/ Just because Coke tastes good doesn't mean you have to buy the stock
My professor explained something interesting yesterday, I have to briefly record his words and make sense of them.
๐ ) ๐ฝ๐๐๐จ๐ฅ๐๐๐ก๐๐ก๐ for beginner purchases
๐๐ ) ๐๐๐จ ๐จ๐ค๐ก๐ก๐ฉ๐ ๐ข๐๐ฃ ๐จ๐ฉ๐๐ฉ๐ฉ๐๐๐จ๐จ๐๐ฃ ๐๐๐๐ฟ๐๐๐๐๐๐ ๐ฉ๐ช๐ฃ
๐๐๐๐) ๐๐๐ฉ๐๐ฉ ๐ข๐๐๐ฃ๐๐จ ๐๐ง๐ค๐๐จ (Chair of Strategic Management)
tldr: Skippt to III)
๐) ๐๐ฒ๐ถ๐๐ฝ๐ถ๐ฒ๐น๐ฒ๐ฒ
"๐๐ค๐ฉ ๐ฃ๐ช๐ฏ ๐ท๐ฐ๐ฏ ๐๐ฐ๐ญ๐ข convinced ๐ถ๐ฏ๐ฅ ๐ฌ๐ฐ๐ฏ๐ด๐ถ๐ฎ๐ช๐ฆ๐ณ๐ฆ ๐ด๐ฆ๐ช๐ต ๐๐ข๐ฉ๐ณ๐ฆ๐ฏ ๐ข๐ถ๐ค๐ฉ regularly ๐๐ฏ๐ฎ๐ฆ๐ฏ๐จ๐ฆ๐ฏ ๐ฅ๐ฆ๐ณ๐ฆ๐ณ ๐๐ณ๐ฐ๐ฅ๐ถ๐ฌ๐ต๐ฆ, ๐ฅ๐ฆ๐ด๐ธ๐ฆ๐จ๐ฆ๐ฏ ๐ฉ๐ข๐ฃ๐ฆ ๐ช๐ค๐ฉ ๐ฎ๐ช๐ค๐ฉ ๐ซ๐ฆ๐ต๐ป๐ต ๐ฆ๐ฏ๐ฅ๐ญ๐ช๐ค๐ฉ ๐ฅ๐ข๐ป๐ถ ๐ฆ๐ฏ๐ต๐ด๐ค๐ฉ๐ญ๐ฐ๐ด๐ด๐ฆ๐ฏ ๐ฎ๐ช๐ณ ๐ฅ๐ช๐ฆ ๐๐ฌ๐ต๐ช๐ฆ ๐ช๐ฏ๐ด ๐๐ฆ๐ฑ๐ฐ๐ต ๐ป๐ถ ๐ญ๐ฆ๐จ๐ฆ๐ฏ ๐"
"๐๐ค๐ฉ ๐ง๐ข๐ฉ๐ณ๐ฆ ๐ด๐ฆ๐ช๐ต 3 ๐๐ข๐ฉ๐ณ๐ฆ๐ฏ ๐๐ฆ๐ด๐ญ๐ข ๐ถ๐ฏ๐ฅ ๐จ๐ญ๐ข๐ถ๐ฃ๐ฆ ๐ด๐ฆ๐ฉ๐ณ ๐ข๐ฏ ๐ฅ๐ข๐ด ๐๐ฐ๐ฏ๐ป๐ฆ๐ฑ๐ต ๐ฅ๐ฆ๐ณ ๐๐ช๐ณ๐ฎ๐ข, ๐ฅ๐ฆ๐ด๐ธ๐ฆ๐จ๐ฆ๐ฏ ๐ฉ๐ข๐ฃ๐ฆ ๐ช๐ค๐ฉ ๐ฎ๐ช๐ณ ๐ฆ๐ช๐ฏ๐ฆ ๐ฆ๐ณ๐ด๐ต๐ฆ ๐๐ฐ๐ด๐ช๐ต๐ช๐ฐ๐ฏ ๐ข๐ถ๐ง๐จ๐ฆ๐ฃ๐ข๐ถ๐ต."
A year ago, the WAZ even wrote:
"๐๐๐๐๐, ๐ฅ๐ช๐ฆ ๐๐ฌ๐ต๐ช๐ฆ๐ฏ ๐ฅ๐ฆ๐ณ ๐ก๐ถ๐ฌ๐ถ๐ฏ๐ง๐ต". Dead sure thing, what could happen with Facebook, Amazon, Netflix etc.?
Information leading to purchasing decisions
(based on statistical bullshit, see https://app.getquin.com/activity/GDlzIDdeHe ) is apparently not only available on Instagram, where you can unfortunately often read "buy stocks you know first".
(NO, if you have no idea and no interest in learning, buying ANYTHING is more likely to lead to high losses, diversified funds or ETFs make more sense in the long term in this case)
The average investor does not manage to beat the market. So if you buy shares, you want to outperform the market.
If you don't even have the patience for valuation and market analysis, you are underestimating the average market participant and would therefore be better off investing in funds or world ETFs.
To come back to the WAZ example: Yes, FAANG are and were "good" companies.
From a custumer point of view.
BUT
๐๐ฆ ๐๐ฆ๐ง ๐๐๐๐๐ฆ ๐๐๐ก๐๐๐ฃ๐ฅ๐๐๐ฆ๐ง
! Everything that has happened, has been produced, has been achieved in the present, obvious future and past has already been estimated by institutional providers and thus priced into the price!
All investment theories such as those in the examples above are therefore invalid.
Something like "Amazon has a good market position" is also a pseudo-argument. Even those who can significantly influence the Amazon share price know this.
๐๐) How do I know if it is not only a cool company, but also a ๐๐ถ๐ป๐ป๐๐ผ๐น๐น๐ฒ๐ ๐๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐?
[Well, actually everything is priced in, we don't have more information than others and therefore everything is overestimation and rationally you are forced to invest passively, BUT...]
There was a good post on valuation here recently by @TheAccountant89
https://app.getquin.com/activity/laOUVhfFDI?lang=de&utm_source=sharing
Otherwise you could at least consider the following:
- Macro developmentforecast FED, ECB and difference to the priced-in
- Long-term chart outlook
- Upcoming Annual General Meetings etc.
(In this sense @sharkace how far along are you with the projections?)
๐๐๐๐) ๐ญ๐ถ๐๐ฎ๐ ๐บ๐ฒ๐ถ๐ป๐ฒ๐ ๐ฃ๐ฟ๐ผ๐ณ๐
"As an investor, you have to keep reminding yourself of one thing. A share value is a number that reflects an entire company. It's not something as easy to understand as profit, turnover or loss, which we can simply explain to ourselves logically; many more things have an influence on this figure that many people don't even know!
So if you think you can play in this game, don't think you will be recognized, don't even think you will be noticed! You are not a player, you are the game! And then you're such a small part of the game that none of the players are interested in your existence."
#learn
#learninvesting
#stockanalysis
https://www.commerzbank.de/portal/de/ratgeber/finanzen/aktienbewertung-so-gehen-sie-vor.html