Stock Market Ah yes, the stock market, the only place where I feel like a rich old white man scrolling through his phone on his deathbed looking at the TSX for one last time. But honestly speaking, the stock market is one of the scariest in my opinion, also the riskiest passive income. Okay for clearance I know it isn't really passive income since I'm still doing work, but the only work I do is literally stare at a screen and debate to myself whether I want to keep or sell my share. I'll probably buy a few stocks that have really good dividends, I'll also use the profit I make from stocks and add compound interest to the least-earning stocks I have. With the money I earn, I'll ask the sales manager to buy another stock for me when I earn a profit of dividend, so every month, I get a new stock from the same company which makes my sell to buy ratio much higher since I'm not implementing money from my own pockets to the actual market but instead using earnings from dividends to buy another. Yes, it's a lengthy process, but it's a worthwhile one. EXAMPLAR; First you will need to watch a bunch of videos understanding the fundamentals of crypto etc, can’t go in knowing anything. As an investor, bitcoin is nothing to me, I don’t hold or own any bitcoin. There are so many cryptos that 10x - 50,000x since I started. Look into, ETH, ADA, XRP, VET, SHIBA, TEL, DOGE, THERA, SAFEMOON, TRIAS and more. These coins have made me all that money. For example, 200 in dogecoin got me 2400. It’s all a game of time and patience and knowing when to sell and what to buy. 6 months from now we will all be laughing. I bought in at all-time highs and was worried and now everything has tripled at the least
Methods to discover the best stocks from personal experience, knowledge from sites, and opinions of others. Finds low-priced value by asking myself some questions when I evaluates the relationship between a stock's level of excellence and its price. Keep in mind these are not the only things he analyzes, but rather, a brief summary of what I think looks for in this investment approach.
1) Sometimes return on equity (ROE) is referred to as stockholder's return on investment. It reveals the rate at which shareholders earn income on their shares. Buffett always looks at ROE to see whether a company has consistently performed well compared to other companies in the same industry.8 ROE is calculated as follows:
ROE = Net Income ÷ Shareholder's Equity
2) The debt-to-equity ratio (D/E) is another key characteristic Buffett considers carefully. Buffett prefers to see a small amount of debt so that earnings growth is being generated from shareholders' equity as opposed to borrowed money. The D/E ratio is calculated as follows: Debt-to-Equity Ratio = Total Liabilities ÷ Shareholders' Equity This ratio shows the proportion of equity and debt the company uses to finance its assets, and the higher the ratio, the more debt—rather than equity—is financing the company. A high debt level compared to equity can result in volatile earnings and large interest expenses. For a more stringent test, investors sometimes use only long-term debt instead of total liabilities in the calculation above.
3) Profit margins; A company's profitability depends not only on having a good profit margin, but also on consistently increasing it. This margin is calculated by dividing net income by net sales. For a good indication of historical profit margins, investors should look back at least five years. A high-profit margin indicates the company is executing its business well, but increasing margins mean management has been extremely efficient and successful at controlling expenses.
4) Typically considers only companies that have been around for at least 10 years.As a result, most of the technology companies that have had their initial public offering (IPOs) in the past decade wouldn't get on Buffett's radar. He's said he doesn't understand the mechanics behind many of today's technology companies, and only invests in a business that he fully understands. Value investing requires identifying companies that have stood the test of time, but are currently undervalued. Never underestimate the value of historical performance. This demonstrates the company's ability (or inability) to increase shareholder value. Do keep in mind, however, that a stock's past performance does not guarantee future performance. The value investor's job is to determine how well the company can perform as it did in the past. Determining this is inherently tricky, you just have to be good at guesses One important point to remember about public companies is that the Securities and Exchange Commission (SEC) requires that they file regular financial statements. These documents can help you analyze important company data—including current and past performance—so you can make important investment decisions. REMEMBER, TIME IS AN ESSENCE
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