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IFB96: Limit Order vs. Market Order and other Listener Q&A

Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginning led by Andrew Sather and Dave Ahern too decode industry jargon, silence, crippling confusion and help you overcome emotions by looking at the numbers. Your path to financial freedom starts now.

Dave:                                    00:36                     All right folks, we’ll welcome to be Investing for Beginners podcast. This is episode 96. I am back this week after missing last week. I’m sorry guys, but I had pneumonia and Andrew was kind enough to help me out so I didn’t have that coughing, hacking everybody’s ears, uh, during the, during the episode, so I appreciate it. Andrew, take it over for me last week tonight we’re going to talk about some questions from our listeners. We got another great batch of questions and a couple of testimonials there. We thought we’d read those to you guys on air and inner and I can go back and forth and answer some questions. So Andrew, why don’t you go ahead and read the first one to it and we’ll start talking.

Andrew:                              01:16                     Yeah, sounds good. So this one’s a testimonial. I thought it was cool and inspiring because it shows you just how far you can go. Um, when you really put your mind to it. I parse it down a bit, but basically, um, the email goes, Andrew, I just sign up for email lists. I started listening to your investing for beginners podcast about two weeks ago. I appreciate the work that you and Dave are putting into it. After listening to a couple episodes, I finally dove into actually investing on my own of wanting to do it for years, but was overwhelmed thanks to your podcast. I took the leap a leap on Monday last week and set up an account through Robin Hood due to the advantage of learning that a low cost since beginning of this week, I’ll be gone a reading through 10 k’s and learning so much about companies.

Andrew:                              02:01                     I didn’t even realize all this information was out there until listening to your podcast. Just wanted to say thank you for doing all this work. For those of us that literally don’t even know where to start, I think it’s really going to get me where I wanted to be. For years in terms of learning how to invest, what to research, et Cetera. You guys are great, Alicia, so that’s really cool. I love reading that and hearing that, you know, getting that paralysis analysis out of the way and getting yourself educated, getting to the 10 k’s, that’s, that’s where you want to be when you want to get into the stock market. So I love hearing that.

limit order

Dave:                                    02:39                     Yeah, that was pretty cool. Uh, sometimes just the momentum or inertia getting over the inertia is the hardest part. Once you get over that, then things start to move and becomes a lot easier. So that, yeah, that was really exciting. Thank you for Alicia very much for sharing that with us. We’re glad we’re been able to help you a little bit. Uh, next one. Hi, Andrew. Uh, I may be changing jobs soon and we’ll be looking into rolling my 401k to another account once I leave my employer. I have about 22,000 and that currently, and thought about your note in the letter about your investments in 2017 I noticed an ally that I can open a traditional IRA or a rollover Ira through ally. Would it matter which one I select? I thought I would spread that out over 10 to 12 months like you did and use some of the stocks from the real money portfolio along the way with other opportunities. That may make sense. Thank you, Brendan. Andrew, what are your thoughts on that?

Andrew:                              03:31                     Yeah, so obviously traditional IRA, Rollover Ira, it does matter because it depends on if you want to keep your money invested where it was or if you want to move it into new positions. From what I understand, I’ve, I did that in the past, so I had a 401k on the old company, ended up going to a new company. I wanted to take that money with me and I wanted to manage it myself. Right. So what you could do is you could leave it in the same retirement account in the same maybe mutual funds a, it was set up in, you could certainly do that or you could roll over and that’s why they call it a rollover Ira when they roll over the IRA. In most cases that I’ve heard of and what I’ve personally experienced, they will sell out on all your positions. They will take the cash and they will move it from your 401k into a brand new IRA account.

Andrew:                              04:22                     Now when you think about the Iras, some of the benefits versus a 401k is those tend to have a lot more flexibility. So with a lot of IRA accounts you can actually buy individual stocks. Whereas with a 401k you’re very limited. Um, you know, depending on which company is servicing this 401k, they might say, hey, here’s five mutual funds you can choose from. And that’s pretty much all you all you can do. So obviously you have a lot more flexibility when you roll over into an IRA. You, you might have that, that problem where you feel like depending on what time you’re getting into the market, you could be kind of subject to some of the volatility of the market. Whether that means kind of getting lucky on selling out at the top or you know, uh, kind of feeling like you’re selling at the bottom because it does go the cash even, you know, even if you reinvest right away, you’re still going to cash and locking in gains or losses.

Andrew:                              05:21                     So that is like a small factor can be a big factor for somebody, especially if they’re 401k has accumulated to such a, such a large percentage. I will just comment on this because since it’s what I can, I can draw from, from my personal experience, I’m very much in the growth stage of investing that I’m building the portfolio and I have a very, very long time frame. So for me, even though I had a good chunk in this 401k, I knew when I compare that to my whole retirement path, it wasn’t it like a majority of it. So it didn’t really matter to me where I sold out. And where those positions went to cash and then me reinvesting them into the market because basically I guess for one it was only in there a couple of years. So I didn’t have like a lot of that drip, you know, we always talk about drip.

Andrew:                              06:17                     So that’s one thing. And then another factor is as long as I was getting back in and just reinvesting, it was almost like it was just going to be a blimp in the very long term. So if you’re doing a traditional IRA, you’re going to have to contribute on your own. If you’re doing a rollover, obviously it’s going to come from your 401k. Those are going to be some things. I just know from my personal experience because I’m in the growth stage of my portfolio, it just makes sense for me because I like the flexibility. I liked picking individual stocks and I like being able to drip and those individual stock positions rather than being stuck in a mutual fund where I’m paying a high expense fee or a mutual fund where the mutual fund manager might be, you know, moving a lot of money around. And, and creating all these sorts of a high turnover rates that that could hurt the portfolio or you know, even just piling into the tech stocks because he doesn’t want to be the only mutual fund manager to not be in tech. So for all of those reasons is why I chose a rollover and why I continue to use an IRA of course contribute to 401k if, if that’s an option and you’re getting a good match. But that’s why I like the IRA and that’s why I did what I did.

Andrew:                              07:36                     And I did the exact same thing when I left wells Fargo. I did mine into a rollover IRA as well. And I had a, I’m not sure what or what

Dave:                                    07:45                     the breakdown for Andrews was, but mine was about 35% of it was in wells Fargo stock, which I kept. And the balance of it was in mutual funds of varying degrees, uh, that, that was the only choices I had in my eye or air my 401k. So once I was able to get those out of the 401k into the roll over IRA than I was able to, you know, purchase individual stocks, which I did. And I liked that because it gave me more flexibility and more control over what was going on with my Ira. And the one thing I will mention with 401k’s, depending on what company or with some companies, for example, when I was with wells, I found out they do not charge you fees to continue to manage the 401k for you. Even though you don’t work for the company anymore. Obviously you can’t contribute any more to it.

Dave:                                    08:36                     So it’s money that you don’t really have ability to increase. It’ll just basically increase on, depending on what your investments are. But one thing to always check into when you leave a company is inquire if they’re going to charge you anything because that have a bearing on how quickly you want to get it out of a company. Sometimes, you know, I let it sit there for almost a year before I moved to just because I wanted to make sure I had all my ducks in a row and everything kind of organized after I left Wells Fargo. But not everybody wants to do that or can do that. And I saw it all the time when I was working in a bank of people would forget about 401ks even if it’s 1000 bucks, it’s still $1,000 a year old money. So you want to take the moment to time to invest, investigate, you know, getting that in your own control in again, the one of the first questions I would ask would be when you leave the company, whether it’s your own volition or not, that 401k is still your money. And I would inquire about what they may charge that I’ve, I’ve read that some companies will charge anywhere from five to 10% a year to manage that for use was that means that those are fees that are taken out of your money and why would you just give that company that money just to let it sit there? So that’s something I would definitely, definitely inquire about whenever you’re leaving a company.

Andrew:                              10:03                     Yeah. It’s funny how when we think about like a 1% management fee, we’re fine. Even though in reality it’s like you’re paying thousands of dollars to some guy to like manage your money suboptimally but we would never do that. And then the other aspect of finance, it’s weird.

Dave:                                    10:19                     No, yeah, it is. It’s in, it’s, it’s considered quote unquote acceptable and people don’t even bat an eye at it. But yeah, if it was anything else, we what I mean it’s, it’s a, it’s a 1% tax. It’s really what it is. It’s like, wow, why would I pay that? I wouldn’t, you know, he’d go buy a car or a computer. Why would you pay an extra 1% for that purchase? You wouldn’t be like, no, not doing that, but yeah, in the finance world it’s quote unquote. Okay. All right. Moving on. Next question. Thank you, Andrew for you. Which do you recommend between market orders and women orders when executing a purchase from burner bread? So far seems like market orders are much quicker and less hassle in general. I just wanted to get your thoughts on what a value investor like you tends to prioritize between the two. Thanks for your time again.

Andrew:                              11:14                     Okay, so to give background market or their and limit or they’re a market or there’s a straight up, like if I’m logging into my brokerage account and it’s let’s say 12 o’clock in the afternoon and I want to buy a stock, you do market or there, that means that we’re just buying the stock right now. It say it’s trading at $15 you bought it at 15 what the limit or their does is it gives you a floor or a ceiling depending on if we’re talking about a buy limit or a sell limit. So as an example, you could put a buy limit on a stock where you say, you know what, I don’t like it at 15 but I would love it at let’s say 1475 so I’m not going to, I’m going to put in a limit or there. So once the stock jobs, the 1475 then the broker will execute my trade.

Andrew:                              12:03                     So it sounds like a great deal, right? And, and you can do the same thing on the other side with the seller may up a, I only want to sell when it crosses above this threshold. Sounds like a great deal. And it sounds like one of those ideas where you can’t lose, right? Because as a value investor, what do we always preach? We talk about if a stock goes down and we like it, well now we want to buy more of it, right? So we could look at it as kind of a win win while the stock goes up. And, you know, I’m fine because basically I, uh, I’m waiting for it to get cheaper, right? Uh, and I’ll be as patient as I want to be until I think I’m getting a really good discount or the stock goes down and then I buy in and I see myself with this great margin of safety.

Andrew:                              12:50                     I feel really good. And you know, again, we’re going to be patient and wait for that stock to go back to its regular intrinsic value. The problem of course is there’s no such thing as a free lunch on Wall Street. And so whenever something sounds like a win win, there’s always risk involved in one way or the other. And so you always have to consider the idea that while you could put a limit or there for the stock, let’s say at 1475 and the stock goes up and uh, and uh, and it just continues to rise. And so because you wanted to get an extra, what, half a percent or percent off, you know, discount off. Right. You completely missed out on this great stock opportunity, never to be able to buy it again. So not to say, you know, obviously it’s, it runs counter to them cause it sounds a lot like the opposite of what we like to preach.

Andrew:                              13:49                     You know, these ideas, there’s always going to be an opportunity around the stock market. You just got to look around, don’t feel pressured, don’t, don’t feel like you need to swing. Right. Like investing is a game where it’s not like baseball. You can look at the pitch, go down the middle of the plate and you know, get penalize. You can, you can wait and wait and wait. But you know, you do have to consider that. Well sometimes there’s just good stocks that aren’t cheap very often. And I think when we were talking several weeks ago, I talked about Lam research and how that was one of those stocks, one of the best performing stocks I’ve had where you know, it was not close to its 52 week high and it continued to rise and rise and rise. And so you will have stocks like this where you know you, you do have that short little window and by placing the limit or there you could miss out on it.

Andrew:                              14:40                     So I don’t like to instill, instill fear and say, well if you see an opportunity you got to pounce on it right away. Like I’ve said in the past, a lot of stocks will stay undervalued for months, even years at the time. But you know, sometimes stocks will be cheap for like a couple days and then you miss the opportunity and that’s just kinda how it goes. So because the stocks could have the characteristic like I described previously or because they could do as they do and just kind of jump up or down, we don’t want to set any strategies based on one of those two extremes. You just want to kind of figure out where your trade offs are. So to me like the win here on the limit or there is cool, I saved, you know, maybe I saved half a percent, maybe I saved a percent, maybe I even saved 5% but you know, the, the, the, the lower you try to make that, that buy limit and the law, the bigger kind of margin of safety that you’re waiting for.

Andrew:                              15:44                     I just see it as really you’re missing out on compounding opportunities, right? That’s just longer and longer that you’re not getting the dividend if you’re really going to hold out for a stock to drop another 5% to get in and you always run that risk of having a stock just absolutely take off and you completely miss it. So, I mean, you could do everything right, but because you add a limit or there you, you miss it. And so you could get like, it could take 19 of the right call where a limit or their works out for you and then one stock where it didn’t work out and that ended up being like an apple or Amazon and that, that could be catastrophic. So I just, I don’t see though the trade off here, like the, the risk that you’re actually taking and in the sense of opportunity risk and the risk of just compounding in general versus whatever kind of tricky little half a percent here, half a percent there. We’re trying to pick up, I just don’t see it as worthwhile. So I just do market orders. Same. I do market orders. It’s just not worth it for me.

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Dave:                                    17:05                     I wanted to thank you for all the work you’ve put into the letter. I’ve been ignorant of the market my entire life, but finally started just this January your podcast and he let her have been exceedingly helpful to me and I wanted to let you know that you’ve been, it’s been having a positive impact. My first bias, we’re literally 10 shares of Wgo and two shares of pho because of an article I read on CNBC. I’m lucky they’ve done well and I’ve since moved on to actual investing strategies. Lol. All right, so, oh, uh, the question that was going to ask, I’m at 14 question 14 positions right now and gives them entering the game late 40 years old. Would you recommend buying into new e-letter positions like Tsr? He stock recommendation which happened to have actually purchased prior to the letter e letter. Thanks VTI or in Dividend fortress stocks. I’m currently investing 300 to $500 a month. Given my late entry into the market. I realized that most gains will be passed on to my future generations at this point, but it’s still like to reap some dividend benefits in early retirement if possible. Thanks our KB. Andrew, what are your thoughts? Fetes

Andrew:                              18:13                     okay, so kind of a lot to unpacked first. I think it’s cool that he found the stock with the VTI that ended up being my recommendation before I recommended it, so that’s really cool. I had the sensor it because it’s actually still a great buy and I’m continuing to buy it. I love that stock. But anyway, he says shitty buy into new positions. So the way you know for people who haven’t been following me very long, maybe just tuning into the podcast, I have a stock recommendation newsletter services called the say their research Eli there. And so I have recommendations every month which stocks the purchase. So he’s asking should I buy, you know, as as entering the game late and this could apply to a lot of investors who feel like they’re running out of time, so to say. Um, should I buy new recommendations or should I buy the dividend fortress stock?

Andrew:                              19:09                     So the dividend fortress is a part of my portfolio with these stocks where I’m hoping to hold them forever. These are some of the stronger dividend payers and at times they have been really great buys as well. So, so he says he’s at 14 positions. Now the way I like to buy into dividend fortresses and it’s the way I managed a real money portfolio. And if I was starting over, I would probably do the same thing too, is a lot of these times when I have like a really strong conviction conviction on the dividend fortress, I try to, I try to put in a bunch of money into that one when it’s available. So that’s happened in the past where I had some cells at the same time that a dividend fortress position came up. So basically I took a lot of the money I got from selling some stocks and basically combined it all into the, into one dividend fortress position.

Andrew:                              20:11                     As it stands right now with the way the f the portfolios being managed and the way it’s sized, there’s not really much adding going onto the dividend fortress portfolio. So like two of them, two, two of those have gone up in price. So they’re not one of them for sure that that one’s Hormel, that one’s just done so well that it’s kind of expensive now. So I’m just holding it and I love the, the dividends that come from that and other stocks kind of just out of the, the strong by range. Another one it’s, it’s still like a reasonable valuation but the revenues and the earnings have kind of taken a hit several consecutive years in a row. So that’s not something I generally like to buy into. And then you have the final dividend fortress position, which is already a big part of the portfolio. So you know, if, if you are a investor who didn’t have any of those positions, I guess it would, it would depend on,

Andrew:                              21:20                     Yeah, if you have position sizing how that’s how that’s going into play. I think the safe answer is always buying into the newest recommendation because the way I’m, I’m making these picks as I’m looking at what’s the prices now, right? How are those prices and, and how do I feel about them today and how do I feel about them compared to its intrinsic value today. And you know, as you’re building a portfolio or you’re in the portfolio growth stage, you don’t have, you can’t just spread all your money out into all these different positions. You kind of have to be concentrated as you build this portfolio. So I think those are all things to keep in mind. I think a big lesson here is you have to understand that while a stock is a stock is a stock and there it’s the same business that’s underlying the stock purchases, do understand that when you buy in and at what price you buy into will affect your return a lot. And sometimes even more than how the company does. It’s, it’s all relative with all depends. But these are important factors when they come, when it comes to buying stocks and investing in good businesses, you also want to make sure that you buy in that good prices. That’s why we always say buy with a margin of safety. Emphasis on the safety.

Andrew:                              22:35                     And so that’s why I always say, you know, try to reevaluate when you’re adding new positions. Look at where the prices are today. Look at how, how that intrinsic values may be changed and how it looks today and really just try to buy with as big of a margin of safety as you can and I don’t think you can go wrong doing that. I would definitely agree with that. I think one of the things that

Dave:                                    22:58                     I would like to throw out there too, as somebody that’s a little bit older and it sounds like he, you know, he and I have somewhat similar time horizons. One of the things that I have done personally is I set up watch lists on all the dividend aristocrats and I will periodically run him through the Vpi to see where they are as far as an opportunity to buy some of these great dividend paying companies and with the market as high as it is right now, you know, all time highs depending on not even depending on all time highs, whether you look at the Shiller PE, what was the range of prices. It’s really, really hard to find great companies that you can buy at a discount and as a value investor. And that’s one of the biggest hurdles right now is trying to find things and as value investors, you know, we’re always looking to buy stuff on a deal and on sale.

Dave:                                    23:56                     And unfortunately sometimes you, you’re only going to find those things in a downturn in the market. And you know, we don’t really wish that upon anybody to lose money. But that’s really kind of, we’re, we’re really looking to find these great opportunities and what I’m talking about that I’m talking about a company like Hormel or Johnson and Johnson or you know, any of these other companies that have sat in the dividend aristocrat realm for a long, long time and offer you some great dividends that you were referring to. So when you’re looking at those things, you know, I think Andrew was right on the mark where it’s great to look at those companies and to consider investing in them. But you have to look at the price compared to the value of the company. Because if you don’t, even if you do buy in at an all time high, yes, it could go up for a short time.

Dave:                                    24:45                     But then you could spend a lot of time with the company, either in a, either a flat realm or it could actually lose money for a long period of time and you don’t really want to be in that, in that place, especially as someone like myself who’s in an, you know, a shorter time horizon. You know, Andrew, like he was mentioning, he’s in the growth stage of his investing career where I am, but I’m not. And so I have a different, I have to have a different mindset. And when I’m looking at those companies, I really tried to consider where I am in the realm of what I’m trying to invest in, what really my goal is. And so if I’m sitting there with four key positions and I’m really wanting to continue to put money into the market, then if I can’t buy, for example, Johnson and Johnson or Hormel, that I’m going to look for other opportunities that may present themselves and Andrew [inaudible] letters a fantastic opportunity to help me find something like that in.

Dave:                                    25:45                     Yes, I read it every month just like everybody else does. And there are some great recommendations in there and I have certainly bought some of those companies because he’s done a lot of great research and help me take the guesswork out of it. And that’s the advantage of being involved with with that. So I hope that helps answer his question, but I think you know, you really, really have to look at the price and the valuation of the company and decide whether that’s too rich for my blood at this particular time. And you know, like Andrew was saying about hormone, yeah, it’s too rich for my blood right now. I’d love to own the company, but it’s, it’s too expensive so I’m just going to have to wait. And that’s really part of what Andrew was referring to as well as when we’re as value investors, we were looking at investing in companies. When we find a great company like a Hormel, you got to let the pitch go by because it’s just, it’s too expensive right now. But it doesn’t mean that two years, a year and a half,

Andrew:                              26:44                     Six months from now, there may not be, there may be an opportunity to get involved back in the company because of a downturn in the market. So he just, you just never know. But you got to keep your eyes open and you gotta be, you know, a smart about making your decisions as you possibly can. That was really well said. Yeah, very good job. I’m going to move on to the next question. So this one is from Derek. He says, Hi Andrew. I have a question if you are able to answer. I was wondering if any, in any podcasts you cover a dual strategy of dollar cost averaging into an ETF or MTF and also picking single stocks. So I know MTF is a Canadian thing. It’s like their version of ETF. He says, I’m lucky enough to be a young above average earner in the lucrative industry at the age of 26 he’s also able to save anywhere from 500 to $1,000 a month that has been using to increase a cash position in a savings account.

Andrew:                              27:38                     He’s not entirely sure what to do with. His preference is to use this on individual stocks using valuation metrics and uh, he asked, I’m curious if you have any input you could share on how to approach a strategy such as the one I’ve outlined. I tend to consider the cow I’m dollar cost averaging and to be truly longterm without any desire to touch it. The cash I have been growing myself is not essential to my lifestyle either. And I generally consider it to be money I can afford to let sit through a volatile market, maybe naive. I consider the ladder to be short term focused or fund money. Thanks for any thoughts there. I feel like we need to copy paste that little snippet and just stamp that on every investor’s forehead cause that really needs to be the motto. Like he’s got it, he’s got it down perfectly.

Andrew:                              28:28                     You have money, that is your extra money and that’s what you’re going to put into the market and you’re going to let it sit right. He says, it’s not essential to my lifestyle, so I can afford to just let it sit through volatile market. That’s really the definition of how you’re investing should be, and that’s how you’ll find success because if you’re putting in money you can afford to lose now desperation kicks in. Now you’re going to feel all these emotions and stress and it’s going to make you make these terrible decisions and, and really just make the whole investing experience something that’s so negative that it doesn’t add any positive values into your life. It can really snowball and you could make terrible cell decisions and actually make yourself worse off than if you did it. So I think that’s great. Now he’s asking the first part of the question, do you cover a dual strategy?

Andrew:                              29:27                     So I personally don’t. We had Braden Dennis from Stratosphere Investing on a previous episode. He, I know, uh, I’m subscribed to his investment newsletter. He does a mix of individual stocks and index funds. I think a lot of investors do that too. So you kind of have to, it’s all like a personal preference. Like we were mentioning at the top of the show, I like the flexibility of being completely in control of every stock I own. I like the benefits of each individual drip. You get a larger percentage and you have more control of, you know, ensuring that you’re in the stocks that give you the highest yields and the best compounding and all of those sorts of things and the lowest prices. So that’s all just a personal preference. I don’t, we never talked about it on the podcast as far as us implementing it because I don’t personally do that. I’m just a hundred percent individual stocks. I guess the last part of his question, he asks,

Andrew:                              30:33                     Basically he considers it to be fun money, but he’s letting it sit there. Volatile market. So like if you’re considering it to be fun money, you’re acting like it’s not fun money, you’re acting more like it’s, I don’t know, you’re just acting smart. So I think there’s nothing wrong with anything that he said. I, I think you just need to let it sit like, like he said, and not worry if when you see the, the value go down because you know that the values and the fact that you own part ownership of this business and even though the stock market’s going to go crazy as long as what’s happening in the business is steady, then it doesn’t matter how crazy the economy gets, how crazy the stock market gets, how crazy politics get, how crazy militaries get, right? These are all things, uh, as long as you’re in a business that’s able to stay competitive and able to turn a profit year after year, then you, you do have the luxury to let it sit.

Andrew:                              31:32                     And that’s really how you’ll get some of the best compounding when you reinvest those dividends. When you let, when you let the stock price kind of go up and down, you’ll never, I mean it’s, it’s hard not to say you’ll never, but it’s hard to buy a stock and just get one that’s going to go in a straight, perfect line. Kind of like you see, when you, when you look at some of these charts where they talk about investment success, that’s just the reality. I mean, nothing. Success is never in a straight line. So you have to understand that you’re going to take some rocky periods along with it. Just ride it through, do exactly what you’re doing. Don’t invest more than what you can handle. And I think, you know, I, I’m, I’m bullish on this guy’s future. I think he’s, I think he’s doing good and I don’t see any reason to change it.

Dave:                                    32:19                     I don’t either. I think that’s a great philosophy and a great mentality to have. And I think that, you know, like you said, I think we should take of that and copy and paste and put it on all our foreheads because that’s the perfect, uh, mentality and ideal to, to have. And I think he’s, uh, he’s got a lot of success coming his way. I NBM wish I, I wish I had been that way when I was 26 years old. All right, so moving on. Uh, Hi Andrew. I trust all is well. I’m contributing 10% of my salary to a company share scheme where I get a 15% discount on share price. Uh, the stock pays a 1% dividend. I also have a personal portfolio made up of index funds. If you were me, would you sell some of the holdings on a regular basis and reinvest this cash freed up back into my personal portfolio to reduce risk attributed to holding significant amounts of the individual stock.

Andrew:                              33:14                     I look forward to hearing from you. Sincerely. Net short answer, yes. Longer answer, we kind of talked about this in episode 69 so we went really in depth on stock purchase programs when you’re in a place. So Esp. So if you want more details on that, you can go to the episode 69 but basically yes, you have to consider when you work out of stock or when you work at a stock, when you work at a company and you also own that company stock, you have double risk factor because if things go really south, right? Like, if the stock goes bankrupt, now you’re out of a job and you’re out of your life savings. So that’s a really good reason to diversify even further. I talked about in the previous episode how I like to take the discount that they give and just sell as soon as you’re able, it’s a free 15% return, right?

Andrew:                              34:08                     Depending on how long you have to hold it. Um, but yeah, just I like to take the discount and put my money elsewhere. It reduces the risk. I also like to get into better opportunities and so I’m always looking for him. I just see it as, you know, take all the advantages of the benefits that a company can give you as your employer and then, but also be smart and use good investment practices and, and be a smart investor. Like, you know, all these things, all these little things. They sound like little decisions. But like we were mentioning earlier, when you talk about present here in a percent there and we’re talking about their financial future, this can add up to thousands and thousands of dollars and they can really make a huge impact. So it’s good that you know, we have listeners asking these types of questions and people wanting to research it because it is worth your while.

Andrew:                              34:59                     And it shocks me how the vast majority of people don’t. And not to say, Hey, I don’t blame him whatsoever, but you just start to wish that there was more of a knowledge going out there and more education being spread about these kinds of things. Cause yeah, it’s a lot of money that that can be going to waste or going to a certain entities on Wall Street that should be staying in your pocket. So kind of is what it is. But hopefully by answering these type of questions, hopefully you guys keep answering, uh, you guys keep asking them, you guys keep a curious mind and keep trying to do this DIY investing stuff. I think a a lot of people will unlock a lot of value for themselves and and hopefully get closer to that path of financial freedom that we’re all chasing. So I think there are some great questions today and that I really enjoyed answering them.

Dave:                                    35:57                     All right folks, we’ll that is going to wrap up our discussion tonight editor and I really appreciate all the questions that you guys are sending us. You guys are sending us fantastic questions and these are all great ideas and great thoughts and and hopefully Andrew and I have been able to help them, help answer those to your satisfaction and help you guys continue to grow in your investing. So without any further ado, I’m going to go ahead and sign us off. You guys go out there and invest with a margin of safety on safety. Have a great week and we’ll talk to you all next week.

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