İnvestment strategy

#15

Postby Richard@DecisionSkills » Tue Nov 09, 2021 6:13 pm

desperate788 wrote:Reliability and economic data of companies dont mean anything?


Yes desperate. Economic data of companies means something. Quietvoice is clueless about the stock market. Her advice on this subject can be safely ignored.
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#16

Postby Richard@DecisionSkills » Tue Nov 09, 2021 7:06 pm

Desperate,

I have been investing for over 25 years. I invest based on the fundamentals.

I start with a basic idea, such as there is currently a shortage of computer chips. I then look at companies that make chips. I compare company A vs B vs C.

I compare fundamentals, like P/E ratios. I look at how much debt is carried, dividend yields (if any), volatility, etc. That takes maybe 1 hour.

Last, I read the most recent transcript of an earnings call from each company. This takes another 1 or 2 hours.

After picking A, B, or C, I invest 5% of my overall portfolio.

When the next earnings call happens, I decide either to sell, hold, or buy more. I do this on 5% increments, with no stock ever being more than 20% of my overall portfolio.

I currently own, in no particular order:

AAPL
HD
AMZN
PG
WRAP
INTC
NIO
NVDA
ZION

I am down on WRAP and INTC. All others are profitable, with HD up over 700%.

I’m not going to tell you what investments I would make in your position. What I will tell you is that investing is not rocket science. Do some research. Invest in solid companies. Compare companies against each other and pick the one you think is best in that sector.

For instance, I think both INTC and NVDA are good for the shortage in computer chips. Both are solid companies. But, I’m down 10% on INTC while I’m up 80% on NVDA.
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#17

Postby quietvoice » Tue Nov 09, 2021 9:36 pm

desperate788 wrote:Reliability and economic data of companies dont mean anything? I dont think that its gambling.

What is the practicality of owning a stock? It is a certificate of "ownership", but what does that mean in practical terms? So, some stocks pay dividends, and that is shown or factored into the pricing. Other than that, all that you have is a virtual certificate (are paper certificates still available?) for a share of "ownership" in a company. Depending on what type of stock, you may even get to vote on something (oh boy!).

Until a company has reason to cash out the stock certificates, all that you are doing is trading certificates back and forth with the expectation that you will make money on the trades. And so is everybody else. It is a zero sum game—someone wins, someone loses. And the trade exchanges collect their commissions, with a net loss to the certificate holders in aggregate.

This applies to small traders.

Big, institutional traders have the advantage of affording large blocks of stock, where it is possible to own enough of the company in order to have an influence on the company. Different story than your situation.
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#18

Postby Richard@DecisionSkills » Tue Nov 09, 2021 10:18 pm

quietvoice wrote: It is a zero sum game—someone wins, someone loses.


Wrong.

You see desperate, when someone thinks that they know something, they will often offer up foolish statements.

As an example, let us say I have just made a profit of $10,000 by selling the stock of a company that sells lumber. Let’s call this stock LUM, for the hypothetical company Lumber Incorporated. According to quietvoice, because I profited $10,000, this means another person had to lose $10,000. That is a zero sum game, and applied to the stock market, that is ignorant.

The reason I made a profit, was because Lumber incorporated sold more lumber. They harvested more trees, growing their business. This made the stock I had initially purchased more valuable.

When I sell my stock, it is because another person feels like it is a fair trade. They believe the Lumber company will continue to grow. They believe the Lumber company will continue to expand.

Why do I sell? There are many possible reasons. Maybe I think the Lumber company is no longer headed in the right direction. Maybe I think the value will go down. Or maybe, I think the Lumber company will continue to grow, but I’ve seen a better opportunity in a manufacture of Trains. I think the Train manufacturer will grow faster than the Lumber company. It isn’t a zero sum game.

People that believe stocks are a zero sum game…well, they are ignorant on how markets work. They don’t understand what stocks represent.
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#19

Postby desperate788 » Wed Nov 10, 2021 9:52 am

Indeed this investment thing is tricky and luck plays a role. When i have zero knowledge about investment i insist on buying dollar when i digged in investment as a hobby i bought some of the dollar and made variations. But increased sharply so i coukd be richer if i didnt give up dollar a bit.
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#20

Postby desperate788 » Sun Nov 14, 2021 6:02 pm

Hey im getting my wage tomorrow..hurray :)
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#21

Postby desperate788 » Tue Nov 23, 2021 5:53 pm

I have bulk of lira at the moment i sold some euro and dollar what to do with this money it will increase even more in a week. Dollar is too expensive to buy, interest rates too low and stocks are risky. What would you do in my position?
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#22

Postby desperate788 » Wed Nov 24, 2021 7:20 pm

Will push on stocks a bit, on Türk Telekom and maybe a few more. And wait for the dollar price decrease for the rest.
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#23

Postby desperate788 » Wed Dec 01, 2021 4:18 pm

The experienced authors of the books i read about stocks doest recommend reactive selling of stocks i mean selling stocks when there is a short term increase at their value they say buy strong stocks and wait. What do you think?
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#24

Postby Richard@DecisionSkills » Wed Dec 01, 2021 4:38 pm

I read a companies earnings report. This occurs quarterly. I decide to hold, sell, or buy more, based on that report as well as my understanding of the broader markets and my portfolio.
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#25

Postby desperate788 » Wed Dec 01, 2021 5:07 pm

In turkey regard to dollar stocks are very low priced is it a time to buy more stocks?
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#26

Postby desperate788 » Wed Dec 01, 2021 5:09 pm

But in general my countrys economy is quite risky
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#27

Postby desperate788 » Wed Dec 01, 2021 5:23 pm

In a risky economy firms are instable too. So stock buying in turkey may be problematic. I dont want to lose my savings.
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#28

Postby desperate788 » Sat Dec 04, 2021 12:15 pm

This week there will be action at my stocks. Lets make some profit 8)
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#29

Postby desperate788 » Tue Dec 07, 2021 11:45 am

Stocks going well today 8)
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