Rise and fall are always
right.
When investing in stocks, the average individual
investor reacts very sensitively to the rise and fall of stock prices. But the
market is always right. And the stock market price is always right. The rise
and fall should be accepted as they are. If you do not understand this, there
are many failures in your investment.
If you look at the characteristics of people who fail
to invest, they usually follow other people or come in without deciding in
advance what stocks to buy. And the money you invest is not quality money.
Most of the people who succeed in investing go with
the stocks they need to invest in, and also select the stocks themselves. And
the money you invest is quality money.
This requires an understanding of how investors feel.
I want to stand in the mind of individual investors who do not have enough
money rather than individual investors who invest because they have enough
money.
Most investors sometimes engage in short-term trading
while investing in a lack of money. I, too, make short-term investments.
However, rather than simply short-term trading, it is more of an investment
because it precedes the understanding and evaluation of the company.
When making these investments, you should do so with
rising stocks. Also, the enterprise value must be evaluated first. Usually,
enterprise value is not evaluated first. The basic value of the company, future
growth potential, sales and operating profit plus, dividend or not, major
shareholder holdings, and intrinsic value should be evaluated to some extent.
However, I do not trust the enterprise value
assessment 100%. Future growth should be reflected here. Normal enterprise
valuation is based on historical data. Therefore, it is not correct to say that
‘it will be so’ in the future. Therefore, it is necessary to check whether the
company has growth potential.