I have heard horrible investing advice in so many finance and econ courses. These professors (with typically little experience outside of teaching) tout the difficulty of investing by proclaiming it is too difficult to succeed in investing outside the S&P.
Usually their advice sounds something like this:
"Warren Buffet said to buy the S&P cause it can't be beat"
"99% of investors lose money"
Yada, Yada
The truth is Warren Buffet and many other successful investors talk about the advantage an informed investor has over large investment funds. There are no regulations and time requirements for an individual to invest, which is why many of these guys talk about how much more successful individuals are at investing.
They just need the right information.
I am going to give you a sneak peak at why investing can be pretty easy if you don't overthink it. And the key.... Value Investing.
What is value investing?
The core principle of value investing is to buy stocks at a discount to their true value, providing a margin of safety against market volatility. Value investors look for companies with solid financial health, consistent earnings, and strong growth potential that are temporarily overlooked or undervalued by the market.
Let me give you a great example, Paypal.
We added Paypal to our portfolio back in April. We saw that, relative to other tech companies, they were VERY underpriced. They still are.
Here is why...
What is a P/E ratio?
P/E ratio (Price divided by earnings) tells us how much a stock is worth compared to it's earnings. So, basically the lower the better. Paypal has a P/E ratio of 16. That's a steal for financial technology companies.
Matter of fact, P/E ratios are a primary requirement when we (economicrvlt.com) choose a stock to buy.
It has gone well.
What are the best stocks to buy?
Since starting Economic Revolt just a couple months ago, we have added 7 stocks to the portfolio. I cannot tell you all of them, but I will give you a few. The rest you will have to see on our website, economicrvlt.com.
Some of these stocks we are in include Bristle Myers-Squibb, Newmont Corporation, and Energy Transfer.
These are just a few of the stocks that have helped carry our average return of 11% in the last 100 days.
That is a pretty good average (roughly 40% annually) but of course is an extremely small sample size. Let's see where we are at in a year, but if we follow the law of value investing, it should be good.
Keep in mind, never invest any money you are not willing to lose. Do your own research. This is not financial advice, just education and a peak into our experience.
To see the stocks we are in, receive notifications when we buy and sell, and have access to our stock analysis/premium newsletters for, click the link below. All for $3.99 a month.
Economic Revolt provides information and insights for educational and informational purposes only. The content on this website, including portfolio analysis, stock picks, and investment strategies, is not intended as financial advice and should not be construed as such.
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