The PRICE Investors Have to Pay For SPECTACULAR Returns?

The PRICE Investors Have to Pay For SPECTACULAR Returns?

The stock market has experienced some very large ups and downs over the course of the last couple of weeks. The CNN greed and fear index is at a multi-year low. The Nasdaq officially entered a bear market last week and so it comes as no surprise that a record number of tech and growth stocks have plunged by 50% or more. To name just a few very well-known examples here, Meta Platforms, the streaming giant Netflix, Chinese technology company Alibaba as well as the online payments platform Paypal, they all have suffered declines of around 50% or even more and Facebook and Alibaba alone lost a combined market value of more than $1.1 trillion.

Sure, investors love spectacular returns (everyone likes to beat the stock market) – those stock returns that almost all stocks delivered in 2020. We all felt like superstar investors in 2020, didn’t we? But if you want to enjoy those outsized investment returns over a longer period of time, there is a price you will have to pay. And the price investors have to pay for market-beating returns is what we will discuss in this video.

There is no free lunch in investing. There is a price you had to pay for those returns and that’s stock market volatility. Volatility is not risk if you have a long-term investing horizon. Stock volatility actually offers opportunities if you know how you can exploit market volatility and can remain unemotional. Both the stocks of Meta Platforms and Netflix have been much more volatile than the S&P index. However, both stocks beat the market over multi-year periods. So investors should love volatility as they allow you to accumulate a larger stake in great businesses at depressed prices – again, volatility is not risk and investors should love volatility. I for one love volatility.

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YOU CAN ALSO FIND ME HERE:
○ Twitter: https://twitter.com/renesellmann
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OTHER LINKS:
○ Rowan Street Capital: https://www.rowanstreet.com/post/rowan-street-2021-year-end-letter
○ Miller Value: https://millervalue.com/volatility-is-the-price-you-pay-for-returns/
○ Charlie Bilello: https://twitter.com/charliebilello/status/1500839023320907777

MUSIC:
○ https://www.epidemicsound.com/track/Au7huVdnSA/

Chapters:
0:00 2020 Superstar Investors
1:44 The Price of Success
3:13 Success in Investing
3:50 Price of Outperformance
5:40 Meta Platforms’ Price
6:22 Portfolio Volatility
7:08 Two Invaluable Lessons!
8:30 Sustainable Processes
10:00 Rowan Street Capital

DISCLAIMER:
The content provided on this channel should be considered an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The stocks and funds discussed on this channel are examples only and may not be appropriate for your individual circumstances.

Before making any financial or investment decisions, I recommend you consult a financial planner or advisor to take into account your personal investment objectives, financial situation, and individual needs.

In no event shall René Sellmann be liable to any viewer for any damages of any kind arising out of the use of any content published on this channel, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.

I hope you enjoyed the content!

Видео The PRICE Investors Have to Pay For SPECTACULAR Returns? канала René Sellmann