Comments by "Magic Beans" (@Magic_beans_) on "Investment Analyst Reacts to Investing TikToks (Part 4)" video.

  1. He didn’t say NVDA was a bad investment, just volatile, which is relevant because the TikToker tried to paint it as safe. If it can 10x like Nvidia, it could have cratered like Intel. Richard’s main point though, which he reiterates in the next video in this series, is that the covered call strategy presented by that TikToker would have fizzled out quickly. You might have gotten that $1,400 for selling calls, but then in May 2023 when NVDA jumped 25% in a day you’d have missed out on $25,000 in gains. In fact over the course of NVDA’s 10x you’d have repeated that several times, getting assigned and having to buy back in at a higher cost to keep going. That in a nutshell is what covered calls do. They sell away the possibility of unexpectedly big gains for the guarantee of cash in hand. When the market trends up, which is most of the time, covered-call funds like NVDY, TSLY, and SPYI perform worse than if you’d just held shares.
    3
  2. Reading this and understanding why Gen Z’s teachers are gravely concerned about their students’ comprehension skills.
    2
  3. Ice bath, journaling, meditation, edging, everything you’d expect for someone with the sigma grindset.
    2
  4. Did you happen to notice how 80% of that segment wasn’t about Nvidia ? Richard never said NVDA was a bad investment, merely volatile. His main point was that a covered call strategy isn’t easy money like the TikTok guy makes it sound. Compare the total return of a covered-call strategy fund like NVDY, MSFY, TSLY, DISO, or SPYI to just buying and holding the underlying (NVDA, MSFT, TSLA, DIS, SPY). When the market’s trending up, which is most of the time, covered calls underperform buy & hold.
    2
  5.  @Illusion666  It was back in the 1980s, it’s basically Ramsey’s origin story. He’d accumulated some $4M worth of real estate but it was one debt propping up another. Then one of the banks he worked with got sold, and the new owners called $1.2M of his debts. He filed for bankruptcy two years later. I wouldn’t exactly call him a fake guru in the Coffeezilla sense. His teachings are roughly in line with those of Jack Bogle and he doesn’t claim to know any secret techniques or systems. Then again he makes money off books and seminars, then uses that wealth to convince listeners he knows what he’s talking about.
    1
  6.  @briangasser973 That’s the general rule for covered call strategies, lower but steadier returns than the underlying. You can see this in basically all the “option strategy” ETFs like TSLY, NVDY, DISO, and JEPQ.
    1
  7. > keep doing whatever the hell it was I did to earn $100,000 But that involved working and earning a paycheck. If there’s one thing passive-income folks stand for, it’s to exit the workforce as soon as possible.
    1
  8. 6:20 Rewatching this I’m realizing the “buy a mansion with crypto” kid was expecting the Anchor Protocol’s rate to last for the entirety of his 30 year mortgage. That was always intended to be a promotional rate to encourage UST adoption. That should be fairly obvious when the rate earned on more established currencies is about on par with a savings account (as of early 2024 staking ETH pays about 3% per year).
    1
  9. Yes, and then he’d get assigned any time NVDA made a big jump and have to buy in at a higher cost.
    1