"The moment you doubt whether you can fly, you cease forever to be able to do it." - Peter Pan
Stocks
Who can yield a high return or cook "the book"?
There any many theories.
My favorite one is "10 Points: Ben Graham's Last Will and Testament" theory on who can actually fly
https://twitter.com/MnkeDaniel/status/1716368863166706158
The Ten:
- An earnings-to-price yield of twice the triple-A bond yield. The earnings yield is the reciprocal of the price earnings ratio.
- A price/earnings ratio down to four-tenths of the highest average P/E ratio the stock reached in the most recent five years. (Average P/E ratio is the average stock price for a year divided by the earnings for that year.)
- A dividend yield of two-thirds of the triple-A bond yield.
- A stock price down to two-thirds of tangible book value per share.
- A stock price down to two-thirds of net current asset value - current assets less total debt.
- Total debt less than tangible book value.
- Current ratio (current assets divided by current liabilities) of two or more.
- Total debt equal or less than twice the net quick liquidation value as defined in No. 5.
- Earnings growth over the most recent ten years of seven percent compounded a doubling of earnings in a ten-year period.
- Stability of growth in earnings defined as no more than two declines of five percent or more in year-end earnings over the most recent ten years.
The first five point to potential reward by pinpointing a low price in relation to such key operating results as earnings.
The second five measure risk by measuring financial soundness and stability of earnings.
But who cares? If 10 companies represent 60% of stock market, and can be manipulated by the large "passive" investment funds - Blackrock, Vangard, etc
Crypto
Looking at https://companiesmarketcap.com/ - why it's even flying?
What's the underline value? Tax evasion, sanctions, drugs?
Fiat
Backed by government's monopoly on guns and violence.
Why not?
Cause
I don't want to be an investor.
I don't want to be a wannabe speculator or gambler.
I just want to build things, do craft, code services and be part of increased productivity till I figure out the rest.
Boiler Room
And yes, I watched the prior art - Wall Street, 1978 https://www.youtube.com/watch?v=NtTkHu8R2_Q
And modern classic - Boiler Room, 2000 https://www.youtube.com/watch?v=1AzBKY9TFvA
Don't pitch the B...
Don't write the Wood
