Say hello!
I've been investing for 10 years now and with a similar approach for about 7 years. The first 3 years I still had etfs until I dared to do more.
I personally find 5 positions too risky. If you focus on just a few stocks, you might miss out on unique opportunities that arise due to scandals or similar.
For me personally, it has proven to be a good idea to look at a large number of shares and to observe a universe of good companies and invest when opportunities arise.
The timing of a purchase is also crucial for outperformance. There are often only short periods in which a share is undervalued.
I think it is very difficult to determine the best 5 performers over the next 10 years at this point in time. The future is often characterized by black swans. (Nvidia AI, Novo weight loss top). Nevertheless, I have/had both stocks, through precise daily screening (Novo unfortunately sold due to real estate purchase would have been 600% more RIP).
I've been investing for 10 years now and with a similar approach for about 7 years. The first 3 years I still had etfs until I dared to do more.
I personally find 5 positions too risky. If you focus on just a few stocks, you might miss out on unique opportunities that arise due to scandals or similar.
For me personally, it has proven to be a good idea to look at a large number of shares and to observe a universe of good companies and invest when opportunities arise.
The timing of a purchase is also crucial for outperformance. There are often only short periods in which a share is undervalued.
I think it is very difficult to determine the best 5 performers over the next 10 years at this point in time. The future is often characterized by black swans. (Nvidia AI, Novo weight loss top). Nevertheless, I have/had both stocks, through precise daily screening (Novo unfortunately sold due to real estate purchase would have been 600% more RIP).
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22
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8Mes
@Investor_in_Jogginghose Thank you for the insight.
However, I think that you don't necessarily have to buy high quality companies when they are undervalued. Fair valuation should also be sufficient for outperformance, as these companies (rough backtests with random samples) achieve over 15% p.a. after entry at fair valuation.
They grow faster through strong positions in good growth markets.
Buying only overvalued is a certain risk in my opinion.
But I agree with you that it makes more sense to hold 10 positions. Thanks to this, you clearly take out the risk of individual fate compared to 5 positions 👍🏼
However, I think that you don't necessarily have to buy high quality companies when they are undervalued. Fair valuation should also be sufficient for outperformance, as these companies (rough backtests with random samples) achieve over 15% p.a. after entry at fair valuation.
They grow faster through strong positions in good growth markets.
Buying only overvalued is a certain risk in my opinion.
But I agree with you that it makes more sense to hold 10 positions. Thanks to this, you clearly take out the risk of individual fate compared to 5 positions 👍🏼
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@Kytez if you generate a 15%+ return after buying, then the share was undervalued. 😂
I'm not necessarily talking about low kgvs with undervaluation but rather low PEGs. For example, Nvidia could have been undervalued yesterday before the figures, the sentiment was also very pessimistic.
I wanted to come back to bitcoin. Since it behaves like a commodity, a valuation like for shares is not possible. 20% on a digital commodity? How do you justify that?
I'm not necessarily talking about low kgvs with undervaluation but rather low PEGs. For example, Nvidia could have been undervalued yesterday before the figures, the sentiment was also very pessimistic.
I wanted to come back to bitcoin. Since it behaves like a commodity, a valuation like for shares is not possible. 20% on a digital commodity? How do you justify that?
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