OPM

SHOP had grown to almost 15% of my portfolio this week…my largest position by far. It’s super fast growth prompted me to sell half of my shares in a non taxable pension account.

The beauty of this trade for me is that now I’m invested with OPM regarding this remarkable stock. If it continues to fly, I’ll enjoy the ride. If it crashes, the profit will be invested in other stocks and life goes on.

For those of you who don’t remember, Danny DeVito’s classic 1991 movie: Other People’s Money. Worth watching this weekend if you are looking for something enjoyable to do.

Jim

Don’t most people refer to this concept as “house money”?

Same difference, essentially.

volfan84,

Exactly right.

bamafan75

Jim

The beauty of this trade for me is that now I’m invested with OPM regarding this remarkable stock. If it continues to fly, I’ll enjoy the ride. If it crashes, the profit will be invested in other stocks and life goes on.

Actually, Jim, the money you made on SHOP is your money and only yours. The money you risked to invested in SHOP was your money too. OPM refers to using other people’s money and making a return from that. For instance, someone gives you $1000 and you use it and turn it into $1200 and you get to keep 20% of the profit. Also, if you lost on the trade you would not be responsible for that loss. That’s OPM.

Chris

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Pretty much the way the banks got bailed out of the 2008 mortgage derivatives crash. All OPM, they never really had anything at risk.