September 9, 2020

Talk Money Weekly #007 | Apple Went From $500 to $125 ๐ŸŽ

Mesh Lakhani Headshot
Mesh Lakhani

Hey everyone,

This is Issue #007 of the Talk Money Weekly. To get your mind moving on the topic of money every week, Iโ€™ll curate and share trending conversations around money, business, current events, and pop culture from Twitter, my favorite podcasts, and other platforms.

I hope everyone had a wonderful and safe holiday weekend. Welcome back!

If you haven't check out our special BLM episode on our Talk Money Podcast - BLACK IN BUSINESS, be sure to do so! Season 3 is in production, and we've already done 30 interviews!

๐Ÿ“ˆMarkets & Business:

Apple Stock is Cheaper Now? No Itโ€™s Not

Apple recently did a 4/1 stock split. A $500 stock is now $125. If you had 1 share at $500, you now have 4 shares at $125. The stock is not cheaper. The value is exactly the same. Itโ€™s psychological. Why do this? To make it appear cheaper so that more people (younger retail investors) will buy it because they can afford it. But now we can buy fractional shares, so this strategy could be dated. The price of the stock does not determine whether it is expensive or cheap. They should teach this in school.

Day Trading is for Suckers

I learned early on in my career that day trading is a foolโ€™s errand. It needs 100% of your attention, itโ€™s stressful, and long term, itโ€™s very hard to net a positive return. Itโ€™s just easier to buy and hold. Robinhood gamifies investing. Even though they donโ€™t charge you per trade, they make money off you every time you trade. They want you to do it. They sell that information to hedge funds who profit off your moves.

Donโ€™t Bet the House on Your Bitcoin

Friends, don't tell friends that you should put 50% of your investable capital into Bitcoin because itโ€™s going to $100,000. I own Bitcoin, but I own enough where if it goes down 90%, Iโ€™m not losing my house. For the record, I donโ€™t own a house. This is a volatile asset, and therefore risky. Risky assets have high reward, but must be treated with caution. Only invest what youโ€™re willing to lose. Understand your risk and be realistic. Itโ€™s ok to be optimistic. Itโ€™s better to think of worst case scenarios.

Serena Williams the Venture Capitalist

Serena Williams is using her platform to talk about financial inclusion. Accredited investors are people with a certain net worth/income that are allowed to invest in VC funds, startups etc. The rules never made sense. You can tell someone they canโ€™t invest in a startup, but you can have them lever their trading account 2:1. You allow them to gamble their life savings away at the roulette table. You allow them to spends thousands of dollars on lottery tickets. BUT, even as the rules change, education is needed. We are still lacking majorly in this department.

The Fast & The Furiously Overpaying for their Car

This is a good take. Why the hell do we spend so much money on a car? Weโ€™d rather pay more for a depreciating asset than invest every month in the stock market. Nowadays you can get the same features as a BMW or an Audi, in a much cheaper vehicle. Does a car make your status, or the health of your investment portfolio/debt? Check out the link to lease hackr forums in the comments. The secrets you will be equipped with will make any car salesman pop a Xanax.

That's all for this week! I hope you enjoyed the seventh issue of Talk Money Weekly. If you haven't already subscribed to my podcast, Talk Money, do so here. Make sure you listen to our latest episode "Black in Business". Stay tuned for our trailer for Season 3 which is going to be pretty amazing. More on that soon.

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