Value Investment X Price Investment
We are here once again to show you the difference in gain between investment (value) and speculation (price).
Speculators invest in Price, use Technical Analysis, buy and sell several times a day or week .Don’t care if the price is expensive or cheap and they don’t care about the quality of the company they invest the money into.
Investors do not invest in price but value. They calculate the value of the company’s stock before investing. If the stock price is below the value then they buy and wait for the stock to appreciate. Investors do NOT use technical analysis or charts. They only care about the quality of the company and the relation value/price of its stocks.
Let’s use the company VLO (Valero Energy Corporation) it is an American energy company.
VLO is a very efficient company and it has generated a lot of money at low cost over the last 15 years, leaving a lot of wealth to share with its shareholders. This company became its shareholders rich people.
Look at the chart below. We will see that the blue arrow shows the shareholder buying point in 2004, below $ 10 per share. The red arrow shows the great fall of 2008. We can see that despite all the problems in 2008, VLO’s quality of wealth generation made its shareholders rich in 2019. VLO’s shares have appreciated over 1000% in the last 15 years.
Now I will ask you: how many speculators went bankrupt in 2008? If you are an investor ,if you invest in the long run in an efficient company you will be protected from the pitfalls of the uncertain future. Even if your stock depreciates you know that it will be for a short time because the company’s wealth generation will give you a fortune in the coming years.
It’s time to change sides. Stop speculating and come invest with us on stocks4-u.com
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You can be a winner. Yes you can!!!!!