campervans @campervans: "🧅 𝙏𝙝𝙚 𝙄𝙣𝙛𝙤𝙧𝙢𝙖𝙩𝙞𝙤𝙣 𝙊𝙣𝙞𝙤𝙣 🧅 🤔..."

United Arab Emirates

Edited

🧅 𝙏𝙝𝙚 𝙄𝙣𝙛𝙤𝙧𝙢𝙖𝙩𝙞𝙤𝙣 𝙊𝙣𝙞𝙤𝙣 🧅 🤔 𝙀𝙫𝙚𝙧 𝙬𝙤𝙣𝙙𝙚𝙧𝙚𝙙 𝙬𝙝𝙮 𝙩𝙝𝙖𝙩 𝙗𝙡𝙤𝙜 𝙥𝙤𝙨𝙩 𝙨𝙩𝙤𝙘𝙠 𝙥𝙞𝙘𝙠 𝙩𝙪𝙧𝙣𝙚𝙙 𝙤𝙪𝙩 𝙨𝙤 𝙗𝙖𝙙𝙡𝙮? 📉 We use a lot of tools and resources to help invest (I’ll share a list of the tools I use in a future post - add to a watchlist to get notified). 👉 What’s more important than which resources - is 𝙬𝙝𝙖𝙩 𝙧𝙚𝙨𝙤𝙪𝙧𝙘𝙚𝙨 𝙩𝙤 𝙩𝙧𝙪𝙨𝙩… Investment information is like an onion 🧅 . In the middle is the truth, each additional layer is further away from the truth. Here are the layers of the information onion, starting with the truth in the middle and moving to the less trustworthy. ғɪʟɪɴɢs - Part of the legal requirements for any publicly listed company is to report important information such as earnings or changes in share structure. These reports contain no opinions, and are factual statements about a company. They also include a balanced view on known risks. And are the truthful center of the Onion You can search US stock filings here -> www.sec.gov/edgar/search-and-access $AMZN (Amazon.com Inc) filings are here -> www.sec.gov/edgar/browse/?CIK=1018724&owner=exclude ᴀɴɴᴜᴀʟ (ᴀɴᴅ ǫᴜᴀʀᴛᴇʀʟʏ) ʀᴇᴘᴏʀᴛs - Again a requirement, but can contain speculative goals and future plans. Written from the company's (optimistic) point of view. Trustworthy but biased. Example, $TSLA (Tesla Motors, Inc.) Tesla’s annual report here -> bit.ly/3LJpNbv ʙᴜʏ sɪᴅᴇ ʀᴇsᴇᴀʀᴄʜ - These are research analysts that work for funds or prop desks. They are in charge of recommending buys and sells for the fund. Their job depends on these recommendations being right and there’s huge financial interest in getting things right. sᴇʟʟ sɪᴅᴇ ʀᴇsᴇᴀʀᴄʜ - This is the most commonly circulated, and written by analysts working for brokerages or funds. It's essentially marketing. The goal is to provide buy and sell recommendations, with the hope that clients place their business through their brokerage or fund. There’s no great requirement to be right, although it helps; and there’s a bias towards being bullish. ғɪɴᴀɴᴄɪᴀʟ ᴊᴏᴜʀɴᴀʟɪsᴍ - Most journalists are great storytellers and communicators; most fund managers are great investors. They’re not to be confused. An article is compelling to read when it invokes emotions usually by embellishing features of the article. But emotions are the enemy of good investment decisions. Put simply, a good article isn’t boring, but a good investment thesis usually is… So sadly it’s unlikely you’ll find good information and investment ideas on investment blogs like the Motley Fool. ᴄʟɪᴄᴋ ʙᴀɪᴛ - “This stonk is going to the moon!” Anything that focuses more on the outcome than the reasoning behind how it will get there is worth ignoring entirely. Again the author usually has zero financial interest in the ideas being right, but a large interest in the story being compelling - even if it is nonsense. —---------- ᴛᴡɪᴛᴛᴇʀ $TWTR - When different layers of the Onion colide. When two departments in the same firm work on the same thing, things can get comical. This is a Goldman Sachs Sell rating on $TWTR -> bit.ly/38UifnS with a target price of $30 (from sell side analysts). At the same time, Twitter hired Goldman to advise on the sale to Elon Musk at $54.20 a share - the same Goldman Sachs initially said $54.20 was too low…❗ —---------- When you’re looking at the outside of the onion it can be sometimes difficult to see the direction of the market ( $NSDQ100 ) and a downturns coming. As we can see from $HOOD (Robinhood Markets Inc.) 's recent results there’s far less money to be made in a bear market than a bull. So many layers of the Onion only promote positive stories and have no vested interest in anything negative. Making downturns seem like a surprise. —---------- eToro content can be at every layer of the Onion, however, by making portfolios and performance public and rewarding good investors it promotes good analysis. This way, the average post resembles more ‘buy side’ type analysis than ‘sell side’.

4 Mentioned

AMZN

Amazon.com Inc

TSLA

Tesla Motors, Inc.

NSDQ100

HOOD

Robinhood Markets Inc.