest ? Apart having reasonable fees,  I am looking for brokers that also take care of all the tax part. I mean that deduct automatically the tax I have to pay for a gain, take  in account my losses for tax discounts (for  future gain operations), etc. 

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I'm thinking of diversifying and investing on biotech ETF, especially if there is a biotech ETF focused on startups (higher risk).

I am doing that directly by trading stocks, with positive results, but it is too unstable and risky.

I am betting on biotech because it is one of the areas which is more resilient to potential recessions. Or at least they have a decent delay in reaction to recessions, enough to jump out.

 

Any good advice on such an ETF?

 

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8 hours ago, MikeMelga said:

I'm thinking of diversifying and investing on biotech ETF, especially if there is a biotech ETF focused on startups (higher risk).

I am doing that directly by trading stocks, with positive results, but it is too unstable and risky.

I am betting on biotech because it is one of the areas which is more resilient to potential recessions. Or at least they have a decent delay in reaction to recessions, enough to jump out.

 

Any good advice on such an ETF?

 

Not an ETF and not focussing on startups but maybe worth a look: https://www.bbbiotech.ch/de/bb-biotech/strategie-portfolio/portfolio/

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18 hours ago, Frantic said:

Hi,

 

flatex is going to introduce depot cost of 0,111% of the global value of your depot.

I am looking around to find a decent broker (already checked "broker vergleich").

 

Onvista is not an option because they accept just 5-6 nationality and italian is not among them.

Smartbroker seems interesting but the fee for the USA market are crazy, at least for my orders volume.

It seems the less worse option is my DKB... I don't understand why in Germany brokers are SO expensive.

 

Do you have any other broker to suggest ? Apart having reasonable fees,  I am looking for brokers that also take care of all the tax part. I mean that deduct automatically the tax I have to pay for a gain, take  in account my losses for tax discounts (for  future gain operations), etc. 

 

Yeah, as it happens I’m currently transferring my portfolio to Onvista from Flatex. And I know I’m not the only one. Bye bye losers.

 

It sucks Onvista won’t take you. According to the last available data from Test.de (2019) the second best option you have now is DKB. For their example of large portfolio €150,000, 15 positions and 4 orders per year the cost is €74 for DKB (€28 for Onvista).

 

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Basic consideration: I came about the following (source: https://seekingalpha.com/article/4317177-agnc-another-11-yield-double-in-recession?v=1579465064&comments=show):

Quote
"...The overnight repo market is NOT the market that mREITs rely on. That is the market your bank, your broker, your insurance company etc rely on. So if that market collapses, your smallest concern will be whatever loss you suffer from AGNC. An entire dystopian novel could be written about all the horrible things that could go wrong in your life if the Fed allowed the overnight repo market to fail. The entire US economy would be brought to a standstill. ..."

That novel is currently being told by Dr. Krall, former consultant working with Boston Consulting Group, McKinsey etc. and since September 2019 CEO of Degussa (biggest German precious metal dealership). He predicts a collapse of the Eurozone banking system because of negative interest rates which in combination with labour market regulations (which make firing employees to lower their cost unaffordable because of the golden handshakes required) are making it impossible for German banks to be profitable. He claims authority on the issue because he wrote the risk assessment algorithms used by most banks. According to him those algorithms aren´t suitable in a negative interest rate environment so that banks can´t even properly assess their credit risks. He´s basically saying that negative interest rates are not only undermining banks business models but have also been allowing unproductive companies to survive which shouldn´t have survived because they wouldn´t be able to earn their cost of capital under normal circumstances. As this has been going on for more than 10 years and since under normal conditions 1.5% to 2% of companies were going bankrupt whereas follwing the Lehman crisis only 0.5 did this means that about 10-15% of company loans are basically bad debt but will not be detected as such by banks (for reasons see above) and this will wipe out their equity as soon as interest rates will start to normalise (if not earlier). This in turn will lead to banks not trusting each other and not lending mobney to each other (or everyone else for that matter).
Is this just scaremongering or does he have a point? And if he does have a point: will that crisis spill over to the US and the world economy?

Food for thought, isn´t it?

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Sure is yet everybody has a prediction and a crystal ball. I usually take such predictions, including positive ones, with a grain of salt.

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Yes. The negative interest rates here are fascinating subject matter.  And as my retired economist friend used to say when asked what his interest rate prediction was "that's not my specialty area, but if I could somehow predict interest rates I would of course never have to work another day in my life."

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On 03/12/2019, 09:55:24, theGman said:

@Alteregouc @Boggsdollocks

 

I've been posting on this thread since page 1 (complete beginner). I am still a beginner, but nevertheless it's been 2 years now and I am currently €1500 up on about €17k invested.

 

You can follow my "story" on this thread.

 

But, the short version is that I have a 2 Comdirect depots. One is fully controlled and managed by the bank (cominvest) for which you pay a small monthly fee. The other one is for me to play with. At the beginning I did indeed "play". I've now stopped playing and have settled on a sparplan of 5 ETF's (chosen with the help of justETF) and 2 somewhat random stocks. Comdirect offer a large number of commission free ETF's (you can filter these on justETF) and soo all 5 of my ETF's are commission free (Top-Preis ETFs). Just note, these change around at the beginning of each year.

 

So that's it. I recommend an ETF sparplan. I can also recommend comdirect, but beware, I believe there is talk of it being sold off or something. Not sure if that's any problem going forward or not. I've just opened a JuniorDepot with them for my son so I'm sticking with them for now.

 

Thanks @theGman, i have read all your posts and it is very enlightening, especially following the your story from start till today, congrats on the 1.500€. I will look into Comdirect's ETF sparplan as suggested

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5 minutes ago, Alteregouc said:

 Thank you, my german is basic but i will still check that out, google translate always get about 80% of the gist );

You might try Deep L. It's regarded as a much better translator.  I learned about it from a software language translation expert.

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