Author Topic: Should I sell my Amazon stock?  (Read 9395 times)

dougules

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Re: Should I sell my Amazon stock?
« Reply #50 on: March 20, 2018, 10:25:08 AM »
I comes down to this; do you want to put all your eggs in one basket?  Amazon is a very nice basket, but it's still one basket.  There are a lot of ways that Amazon could do really well, but there are also a lot of ways it could fall as quickly as it rose.  Both sides of the coin should already be priced in anyway. 

appleshampooid

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Re: Should I sell my Amazon stock?
« Reply #51 on: March 20, 2018, 12:56:52 PM »
Sounds like you need a personal investment statement.

Thank you for this.

Any examples or models for such a statement? I have never written one for myself.
Here are some examples from the Bogleheads wiki:
https://www.bogleheads.org/wiki/Investment_policy_statement

I am still refining my own after a recent portfolio overhaul. I should probably finish that and post it for feedback.

ETA: whoops, forgot to read the second page. At least 3 replies all pointed to the same place :P
« Last Edit: March 20, 2018, 01:00:56 PM by appleshampooid »

sherr

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Re: Should I sell my Amazon stock?
« Reply #52 on: March 20, 2018, 06:24:59 PM »
My dilemma is one of take the money and run, or hang in there with Amazon. I really am interested in analysis and insight as to how to decide.

Just for sake of hypothetical discussion let's say $1 million portfolio, 85/15, everything except Amazon is index funds.

I just want to throw out the fact that there is a pretty interesting third option, donate them to your very own charitable giving fund.

Since we're speaking in hypotheticals here, hypothetically since you're on this forum and we're throwing around a $1MM portfolio you might have aspirations of Retiring Early in the not too distant future. Assuming that's true, and that you're still working and in a fairly high tax bracket, and that you expect you'd give $35k to charity over the course of your remaining life (including church or similar, if you like), then donating them is the perfect thing to do with such highly-appreciated shares.

1) Since you're donating it to a non-profit (your fund) you don't have to pay a penny of Capital Gains tax.
2) This year you'd be able to deduct the fully appreciated $35k current value if you itemize your deductions (yes, a double-whammy tax benefit).
3) By taking the tax benefit now while you're working you can get much more value out of it than if you were to just donate to charities when you aren't (and presumably in a lower bracket).
4) You don't have to give it all away to charities this year, it can sit in your fund and even remain invested and grow until you decide who and when to give money to. The only caveat is that the money has to go to 501c3 non-profits and you can't ever get it back if you change your mind, since you've already given it away to a charity (your fund) and taken the tax benefits.

Edit: Never mind, it looks like this was already raised and answered. I should read more carefully.
« Last Edit: March 20, 2018, 06:34:29 PM by sherr »

NoStacheOhio

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Re: Should I sell my Amazon stock?
« Reply #53 on: March 21, 2018, 01:03:10 PM »
First, I should start by saying that most of my purchases these days are index funds; however, I keep a very short list of companies to pick up if they go on sale.

AMZN is one that I'm still kicking myself for not picking up and I'd be surprised if the stock either doesn't split or start paying a dividend in the next one to five years so there is that as well. Maybe just put a stop loss on it and leave it at that?

Not paying dividends is sort of their fundamental business model.

NoStacheOhio

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Re: Should I sell my Amazon stock?
« Reply #54 on: March 21, 2018, 01:25:19 PM »
First, I should start by saying that most of my purchases these days are index funds; however, I keep a very short list of companies to pick up if they go on sale.

AMZN is one that I'm still kicking myself for not picking up and I'd be surprised if the stock either doesn't split or start paying a dividend in the next one to five years so there is that as well. Maybe just put a stop loss on it and leave it at that?

Not paying dividends is sort of their fundamental business model.
Can't be sustained indefinitely though. At some point shareholders are going to demand some sort of ROI other than just the stock going up.

Even if they're mathematically equivalent? If a company is doing well reinvesting capital into increased productivity, don't rock the fucking boat. Rent-seeking behavior, etc., etc.

hodedofome

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Re: Should I sell my Amazon stock?
« Reply #55 on: March 21, 2018, 01:46:26 PM »
Yeah Buffett shareholders have been screaming for decades for him to pay a dividend...

/s

salmo trutta

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Re: Should I sell my Amazon stock?
« Reply #56 on: March 21, 2018, 08:07:38 PM »
First, I should start by saying that most of my purchases these days are index funds; however, I keep a very short list of companies to pick up if they go on sale.

AMZN is one that I'm still kicking myself for not picking up and I'd be surprised if the stock either doesn't split or start paying a dividend in the next one to five years so there is that as well. Maybe just put a stop loss on it and leave it at that?

Not paying dividends is sort of their fundamental business model.
Can't be sustained indefinitely though. At some point shareholders are going to demand some sort of ROI other than just the stock going up.

I've never heard that going on at the BRK.A shareholder meetings I've attended. Most folks are happy with the stock just going up.

Cheers,

Salmo

GOFU

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Re: Should I sell my Amazon stock?
« Reply #57 on: March 28, 2018, 07:50:18 AM »
Wouldn't you know it, as soon as I start considering a move the MFer drops like a stone. Down 11% since my original post as of this writing.

Sometimes I think it's just straight up bad luck to keep an eye on this shit.

Kyle B

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Re: Should I sell my Amazon stock?
« Reply #58 on: March 28, 2018, 10:18:41 AM »
Sometimes I think it's just straight up bad luck to keep an eye on this shit.

It's not bad luck; it's just not something you should do with your psychology. 

If you had a fear of heights you wouldn't constantly go to skyscraper roofs and look down.


libertarian4321

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Re: Should I sell my Amazon stock?
« Reply #59 on: March 28, 2018, 04:01:36 PM »
Apparently Trump is ranting against Amazon today.

The good news is, Trump is so erratic, he may point his jihad in another direction at any minute.

dougules

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Re: Should I sell my Amazon stock?
« Reply #60 on: March 29, 2018, 04:16:06 PM »
Sometimes I think it's just straight up bad luck to keep an eye on this shit.

It's not bad luck; it's just not something you should do with your psychology. 

If you had a fear of heights you wouldn't constantly go to skyscraper roofs and look down.

I hate to be that guy, but that's actually called exposure therapy. 

GOFU

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Re: Should I sell my Amazon stock?
« Reply #61 on: April 26, 2018, 07:46:49 PM »
Well. There you go. Share price up over $1,600 in after hours trading. I stop thinking about it for a couple of weeks and look what happens.

https://www.thestreet.com/investing/stocks/amazon-shares-hit-all-time-high-on-quarterly-beat-14570568

I expect some profit taking tomorrow on the NASDAQ. But I'll take this. Better than a poke in the eye with a sharp stick.
« Last Edit: April 26, 2018, 07:48:48 PM by GOFU »