Originally posted by: Jerry Ice 33
I agree with MP and disagree with Kevin on this. And I have a weird feeling MP has more $ in stocks than Kevin does.
I'm not dumb enough to invest in the stock market. And anybody who, like the author of that book, thinks they can evaluate the investment value of a company by just walking into a store and kicking the tires, as it were, is kidding themselves.
Originally posted by: Kevin Lewis
I'm not dumb enough to invest in the stock market. And anybody who, like the author of that book, thinks they can evaluate the investment value of a company by just walking into a store and kicking the tires, as it were, is kidding themselves.
What do you invest in?
Originally posted by: Jerry Ice 33
What do you invest in?
Interest-bearing securities with a rating of AAA or higher. Proper selection can earn a return equal to the stock market but without the market's risk of huge losses.
Thank you all for replying. I, too, am very skeptical about investing in individual stocks. I think it is nearly impossible to beat an S&P 500 Index fund or ETF (such as SPY).
That said, I do like following individual casino stocks. It gives insights into the gambling industry.
Following Melco Resorts (MLCO), for example, has been a lesson about the political risks of gaming. Melco Resorts invests heavily in the casino business in Macau, China. If one bought shares in early 2011 (for $7-8), they saw their shares shoot up to $44 by early 2014. Quite a return! The Communist party, however, soon decided to clamp down on Macau gaming and their shares have been in crushed since. Today, MLCO has made a roundtrip and sells at $8.5.
Both Las Vegas Sands (LVS) and Wynn Resorts (WYNN) have been crushed for several reasons, including their misjudgement (so far) to also invest in Macau. Meanwhile, locals casinos such as Boyd Gaming (BYD) and Red Rock Resorts (RRR) are near their alltime highs.
Since I have no special insight or training, I certainly wouldn't recommend anyone to invest in stocks. That said, if you have an interest in the casino industry, observing the gyrations of casino-related stocks gives one deeper insights into the state of the casino industry.
Originally posted by: Kevin Lewis
Interest-bearing securities with a rating of AAA or higher. Proper selection can earn a return equal to the stock market but without the market's risk of huge losses.
Fair enough and you answered it. I do a fair amount of that as well.
I won't be investing because all of my money is tied up in change.
Originally posted by: Kevin Lewis
Profits don't necessarily translate to stock prices. It depends on where the money goes. For instance, Station Casinos made, as you would put it, "obscene amounts of money" in the period 2005-2015. They pissed it all away investing in casino projects both in and far from Vegas, none of which panned out. Their stock fell like a rock, even though they were still clearing a profit.
And then, of course, there was the Venetian, most of which the profits went to the Trump campaigns (and still may).
And I thought that you were an accountant. Apparently not.
Originally posted by: Boilerman
And I thought that you were an accountant. Apparently not.
I never thought you had a brain, and I was apparently right.
Investing and accounting have little to do with one another.
Originally posted by: Kevin Lewis
Profits don't necessarily translate to stock prices. It depends on where the money goes. For instance, Station Casinos made, as you would put it, "obscene amounts of money" in the period 2005-2015. They pissed it all away investing in casino projects both in and far from Vegas, none of which panned out. Their stock fell like a rock, even though they were still clearing a profit.
And then, of course, there was the Venetian, most of which the profits went to the Trump campaigns (and still may).
And I thought that you were an accountant. Apparently not. Would Kevin tell us what the ROI was in the past 5 years for any of the major casinos? Pull out Covid years if you like.
Nope, Kevin will say that he doesn't respond to my suggestions.
Originally posted by: Boilerman
And I thought that you were an accountant. Apparently not. Would Kevin tell us what the ROI was in the past 5 years for any of the major casinos? Pull out Covid years if you like.
Nope, Kevin will say that he doesn't respond to my suggestions.
Personal attacks outside the Sink violate forum rules.
And smart people know that ROI doesn't correlate with stock prices.
