Investing

[miket]

Can you explain how I would fully understand what the true value of a company is, and how to calculate it?

Again, I know know you are being facetious, but corporations file financial reports. You can look at revenue, profit etc. Take into account the actions of the CEO, Board of Directors, new products, inventions, patents. General economic trends, the health of the economy in general. Legislation and geopolitical factors etc.


An example: Nations across the world create legislation to reduce emissions and introduce new taxes and incentives. Consumers become more aware of the impact of fossil fuels on the environment. Media demonizes oil companies. A company builds a cool new electric car. Battery technology improves by leaps and bounds. Segment of the population sees electric cars as cool.

Invest in well managed electric car and battery makers. Lithium. Copper. Battery recycling. Manbun hair ties and skinny jeans.

[Throwin Darts]

Arrowhead Pharmaceuticals (ARWR). Only stock I own. Lowest price I bought at was $1.50. Highest I have bought was at $25.00. It is just getting started. Once in a lifetime opportunity. Will be $1000 in five years - conservatively (barring an economic collapse). I have millions in it. Do your own due diligence. Feel free to ask me questions.

Are you still in this stock? When you posted this in 2019 it closed at $29.12/share. It closed yesterday at $29.63/share. Its been a complete dog if you're still holding it compared with market returns.

[12RingKing]

Again, I know know you are being facetious, but corporations file financial reports. You can look at revenue, profit etc. Take into account the actions of the CEO, Board of Directors, new products, inventions, patents. General economic trends, the health of the economy in general. Legislation and geopolitical factors etc.


An example: Nations across the world create legislation to reduce emissions and introduce new taxes and incentives. Consumers become more aware of the impact of fossil fuels on the environment. Media demonizes oil companies. A company builds a cool new electric car. Battery technology improves by leaps and bounds. Segment of the population sees electric cars as cool.

Invest in well managed electric car and battery makers. Lithium. Copper. Battery recycling. Manbun hair ties and skinny jeans.

I wasnt being facetious at all. I thought you may have information to share that we were unaware of. Again, I believe that your logic is widely utilized and the vast majority of companies represented in the market are correctly valued. However, corrections happen and there are a number of factors as to why. There are some corporations we could discuss who fit the mold of having manbun skinny jean investors causing over inflated pricing fir that security, but I believe that’s a small number when reviewing the entire market.

If you review the volatility index, you can see trends. I was positive we were headed for a major market correction this past summer. However, if you review the ^VIX, you see some significant indicators in October 2008, and again in March 2020… right before the last 2 major market corrections. We are not on that path currently.

[RiverRat1]

Riverrat1 Yes its a total scam dont get involved in the stock market! But for those who were involved since 2019 first post of this thread , here are the 5yr returns
AMZN (115%),
AAPL (330%),
NFLX(62%),
META (191%),
MSFT (278%)
NVDA(1778%)
There are some better than these i just picked what i had on my longterm portfolio. Time IN the market vs timing the market works better in the long game. I do day trade and have a long term portfolio and work a full time job. It can be done and depends on your risk tolerance and time frames. Saying its all one big scam is kind of a stretch!

So if people make money on something it simply can't be a scam? Is that the logic here?

I know how much stocks are up. You don't have to show me LOL. I've traded stocks since 1993.
You simply are not investing in a company. You are betting the FEDs continue to hold up stocks. Nothing more or less. Sure you can pick stocks based on risk still etc..Ones that may fall less if FED stops injecting money or ones that move up more if injecting more money..and a zillion other things. But one thing is a fact. Stocks would be a fraction of their price without the FED right now.

The scheme, scam, ponzi, or whatever you want to call it very well may go on another 50 years... But that doesn't mean it's not one.

[brokeno]

4 legged stock is pretty good right now

[WRasco]

I agree the stock market is a scam/pyramid scheme what ever you want to label it. But its been good to me over the last 20 years. Guess I should say Gods been good to me because all I my dumb *** did was put money in a 401K and let it ride the market.

My question is: If not the Market what should a 20 year old me today put money in?

Please don't tell me silver.

[7sdad]

Either the market or land, they aren't making anymore land.