Saturday Morning, April 6, 2019, T+94, Part 1 -- Morning Meanderings -- Nothing About The Bakken

This page is now complete and will not be updated except to correct errors.

Note: for reasons inherent in this post, there will be typographical and factual errors. This is Cashwise deli conversation, nothing more, nothing less.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, relationship decisions based on what you read here or think you may have read here.

GPS: remember, today is the day -- April 6, 2019, that any electronic device that has a GPS function, will fail today. Thank goodness April 6 fell on a Saturday today and not a Monday. But those folks flying to Minneapolis today in those 300 private jets should be prepared to have lunch in Bozeman, MT. Just saying.

Typos: I have a gazillion inconsequential typographical errors ("typos") to correct in blogs posted over the last several days. Again, I really, really appreciate readers not pointing out inconsequential "typos." But if I post something of substance that is wrong, please let me know immediately.

Boeing. If the recent report coming out of Ethiopia is correct, this is a huge problem for Boeing. At a minimum, two comments/observations:

• Boeing said it had a software solution for a hardware problem; it turns out that the solution did not work
• did Boeing know that its software solution would not work?
• can a "revised" software solution fix the hardware problem?

Tesla: it was widely reported that Tesla's deliveries in March, 2019, were the worst in its history; it was also widely reported that its first quarter earnings would be significantly impacted for various reasons -- and that guidance was made before we had the March-delivery data. Question? Was Musk Melon aware some weeks ago that March deliveries would be a disaster? Something to note: in all the reporting this week about the Tesla deliveries in March there were two "factoids" not mentioned anywhere, at least I didn't see these two items mentioned:

• int eh US, the federal credit for purchasing a Tesla has pretty much gone away
• Tesla has lowered the price of one or two or all three of its models twice so far this quarter (I forget the specifics; I think it was only regarding one model)

And, Musk Melon says Tesla is now ready to mass produce the lower-priced Model S.
Okay, here it is, from wiki:

Tesla finally announced the long-awaited (and long-promised) $35,000 base version of the Model 3 on Thursday, but the company also dramatically reduced the starting price of its other cars, the Models S and X. Each version of those cars now costs between $12,000 to $18,000 less than they did earlier this week.Mar 1, 2019.

Texas basketball. Wow, what an incredible year for Texas basketball.

• Texas soundly trounces Lipscomb, 81 - 66, in the NIT
• Baylor (Waco, TX), women will play for the Women's NCAA championship tomorrow night, vs ND (Notre Dame, not North Dakota)
• Texas Tech is in the Final Four; tonight against Michigan State, CBS, 7:40 p.m. Central

Coincidence: just as I was writing that, a young women in a bright red pullover with Texas Tech across the front walks into Starbucks. Can we say "excited"?

Commissions: quick! What is the commission on an equity trade at Schwab?

Commissions: quick! What is the commission on an equity trade at Schwab?

Story: I started investing back in 1978 or thereabouts. I can remember the exact moment/setting but I can't remember the exact date. It was a Sunday night, about 7:00 p.m. in Vacaville, CA.

I began investing with three "companies" almost at the same time:

• life insurance
• mutual fund
• brokerage firm

Back in 1978 there were no discount brokers (this is technically not quite true, see history of Schwab) -- but at least for me, there were no discount brokers available. I had no choice but to open an account with a full-service brokerage account  if I wanted to invest in non-mutual fund equities. Until discount brokers came along, if I invested in equities, it was through [an unnamed full-service brokerage account (FSBA)].

I bought shares in various companies over the years and almost never sold. After about ten years -- that would be 1988 -- I quit putting "new" money into [that FSBA]. But almost all my FSBA holdings had automatic reinvestment of dividends. For tax reasons and because of the high commissions, I never sold a share of anything in that FSBA after 1988. (There must be some exceptions but I have long forgotten.)

Since 1988, I have neither bought nor sold any equities for/from the FSBA account. Occasionally I have that FSBA send me some of the cash that builds up; since all original holdings had dividends automatically reinvested, I never understood how cash built up, but that's another story for another time.

The other day I looked at my FSBA portfolio to see what was in it that might be worth selling. I found a small position in some oil company that no longer made sense. I wrote a note Thursday night to myself to contact that FSBA on Friday to sell this holding. Overnight, while sleeping on this major event in my investing history, it dawned on me that it would be impossible to calculate the long term capital gains (brokerage firms have only recently been required to provide this information for equities held longer than ten years); and, the commission would be exorbitant (in fact, the commission might be greater than the proceeds -- LOL).

Out of curiosity I went over to that FSBA chat board yesterday afternoon and asked, "Just out of curiosity, what is the commission on an equity trade [at your FSBA]?"

Wow. The FSBA associate started typing -- a little note popped up saying that the associate was typing but I could not see what he/she was typing. Then it stopped. Then it started again. Then it stopped, then it started again. I still couldn't see what was being typed, but it was taking forever. I thought it was a fairly simple question but it looked like I was going to get a short essay for an answer.

Finally, there it was. First a lot of legalese about talking to one of their advisors by phone, but to answer the question, it was $75/trade, but if I wanted to change my account to non-advisory (I've never received any advice from that FSBA regarding equities except the A, B, C, D, F ratings on holdings), my trades could be free. [I forgot to ask about the account maintenance fee which also exists.]

[Up until a couple of years ago, that FSBA also charged a commission for all automatic dividend reinvestment -- something Schwab has never done.] And then after all that, finally this, "... but because you are a preferred awards customer [or something to that effect], the first 100 trades each month are free."

Holy mackerel. The first 100 trades each month!!! Unless they consider automatic reinvestment a trading action, I haven't done 100 trades with that FSBA in ... let's see ... 1978, did I say .... 2019 ... in 41 years.

Wow, I wonder when I became a "preferred awards customer"? No one ever told me. Of if they told me, I never inquired and was never told what the benefits were.

I do believe everything I have just written is generally accurate and generally true but with perhaps a little hyperbole although I don't think so, but there could be errors, typographical and/or factual. But I write all of that for the benefit of my granddaughters and nephews and great-grandchildren and grand-nephews/nieces (do such "things" exist).

Again, the disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or what you think you may have read here.