My stock investment winning method 2020 edition

Until now, I have summarized my stock investment law in a blog, but now that I have reached 100 million yen in stock assets, I would like to look back on what I have said so far and summarize again.

10 conditions to win the market average

1. Invest in the US stock market

2. If you buy it, don’t sell

3. Avoid non-distribution shares other than giant high-tech companies, but also avoid high dividend shares

4. Charts for the past 10 years have been rising

5. Holds the brand of the company to which you have attachment

6. Diversified investment that can be tolerated even when the stock price goes to zero

7. Select from S & P500 brands

8. Buy when the yen is strong

9. Buy more degraded stocks

10. Increase income and save money, buy more and more

Until now, there were six conditions, but we have added 7th to 10th.

1. Invest in the US stock market

The largest stock exchange in the world by market capitalization is the New York Stock Exchange (NYSE). The second place is NASDAQ. In fact, the third place is the Tokyo Stock Exchange in Japan. Japanese stock is the third largest in the world despite being called bad. The fourth place is the Shanghai Stock Exchange in China. Isn’t it worried about going out of control over Chinese stocks? Other stock exchanges such as London and Germany are smaller. With that in mind, choosing a stock from the US stock market has a lower risk of failure.

2. If you buy it, don’t sell

What makes it difficult to make money with stocks is “Which brand to buy when?” and “When to sell?” If you don’t sell, You can diminish one uncertainty factor. The others factors will be determined by the conditions that appear later.

3. Avoid non-distribution shares other than giant high-tech companies, but also avoid high dividend shares

The high dividend stock is a completely ripe grandpa stock. Will not grow so much anymore. The S & P 500 index is growing at an average of 7% annually, so you need to be a high dividend stock with a dividend of 7% or more to beat the market average. This means that in order to beat the market average, the stock price must be higher than the market average.

Some of the undelivered stocks are terrific growth stocks, but being unpaid means that you are using the cash you earn for more and more capital expenditures. In a way, you are still growing while you are eating or eating, so you run the risk of being eaten by something unexpected. It is hard to determine whether the price will move so fast that it will rebound and rise immediately when it drops significantly, or that it will stop breathing. Therefore, we will avoid undistributed shares because they are not suitable for long-term holding.

The exception, however, is that giant tech companies are growing fast enough to swallow the global market without paying. This is the current stock market trend. In the stocks I hold, Amazon (AMZN), Alphabet (GOOG), and Adobe (ADBE) are unpaid, but they are too large and high-tech companies.

4. Charts for the past 10 years have been rising

While good past performance doesn’t mean good future performance, it’s very unlikely that a tattered stock in the past will always perform well in the future. Mr. Buffett’s teachings to buy the S & P500 ETF probably mean that the US market has been steadily rising over the long term. In other words, this is also an empirical rule obtained from past records. It’s the same as focusing on resumes and educational backgrounds when hiring people. There is little loss.

5. Holds the brand of the company to which you have attachment

That said, stock prices can be sluggish for a few years. At such times, you may become a suspicion and sell it. Only after selling, does the stock’s stock price recover.

Look back on your own life and own a company that has offered products with good memories. Even when it is hard, you can stop without selling.

Even if you make a mistake, don’t own a cigarette brand without smoking or a McDonald’s without burgers.

6. Diversified investment that can be tolerated even when the stock price goes to zero

Even if you hold stocks with attachments for a long period of time, stock prices may continue to fall due to poor business performance and become irreversible. Diversify your investment into multiple stocks (about 10 stocks) to the extent that the stock price goes to zero.

7. Select from S & P500 brands

The S & P 500 is made up of 500 large stocks in the US stock market. If it is not a big ship, it will be shaken up and down in the rough market, it is dangerous. Small caps are not recommended for mentally vulnerable people because they are more prone to selling when bad news comes out and they can’t read the appropriate market price. Ride on a large boat when traveling the ocean on a long trip.

8. Buy when the yen is strong

The U.S. stock market has been steadily rising in the long run. So even if you buy it anytime, it will be a plus in the long term, but it is definitely better to buy it when it is down.

However, it cannot be determined where the bottom price is.

Fortunately, Japanese investors are earning money in yen (YEN), so when the stock price is low, the risk is off and the yen is rising. The dollar-yen exchange rate has recently been in the range of 100-120 yen. If you buy more when the yen is stronger than the median of 110 yen, you can buy more US stocks at a lower price.

9. Buy more degraded stocks

The purpose of choosing individual stocks rather than ETFs is to win the market average. Individual stock selections that are always below the market average are losing risk variance, losing returns, and don’t know what they are doing.

Choosing individual stocks, equals, and winning the market average are prerequisites. Another point where individual stocks are better is that even in a rising market, individual stocks that are left behind due to sluggishness can be found, so you can buy them cheaper and buy them cheaper.

ETFs cannot be broken down into individual stocks and invested. It will rise and buy more with a high price.

10. Increase income and save money, buy more and more

To get a high return on long-term holdings, you have to keep buying. To do this, it is important to increase income and save money.

The trick is to invest in your hobby. If your hobbies are cars or clothes, you save money and use it for your own hobby. In the same way, if equity investment becomes a hobby, “Let’s work a bit more overtime, work part-time, and even buy vegetables at a supermarket, so you can save money, so you can buy hobby stock.” It is becoming.

Actually, I am not a frugal man. It is a type that wastes money for hobbies and tilts the house. So now I’m a hobby of stock investment, so I’m sprinkling money on stocks. The balance of a bank’s savings is always a fire car.

Above, I tried to summarize. We will continue to invest and will update again if new conditions are added or corrections are needed.

米国株ブログランキングの最新版はこちら!

投資の参考になりますよ!

にほんブログ村 株ブログ 米国株
にほんブログ村