Talking stocks, trading, and investing in general

Discussion in 'Business, Careers & Education' started by mikeman, Feb 2, 2011.

  1. otc

    otc Senior member

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    Everybody should diversify!!! Unless you are a major insider at a publicly traded corporation, in which case diversification means you have zero faith in your company and it is going to fail soon.
     


  2. SkinnyGoomba

    SkinnyGoomba Senior member

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    Many reasons to sell, only one reason to buy. Massive inside selling is a red flag, but many insiders like to diversify their holdings since thir company stock starts to become the great majority of their portfolio.
     


  3. jbarwick

    jbarwick Senior member

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    Was able to convert some normal fund shares at Vanguard to their Admiral Shares version. Expense ratios for the separate funds changed from 0.21% to 0.14% and 0.28% to 0.14%.

    For those non-Vanguard guys, Admiral Shares start once you have a specific amount of money tied to those funds. In this case it was a $10K minimum for both. I don't know what happens if we have a correction and the amounts drop below $10K but for now I am saving on the expense side of things.

    It's the small things that make you smile after a rough day of work around the house.
     


  4. capnMURPHY2021

    capnMURPHY2021 Senior member

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    You have to maintain the $10k/$50k/$100k minimum for Admiral Shares, otherwise they will drop you back to Investor Shares.
     


  5. ter1413

    ter1413 Senior member

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  6. amerikajinda

    amerikajinda Senior member

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    That's pretty awesome! Very low expense ratios... :slayer:
     


  7. bbhues

    bbhues Well-Known Member

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    Question (disclaimer that I'm not at all finance-savvy): I have Vanguard Windsor II Fund Admiral shares in my 401k, but it says that the total expense ratio is 0.27%. Should all Admiral Shares have the lower ratio?
     


  8. jbarwick

    jbarwick Senior member

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    I am not an expert on expense ratios either but the Admiral Shares are lower than their normal funds shares. I assume that it depends on the activity of the fund manager in the account which makes up the expense ratio. The S&P Admiral shares are 0.05% as they don't have to do much to mirror the S&P but in your fund they may have to do a lot more work to get the fund to mirror the target they are shooting for.
     


  9. Cantabrigian

    Cantabrigian Senior member

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  10. stevent

    stevent Senior member

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    LBKY :slayer::slayer::slayer:

    Didn't realize I was up so much on it, too bad I bought so few shares
     


  11. EEWithoutStyle

    EEWithoutStyle Senior member

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    Which online brokerage do you guys use? I'm thinking about Merrill Lynch/BOA because of the 30 free trades a month.
     


  12. idfnl

    idfnl Senior member

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    Interactive Brokers. No reason to look elsewhere.
     


  13. idfnl

    idfnl Senior member

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    This is one problem, but there is a much bigger one. On the whole, this is the biggest scam on the planet.

    The Lewis book details front running using differences in market data. Its why the BATS guy lied on CNBC. O’Brien said BATS uses high-speed data feeds but in fact two of its exchanges use a slower feed to price trades which enables the outpacing (front running/scalping). O'Brien really should resign over his behavior on CNBC. If you haven't seen the debate, its worth 20 minutes.

    This documentary explains the scam within the scam in great detail. What many of these guys are doing is illegal. Some exchanges are providing different customers special order types which basically allows them to jump the queue. This was a war of HFT machines vs HFT machines because some HFT customers were allowed to jump ahead of others (and you and me). I find it rather comic that all the discussion on this recently has ignored that "hide not slide" order types are illegal. Trading ahead of other investors violates regulatory rules.

    The order types in question were approved but the exchanges lied and got approval for certain order types by not disclosing how they really work. How they really work is allowing people who pay the premium for this order type to go strait to the front of the line. This is illegal.


    [VIDEO][/VIDEO]



    This book details it all:

    http://www.amazon.com/Dark-Pools-Machine-Traders-Rigging/dp/0307887170




    Can't see the article. Would like to hear your opinion.
     
    Last edited: Apr 4, 2014


  14. Texasmade

    Texasmade Senior member

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    I use this also since I also bank with BoA.
     


  15. Cantabrigian

    Cantabrigian Senior member

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    I hate the way people are using the phrase 'front running.'

    As I understand it, front running is something very specific. When a broker is given an order, he has to execute it before he deals for himself. He can take the other side of the order but he can't trade the same direction ahead of the custy. He doesn't have to take any risk if he doesn't want and he gets paid a commission for his time. He has an obligation to his customer to execute his customer's and not front run them,

    A market maker / dealer is not a broker. Clients don't pay these guys commissions and they don't have the obligations that brokers do. They can show a price or a side of a price if they want. And they can change that as often as they want. And if they feel like it, they can deal on another exchange as fast as they can. And if that's faster than some customer's order comes through his broker to the different exchanges, so be it. Beating someone to the punch isn't front running since there's no obligation there. It's just being faster.

    You can talk about the overall value of allowing or not allowing people to trade really really fast and possibly beat pension funds / mutual funds / etc to the punch. Asness does exactly that in the link I posted. His analysis leads him to believe that HFT has overall reduced trading costs since pre-decimialization wasn't exactly as idyllic as people want to make it out to be. (And, remember, this doesn't effect mom and pop investors who buy shares directly since they basically have to be filled at NBBO.)

    There are sensible discussions to be had about this stuff but this whole IT'S RIGGED!!!!1!! Y U FRONTRUN??!?? discussion is moronic.
     


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