In the markets, more than 90% of the behavior of a security is explained by the evolution of its profits. That’s why I think The compass that you have to follow if you are in the stock market is the profits of the companiesbecause they are the ones that point towards the North, just as the magnetized needle tends to be placed parallel to the direction of the planet’s magnetic field.
The ability of companies to meet the expectations that are held of them is the key to remaining a shareholder in a project. It’s not a brilliant thought, it’s just taking a simple idea and taking it seriously.. With this premise, the fund advised by elEconomista.es, Tressis Eco 30 Walletwhich in just over six years achieved an annualized return of 8% and an absolute return of 61%. The Eco30 is a systematic selection, by fundamentals, of quality international securities with the idea of building a portfolio that manages to double its assets every decade. If the improvement of the companies’ profits is the main direction in which to move in the market, and for the Magnificent Seven – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – an improvement of close to 25% of the profits is expected for next year, ten percentage points more than the S&P; In the case of the Eco30, growth must try to exceed that of the indices. In no case is it about buying securities that are simply cheap: the objective is to try to incorporate attractive stories, with catalysts, at reasonable prices, and with low levels of debt. In titles such as Airbus, Ayvens, ArcelorMittal, BYD Electronic, Darling Ingredients, Eurazeo, Forvia, Golar, Marvell Technology, Micron Technology and Var Energi, The expectation of profit improvement for next year exceeds 30%. The fund is also based on a balanced selection, in which no sector can have more than four representatives, to avoid overweighting specific activities.
There is no certainty that these expectations will be met, but what I am convinced of is that just as the warrior is not the one who always wins but the one who always fights, the investor is not the one who always wins, he is the one who always is on the market. That is why I advise against those who They set the goal of investing for the long term, trying to be smarter than the market itself.permanently speculating with entries and exits. The fascination produced by compound interest in an investment, which is what allows this basic objective of doubling wealth every decade, only destroys it with exits and entries. The difference between saving 10,000 euros per year for thirty years and investing it is going from having 300,000 euros to one million euros. If 5,000 are invested, the 150,000 would reach half a million. Is there better retirement planning?
#enormous #difference #saving #euros #year #decades #market
