I don't speculate. Never, speculation is for sheep. Sorry if i offend, but the stats clearly show that most retail day traders loose money... google it lol. Instead i know everything i possibly can about a stock before i invest, once i know everything, i just buy a tiny stake. Then increase my position if my investment thesis proves correct, if not i cut my loss. And of course, i keep researching the stock. There is only one of me, so I can't follow a huge number of stocks, so i also invest in ETFs like $Vanguard S&P 500 ETF(VOO)$ And $Vanguard Growth ETF(VUG)$ Just to tick the diversity box.
Buts lets answer the question posed, if I don't speculate, how do i invest? Three main aspects here. First, i call myself the emotional investor... kinda like being a contrarian investor. When others get out, i get in, because there is a serious incongruity between reality and the perceptions of reality. What the frack does that mean... easy, the market is overreacting to perceived bad news, when that news isn't that bad, or another example is the company im investing in is just ridiculously cheap, comparative to its real value. This is the classic David dodds/ben graham value approach. But the latter and the former does not happen that often.
So what's number two? Show me the money is the quick answer. Cash flow is king right? Thats what you want when you analyze a stock, money flows incoming consistently. Treat yourself The same, consistent cash inflows that increase over time. Dividend stocks! Build a foundation, build a consistent cash inflow so the engine that is your portfolio feeds itself, thus you don't need to feed it in the long run. And it will feed you longer term, like in retirement. And this one is interesting, do you go with dividend stocks with low current returns but high growth, or high current returns with slower growth... $Visa(V)$ Vs BDCs... I just do a combination of both.
Number three. Growth stocks, these can make you an insane amount of money, or if you frack it up, loose you everything. I guess i have a bit of experience here, i have knowledge from university degrees in business, teaching as a prof in university and also 20 plus years of learning running my own construction business. Plus an investor on and off for 25 years. Teaching in a university was easy in retrospect, great money, insane holidays, and virtually no accountability. Running a construction business was brutal, total accountability, no consistent paychecks, no holidays, no weekends even.
Investing is easy from my perspective, im just applying my intellectual capital. Don't speculate fellow tigers, build your own intellectual capital, and leverage your knowledge, learn from mistakes and successes and you will smash it friends
@Tiger_comments @TigerWire @Tiger_chat @Mickey082024 @koolgall @SPACE ROCKET
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- Kiwi_G·12-01TOPNeed some good dividend stock ideas, decent passve income streams in great companies feels a long way away, boat may have sailed for me started too late ! 🤣 totally agree however there is room for both styles intrinsic value and technical spec depending on risk appetite .. but i hear you with the stats. truth.2Report
- SPACE ROCKET·12-01thank you for sharing!1Report
- NeoBie·12-01Thank you for sharing 🙏🏻1Report