A former Goldman Sachs banker warns against the widely diversified quoted funds: central banks can remove market liquidity and cause a drop in the stock market
Holger Graf recalls that the first action he bought was from the Swiss Pharmaceutical Company.He acquired it in 2003, when he was only 18 years old.
"Completely naive for me, but at that time there was fear in the press for the avian flu," he says.
It was when Roche developed the Tamiflu drug to be used against the flu when Graf decided to buy company shares.
"I started listening to the news with the idea that I might take advantage of it," he adds.
What did not realize then that this information, known to all over all, is already included in the price of the shares, so information does not usually have much impact.
Graf today invests his money "in a slightly different way"
He decided to study mathematics at the Faculty, since it seemed to him to deal with numbers was "quite cool".
After graduating and obtaining a doctorate in financial mathematics, he started working at Goldman Sachs.
After more than three years, he left him and became a professor of International Financial Management at a University in Southern Germany.Today he lives near Stuttgart and is married.
Experts believe that the enthusiasm of Apple's results is justified and can lead the company to grow more in the stock market
This 36 -year -old man not only teaches his students how the world of finance works, but also actively invests.However, he does it "in a slightly different way," he says.
It is not that you think that getting out of the path traced is better, it is that, he says, "really enjoy" learning about new companies and analyzing financial products.
"A large part of my day spend exactly that," he continues.
The actions will end up going down a little, despite the increase in benefits
"I enjoy more looking at companies that are a little more hidden, especially because I work under an important premise," explains Graf.
The expert clarifies that if the central banks begin to withdraw market liquidity now, that is, if they stop making money available to commercial banks, then "the big companies that did very well in the last 12 months can continue generating largebenefits and continue to grow too, but the valuation multiples will go down ".
That means that actions will end up falling a little despite the increase in benefits.
"In the coming years, those who have a very diversified inverted background will not be well positioned," he says.
Panic takes over the bags: why history shows that you should not sell when everything falls apart
Eso es porque, por ejemplo, en el S&P 500 o incluso en los índices MSCI World, esas grandes empresas tienen "pesos relativamente grandes".
Consequently, Graf seeks values that, in their opinion, can continue having a "reasonably stable" performance even in a changing environment.Look for investment opportunities that are not correlated with the market in general, the so -called "alternatives," he says.
Use collective demands and music to cover your wallet
Appoint as an example the round Hill Music Royalty Fund.
Round Hill is a management society that essentially buys song rights and then gets money when the song is reproduced.This fund usually quotes in the market and, therefore, is available for retail investors to enter into it.
"Of course, these values are not on the cover of the newspapers.You have to look for them, "says Graf.
Another of these investments, says, are collective demands.
To invest your money in this type of judgments, the portfolio is fixed on corporate funds that quote on a stock market and finance judgments worldwide.
These 2 graphics explain why the fall of the bag and the collapse of bitcoin are related, and why cryptocurrency is not an active refuge like gold
The best known are Burford Capital and Omni Bridgeway, explains Graf.
Burford Capital, for example, is an American investment company specializing in the financing of judgments and paying their costs.
But do not just buy them because it is what there is, he comments.There are many factors at stake.
Graf explains that certain questions should be asked: how have the fund managers work so far?Have been reasonably successful investments or not?What are the plans for the future?
"A good analysis takes a long time, a long time," he says.
That is why he believes that for most private investors, a fund quoted on a wide index remains "probably the best" if you don't have much time to devote to investment.
For Graf, that is not a problem, not even in terms of loss free time.
In addition to his work as a finance professor, he also directs his Instagram account "Prof.Goldgraf ", which already has more than 13.900 followers.
This began as a result of a joke in a class, Graf counts.At that time, students were publishing many stories on Instagram.
From Gamestop to Zoom: The winners and losers of the year on the stock market and what can happen with their actions in 2022
He joked with them saying: "If you are going to put stories, you could at least link to me".At that time, I didn't even have an account.
"Then the fun began," he says.
In your account, regularly informs of important news from the world of finance and explains basic knowledge of the stock market.
It doesn't matter if a position is "massively in red"
If Graf is asked about the greatest mistake that many private investors make, it soon answers: investors want to obtain benefits in each position.
"You look at a wallet and then see something in red and you horrify yourself.I think that is an absolutely wrong way of thinking, "says Graf.
If you want to create wealth, you don't have to obtain benefits in each position, but you must look at the global profitability and the general risk of the portfolio, adds.
It is also not bad for a position to be sometimes "in large red numbers".Do not sell it immediately.Rather, you have to ask why actions of that company or that fund were bought and if the reason is still valid.
"Definitely, something can be added to a portfolio that continues to lose some money," says Graf.
"That is a kind of coverage, in the sense that, if the rest suddenly falls, this will probably upload.So it is a perfectly legitimate way of adding value ".
Apple, Nvidia, Coca-Cola and 8 other companies with potential to shoot in the stock market in 2022, according to the forecasts of the large Wall Street investment firms
The most important thing is to start with the funds invested, follow the market and get used to fluctuations, says the financial expert.
Because the second big mistake, he adds, is to get carried away by emotions.
Do not get nervous when the wallet enters red numbers, advises.
"At some point, the portfolio will also fluctuate for a number of several monthly salaries, and will be completely normal".
Do not associate the wallet with the salary of a month and feel that that salary has been lost."That will go crazy," says the professor.His advice? Keep calm.
This article was originally published in BI Prime.