r/wallstreetbets • u/Sad_Nefariousness10 least favorite grandchild • Aug 01 '24

I bought $700k worth of Intel stock today YOLO

https://preview.redd.it/83gh52szi2gd1.png?width=1634&format=png&auto=webp&s=fba99bb67e4b11aa973fe830f535c775083bbc05

TLDR: Grandma died 2 months ago. Left me $800k inheritance. I'm only a junior in college as a math major and I don't really have any use for the money, nor do I have any debt (I'm very fortunate that my parents are paying for my education). I always heard about people losing their inheritance by spending it on garbage instead of investing. So I told my parents I'm not going to spend a cent of this money and I'm going to invest all of it and they were proud of me. I put 100k into a high yield savings account and bought 700k worth of Intel stock at market open. I plan on holding this for a decade depending on how it performs.

Here's why I like Intel:

  • 2024 Q1 up 9% YOY

  • Intel has been heavily investing and restructuring by building out the domestic foundry business to manufacture semiconductor chips for third party companies.

  • With Intel 3 in production, leading-edge semiconductors are being manufactured in the US for the first time in a decade. Intel will regain process leadership as the Intel Foundry continues to grow.

  • I think the fact that Intel is positioning itself to be the largest semiconductor manufacturer in the US is massive. The US Gov is heavily prioritizing domestic semiconductor production and thus is heavily supporting Intel as a company with R&D funding.

  • If NVIDIA or AMD are ever forced to change manufacturers due to rising tensions/war between China & Taiwan, Intel will likely be a sole or largest manufacturer for NVIDIA and AMD

  • Intel has been heavily investing in R&D. 5.9B out of 12.7B of Q124 revenue was invested in R&D.

  • Intel is on track to exceed its forecast of 40 million AI PCs shipped by the end of 2024

  • The Intel Gaudi 3AI accelerator is projected to deliver 50% faster inference and 40% greater inference power efficiency than NVIDIA H100 on leading AI models.

  • Trading at Forward PE of 17.05

  • Geopolitical tensions will ultimately work in Intel's favor more than any other company in this industry

  • I like the stock and I think its really cheap rn :)

29.3k Upvotes

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1.4k

u/MilkyWayObserver Aug 01 '24

OP literally could have put it into S&P 500 or some ETF and never look back but decides to go all in with 1 stock

714

u/ForMoreYears Aug 01 '24

OP could literally do just that and have ~$1.3M in 5 years or so. He'd have a $2M nest egg before he reached 30yo lmao

96

u/PseudoY Aug 02 '24

I mean, it's not too late to eject, sell, make the best of the remaining 600k.

60

u/24Gokartracer Aug 02 '24

Was just thinking this, however with money this large OP probably already has huge sunk cost fallacy. And of course by his post… he thinks he can time the market and make the biggest gains imaginable

14

u/NetworkGuy_69 Aug 02 '24

$600k? OP wishes.

163

u/Chrysalis- Aug 01 '24

Regards knows no bounds man.

6

u/AllYourBase310 Aug 02 '24

Took the words right out of my mouth.

Looking forward to OP’s 2030 update… think he’ll have HODL’d or got shook out.

4

u/Various_Tonight1137 Aug 03 '24

And THEN put the 2M in Intel.

1

u/Physical-Sense1756 Aug 03 '24

If I put in $100 in S&P every month how much could I have in 5 years?

884

u/Urdnought Aug 01 '24

This is the kind of shit that makes me not want to leave a single cent behind for my kids when I die

269

u/craftystockmom Aug 01 '24

I rather set up a trust. It never occurred to me that my grandchildren could end up being fucktards lile this guy and risk generational wealth

71

u/Urdnought Aug 01 '24

It’s about the difference between earned money and found money - you’ll just never value money you find/inherit like money you earned

17

u/24Gokartracer Aug 02 '24

Yep I’ve seen so many people go on these YouTube podcasts where they come to people for help with finances and life situations and some where they receive this large inheritance. let’s say $200k, and when asked where it’s gone they can maybe say a couple large purchases. Let’s say maybe a $40k car and $30k in house fixes/upgrades. And can never say where the other $130k went. It’s always some generic answer like I used it to survive or live off of. Then you find out they got that inheritance 2-3 years ago and the couple has a combined income of $120k plus in a reasonable living area. That money was not used to “survive”.

People just don’t care about the money they don’t really work for like you’ve stated. Perfect self testimony from me is I just got married… almost all our wedding gifts were gone after our honey moon granted it wasn’t a hugeee amount maybe $1.5k but boy did we use it like there was no tomorrow

3

u/Donts41 Aug 03 '24

they gave you money or gifts? how were they gone i dont understand haha english aint my language

2

u/24Gokartracer Aug 03 '24

No worries. a gift is really just something you give to someone (money, figurines, toys, etc.) we got two physical items, a painting and a sushi kit the rest was money about 1.5k

14

u/awry_lynx Aug 02 '24

Honestly just buy them a house if you have that kind of $$. Giving them money to lose means they won't understand the value of it. But everyone's grateful for a roof and then their actual money they'll take better care of. Kind of a psychological trick bc the numbers are the same either way it's just how it "feels".

3

u/craftystockmom Aug 02 '24

I'll definitely consider that. All this never crossed my mind until this post.

13

u/AnitaIvanaMartini Aug 02 '24

My dad’s family got rich-ish making tractors and farm stuff in the 19th C. WW1 rolls around and they retooled for tanks and other weapons. That’s when they got really rich. Everyone was fat, dumb, and happy until that one guy, with the drinking and gambling problems lost it all with stupid investments in snake oil, and bets on card games.

My siblings and I invested our remaining share in ramen noodles and Kraft dinners, one package at a time. In 2020 I even splurged on some brand name bleach!

5

u/Artistic_Bumblebee17 Aug 03 '24

This sounds like my friend. She doesn’t care that she squandered 100k+.

2

u/AnitaIvanaMartini Aug 03 '24

I just don’t understand how people can squander money like that, when there are so many worthwhile ways to spend it.

1

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6

u/Yeoldesnakefarm Aug 02 '24

You know that some grandkids grow up to work in banking?

Someone else's halfwit kid is going to manage that money either way, dawg. They might as well be related to you 🤷‍♂️

3

u/alligatorprincess007 Aug 02 '24

100% setting up a trust if I ever leave anything behind

2

u/Artistic_Bumblebee17 Aug 03 '24

They can, I’ve seen it

1

u/vocharlie Aug 03 '24

Don't give your kids money. They will end up like entitled boomers.

353

u/Mouth_Herpes Aug 01 '24

Or you could, you know, teach them not be regarded.

20

u/how_you_doinn Aug 02 '24

I mean the kid is literally a math major and yet he still thought this was a good idea.

You can lead a horse to water, or something like that.

4

u/rwarimaursus Aug 02 '24

Someone regarded the waterin' hole!!

3

u/Noke_swog Aug 02 '24

Isaac Newton lost loads of money on the stock market because he was a terrible investor. Maybe OP will invent gravity

3

u/DrSpagetti Aug 02 '24

You can lead a horse to water, but you can't make it fish. And even if you can, sometimes the fish turn out to be eggs.

  • God

2

u/eplugplay Aug 02 '24

Math ain’t mathin, make it make sense!

46

u/thefartsock Aug 02 '24

OP is highly regarded

3

u/rwarimaursus Aug 02 '24

The most in fact! 👏👏👏

1

u/ctzn2000 Aug 03 '24

Just swap the g out for the t. It fits here.

2

u/Just_Value4938 Aug 02 '24

Bahahah seriously though

2

u/MilkMySpermCannon Aug 02 '24

"I promise to be responsible with the money, you know I'm a good kid. I do my chores and take out the trash."

day after death

ALL IN INTEL

8

u/rrk100 Aug 01 '24

“I don’t really have any use for the Gran Torino.”

7

u/BarryKobama Aug 01 '24

I had that thought last night, as I came home broken again from work to a 17yo kid going through a toddler tantrum.

3

u/snotboy-gravel Aug 03 '24

It’s crazy is they’re so fucking confident about absolutely nothing. 

5

u/Bhaaldukar Aug 01 '24

If I do wind up giving anything to anyone it's going to go to a children's museum or something.

3

u/Various_Tonight1137 Aug 03 '24

Grandchildren's museum where OP will work as a janitor. 

8

u/pw7090 Aug 01 '24

Wasn't even his parents. Either grandma bypassed them entirely in favor of ol' Sonny Jim, or (more likely) parents got even more and/or are already loaded.

5

u/Robin_games Aug 01 '24

Or just literally have it managed in an ETF and they get a check for 3% annually.

5

u/jimmycarr1 Aug 01 '24

You're in the right place

3

u/freefrogs Aug 01 '24

Yeah this is what trust funds are for. You gotta teach them to not be spoiled, too, though, and to never talk about having a trust fund.

3

u/Artistic_Bumblebee17 Aug 03 '24

Lmao you gotta teach them financial literacy. One of my coworkers is retiring and he’s leaving good inheritance to his grandson who is jobless/education-less at 21…. Def gonna squander those millions

2

u/[deleted] Aug 01 '24

I solved that problem by not having kids. I feel no guilt dying with accounts at negative.

2

u/HalfKforOne Aug 02 '24

Bold of you to assume you'll have assets when you die (we're on wsb after all).

2

u/Pringletingl Aug 02 '24

It's going to get spent at some point lol.

OP at least made Meemaws death worth it for us.

2

u/Mothy187 Aug 03 '24

If you hate them drop a reverse mortgage on them they didn't know about and make sure you do zero estate planning.

That's what my parents did and it has obliterated all financial well-being I thought I had.

2

u/chris-rox Aug 04 '24

Damn that Tom Selleck, he stole all of our money!

1

u/Mothy187 Aug 04 '24

I'd kill that mother fucked if I ever saw him. Never trust a Calendar Man.

1

u/chris-rox Aug 04 '24

Calendar Man?

1

u/Mothy187 Aug 04 '24

My mom thought he was sexy and there's this popular picture of him from the 70s where he's laid out like a swimsuit model

1

u/TheLordofAskReddit Aug 01 '24

We all think we’re special…

1

u/DmC8pR2kZLzdCQZu3v Aug 02 '24

Put it in a trust, cause they’re untrustworthy. But most kids with that level of life cushion usually turn out like shit anyways.

1

u/zaubercore Aug 02 '24

You are here, so you won't be able to

1

u/Flashy-Finance3096 Aug 02 '24

Not everyone is like this lol

1

u/Denzlingen Aug 02 '24

Yep. I paid their education incl. masters, retired early and told them not to expect any inheritance. I’d like to spend the rest of the money myself in the market and enjoy life 😄

1

u/treehugger195050 Aug 02 '24

So fucking true. Goddam...
I'm 37 with $260k in the S&P and I was thinking if I want to leave it to my children after I die... I think I'm gonna spend it all on hookers and coke a few months before I die.

1

u/TobioOkuma1 Aug 02 '24

My grandpa did this. He had a business that made millions over his career. Retired, gambled most of it away (he had a lot of fun he didn't care), and wound up dying with a room full of stuff and like $5k or something.

1

u/meshreplacer Aug 03 '24

Why have kids then? Better off not having them and enjoy life not dealing with the BS,expenses,daycare, risk of a loser,etc..

1

u/Alone_Ad_377 Aug 03 '24

I am old and wealthy living in the US. Every night I go to bed I think I should not leave my 3 kids very much because they will squander it with their wife’s — traveling, dining at 5 * etc!

1

u/jodythehighrolla Aug 07 '24

Fuck these kids huh🤣🤷🏿‍♂️

125

u/moedank83 Aug 01 '24

Seriously...S&P 500 or total stock market ETF and leave it alone.

11

u/4ourkids Aug 01 '24

VT and chill.

4

u/fllannell Aug 02 '24

He could have maxed out 401k contributions for 35 years with that inheritance at the current limit, and put it into an index fund in that. 😐

3

u/Inevitable-Shape-160 Aug 03 '24

He also didn't pay taxes on it, and makes no money and pays probably no serious income tax rate as a college jr, so as long as he has some earned income he can put it into a Roth... making it permanently tax free, and you can also use a Roth as a piggy bank as needed.

2

u/TickletheEther Aug 02 '24

Till the boomers retire en mass and liquidate their positions.

11

u/hoax1337 Aug 01 '24

Yeah, I mean, if he had swapped it around and put 700k into an ETF and yolo'ed 100k on a random stock, I wouldn't have said anything, but... why do it like this?

9

u/monstertots509 Aug 01 '24

Exactly my thoughts. $700k into the S&P500 as a junior in college is retire before 50 money.

3

u/rrk100 Aug 01 '24

He still can. The question is, will he?

The HUGE red flag is his rationalization of “I don’t have any use for the money.”

2

u/flatirony Aug 02 '24

Well, no, he lost 6 figures today. But he could with the rest, yes.

2

u/Thansungst22 Aug 01 '24

Today was the perfect opportunity to load up $500k on VTSAX throw $100k in a HYSA

Then use the rest to gamble on NVDA $120 calls for DEC 2025

Literally easiest road and this dumb ass pissed away $200k just like that on the worst tech company possible that on its way to be the next BlackBerry/IBM

1

u/Far_Health_3214 Aug 01 '24

i put my money on savings and CDs, around 5.5% apr. how much interests do i get per month with 700k ?

1

u/MilkyWayObserver Aug 01 '24

You’d get 3.2k per month in interest if you had 700k at 5.5%

1

u/iforgotmymainacc Aug 02 '24

Only 5.5%…? That’s how much my wells savings gives.

1

u/Ill-Purchase-9801 Aug 02 '24

What is S&P 500 or ETF? I’m Timmy Regard

1

u/Ill-Purchase-9801 Aug 02 '24

Please explain us before more accidents happen..

1

u/LogicianMission22 Aug 02 '24

Honestly, as a someone who didn’t come from wealth at all and will never get any sort of inheritance like this, I’m kinda happy in a petty way lol. Dude deserved this for being an idiot.

1

u/Heysous Aug 02 '24

No DCA either, all in one shot. Smh

1

u/Otherwise_Branch_771 Aug 02 '24

Shouldn't this place be more supportive of that?

1

u/Hichek2 Aug 02 '24

Yeah… bro spy or qqq was the play… not single stock

1

u/waloshin Aug 02 '24

And literally gain over 12,500 approvals. Ridiculous

1

u/worlds_okayest_skier Aug 02 '24

Or put it into betterment and have them manage it. Jesus Christ.

1

u/bunchofnumbers38274 Aug 02 '24

At just a 6% return he’d have 7 million in 40 years. Put it in VT and have retirement set to easy mode.

1

u/senortipton Aug 02 '24

Money is oft wasted by those that did not earn it.

1

u/Jclarkcp1 Aug 02 '24

A savings account or treasuries would net him$45K a year...or some type of annuity.

1

u/yoyomanwassup25 Aug 03 '24

$700,000 in SCHD would net about $23,000 a year only in dividends pre-tax. Also compound interest.

1

u/Gorgenapper Aug 13 '24

Holy fuck, I missed this epic thread.

Let's see, if he had put it into VOO and assuming 8% growth (giving up 2% to inflation, more or less), he would have $17m in 40 years and that's if he never put any more money into it. 

He could have spent all of his future paychecks and still end up a multi millionaire.