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📊 Why ETFs such as the FTSE All-World are often better in the long term than supposed "bargain" stocks such as Novo Nordisk or UnitedHealth

The same thing happens again and again: Stocks like Novo Nordisk
$NOVO B (+1,26%) or UnitedHealth $UNH (-6,32%) lose a lot of value and suddenly everyone senses a great opportunity to get in. "Now the share is cheap!", they say. But be careful: a falling share price does not automatically make a share attractive.


There are almost always reasons for share price falls. In the case of UnitedHealth, for example, political risks and growing competition in the healthcare sector are causing uncertainty. At Novo Nordisk, the hype surrounding weight-loss drugs is being held back by real supply problems and high valuations.


Many investors are buying into the falling knife because it looks like a "bargain" but price does not equal value! A company that costs 30-60% less today can still be too expensive if the prospects are poor.


👉 Instead of betting on individual stocks, broadly diversified ETFs such as the FTSE All-World $VWRL (-2,49%)
$FWRG (-2,4%) provide a better balance of risk and return:

- More than 3000 companies

- Cross-sector - tech, pharma, industrials, consumer, financials, etc.

- No cluster risk: if one company stumbles, others pick it up

- Proven Long-term return of 6-8 % p.a. over decades


Additional tips from the Lord:

If you are still looking for excess returns or additional diversification, get 2-3 more satellites such as Bitcoin $BTC (+0,96%) , gold $ZGLD or a Nasdaq Etf $XNAS (-3,21%).


Conclusion:

Buying cheap is good, but only if you know what you are actually buying and not because the price was there once and has now fallen by a few percent. This is not the way to strong returns in the long term, but only entertaining gambling fantasies. Better go to the casino for that! Individual stocks can dazzle in the short term, but disappoint in the long term. An all-world ETF is boring but exactly the opposite in terms of returns.


Thanks for reading your Sith Lord Vader!

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#etfs
#crypto
#growth
#personalstrategy
#ETF
#Investieren
#FTSEAllWorld
#Finanzbildung
#LangfristigInvestieren
#Vermögensaufbau

#FinanzielleFreiheit
#BuyAndHold
#Diversifikation

#Geldanlage

43
15 Commenti

I think ETFs are better for savings plans. Individual shares only for individual purchases. (But I only have direct holdings in 3 companies myself)
Bitcoin and ETF per savings plan 👍
8
immagine del profilo
@le_Wurst Sounds great. I'm with you on the savings plan for etfs, but I see lump sum in the four-year cycle as the higher-return alternative💪
1
immagine del profilo
Solid basis, nothing to shake about. ✅

For investors for whom this is "too broad" and who would like to exclude the "sediment" of such maximally broad ETFs, there are also more specialized ETFs that take into account certain factors such as momentum or quality or pursue a focused approach such as $IQSA or $216361.

May the power of ETFs be with us. ✌️✊🏻

Greetings
🥪
5
immagine del profilo
A nice, helpful Darth Vader!

Something's not right here... 🤔
4
immagine del profilo
@Epi I couldn't stand the casino atmosphere here anymore and had to speak a word of power!
immagine del profilo
@TheRealDarthVader Darth Vader can do that in his usual, slightly stricter manner, can't he? 😬
immagine del profilo
@Epi All right, have it your way! Force Choke' May the force be only with the wise investors!
immagine del profilo
Why "buy the dip" doesn't always work (according to many pros):
Macroeconomic environment matters:
When central banks tighten (e.g. rate hikes, balance sheet reduction), a dip can signal a real trend break - not a buying opportunity.
Experts often warn against blindly buying dips in a bear market such as in 2022.
Structural breaks and paradigm shifts:
A "dip" following disappointing corporate figures, new regulations or geopolitical risks can be the start of a new downtrend.
Example: Tech Crash 2000 - every dip was initially bought ... with fatal consequences.
Only sensible in uptrends:
Experts emphasize that "buy the dip" works best in intact bull markets - that is, when the overall trend is positive.
Liquidity illusion:
Many retail investors believe they are taking advantage of opportunities, but they often buy in illiquid phases (e.g. when there are sharp falls) without checking whether the sell-off is fundamentally justified.
4
immagine del profilo
@schlimmschlimm Exciting extension to the topic!
1
immagine del profilo
@schlimmschlimm I honor your words.
But with the community, it's like shouting into the wind.
Dips are bought here until the cash runs out or depression takes over. 🤷
2
immagine del profilo
@Epi Well, I can understand it, it's tempting to get into a stock at a good price, but you have to understand that "buy the dip" is not a panacea, the environmental variables also have to be right. I've already done it and I keep checking back, sometimes I've only held stocks for 3 days and taken 15% with me. But the value and the conditions were right. Then it works. But I'm not telling you anything new ;-) You've been at it for a long time.
1
immagine del profilo
Hope a few convert to the good side 🤩
3
I just joined and was quite surprised by the prevalence of buying the dips and FOMO following $NOVO B drop. I think it is psichologically more exciting to own individual shares, although theories on personal finance say exactly the opposite: take the systemic risk (ETFs) and don't add to it specifica risks (individual stocks).
2
immagine del profilo
Very good and 100% accurate contribution. 👏
1
immagine del profilo
@Kai_ Thank you!
1
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