The global crisis, caused by the CODIV-19 virus, has plunged stock markets all over the world; the sp500 performed a rally that began in 2009 with an increase of approximately + 400%, before the pandemic spread. Then the thud, a very rapid and inexorable descent in which many stocks have lost from -30% to -80%.

Below is the graph of the SP500 you can see the unstoppable rise trend from 2009 onwards until the drowdown due to the coronavirus:

A certain scenario ideal for creating a shares portfolio; this is a sector, however, where one cannot improvise, one must study and document oneself before buying shares in a company.

Those who invest in stocks in the American market will have to evaluate a number of things:

  • if you are not an American, you may be subject to double taxation
  • if you are not an American, you take on the risk of exchange: the reference currency is the dollar, so you will have to change it in dollars before investing.

It is undeniable that the overseas stock market offers opportunities and growth not comparable to the European indices.

After having an idea of ​​how to read a company balance sheet, it is necessary to proceed in a systematic way by reviewing the actions of our interest, analyzing a series of indices and parameters and considering a series of aspects, in order to be able to create an ordered list where to insert the results of our analysis, and then choose what to invest on.

I will start by listing the online tools that I find useful for finding information on stocks:

  • finance.yahoo.com
  • finviz.com
  • www.bloomberg.com

it is useful to use multiple sites for verification purposes to be able to compare the data, they can also offer different reading perspectives and the information can be organized differently.

Very convenient, in my view, finviz.com, which presents all the information on a single page, is suitable for having a good overview.

Other sites of interest to find financial news are www.finanzaonline.com, investing.com.

Investopedia.com is a useful tool for understanding the meaning of indices and financial parameters.

I suggest creating a table in excel where you can collect the salient data of your research.

The actions that should be taken, in my view, are:

  • Look at the 6-month chart (and at 5 years to get an idea of ​​the medium-long term trend)
  • Then read the company profile to better frame it (the yahoo finance profile card)
  • Then analyze the statistics and consider the different parameters / indices made available by the specialized sites (ROI, ROE, EBITDA, R / E etc …) (see the article … where the meaning of these is described in detail indices)

If during the analysis we notice something strange (with finviz the data are very comfortable to consult, they are on one page and with colors that highlight their criticalities with red, with black if the value is neutral and in blue if the data is very positive) let’s read:

  • the news
  • analyst opinions
  • so let’s analyze the balance sheet (look quarter after quarter from right to left and check if the totals increase)
  • we also read the income statement (we always check if we have an increase from right to left)
  • We verify which institutions hold the shares
  • We verify that dividend percentages detach the security (always prefer securities that detach dividends with a view to cashflow).

Other guidelines that should be respected in the creation of the portfolio are differentiation (but not too much, otherwise we will reduce profits by flattening them).

In theory, a good portfolio should differentiate between stocks, bonds and others and the shares should cover from 15% to 50% of the portfolio, depending on the type of the portfolio: conservative – aggressive.

It would be better if one stock represent at most 2 – 5% of the entire portfolio.

The qualifications should cover different and unrelated sectors (for example, banking, transport, technology, catering, energy, communications etc …).

In my opinion, the securities should detach dividends of at least 3%, preferably if they are part of the aristocrats dividends or dividend king, that is, a group of shares that respectively have always detached dividends in the last 25, 50 years respectively).

With this article I wanted to formalize a search method, a sort of check list that can be applied whenever a stock is taken into consideration, providing a series of online tools useful for the purpose.

Happy searching! 🙂

To make any dream come true, plan it!.

Have a vision of what we want to do.

Define clear and determined goals.

We are helped by an extremely effective process, namely the PDCA method, as it allows us, after planning to correct any mistakes we make.

This process aroused a lot of interest in me because in fact it represents the best way to deal with a strategy to what we will inevitably find ourselves correcting during our journey.Continue reading

I think it is very important, now that we have just entered the decade 2020-2030, to stop for a moment and reflect on the past and the future.

What have I done good and bad so far and where do I aim to be or rather what person I want to become in the next 10 years?
Clarity of purpose and the right mindset are fundamental to maintaining the focus and pursuing our objectives, and they are even more so in 2020.

In fact, today’s society submits us to a myriad of continuous stimuli that risk obscuring our ideas and constantly mislead us.Continue reading

It has always been said that income does not make a rich man, a person can earn a lot but also spend a lot.

This type of people like to show off their well-being, exhibiting luxurious machines and gadgets, and leading an extremely consumerist lifestyle, goods and attitudes that impress the most, but upon careful analysis there is not much else besides; these people are rather vulnerable, because if they lose their job they lose everything and goodbye well-being !.Continue reading

It seems strange to have to deal with a subject of this type on a blog dedicated to the strategies that teach to tend to financial wellness and in general to a better quality of life, the man wants to be happy and satisfied, it is his ultimate goal , this is actually my main goal and even if the emphasis in the blog is on financial means that can help us reach this “grace” state, my mission is without a doubt “to be healty” that means a state of complete well-being that involves our entire existence, the rest is boundary, means and nothing else.Continue reading

What an enormous effort it is necessary to make to be able to coexist with its principles and correct management of money in a society where the majority have a wrong approach in the matter and also the concepts of wealth and poverty are misrepresented and exploited by the system.

Let me explain better with examples, I often have to “fight” with my wife and in general let family or friends understand why I am saving myself and spend time studying how to invest.

I explain that today’s society pushes towards extreme consumerism, it does so because otherwise the system, as planned, would implode on itself, the system is based on consumption that must constantly increase, so salaries are increasingly inadequate, more hours of work in order to satisfy the need for compulsive buying, which is always inadequate because we always want more.Continue reading

The theme of being able to live without necessarily having to work or at least working less to fully enjoy life is a topic that is now much debated on social networks and on the web.

In fact, globalization has imposed a modality based on consumerism and has created needs that did not exist before, intoxicating the authentic style of human existence.

Many people begin to categorically reject this alienating model whereby it is necessary to consume more and therefore to increase their earnings by working very hard to be able to spend and satisfy their desires (system induced and not physiological) that regularly vanish whenever they come into possession of the desired good , to start again wanting something else even more expensive and regularly empty your wallet.

It therefore goes from the most extreme choice to live homelessly to the somewhat less drastic choice of living with just 500 euros a month cutting all unnecessary expenses (an interesting choice, even if it could also be extreme and not acceptable, in as it puts you in the shelter, in my view, from a possible financial “armageddon” that would strike anyone not able to sustain themselves with very little, or to produce self-necessities).

Then there are other philosophies that yearn for “financial freedom”, that state in which a person has created income from hard-earned labor and saving over the years, and with profits derived from the latter he can at first permit himself to cover his fixed expenses monthly (financial security) up to being able to travel or otherwise satisfy personal desires fully enjoying their time, not necessarily having to work anymore, a certainly captivating life perspective ….
To reach the so-called “financial freedom” there is no formula for everyone, everyone will have to build a tailored suit, the needs are subjective.
It is therefore an extremely personal journey and there is no guru that can indicate a way to go.

Certainly listening to the experiences of others, reading, researching oneself, advising oneself as mentors is certainly useful for developing one’s own path that must be realized in objectives.

But the road that you will undertake is absolutely personal.
There is no one who can tell you how to achieve your financial freedom as each person is made in his own way, he has peculiarities, a character, talents that make him unique, and it is therefore an internal research that we must do about ourselves.

The types of income, for example, that we will make our own in order to reach the goal must not and cannot necessarily be those that are used, perhaps successfully, by another person.

For example it is not said that financial markets are the right formula for everyone to create passive rents, same as for real estate, patents or other etc …
During this journey we will encounter various difficulties, we will make mistakes, we will be disappointed, we will stumble, we will get up again, we will correct the course, in other words we should not expect a straight path !, let it be clear right away !.

When we have a concrete experience, we will face a reality that is sometimes very different from what we expected, it is part of the growth path.

At the beginning of the path planning is done with the help of Excel and possible scenarios:
the steps are:

  • to clarify the ideas from the start which translated means to know where we start from,
  • where you want to go
  • how to arrive and within how long

Let’s take an example: knowing where you start means having a precise idea of ​​what the average monthly expenses are, how much your savings amount to (money saved to date if there are any), and what is the monthly saving capacity .

If the monthly expenses balance the revenues and you can’t save anything you need to cut off any debts you contract, reduce expenses, in order to be able to constantly save money, how much is subjective and depends on your personal plan, but certainly the ability to save It is an essential prerequisite for pursuing financial freedom because without money to invest, assets are not created and you are not going anywhere.

Saving is all in all the simplest thing to do and the first skill, even if not everyone can do it for various reasons, but with good will, trying to increase revenue and reducing expenses (and unnecessary expenses we make many) it is possible to generate a regular provision of unexpected money !.

At this point, however, we must also learn to invest, the most difficult part!

Finding an investment that has a low risk exposure, that produces a decent profit with constancy over time is not at all easy to find.

On paper, making these arguments is relatively simple, but are we sure that reality offers such a linear scenario?

Let’s start by considering that we should always have all the money saved and these should always produce the profit expected regularly with immediate effect.

In reality, the picture is not exactly like that, investments are experienced, mistakes are made, so the expected return is not that achieved, in short, it is not as simple as some gurus want us to believe.

In the image depicted below, two paths are graphically represented, the one on the left represents the real journey of a person towards financial freedom, the one on the right represents the path that a person who has not yet experienced financial freedom is likely to imagine. It is clear that the concrete path towards financial independence and punctuated by accidents, corrections, we go forward we go back, it is not at all linear !.

On the other hand, if Warren Buffett, who is the biggest investor in history, has made his investments pay 15% on average throughout his life, which is the performance that the best hedge funds get, made up of teams of professional experts on the field, when they do not lose, it is plausible to think that the vaunted profits of 30% or more on a given asset are actually hoaxes circulated on the web or mirrors for the larks to fool unpopular unfortunates, or at least is absolutely hidden or underestimated the inherent risk.

Therefore, be wary of investments with big profits and favor long-lasting ones, even if they are less appealing.

After all, financial and financial freedom requires stable and continuous income, it is not necessary to make a bang, those who aim to make a lot of money right away, even if they are doing well, earn money for a couple of years, but sooner or later, statistically, the moment comes when they lose everything. who earned it !.

So what return do I have to expect from a REAL investment with an acceptable risk, in which I will hardly lose my money?

From the idea that I got a net 7-8% check is already a great goal here in Italy! (these data have been processed in Italy, in another country with a different economy the profits to which the can aspire could have different percentages).

It must be said that I do not share the idea according to some that to live on income you need a capital of at least one million euros, I believe that 400,000 euros are enough, but the secret lies in learning to invest, a skill that is not taught to us and that each of us should absolutely have, especially nowadays !, immediately after work skills, which are the number one asset, which allows us to generate a constant supply of money, and that knows no crisis.

Good life to everyone!

Constancy, constancy, constancy, and still constancy, day by day, week by week, month after month year after year, this is the secret to improving one’s skills / abilities in one area.

Studies on cognitive processes have shown that the continuous and constant application in a field leads to imperceptibly improve from day to day.

It may happen that you do not perceive improvement, despite the countless efforts you have the feeling of not progressing, not improving over time.

This can generate frustration, demotivation, it is therefore necessary to understand how the learning mechanisms of our brain work.Continue reading

Readers who can benefit from reading this article are potential foreign (non-American) investors who are interested in the US real estate market, that is, those who are unfamiliar with the American culture and are therefore in difficulty in facing a non indifferent, that is, investing overseas.
Below I will describe my personal experience and how I organized myself from Italy to invest in the USA.Continue reading

Financial freedom is a condition in which we should no longer have the need to work except to set up our investments and keep ourselves informed, because the world evolves as well as the types of assets that may no longer be as effective as a few years ago .

Basically, however, it should be an activity that is certainly not full-time, which leaves considerable space available, which is why those seeking to achieve financial independence should favor cashflow to capital-gains.Continue reading