Advice on investment value

The probability of being the winner of the ‘Gordo’ of the Lottery is 0.001%. That is you can smile fortune. It is convenient to have a ‘plan B’ in case the statistics do not favor you. Think in less fortuitous ways to maximize the savings in the long term. Each spends on average according to Lotteries and State Betting about € 500 per year including all kinds of games of chance such as sports betting, casinos, etc. If instead of spending that money each year, one opts to invest for 30 years in the stock market, with an annual return of 10%. We would have 100,000 € at the end of that period.

investment value

The formation in oneself is the best investment:

As Warren Buffett says, the best investment that can be made is in oneself. That is, training, acquiring new knowledge and increasing our value in the market. The power of compound capitalization not only affects money. It also does it with knowledge. Buffett is living proof of what 70 years of devouring pages and more pages can do.

Equity the most profitable long-term financial asset:

The safest and most profitable financial asset in the long term (minimum 5 years, preferably 10) is variable income. Therefore, anyone who has a capital that is not going to need a 5-7 years view should seriously consider investing in the stock market. However, this investment has a characteristic that causes rejection and fear among the public its volatility. As much as studies show that equities are the most profitable and safe. That is like the one that Jeremy Siegel did for a period of 200 years -as long as the investor’s horizon is adequate. A minority of investors benefit from its benefits.

Mutual funds are the best option to channel savings into equities:

As is known, only a minority of funds are able to beat their main long-term benchmarks. Therefore, it is necessary to make an effort to find. Which are the best or understand very well what philosophy they have? Normally, that search rewarded with higher returns. In this sense, if you want to benefit from returns with reduced volatility, you should look for the best-mixed funds with the best Sharpe ratio.

In what countries, sectors or values invest.

Which geographical areas are more attractive? Is the stock market expensive? In what values do the best investment funds invest right now? There are two forms of investment following what is known as the bottom-up analysis from the bottom up or the ‘top-down’ analysis from top to bottom. Investors validate the first option. That is, they analyze company by company. Regardless of the sector or region in which they listed.

Finally, investment decided because that company, at that price, is interesting. However, it does not necessarily mean that this sector is attractive. Nor that the country is attractive. However, these considerations should not affect the investment decision making. With a horizon of 10 to 20 years, it is very indifferent, especially if the investment made averaging downwards with several entries.