Learn more about the efficient market theory in the video I did on Chapter 8 of the Intelligent Investor book (the "most important chapter of the most important book" as Warren Buffett says), enjoy! th-cam.com/video/YignWj5QDi8/w-d-xo.html
I am trying so hard to figure out stocks and if I should invest in them. So far my understanding is you invest X amount of money into a company to gain a share. And that share gives you a miniscule piece of the company that gains profit or falls in profit depending on the companies successes or downfalls right? But is there more to it then that cuz it feels more complicated then that is. And if it is that simple then I still have so many questions - is a company's success, say company's like apple and google things that have been around for decades and still going strong, is that what makes a good stock investment or does something else determine company worth in the stock world? - how do you know what risks you're taking because Google just keeps saying "know your risk and your risk tolerances when getting into stocks" how do you determine that, what does that mean? - how do you know when to take your stocks and how DO you take your stocks? How do you get that money that you are building?
Watch the video’s and read the books I talk about on this channel. Some people are capable of getting it and some people are not. It’s weird but is a fact. Some people will never understand no matter how much you explain it and no matter how many examples you show them. If you are capable of understanding you will have a ah hah 💡 moment and it will happen pretty soon. My light bulb moment happened while reading the outsider CEOS book. If you’re not one of these people then just buy index fund’s and forget about stocks. Assuming you’re capable of understanding… here are the answers to your questions…
A good stock investment is paying a good price compared to the value. A great company can be a bad investment if you pay too much. A bad company can be a good investment if you pay an attractive price
The short answer is You buy when the price is low relative to value, and you sell when price is higher than value… or in some cases you never sell and then in retirement you borrow against your equity and live off that tax free.
Valuing a company is the name of the game. But valuing is never exact because future is unknown… in reality you’re making a bet… so you only make bets when it’s very obviously a winning bet
Learn more about the efficient market theory in the video I did on Chapter 8 of the Intelligent Investor book (the "most important chapter of the most important book" as Warren Buffett says), enjoy! th-cam.com/video/YignWj5QDi8/w-d-xo.html
I like your real life examples regarding instant feedback. I also liked your comments about thinking and foundational beliefs 🤔
Thank you!
I am trying so hard to figure out stocks and if I should invest in them.
So far my understanding is you invest X amount of money into a company to gain a share. And that share gives you a miniscule piece of the company that gains profit or falls in profit depending on the companies successes or downfalls right? But is there more to it then that cuz it feels more complicated then that is.
And if it is that simple then I still have so many questions
- is a company's success, say company's like apple and google things that have been around for decades and still going strong, is that what makes a good stock investment or does something else determine company worth in the stock world?
- how do you know what risks you're taking because Google just keeps saying "know your risk and your risk tolerances when getting into stocks" how do you determine that, what does that mean?
- how do you know when to take your stocks and how DO you take your stocks? How do you get that money that you are building?
Watch the video’s and read the books I talk about on this channel. Some people are capable of getting it and some people are not. It’s weird but is a fact. Some people will never understand no matter how much you explain it and no matter how many examples you show them. If you are capable of understanding you will have a ah hah 💡 moment and it will happen pretty soon. My light bulb moment happened while reading the outsider CEOS book. If you’re not one of these people then just buy index fund’s and forget about stocks.
Assuming you’re capable of understanding… here are the answers to your questions…
A good stock investment is paying a good price compared to the value. A great company can be a bad investment if you pay too much. A bad company can be a good investment if you pay an attractive price
The risk in investing is that you paid too much compared to the value. If you can’t value something you have no business buying it
The short answer is You buy when the price is low relative to value, and you sell when price is higher than value… or in some cases you never sell and then in retirement you borrow against your equity and live off that tax free.
Valuing a company is the name of the game. But valuing is never exact because future is unknown… in reality you’re making a bet… so you only make bets when it’s very obviously a winning bet
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