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US stocks
dyfed
Posted: 09 March 2017 19:38:21(UTC)
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I have been buying NA stocks for 2/3 years with very mixed results; a couple of disasters e.g. solarcity and (thank goodness) a higher proportion of very good returns e.g.: microsoft, apple, Methanex, Monsanto, paypal etc.
These are all well known names, but I see stocks I've never heard of that look respectable and pay divi to make your mouth water. I have limited ability to assess them, so, of course, i don't buy (well, only occasionally). e.g.MEP energy 18% divi
There are also fixed rate funds with too-good-to-be-true returns that seem to be respectable companies e.g ACSF floating rate 9%...but then look at Fair Oaks, they do even better (anyone buying Fair Oaks?)
If these were UK stocks I would have an armoury of sites and local knowledge to assess them through. Is there anyone here buying N America other than through UK funds who knows a good site - the equivalent to Morningstar - through which to filter possible purchases?
Otherwise I'll stick to what I know a bit more about......

.
Tony Peterson
Posted: 09 March 2017 19:58:11(UTC)
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dyfed

Have you ever heard of the mouthwatering returns claimed by Bernard Madoff. They certainly impressed Nicola Horlicks.

Do you mind paying federal tax on US dividends when US holders of UK stocks are not asked for any contribution to our economy?

Horses for courses I guess.
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dyfed on 09/03/2017(UTC)
King Lodos
Posted: 09 March 2017 20:21:45(UTC)
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morningstar.com is the US version of morningstar..

Otherwise I use Gurufocus for US stocks – calculates ROIC, ROE, Greenblatt Earnings Yield, Peter Lynch Earnings lines, shows insider deals, hedge fund purchases, etc.
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dyfed on 09/03/2017(UTC), DJ61 on 23/07/2017(UTC)
dyfed
Posted: 09 March 2017 21:14:17(UTC)
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Tony Peterson;44386 wrote:
dyfed

Have you ever heard of the mouthwatering returns claimed by Bernard Madoff. They certainly impressed Nicola Horlicks.

Do you mind paying federal tax on US dividends when US holders of UK stocks are not asked for any contribution to our economy?

Horses for courses I guess.



I take it you are not impressed?

Of course I mind paying tax in the US (reduced rate with a valid W8 of course), but I assume a UK fund holding US equities - e.g. SMT, NAIT, NAS - has to pay US tax before paying divis to us? Does that stop you or me holding that fund?

Though now that u mention it perhaps we should highlight the anomaly to Mr Hammond?
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Tony Peterson on 09/03/2017(UTC)
Tony Peterson
Posted: 09 March 2017 21:45:51(UTC)
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dyfed

No I am not impressed, as you rightly guessed. It is why I exited Verizon as soon as profitably possible after the Vodafone split, in spite of having a W8-Ben in place.

And of course, I don't hold any funds at all - even UK ones. I do far more efficient investing by being my own fund manager.

I would agree that I would find a withholding tax on UK investments far more palatable than the new dividend tax. Perhaps it should be suggested to Mr Hammond? And make the cousins pay their matching contributions towards our economy.
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Alan Anderson on 10/03/2017(UTC), what me, worry? on 06/08/2017(UTC)
Jon Snow
Posted: 09 March 2017 22:08:05(UTC)
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I found that, for me, it just adds more layers of complexity and thus fees, exchange rate uncertainty, exchange fees and charges on buying, selling and on dividends, withholding tax etc.

So I decided to stick with what I know and can research in some detail. Any US stock I hold is within collectives (RCP mainly) where highly paid folks can decide much better than I can.

Is the extra effort and complication worth the reward, I have no idea.
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Keith Hilton on 09/03/2017(UTC), dyfed on 10/03/2017(UTC)
Keith Hilton
Posted: 09 March 2017 22:13:14(UTC)
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Tony Peterson;44386 wrote:
dyfed

Have you ever heard of the mouthwatering returns claimed by Bernard Madoff. They certainly impressed Nicola Horlicks..


She was asleep at the wheel! ;-)
Tony Peterson
Posted: 09 March 2017 22:25:54(UTC)
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Asleep at the wheel - yes - along with many others.

The Great Crash of 1929 was the result of global investors (principally in the UK, Germany, and - would you believe it - China) being sucked into lending US investors massive amounts of their savings, at mouthwatering rates, so that Americans could pile into Wall Street equities (read Galbraith on the subject) with only 10% upfront and the rest on margin.

Jon Snow
Posted: 09 March 2017 22:30:34(UTC)
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Keith Hilton;44395 wrote:
Tony Peterson;44386 wrote:
dyfed

Have you ever heard of the mouthwatering returns claimed by Bernard Madoff. They certainly impressed Nicola Horlicks..


She was asleep at the wheel! ;-)


Keith,

I never "got" her, still at it today, just like a few others I could name but won't.
dyfed
Posted: 10 March 2017 07:58:51(UTC)
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Thanks y'all.

I remain a fan of buying mainstream US equities, not least because I want exposure to the $ as a defence against £ devaluation and inflation. It's worked well for me - returns on Microsoft 90%, Methanex 73% Paypal 82%. Easy to do through HL - perhaps too easy. And it's true that dividends are significantly reduced by tax and exchange rates.

I will, however, be more cautious about expanding further in the light of your somewhat pejorative discouragement (Tony that's you)....and the fact that the market is at an all-time high!

Thanks for answering the OP question KL and for the info: I am using it!
Tony Peterson
Posted: 10 March 2017 10:08:54(UTC)
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dyfed

I wasn't bering pejorative, honest!

I was merely stating my own personal preference for UK shares with global outreach. Outreach!

I seem to have done it again.
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Keith Hilton on 10/03/2017(UTC), dyfed on 10/03/2017(UTC)
dyfed
Posted: 10 March 2017 10:34:40(UTC)
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Tony Peterson;44417 wrote:
dyfed

I wasn't bering pejorative, honest!



mm, you think comparing me to NH being taken in by B Madoff isn't pejorative? Or likening my interest in US to being suckered in pre the Wall Street crash?
I'm not saying it wasn't entertaining mind.
Tony Peterson
Posted: 10 March 2017 10:45:25(UTC)
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dyfed

It was those too-good-to-be-true-returns that flashed a few warning signals in my cranium....you know the mantra...if it looks to good to be true.......
srg751
Posted: 10 March 2017 11:14:25(UTC)
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Morning Tony. As a 'major' shareholder in BT, can I ask what your proposals are for the 10 billion pound hole in your employees pension fund ? Dividend cut ? Salary cuts ? Asset sale ? Divert profits ? ( just some of the ideas being touted)

Having said that, maybe these negatives are 'in the price'. !


King Lodos
Posted: 10 March 2017 11:27:58(UTC)
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I imagine Tony could just wait till his next round of dividends and plug the hole himself.
dyfed
Posted: 10 March 2017 11:40:53(UTC)
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Hey! get yr comments about BT off a thread labelled "US"!
PS I bought BT after the recent Italian dip, up another 4% today, 12% profit so far: sell or hold?
Tony Peterson
Posted: 10 March 2017 15:31:29(UTC)
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dyfed

You've got me stymied here. You want comments on BT to be taken elsewhere, and then ask what to do with your well timed purchase. Which is it?

In ISAs I'd take a 12% gain made in a month. I'll be holding onto my Italian inspired additions to our BT, all out-of-ISA, but these look as if they will provide me with both my full CGT exempt allowance and my full 2017-18 ISA contribution all in one fell swoop - so I'm waiting until the end of the month. Whatever - since our average acquisition price is still around £2 I find it extremely entertaining that we have made six figure profits from a company so many of you deride.
srg751
Posted: 10 March 2017 15:44:37(UTC)
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dyfed;44427 wrote:
Hey! get yr comments about BT off a thread labelled "US"!
PS I bought BT after the recent Italian dip, up another 4% today, 12% profit so far: sell or hold?


Up until yesterday's close you were slowly giving your 'italian' gains back. It's the openreach announcement that's giving it back to you. "TAKE THE MONEEEEE" !
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dyfed on 10/03/2017(UTC)
colin overton
Posted: 11 March 2017 07:46:18(UTC)
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Although I have held the occasional US stock (Verizon etc.) I used to buy American UTs. For many years I switched about, but never really found a good UT I could settle with, they all seemed to underperform the benchmark index after a year or two. On a suggestion I bought a US tracker, Blackrock thru HL and finally moved to the "cheaper" L&G US Index, again thru HL. Although I have bought and sold - often at the wrong time (I sold on a Trump victory and interest rate rise rumours last November!!!), I would now buy a US Index tracker in preference to anything else. I can put small amounts in per month or buy on weakness.
Or prehaps I should be trying an EFT?
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dyfed on 11/03/2017(UTC)
Dian
Posted: 11 March 2017 08:27:55(UTC)
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Quote:
Dyfed wrote:

Otherwise I'll stick to what I know a bit more about......


It may be time to stay with what you know best and what you know well.

They have strong consumer spending power. Still their economy is going to benefit from low oil and commodity prices. My only concern is valuation. However, I still expect significant growth opportunities for USA consumer staples companies. In food category, companies that can respond effectively to the healthy food trend appear increasingly attractive heading into 2017. Expected tax reforms should be a major boon for industries like food and export.
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Alan Anderson on 11/03/2017(UTC)
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