Friday File: Hurricane Insurance, Gold, and GE

by Travis Johnson, Stock Gumshoe | September 1, 2017 1:03 pm


Notice: Undefined variable: supress_subtitle in /home/sgumdev/public_html/wp-content/themes/sgum_2016/wpf.php on line 42

A few small transactions for the Real Money Portfolio, plus thoughts on Sandstorm, Maverix, GE, Berkshire Hathaway, Fairfax and Axis

This is premium content. To view this article (and to have full access to the rest of our articles), sign up. Already a member? Log in.

Source URL: https://sgumdev.stockgumshoe.com/2017/09/friday-file-hurricane-insurance-gold-and-ge/


guest

12345

This site uses Akismet to reduce spam. Learn how your comment data is processed.

18 Comments
Inline Feedbacks
View all comments

Notice: Undefined variable: karmaOutput in /home/sgumdev/public_html/wp-content/themes/sgum_2016/functions.php on line 3288
billpennock
billpennock
5 years ago

“Cryptocurrencies are going up not because of their fundamental value, of which they have none yet unless you believe that β€œtrust” in a new currency can be built in the space of just a few years and that trust has value”
It surprises me that so many under estimate, in my opinion, the utility value of bitcoin. The fact that, at least at this point, you could take it anywhere in the world without having to worry about seizure at airports or borders seems to me something that money and gold just don’t have. The war on cash that is increasing daily seems to me to be the biggest reason that Bitcoin or another completely anonymous coin like Monero have value. Trust is basic to that value to be sure but the utility of money that is difficult to control is the basic value. Unfortunately I don’ t have enough money to require this value but I still see it as valuable.

Add a Topic
5993
Add a Topic
5916
Add a Topic
3640
πŸ‘ 11
πŸ‘ 15112
pmb2pmb
pmb2pmb
5 years ago

As one who worked in the US government’s international anti-drug efforts. I wonder how long it will take before Congress realizes that crypto-currencies are the β€œcurrency of choice” for the drug cartels. They no longer move money in suitcases or through bank transfers, leaving a physical or a paper trail. They now immediately convert their profits into a crypto-currency like bitcoin and transfer it with a tap on a computer button to somewhere in the USA or overseas. There is no paper trail, no visible records. It is a successful criminal’s dream come true.

Others who do not want to pay taxes are also using it. If you buy something for $1,000 and sell it for $10,000, you have a profit subject to taxation of $9,000. But if you buy it for $1,000 worth of bitcoins and sell it for $10,000 worth of bitcoins, there is no paper trail, no official legal transaction, no taxes due because the government will have no record of the transaction.

The only question is when the government will realize the problem and outlaw cryto-currencies. They are created by computer programs and the program has not been made that can not be hacked and shut down. How many investors just looking to make am easy profit on a rising investment will get burned, losing their entire investment when that happens?

Add a Topic
3640
Add a Topic
372
πŸ‘ 124
πŸ‘ 15112
billpennock
billpennock
5 years ago
Reply to  pmb2pmb

I wish that they would just legalize drugs and take the money out of it, tax it and be done with it. I believe there would be fewer lives lost, less collateral damage and a much friendlier relationship between police and people. I think there’s evidence of that from countries that have moved in that direction. PS: I don’t do drugs and am not a drug dealer :). Moving on the utility for people, say, in Venezuela, is huge. It’s nearly the only way they can function economically and there are numerous stories of how it’s actually saved lives there by allowing people to pay for healthcare they were not able to get. As for the tax avoidance there is still the need to change government money to bitcoin so there are bank records for that. Yes you could conceivably avoid some tax by putting some money in bitcoin, having it appreciate, then buying some stuff with it. But do that very much and the IRS will use a life style audit to recognize it. So my advice would be to do what you have to do with cash transactions, report them. It’s a small price to pay for not having the IRS show up to find out why you have the Ferrari on a 50k income.

Add a Topic
372
Add a Topic
229
Add a Topic
3640
πŸ‘ 11
glbcpa1
5 years ago
Reply to  pmb2pmb

I have not worked for the US Gov’t, but have gone as high Federal Appeals office for Taxpayers as POA REP. But I would think the US Gov’t is pushing for a cashless society, and that it would be IT capable,of tracking all digital transactions, and that would include drug dealers. Bit coin profits will be tracked by IRS for taxation. “IRS signs contract to track bitcoin transactions | Accounting…
http://www.accountingtoday.com/news/irs-signs-contract-to-track-bitcoin-transactions

Add a Topic
3640
πŸ‘ 47
edski
5 years ago

Seems to me that if one performed their Due Diligence on a stock and found that they had soooo much lack of information on how a company worked and decided it’s actual net worth, one would avoid it like the plague.
THAT is my big question to those living the Crypto Craze. Trust???? Heck, just like the government these days….”pay no attention to the man behind the curtain!”

Add a Topic
5971
πŸ‘ 1030
eleanor
eleanor
5 years ago

Thanks Travis for the excellent analysis.

I wonder about two things on the cryptocurrency. 1st how can I trade cryptocurrency? Currently I have Charles Schwab as my broker. I have not found a way to trade with Schwab. I would really appreciate anyone sharing with me how to join cryptocurrency franzy.

2nd, in regards to reporting the profit from trading cryptocurrency, wouldn’t the financial institution have a record about the trade and profit thus report it to the IRS?

πŸ‘ 180
πŸ‘ 15112
eleanor
eleanor
5 years ago

Thank you Travis.

πŸ‘ 180
reeppy1
reeppy1
5 years ago

Given the choices for crypto currencies, could their be a ETF available?

Add a Topic
900
πŸ‘ 1
πŸ‘ 15112
PearlGreatPrice
5 years ago

This ETF has 7% bitcoin in it: https://ark-funds.com/arkk

Add a Topic
900
Add a Topic
3640
πŸ‘ 19
socr
socr
5 years ago
Reply to  reeppy1

GBTC is an as stock traded vehicule on the bicoin (one tenth of the btc) but trades for a huge premium,last friday a top of +1000 $ but at close only 800$

Add a Topic
5971
πŸ‘ 3
gristinvest5
5 years ago

GE is also touted as one of the companies to invest in for the president’s tax plan. Thinking that they use the money to do do what they have for years paying dividends and buying back stock. Your thoughts Travis? The plan unleashes on Tuesday and GE just changed CEO’s so seems like a good time to invest with the share price as low as it is right now.

Add a Topic
152
Add a Topic
5971
πŸ‘ 49
leofreeman
leofreeman
5 years ago

Another way to play GE might be to sell some puts. The November 26 strike show a 3% return or 14% on margin as of close on Friday. Worse that happens is you own some GE. Thoughts?

jbnaples
5 years ago

Are there any Crypto’s that are backed by Gold?
I understand bitcoin was once bitgold.
Thanks for any response. JB

Add a Topic
210
Add a Topic
3640
πŸ‘ 51
socr
socr
5 years ago
Reply to  jbnaples

onegram coin introduced last monday ,one coin covered by 1 gram of gold with base in one of the Arabic Emirates,at least an altcoin backed by something tangible,is worth to take notice and put some money in I guess

Add a Topic
5800
Add a Topic
210
πŸ‘ 3