The official lounge stock market & investment advice thread

[Sugar Adam Ali]

How can they still pay dividends when they are incurring losses?

Because the loses are on paper or are due to depreciation or to do reinvesting.. and they have a big cash reserve.

CAPEX (capital expenditures) like when they bought all the equipment and gear needed for the network..


These are treated as assets in the books but they take money away from EPS.


This are usually temporary..

They are still profitable just spent more money they took on during a quarter. But overall they will make more than they spend.

It’s mostly accounting gimmicks

[siablo14]

Because the loses are on paper or are due to depreciation or to do reinvesting.. and they have a big cash reserve.

CAPEX (capital expenditures) like when they bought all the equipment and gear needed for the network..


These are treated as assets in the books but they take money away from EPS.


This are usually temporary..

They are still profitable just spent more money they took on during a quarter. But overall they will make more than they spend.

It’s mostly accounting gimmicks

Okay. Post WWE's Income Statement and Balance Sheet If they are still paying dividends while incurring a loss they have to be taking it from retained earnings.

[paulf]

One of my buddies tried to get me in on an investment the other day: ****ing life insurance policy that throws your money into an index fund with a floor and ceiling (.25% floor 16% ceiling), allegedly was a fool-proof way to invest without having to pay anywhere near the tax rate on an IRA.

**** stank of a pyramid scheme so bad, I didn't know weather to be insulted or pity the dude for being dumb enough to invest in it himself.

[Sugar Adam Ali]

Red- how much do you estimate that nest egg to be? How interest will you see yearly from the index fund?

It’s not interest, that only applies to loans and debt.

Gains is what you get from index funds and it’s based on 2 things, price appreciation as the price of the stocks that the fund owns goes up. And also the dividends those stocks pay.


If you invested $100 a month or $1200 a year, from 25-65 years old 40 years. That’s 48,000 contributed.. with reinvested dividends, it would at the end of 40 years, roughly 500k-1 million.

I also like funds like SPY, DIA, SCHD.. DIA tracks the Dow Jones. Go look at the Dow from 40 years ago in 1978 and see where it is today. That increase would just be capital gains and doesn’t need even take into consideration that your pile is growing exponentially with dividends reinvestment. It’s a snowballing effect and where true gains are made.

[Sugar Adam Ali]

One of my buddies tried to get me in on an investment the other day: ****ing life insurance policy that throws your money into an index fund with a floor and ceiling (.25% floor 16% ceiling), allegedly was a fool-proof way to invest without having to pay anywhere near the tax rate on an IRA.

**** stank of a pyramid scheme so bad, I didn't know weather to be insulted or pity the dude for being dumb enough to invest in it himself.

I think you made the right decision.

[Sugar Adam Ali]

Okay. Post WWE's Income Statement and Balance Sheet If they are still paying dividends while incurring a loss they have to be taking it from retained earnings.

And yes, the dividends during quarters with a loss come from retained earnings from prior quarters.

Why do I got to post that..

It’s widely available, and has been discussed in last years earning calls.

Quit being lazy and go look it up

[paulf]

I think you made the right decision.

Yeah I didn't even bother researching it. I don't care how many people are doing it, a mark is born every minute.

Im a conservative investor, but who the **** is trying to find a better deal in this market anyway??

[siablo14]

It’s not interest, that only applies to loans and debt.

Gains is what you get from index funds and it’s based on 2 things, price appreciation as the price of the stocks that the fund owns goes up. And also the dividends those stocks pay.


If you invested $100 a month or $1200 a year, from 25-65 years old 40 years. That’s 48,000 contributed.. with reinvested dividends, it would at the end of 40 years, roughly 500k-1 million.

I also like funds like SPY, DIA, SCHD.. DIA tracks the Dow Jones. Go look at the Dow from 40 years ago in 1978 and see where it is today. That increase would just be capital gains and doesn’t need even take into consideration that your pile is growing exponentially with dividends reinvestment. It’s a snowballing effect and where true gains are made.

Gains, I see. 1mil/48,000 * 100 = 2000%

Damn. So why don't more people do this?

[.!WAR MIKEY!.]

who made the most money directed related from the advice this group gave?

[siablo14]

And yes, the dividends during quarters with a loss come from retained earnings from prior quarters.

Why do I got to post that..

It’s widely available, and has been discussed in last years earning calls.

Quit being lazy and go look it up

I checked. The last time they incurred a net loss was 2014. They had net profits in 2013, 2015, 2016. Y'all made it seem like consecutive years of losses.

But shockingly retained earnings have been negative all those years.