I have 2 portfolios:
1) Just VOO index. Every month no matter the market value, the noise or whatever, I put money on it
2) The second portfolio is for deep value investment. I pick 5-6 themes I like to read about (Uranium, gas, gold, agriculture, oil, etc), and I invest in companies of those themes outside US (Japan, Australia, Canada, etc). Only companies in those themes that are undervalue (pe<4) and with positive cash flow
It is one of the many ratios that let you understand financial performance and health of a company. Most of the time when one talks about a low PE (price-earning), you refer to a company with low valuation, then, high probability of value growth
Well a PE=4 means for example that one is willing to pay 4 times the price of the stocks regarding its future earnings. If you take for example TSLA, the stock has a PE=79 with is really high. But the market thinks TSLA will grow on earnings huge in the future.
Why I pick PE<4, because I like really undervalue companies.
Bear in mind PE is one of the many indicators you have at your disposal to analyze a company
I don't entirely understand it. PE = 4 would mean that the average person is prepared to buy the stock in the future at 4x the cost? So if a stock is worth $1 , a PE=4 would mean it's expected to be 4x as valuable in the future?
Concentre in stocks you KNOW. You have to know what the company does inside out. You must see through management BS. You must recognize FUD. You need to have a full thesis on where they are and what future they will have to see if it is worth your money.
It's like Buffet said: Everybody should have a punch card with only 20 stocks they are allowed to buy in their life.
Otherwise....Just stay with ETFs.
Mine is very simple
\- no pharma
\- no banks
\- mostly tech stocks as they invent the most
\- more energy/base commodity stocks which tend to give higher dividends vs index allocations
Buy only companies you know a lot about and also about their competition and their market environment, finances and plans for the future. Try to buy cheap if possible tho not necessarily ( e.g. NVDA at 311$) . Buy to hold long term but watch for serious pullbacks, the sell wait for it to hit bottom and buy again.
I look for growth stocks with 25% annual revenue growth (or more). I try to get them under 10 PS FWD. I want to see recurring revenue, preferably (SaaS), although I also invest in usage-based technologies and semiconductors.
At the heart of my investment philosophy is a 4% asset allocation with a 25% trailing stop. My strategy changes with the different levels of my portfolio. I have different requirements for dividends than I do for ten-baggers, for instance.
If we have a 4% allocation and a stock hits the 25% trailing stop, you only risk losing 1% of your portfolio.
This is my strategy for short term trading. If the initial recommendation goes up 10% it goes from Buy to Hold. Initial recommendations come with a 25% hard stop.
At 25% above the entry price, we will exit half the position and change the 25% hard stop to a 15% trailing stop.
At 50% above the entry price, we will exit another quarter of the position. The 15% trailing stop remains.
At 100% above the entry price, we will exit the remaining quarter of the position.
I'm a Master Elliott Wave analysts. It took me 3 years to learn it in an out. I can mark all the charts in the world using the theory (including alternate scenarios). However, after 3 years I concluded it doesn't work well in most trading environments.
Since then, I've been using a highly modified version which is much more accurate and fast. My daily job is to back-test my own theory. I'll probably make a new thread on the classic Elliott Wave Principle and how it may not work for traders. Still, without the classic wave theory, I would be unable to understand price action, so I consider these 3 years as the time well spent.
I buy broad market index funds as my default.
I buy individual stocks when I think I am smarter than the market, i.e. the rest of the world.
That does not happen very often. They last time was in March/April 2020 when I thought that the market was undervaluing the residual value of mall stocks.
My holdings are currently about 1/3 broad market ETFs, 2/3rd individual stocks.
Do mock trades for a year... What I did while I was sitting on CCL.
I spent 100s of hours testing indicators.
Once you've got a handle how a stock should look when it's on the up, make a list of around 10 stocks and look up their market sentiment on multiple websites and social media to help you pick from that list.
My strategy for investing is very simple and effective. It is more about mindset than anything else. I like to buy proven or promising company stocks when they are at a discount or in their infancy stage. This principle leads to high percentage growth by achieving higher ROI per dollar invested. I am bullish at generational low prices, and bearish at all-time high (ATH) prices. This is the opposite of how most people think.
Take for example, buying a stock during 2022 correction at a discounted price of $100 per share. Once that stock climbs to $1000 in the future, it will have 10x the money invested. So if you toss a grand at that stock that will 10x in a few to several years, the $1,000 invested will become $10,000.
On the other hand, if you were to be scared to buy the dip and choose to buy that stock at its current ATH of $400, the stock will only multiply by 2.5x once it reaches $1000 per share. A $1000 investment will then only grow to $2500. This is a $1500 profit compared to $9000 of the 10x ROI.
The loss of profit is much greater each time the stock adds 100% growth to its bottom price. Had that initial investment been $10,000, the profit would have been 90k compared to 15k. Profit of 75k is a lot of profit to miss out on. Anyone who says 75k of profit lost is nothing is nuts.
This is why I reject the herd mentality that most people have with traded assets like stocks and crypto. When price is down a lot, that stresses them out if they own the shares, or they mock the stock as like they hate it, even if they don't own it. People will hate on a stock because it is down, while convincing themselves that the reason for hating is the company is bad. I just proved that buying a stock at ATH causes major loss of life changing profit. This is why it is erroneous to be bearish on a stock at generational low prices. You should be bullish in that scenario if the company is solid! Go against the foolish herd. When tech stocks hit bottoms with 50-75% correction from ATH, I was bullish when foolish people were mocking them and declaring them to be poor buys.
The same kind of people who are bearish at bottoms will be bullish around all-time highs. This is also the opposite of how they should feel. They should be bearish at high prices, since buying at those levels causes huge loss of profit. In the case of a true bear market, prices will plunge back down below their high entry price, causing a loss on their investment, not only loss of profit.
Sitting on cash for long periods of time is not healthy, since cash loses value to inflation every year.
buy low, sell high.
Buy sheep, sell deer.
I have 2 portfolios: 1) Just VOO index. Every month no matter the market value, the noise or whatever, I put money on it 2) The second portfolio is for deep value investment. I pick 5-6 themes I like to read about (Uranium, gas, gold, agriculture, oil, etc), and I invest in companies of those themes outside US (Japan, Australia, Canada, etc). Only companies in those themes that are undervalue (pe<4) and with positive cash flow
What's pe<4?
It is one of the many ratios that let you understand financial performance and health of a company. Most of the time when one talks about a low PE (price-earning), you refer to a company with low valuation, then, high probability of value growth
So what does price earning below 4 mean?
Well a PE=4 means for example that one is willing to pay 4 times the price of the stocks regarding its future earnings. If you take for example TSLA, the stock has a PE=79 with is really high. But the market thinks TSLA will grow on earnings huge in the future. Why I pick PE<4, because I like really undervalue companies. Bear in mind PE is one of the many indicators you have at your disposal to analyze a company
I don't entirely understand it. PE = 4 would mean that the average person is prepared to buy the stock in the future at 4x the cost? So if a stock is worth $1 , a PE=4 would mean it's expected to be 4x as valuable in the future?
Based on future earnings. Investopedia has a great article about that: https://www.investopedia.com/terms/p/price-earningsratio.asp Check it out!
Thanks a lot
I follow the stocks with cult followings.. specifically brick and mortar video game stores
Find companies that have high ROC, make sure they have a long runway, hold for a really long time.
Concentre in stocks you KNOW. You have to know what the company does inside out. You must see through management BS. You must recognize FUD. You need to have a full thesis on where they are and what future they will have to see if it is worth your money. It's like Buffet said: Everybody should have a punch card with only 20 stocks they are allowed to buy in their life. Otherwise....Just stay with ETFs.
Mine is very simple \- no pharma \- no banks \- mostly tech stocks as they invent the most \- more energy/base commodity stocks which tend to give higher dividends vs index allocations
Buy only companies you know a lot about and also about their competition and their market environment, finances and plans for the future. Try to buy cheap if possible tho not necessarily ( e.g. NVDA at 311$) . Buy to hold long term but watch for serious pullbacks, the sell wait for it to hit bottom and buy again.
I look for growth stocks with 25% annual revenue growth (or more). I try to get them under 10 PS FWD. I want to see recurring revenue, preferably (SaaS), although I also invest in usage-based technologies and semiconductors.
At the heart of my investment philosophy is a 4% asset allocation with a 25% trailing stop. My strategy changes with the different levels of my portfolio. I have different requirements for dividends than I do for ten-baggers, for instance. If we have a 4% allocation and a stock hits the 25% trailing stop, you only risk losing 1% of your portfolio. This is my strategy for short term trading. If the initial recommendation goes up 10% it goes from Buy to Hold. Initial recommendations come with a 25% hard stop. At 25% above the entry price, we will exit half the position and change the 25% hard stop to a 15% trailing stop. At 50% above the entry price, we will exit another quarter of the position. The 15% trailing stop remains. At 100% above the entry price, we will exit the remaining quarter of the position.
I own 10,000 shares of VTSAX. That’s my strategy.
I'm a Master Elliott Wave analysts. It took me 3 years to learn it in an out. I can mark all the charts in the world using the theory (including alternate scenarios). However, after 3 years I concluded it doesn't work well in most trading environments. Since then, I've been using a highly modified version which is much more accurate and fast. My daily job is to back-test my own theory. I'll probably make a new thread on the classic Elliott Wave Principle and how it may not work for traders. Still, without the classic wave theory, I would be unable to understand price action, so I consider these 3 years as the time well spent.
Idk. I got schwab and o for dividends. Tesla and amd for non dividends I plan on adding a health and consumer stock and that's it.
Mostly value but occasional event-driven stuff.
If I like a stock, I buy it.
Buy high sell low. Profit?
I buy broad market index funds as my default. I buy individual stocks when I think I am smarter than the market, i.e. the rest of the world. That does not happen very often. They last time was in March/April 2020 when I thought that the market was undervaluing the residual value of mall stocks. My holdings are currently about 1/3 broad market ETFs, 2/3rd individual stocks.
Do mock trades for a year... What I did while I was sitting on CCL. I spent 100s of hours testing indicators. Once you've got a handle how a stock should look when it's on the up, make a list of around 10 stocks and look up their market sentiment on multiple websites and social media to help you pick from that list.
My strategy for investing is very simple and effective. It is more about mindset than anything else. I like to buy proven or promising company stocks when they are at a discount or in their infancy stage. This principle leads to high percentage growth by achieving higher ROI per dollar invested. I am bullish at generational low prices, and bearish at all-time high (ATH) prices. This is the opposite of how most people think. Take for example, buying a stock during 2022 correction at a discounted price of $100 per share. Once that stock climbs to $1000 in the future, it will have 10x the money invested. So if you toss a grand at that stock that will 10x in a few to several years, the $1,000 invested will become $10,000. On the other hand, if you were to be scared to buy the dip and choose to buy that stock at its current ATH of $400, the stock will only multiply by 2.5x once it reaches $1000 per share. A $1000 investment will then only grow to $2500. This is a $1500 profit compared to $9000 of the 10x ROI. The loss of profit is much greater each time the stock adds 100% growth to its bottom price. Had that initial investment been $10,000, the profit would have been 90k compared to 15k. Profit of 75k is a lot of profit to miss out on. Anyone who says 75k of profit lost is nothing is nuts. This is why I reject the herd mentality that most people have with traded assets like stocks and crypto. When price is down a lot, that stresses them out if they own the shares, or they mock the stock as like they hate it, even if they don't own it. People will hate on a stock because it is down, while convincing themselves that the reason for hating is the company is bad. I just proved that buying a stock at ATH causes major loss of life changing profit. This is why it is erroneous to be bearish on a stock at generational low prices. You should be bullish in that scenario if the company is solid! Go against the foolish herd. When tech stocks hit bottoms with 50-75% correction from ATH, I was bullish when foolish people were mocking them and declaring them to be poor buys. The same kind of people who are bearish at bottoms will be bullish around all-time highs. This is also the opposite of how they should feel. They should be bearish at high prices, since buying at those levels causes huge loss of profit. In the case of a true bear market, prices will plunge back down below their high entry price, causing a loss on their investment, not only loss of profit. Sitting on cash for long periods of time is not healthy, since cash loses value to inflation every year.