Investing Strong companies profits assured?

đź“Š Investing
1

Hi, I would like to open a debate.

I posted a few days ago my portfolio for people to rate it here

Despite the fact that there are some companies that I would like to sell like RR, Astrazeneca etc (and I will as soon as I see some green), the rest of them are strong companies like Google, Apple, bla bla. Some of you didn’t recommend me to hold them and instead go for ETFs.

I have been thinking: If we are talking about the companies who, basically, run the world and chances for these companies to go bankrupt is barely zero, at least for the next 5-10 years. Would you agree that, even though some of them are overpriced, you would still making a profit, right?

2

The issue is if they’re overvalued, the rest of the market which is undervalued may out perform them. And you might make better returns in an index than investing in overvalued stocks which are priced a few years ahead of their current earnings.

Nobody knows though. We all hope for the best really. But if you want to get the closest to guaranteed profits, broad indexes will be the best bet, as what’s the odds of the market of a whole declining for 10 years. We don’t know if the prices are fair, we argued that P/E is too high, but maybe investors see profits growing greatly in the future giving it a fair forward P\E. But no one knows the future. It’s all a guessing game, but the more time you put in the better the guesses you make. But that’s the trade off, invest your time in the hopes of beating the market, or dedicate no time be—ing the market. It’s your choice. Nothings guaranteed!

3

Yeah but they said Tesla was overpriced when it was at 100 at look at now. There are people the only thing they do is just wait because everything is overvalued and The train passes… And if prices just go down we keep using DCA, right?

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4

I agree, I would always cost average over time, but I was just answering the question that it’s guaranteed it will go up. But fundamentals rule long term, so the odds are that overvalued stocks will be outperformed by undervalued stocks, assuming they both grow at the same rate. Problem is it’s much more complicated than that, but I would not have the confidence to say that big tech will outperform the market over the next 5-10 years because if the market goes down they’ll drop the hardest back to fair value

5

That’s correct. We always can swing trading until everything stabilizes a little bit lol

6

No one can predict the market if u want to invest 3 to 5 years.
Anything less is trading trying to catch a trend.

Learn candlesticks, buy the book.
Keep buying shares on a monthly basis when the market crashes you will average the price.

Long term again.

It takes a long time to master your emotions.

7

it is possible those companies can go bankrupt in the next six months, a lot goes on in a company that we don’t know - Enron lehman brothers.

8

I’m shouting it from the rooftops NIO :slight_smile: absolutely outstanding trajectory ahead for it!!

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