Alright, I got some messages from members asking me about US stock market and which stocks should they invest in to take advantage of the low prices..
Here is the thing, while I firmly believe we shouldn't freak out about cronavirus in terms of thinking it could be the end of the world (cause it isn't!) we still should be very mindful of its effect on businesses.
Like I heard from a couple people they are thinking about investing in cruiseship companies or Shell..
while I understand the reasoning behind it, I think you shouldn't just assume the pandemic won't affect those companies at all.
For example, Shell, although its share prices have been falling hard, buying those shares is in no way a guarantee for earning profits (whether in form of dividends or shares appreciating in value) because Shell is going to be one of the companies that will get hit the hardest from Saudi and Russian fight over market share. its Shell's market share they are trying to win back, and they will win it back for sure, now that Saudis are pumping oil in the market at $25 per barrel.
the Saudis are capable of keeping oil at $25 for a long time because they are still selling it with a very small profit. so they are sacrificing their own profit to win back market share and it will be successful. the only thing that can change this situation is the russians and americans sitting behind a negotiation table and come up with a deal where they give Saudis a win, in order to keep themselves from losing all their market share.
the same goes for any other company you want to invest in.. don't just think of the fall as a temporary thing.. we will be dealing with virus in the next 12 to 18 months... so if the company you want to invest in has too much debt and can't stay floating for 2 years without making profits, then investing in it will only cause you to lose money (whether in form of having shares of a company that declares bankruptcy, or in form of buying shares of a high dividend paying company and they stop paying dividends)
you should follow Warren buffet way of value investing. buy shares of companies that you think people will start using their services in the next 2 months (their services won't be affected much by the pandemic and people will keep using it)
otherwise, if you invest in companies that are affected heavily from the pandemic, then you should know that the investment will be a long term one.
Here is the thing, while I firmly believe we shouldn't freak out about cronavirus in terms of thinking it could be the end of the world (cause it isn't!) we still should be very mindful of its effect on businesses.
Like I heard from a couple people they are thinking about investing in cruiseship companies or Shell..
while I understand the reasoning behind it, I think you shouldn't just assume the pandemic won't affect those companies at all.
For example, Shell, although its share prices have been falling hard, buying those shares is in no way a guarantee for earning profits (whether in form of dividends or shares appreciating in value) because Shell is going to be one of the companies that will get hit the hardest from Saudi and Russian fight over market share. its Shell's market share they are trying to win back, and they will win it back for sure, now that Saudis are pumping oil in the market at $25 per barrel.
the Saudis are capable of keeping oil at $25 for a long time because they are still selling it with a very small profit. so they are sacrificing their own profit to win back market share and it will be successful. the only thing that can change this situation is the russians and americans sitting behind a negotiation table and come up with a deal where they give Saudis a win, in order to keep themselves from losing all their market share.
the same goes for any other company you want to invest in.. don't just think of the fall as a temporary thing.. we will be dealing with virus in the next 12 to 18 months... so if the company you want to invest in has too much debt and can't stay floating for 2 years without making profits, then investing in it will only cause you to lose money (whether in form of having shares of a company that declares bankruptcy, or in form of buying shares of a high dividend paying company and they stop paying dividends)
you should follow Warren buffet way of value investing. buy shares of companies that you think people will start using their services in the next 2 months (their services won't be affected much by the pandemic and people will keep using it)
otherwise, if you invest in companies that are affected heavily from the pandemic, then you should know that the investment will be a long term one.
1 comment
vapor trail
Bro... First of all it's righteous that you are sharing... But if you want to beat this coranavirus crap then you can with grapefruit seed extract... Go overload on it... 100 drops in 16 Oz of water... 6 times daily... Trust me... Be safe my friend
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