2Sem.
@Mister_ultra
Thank you so much for this clear and insightful post! I'm really excited about the insights you've shared.
It reminds me that the path to success is not always straightforward. Sometimes it just takes time and patience to find "your" own path. The process is the goal. Thank you for the encouragement you give us here!
I myself am still at the beginning of my "investment career". Years ago, when the "new market" was booming, I invested my money in shares - naive as I was - and ended up simply burning DM 10,000. In the end, it was enough for a nice dinner for my wife and me. Think positive!
That "cured" me for a long time and I completely banned shares and the like from my life.
But now, at the age of 45, I'm thinking about my future again and what I can do with the money I have.
The simple reason why I am now venturing back into this topic is that I want to live well with my family. It's about making the most of what's available to me.
As I said, thank you for your enjoyable post. You've shown me that it's not too late to get back on track. Step by step.
Thank you so much for this clear and insightful post! I'm really excited about the insights you've shared.
It reminds me that the path to success is not always straightforward. Sometimes it just takes time and patience to find "your" own path. The process is the goal. Thank you for the encouragement you give us here!
I myself am still at the beginning of my "investment career". Years ago, when the "new market" was booming, I invested my money in shares - naive as I was - and ended up simply burning DM 10,000. In the end, it was enough for a nice dinner for my wife and me. Think positive!
That "cured" me for a long time and I completely banned shares and the like from my life.
But now, at the age of 45, I'm thinking about my future again and what I can do with the money I have.
The simple reason why I am now venturing back into this topic is that I want to live well with my family. It's about making the most of what's available to me.
As I said, thank you for your enjoyable post. You've shown me that it's not too late to get back on track. Step by step.
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Thank you very much for your kind words and that my post could help you! :)
And I can totally understand that. I also experienced this with my parents. Unfortunately, they also tried a few more speculative things in the early/mid 90s and lost money. After that, the subject of shares and the like was a complete taboo.
It was only a few years ago, and with a bit of positive coaxing from me, that they dared to set up a savings plan on the MSCI World. And now, a few years later, they are totally happy about it. My parents were already in their mid-50s, so it's probably never too late to start again!
And all in all, you still have around 2 decades until you retire.
I'll keep my fingers crossed for you! And thanks again for the kind words and the insight! :)
And I can totally understand that. I also experienced this with my parents. Unfortunately, they also tried a few more speculative things in the early/mid 90s and lost money. After that, the subject of shares and the like was a complete taboo.
It was only a few years ago, and with a bit of positive coaxing from me, that they dared to set up a savings plan on the MSCI World. And now, a few years later, they are totally happy about it. My parents were already in their mid-50s, so it's probably never too late to start again!
And all in all, you still have around 2 decades until you retire.
I'll keep my fingers crossed for you! And thanks again for the kind words and the insight! :)
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•2Sem.
@Mister_ultra I'd love to ☺️. Maybe I'll dare to show you my diced portfolio 😂🫣
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1Sem.
@Mister_ultra I'm really trying to read up on the whole subject. In the meantime, I've spent hours trying to understand the language (drawdown, TER, etc. etc.). I have also tried to create a good mix between ETFs, funds, gold and securities. Unfortunately, I am not yet able to use simple parameters to plausibly determine when a "share" is good and why you should buy it. Would you perhaps have a little tip here?
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•@Bidax That's a really difficult question and everyone probably has their own criteria.
I usually look for the following points:
1. is the company in an industry that I consider sustainable (e.g. AI, cybersecurity, luxury, semiconductors, pharma,...) or rather not (automotive, oil,...)
2. is the company growing? In other words, are sales and cash flows increasing steadily every year?
3. dividend growth: If the company operates in a promising sector and is significantly increasing its sales and cash flows, this should normally result in rising dividends. Examples of this would be shares such as MasterCard, S&P Global or Microsoft. Stocks such as Alphabet, Salesforce or Meta could also soon be among them.
4. monopoly or at least an oligopoly: Monopolies are bad for consumers but great for companies. Good examples of this are TSMC when it comes to chip production. NVIDIA when it comes to AI. But a lot can always change in the tech sector. That's why I sometimes almost prefer an oligopoly. Examples of this would be MasterCard / Visa or S&P Global / Moody's. No one will come up with the idea of founding a new rating agency, and no one will ever be able to establish contacts with countries and companies out of the blue. The two companies share the market and generate profits without harming the other too much.
5. gut feeling: I always have a bit of a gut feeling too
But of course this is not a perfect solution either. As long as you're not quite sure yet, an ETF is probably the best thing to start with and perhaps a few small savings plans on individual shares. The feeling will come with time :)
I usually look for the following points:
1. is the company in an industry that I consider sustainable (e.g. AI, cybersecurity, luxury, semiconductors, pharma,...) or rather not (automotive, oil,...)
2. is the company growing? In other words, are sales and cash flows increasing steadily every year?
3. dividend growth: If the company operates in a promising sector and is significantly increasing its sales and cash flows, this should normally result in rising dividends. Examples of this would be shares such as MasterCard, S&P Global or Microsoft. Stocks such as Alphabet, Salesforce or Meta could also soon be among them.
4. monopoly or at least an oligopoly: Monopolies are bad for consumers but great for companies. Good examples of this are TSMC when it comes to chip production. NVIDIA when it comes to AI. But a lot can always change in the tech sector. That's why I sometimes almost prefer an oligopoly. Examples of this would be MasterCard / Visa or S&P Global / Moody's. No one will come up with the idea of founding a new rating agency, and no one will ever be able to establish contacts with countries and companies out of the blue. The two companies share the market and generate profits without harming the other too much.
5. gut feeling: I always have a bit of a gut feeling too
But of course this is not a perfect solution either. As long as you're not quite sure yet, an ETF is probably the best thing to start with and perhaps a few small savings plans on individual shares. The feeling will come with time :)
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•1Sem.
@Mister_ultra Thank you very much for your advice and your recommendation regarding the valuation of individual stocks. I will try out one or two stocks and test them in a sample portfolio.
Thank you 🙏
Thank you 🙏
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•@Bidax A model portfolio is a great idea! You can try things out a bit.
And it's usually the big companies that do well. I prefer Microsoft to a small software company that can do anything between +500% and -80% 😂
And it's usually the big companies that do well. I prefer Microsoft to a small software company that can do anything between +500% and -80% 😂
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•1Sem.
@Mister_ultra I was convinced by these titles and planned to "hold" them for at least 4 years.
$SREN / $AVGO/ $AAPL / $RHM
$MSFT/ $SAAB B/ $SHL/ $AMZN
$NOVO B/ $DXCM/ $NVDA / $CRWD
I couldn't resist. They were more "I want to have" purchases. But I'm sure that the values won't go down in the long run.
But I will test everything else in the sample portfolio first.
But if I know myself, it's more likely to be funds, ETFs and ETPs. Otherwise my weak heart can't take it in the long run ... 😂
$SREN / $AVGO/ $AAPL / $RHM
$MSFT/ $SAAB B/ $SHL/ $AMZN
$NOVO B/ $DXCM/ $NVDA / $CRWD
I couldn't resist. They were more "I want to have" purchases. But I'm sure that the values won't go down in the long run.
But I will test everything else in the sample portfolio first.
But if I know myself, it's more likely to be funds, ETFs and ETPs. Otherwise my weak heart can't take it in the long run ... 😂
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•@Bidax That gives you a great selection and many of them can also be found in my portfolio with Apple, Microsoft, Novo Nordisk, NVIDIA and Crowdstrike. Broadcom has also been on my list for a long time and Amazon is in my wife's portfolio 😄
I think you're definitely not doing anything wrong!
It's probably not only good for your heart, but also for your returns. Most of the time, an ETF performs better than you do 😂
I think you're definitely not doing anything wrong!
It's probably not only good for your heart, but also for your returns. Most of the time, an ETF performs better than you do 😂
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