Economist Ricardo Schweitzer, who has nearly 15 years of experience in the financial market, is the guest of the Money Play webcast about the world of finance, presented by financial educators Carol Stange and Fabricio Duarte.
In the first episode of the program, Ricardo talks about the beginning of his career, talks about the work routine of an analyst and how the overdose of information can hinder small investors, especially those who use social networks to decide where to put their money.
According to the expert, the beginning investor bets on shares of companies that he doesn’t even know about and that “people spend more time comparing a refrigerator than deciding where to put their money”. For Ricardo, people pay more attention to saving, but they are still careless when it comes to investing. “Money doesn’t accept insults, but there are people who operate in the stock market even based on astrology”, he says.
Another point defended by the specialist is that the financial market is one of the rare places where a lazy or inattentive person has chances to do better than a hyperactive one. To prove his theory, he points to a survey conducted by an American brokerage that indicated that the shareholders who made the most money were those who died. “Dead people don’t keep changing allocations.”
On current hot topics, such as ESG or IPO, Ricardo says he is skeptical about the first, but emphasizes that governance is very important. About the second, he believes that companies may be “faking” “I have social and environmental concerns”, when in fact they are not sustainable and do not have these practices, they just want to attract investors.
Two of the specialist’s bets are Small Caps (smaller companies listed on the stock exchange, therefore less known, whose shares are less liquid) and Deep Values (companies that are in difficulty and have a great risk).
“Investing in Small Caps has more risk, but there is less competition and more chance of finding relevant price and value asymmetry,” says the economist. “The Deep Values, on the other hand, are the ICU patients who can give a very high return, if they don’t die”. The latter, he guarantees, are some of the most sought after shares by individual investors, especially beginners.
Another tip from Ricado is the traditional Brazilian banks listed on the stock exchange, such as Itaú and Bradesco. “These stocks are cheap as most investors are betting on fintechs.”
Check out the full interview below:
Want to learn more about finance? check out on here Carol Stange’s article on the five barriers that hinder investors.
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