I've been investing in stocks lately and have already made some profits, but a question has arisen about my strategy, which type of stocks I bet on. I have never invested in any "global player" because I thought that the really big companies are already well known and have thus reached their zenith when it comes to stocks (theoretically it makes more sense to close stocks invest BEFORE this is successful and goes through the roof). But now I've seen that in the course of last year, a lot has happened for many stocks in large companies (Amazon, Apple, Spotify, Netflix, etc.).
What do you say. Is it still worth joining large companies? Do you have any yourself in your portfolio?
Big companies just give security and function. Small ones are riskier but potentially more profitable.
Of course, the big players are good because they can be seen as solid and investment bankers don't buy shorts either - because they simply don't have enough money. No investment banker would be short on Apple. Plus, some of them pay pretty good dividends. For example, I keep 20k from Münchner Rück to look forward to a new iPhone every April (800 euro - approx. 4% dividend - tax exemption!) … Well now Apple has increased the prices and I no longer get the top model - but the That worked out great for the last 5 years 👌🏻
→ even the small PLAYER have something to offer - mostly less returns but big, attractive profits. With the little ones I wouldn't put everything on one card…
If you want to be successful with Buy & Hold, you should always adhere to this principle:
"Buy strength and keep strength, sell weakness and avoid weakness"
Strong stocks are Microsoft and Amazon, for example. Weak stocks are, for example, Tui or Commerzbank.
Here's a detailed explanation:
PS:
I have both old, large, strong trees and small, nimble sprouts in the depot.
