How do we make investment decisions? After 20 years as an investor I come to the conclusion that there are two ways. The intuitive, emotional, creative way and the analytical, mathematical way.
You better use both.
Some investors like their Tesla and think: Why not buy shares of this automotive company? Electronic cars are the future, thinks the right brain half.
But at what stock price makes this sense? And how much of your money should you put into this investment? Mathematics could help you with those decisions. But who likes mathematics?
There are investors in the field who love mathematics. They are called quants. Quants only use their left brain half. They develop hyper complex formulas but very often overlook the obvious.
First of all, that a common stock represents an ownership of a company and is not a random generator. How do you make decisions? Write it in the comments.
My name is Rupert. I am an investor. Wikifolio: https://www.wikifolio.com/de/de/w/wf00rusopp?src=search_top&searchTerm=russian+opport&tab=tradingidea