Anybody Buying Yet? Where’s the Bottom?

[Nick87]

Hypothetically if a relative payed back a lump some they owed you. About 2x what you'd invest annually. Would it be better to toss the lump some in at once or spread it out over a year or so. Or does it really not matter? Just thought maybe if I spread it out timing wise would average out.

 

[brymoore]

DCA works great for ongoing contributions into a retirement account for the bulk of us who can't or couldn't max out our giving to them.

DCA is the best plan for the majority of investors. We’re not Warren Buffett, Charlie Munger, Vogel or the S&P (on a risk basis). The majority of the mutual funds couldn’t beat Buffet over a five year average. If you have the time and effort to learn the market, maybe. Or be an inside trader.

 

[SAJ-99]

Hypothetically if a relative payed back a lump some they owed you. About 2x what you'd invest annually. Would it be better to toss the lump some in at once or spread it out over a year or so. Or does it really not matter? Just thought maybe if I spread it out timing wise would average out.

Will it matter in 10-20yrs? No. The problem most people face is that they think they have a plan but can't follow it. I have given this advice before on this same thread - just put it to work and eliminate the worry. If you put it to work at 1pm EST today you look like a genius.LOL. If you want a create plan, use 25% of it to buy every quarter on the 15th or something like that.

For most people, the risk in investing is located between the ears.

 

[Bonasababy]

DCA is the best plan for the majority of investors. We’re not Warren Buffett, Charlie Munger, Vogel or the S&P (on a risk basis). The majority of the mutual funds couldn’t beat Buffet over a five year average. If you have the time and effort to learn the market, maybe. Or be an inside trader.

Don't disagree but see many people who have a sum they want to invest who think it helps to hold a portion back in cash and invest it over time. You aren't earning anything sitting in cash and all the folks you mentioned (I am most familar with Bogel) would suggest holding it in cash is costing you money. Esp. now with higher inflation!

 

[Nick87]

Will it matter in 10-20yrs? No. The problem most people face is that they think they have a plan but can't follow it. I have given this advice before on this same thread - just put it to work and eliminate the worry. If you put it to work at 1pm EST today you look like a genius.LOL. If you want a create plan, use 25% of it to buy every quarter on the 15th or something like that.

For most people, the risk in investing is located between the ears.

Fair enough. Pretty much what I thought. Good news is it'll raise my funds up about 20% or better.

 

[Big Sky Guy]

Anyone buying the SPCX IPO tomorrow?

?

 

[Irrelevant]

Anyone buying the SPCX IPO tomorrow?

?

No.

 

[Bonasababy]

Anyone buying the SPCX IPO tomorrow?

?

H#LL no...too many red flags

 

[Flatrock]

Anyone buying the SPCX IPO tomorrow?

?

No. It is going to be interesting as hell to watch though.

 

[Gulf of America]

Anyone buying the SPCX IPO tomorrow?

?

I put in for 5 shares, we’ll see if I’m allocated any. I think there are so many fanboys it’s going to jump up from the initial offering price and I’ll sell any I get before trading closes. Unfortunately I’ll have long-term exposure in ETF’s because of the Nasdaq shenanigans but other than that I’m only interested in that chaotic first couple hours.

 

[Big Sky Guy]

Unfortunately I’ll have long-term exposure in ETF’s because of the Nasdaq shenanigans but other than that I’m only interested in that chaotic first couple hours.

Or fortunately! Gotta be optimistic!

That is my sentiment as well and I used that exact word, shenanigans, when discussing this very thing yesterday. Seems like enough exposure to me.

 

[SAJ-99]

I put in for 5 shares, we’ll see if I’m allocated any. I think there are so many fanboys it’s going to jump up from the initial offering price and I’ll sell any I get before trading closes. Unfortunately I’ll have long-term exposure in ETF’s because of the Nasdaq shenanigans but other than that I’m only interested in that chaotic first couple hours.

Open indications put the price at $160.

Any guesses on closing price? Below $160? $160-180? Above $180?

 

[Big Sky Guy]

Open indications put the price at $160.

Any guesses on closing price? Below $160? $160-180? Above $180?

Were retail investors able to get in at the $135 price? Just curious how this works since @Gulf of America mentioned being allocated shares and the open on my Schwab app shows $150?

 

[SAJ-99]

Were retail investors able to get in at the $135 price? Just curious how this works since @Gulf of America mentioned being allocated shares and the open on my Schwab app shows $150?

No, not really. Maybe there were allocations to large brokerage houses at The $135 price and they gave some to their “best” retail clients. Think 8-9 figure accounts. Average joe has to buy it at market price.

 

[Big Sky Guy]

No, not really. Maybe there were allocations to large brokerage houses at The $135 price and they gave some to their “best” retail clients. Think 8-9 figure accounts. Average joe has to buy it at market price.

That's what I was figuring. So realistically Joe the Plumber was likely getting in around $160-$165?

 

[SAJ-99]

That's what I was figuring. So realistically Joe the Plumber was likely getting in around $160-$165?

IPOs are fascinating processes and all are different. There was one company that went to retail (I can’t remember the name but think it was a cloud company) that gave retail brokers an allocation and told them to allocate it based on proportional orders. In that case someone may have gotten 1 share, or even 0.5shr. I’m not sure what Elon used, but assume Avg Joe got nothing. I guess Joe can install the toilets in Elon’s new gated towns.

 

[Irrelevant]

Here's one for you rookies out there to learn from. I put in to purchase some Rivian stock at the IPO just above what they were speculating it would open at. Apparently it flew by the price too quickly for my sale to be executed. I was bummed, then forgot about it. Apparently I needed to cancel it based on the way/type of request I made, but didn't. So like a week or two later I get a notification that my sale executed... as it was in free fall. Total kick to the nuts, by the next day it was so low that it wasn't even worth trying to sell it.

 

[Gulf of America]

Were retail investors able to get in at the $135 price? Just curious how this works since @Gulf of America mentioned being allocated shares and the open on my Schwab app shows $150?

Yep. On Robinhood you request shares and based on how many they’re given and how many are requested, your order is partially filled (or in one case not filled at all) at the initial offering price. I got one share of the 5 I requested at $135 and just sold at $163. They say IPO flipping risks your chance at getting future IPO shares, but I’ve done it a couple times. Not a huge pull, but enough for a couple celebratory 6-packs.

 

[Big Sky Guy]

Here's one for you rookies out there to learn from. I put in to purchase some Rivian stock at the IPO just above what they were speculating it would open at. Apparently it flew by the price too quickly for my sale to be executed. I was bummed, then forgot about it. Apparently I needed to cancel it based on the way/type of request I made, but didn't. So like a week or two later I get a notification that my sale executed... as it was in free fall. Total kick to the nuts, by the next day it was so low that it wasn't even worth trying to sell it.

Thanks for sharing, something to learn from for sure.

 

[Gulf of America]

On the Figma IPO, I got all 5 I requested at $33. Sold 2 at $100 right after IPO and held 3 (which was dumb, but I’m still up $100 on the whole deal). One thing I don’t know, if I requested 100 of SpaceX, would I have gotten 20 or still just 1. Guess we’ll never know.