I am interested in the movement of money and the fundamental factors. I am definitely not a stock player who buys today and sells tomorrow. However, when I visit various groups, I often observe them engaging in arguments and seeking quick profits. Many people will say you should do fundamental analysis. Most people believe that you should be proficient in both fundamental and technical analysis. There are numerous specialists in the field. For me, it is important to choose from 3 to 10 stocks at a maximum. You should allocate up to 50 percent of your portfolio to your three favorite stocks, with the remaining stocks allowing you to average the risk. Everyone quotes Mr. Buffett, but their actions make them want to get rich if they can right now. Looking at Mr. Buffett's portfolio, you can see that he has been buying and holding for years, and his patience has paid off. There are both good and bad moments. I also believe that by investing, you have effectively made a choice; therefore, you should hold your investments for years. What causes stock prices to fluctuate constantly? The factors that cause these fluctuations are demand and supply. Demand leads to an increase in supply. And when there is no demand, the supply decreases. But what makes this scenario happen? One is the media; the other is the company's profits. The last factor, perhaps the most important, is politics. Politics is not only the most important factor, but it also plays a significant role in determining the consequences. Some big players (analysts) in the media may be seeking to create a bit of volatility with their statements. This effort is aimed at generating a slight increase in revenue for their clients. The second option primarily impacts a company's income. A poor service or product can significantly impact the company's income. Regulatory obstacles. Competitiveness. If the service is unsatisfactory, the responsibility lies with them. Competitiveness is now a factor in unfair competition. Regulatory hurdles, however, remain the most significant factor. Finally, we come to the politicians. Politicians ultimately determine the destiny of billions of people worldwide. How, for example, in the case of friction between two countries, are entire businesses affected economically? A company close to the politicians enjoys a subsidy. Government contracts that support large revenues. Yes, in case of major financial crises, the politicians are still to blame because they did not do their job. When it comes to an epidemic, it's already the responsibility of God. In conflicts between countries, politicians are often held responsible. Unexpectedly, a group acquires weapons. We're back to discussions about regulation or proposals for laws to outright ban guns. Perhaps consider whether aligning with the company you are concerned about might enhance your financial situation. When you vote, consider the type of people you are supporting—it's not personal. Even with your vote, you contribute to the future of your money.
Friday, April 5, 2024
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